Use the following information to answer questions 1 7 The following information pertains to Zambezi Traders CC 1.Balances at 28 February 2022: R Members contribution: C Carl 150000 Members contribution: S Joels 220000 Retained earnings (1 March 2021) 66600 Revaluation surplus 72000 Loan from C Carl 80000 Distribution to member: C Carl 33000 Distribution to member: S Joels 35000 Loan to S Joels 40000 Land and buildings at valuation (cost R128 000) 200000 Equipment at cost 165000 Investment at fair value 153000 Trading inventory 90500 Long-term loan: AKSA Bank 80000 Accumulated depreciation: Equipment 77320 Bank (overdraft) 25120 Trade receivables control 50550 Trade payables control 41540 Profit or loss before tax 195200 SARS (Income tax) (Dr) 70440 1. Additional information 1.1 The depreciation on equipment for the year amounted to R41 250. 1.2 There were no disposals of, or additions to the land and buildings and equipment during the financial year. On 31 October 2021 the land and buildings were revalued to R200 000 by Mr P Zulu, an independent sworn appraiser. The transaction has already been recorded. 1.3 The loan from C Carl is unsecured and the first instalment of R20 000 must be paid on 28 February 2023. 1.4 The actual SA normal income tax for the financial year amounted to R60 450 and must still be recorded. 1.5 A further distribution of R60 000 must be made to the members. 1.6 The long-term loan from AKSA Bank was obtained on 1 March 2021 at 15% interest per annum and is secured by a first mortgage bond over land and buildings. The capital amount of the loan must be repaid on 28 February 2028. 1.7 The loan to S Joels is immediately callable. QUESTION 1 Which one of the following alternatives represents the correct amount that must be disclosed as total balance in the statement of changes in net investment of members on 01 March 2021. A. R436 000 B. R370 000 C. R516 000 D. R476 000 Clear my choice Question 24 Not yet answered Marked out of 2.00 QUESTION 2 Which one of the following alternatives represents the correct amount that must be disclosed as profit for the year in the statement of changes in net investment of members on 28 February 2022. A. R200 750 B. R134 750 C. R195 200 D. R124 760 Clear my choice Question 25 Not yet answered Marked out of 2.00 QUESTION 3 Which one of the following alternatives represents the correct amount that must be disclosed as total distribution to members in the statement of changes in net investment of members on 28 February 2022. A. R93 000 B. R68 000 C. R128 000 D. R60 000 Clear my choice Question 26 Not yet answered Marked out of 2.00 QUESTION 4 Assuming that the profit for the year was R130 000, Which one of the following alternatives represents the correct amount that must be disclosed as closing balance of retained earnings in the statement of changes in net investment of members on 28 February 2022. A. R66 600 B. R195 200 C. R130 000 D. R68 600 Clear my choice Question 27 Not yet answered Marked out of 2.00 QUESTION 5 Which one of the following alternatives represents the correct amount that must be disclosed under non-current liabilities in respect of loan from member in the statement of changes in net investment of members on 28 February 2022. A. R60 000 B. R80 000 C. R40 000 D. R20 000 Clear my choice Question 28 Not yet answered Marked out of 2.00 QUESTION 6 Which one of the following alternatives represents the correct amount that must be disclosed under current liabilities in respect of loan from member in the statement of changes in net investment of members on 28 February 2022. A. R 80 000 B. R 60 000 C. R 20 000 D. R 0 Clear my choice Question 29 Not yet answered Marked out of 2.00 QUESTION 7 Which one of the following alternatives represents the correct classification of loans from members in the accounting records of a closed corporation (CC) according to the closed corporation act No.69 of 1984. A. Expenses B. Liabilities C. Incomes D. Assets uestion 30 Not yet answered Marked out of 3.00 The information below relates to questions below: Established in 2002 by the visionary sisters, Guga and Othandayo Dube, Sidvokodvo Enviro Services CC, was born out of a deep-rooted expertise in the mining sector. With a cumulative experience spanning five decades, the Dube siblings sought to leverage their profound knowledge in the face of rapidly expanding infrastructure projects nationwide. Recognising a niche, they strategically positioned the company to offer specialised environmental consultancy services tailored to the mining and rail sectors. As the nation underwent significant infrastructural growth, Sidvokodvo Enviro Services CC emerged as a frontrunner in ensuring eco-friendly and sustainable practices in these pivotal industries. The following information pertains to Sidvokodvo Enviro Services CC. Extract of balances from the statement of financial position information as at 28 February 2023: 2023 2022 R R SARS (income tax) liability 71,500 49,500 Trade payables control 72,900 70,300 Accrued expenses (telephone) 20,500 15,100 Distribution to members payable 46,700 42,000 Mortgage loan - Hlane Merchant Bank 102,900 148,100 Trade receivables control 123,800 113,200 Listed investments carried at fair value 173,500 23,400 Inventory 95,600 84,500 Cash and cash equivalents 20,300 35,800 Dividends receivable 31,800 26,400 Prepaid IT expenses 11,500 17,500 Members contribution: Guga 348,900 286,200 Members contribution: Othandayo 287,300 272,600 Retained earnings 62,900 51,300 Office furniture at carrying amount 20,000 - Computer equipment at carrying amount 267,400 254,700 Land and buildings at cost 627,600 466,900 Revaluation surplus on land and buildings 91,600 70,100 Extract of items disclosed in the statement of profit or loss and other comprehensive income for the year ended 28 February 2023: R Profit on sale of equipment 12,600 Investment income: Dividends income 26,400 Profit on sale of land 79,400 Telephone expense 114,900 Fair value loss on listed investments 9,000 IT expense 16,800 Other admin and operating expenses 207,600 Revenue 1,152,500 Cost of sales 550,700 Depreciation for the year 21,500 Income tax expense 81,800 2. Additional information 2.1 The cash and cash equivalents is made up of: 2023 2022 Bank balances R15 300 R27 200 Petty cash R5 000 R8 600 2.2. The following pertains to property, plant and equipment: 2.2.1 In the financial year, computer equipment instrumental for environmental assessments was sold, with a carrying amount of R43 000. To maintain their cutting-edge services, the CC acquired the latest version of this equipment. This transaction has been accurately recorded. 2.2.2 Last year, a parcel of land, initially purchased for R202 000 as a potential site for environmental studies related to mining and rail projects, was sold during the current financial year. In alignment with the CC's accounting principles, the land doesn't is not depreciated. A new semi-prepared land, primed for further environmental consultancy projects, was acquired during the year. 2.2.3 All acquisitions of property, plant, and equipment were in line with the need for upgrading existing resources, and payments were promptly settled in full. 2.3. The members collectively agreed to distribute earnings, with each member to receive a sum of R25 400 from the profits garnered through their environmental consultancy endeavours in the mining and rail sectors. 2.4 The interest expense on the Mortgage loan amounted to R13 300 and was added in the other admin and operating expenses. 2.5. On 28 February 2023, Othandayo contributed office furniture valued at R20 000 to the business for use at the new offices. This was correctly credited to the members contributions account. Which of the following alternatives represents the correct amount that must be disclosed as CASH RECEIPTS FROM CUSTOMERS in the cash generated from operations section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. 1,152,500 b. 1,141,900 c. 1,152,000 d. 1,163,100 Clear my choice Question 31 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as income tax paid in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (22,000) b. 59,800 c. 22,000 d. (59,800) Clear my choice Question 32 Not yet answered Marked out of 2.00 Which of the following alternatives represents the correct amount that must be disclosed as ACQUISITION OF LISTED INVESTMENTS in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (150,100) b. (159,100) c. 159,100 d. 150,100 Clear my choice Question 33 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as ADDITION/REPLACEMENT OF COMPUTER EQUIPMENt under investment in property, plant and equipment to maintain operating capacity in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. 77,200 b. 0 c. (120,200) d. (77,200) Clear my choice Question 34 Not yet answered Marked out of 2.00 Which of the following statements is CORRECT relating to preparation of statement of cash flows? a. Statement of cash flows is prepared according to the accrual basis of accounting. b. Statement of cash flows must only be prepared using the indirect method. c. Statement of cash flows is prepared according to cash basis of accounting. d. Partnerships are not allowed to prepare a statement of cash flows. e. 4 Statement of cash flows shows only the investing activities of a business. Clear my choice Question 35 Not yet answered Marked out of 11.00 Assume the correct cash purchases amount is R350 000. Which of the following alternatives represents the correct amount that must be disclosed as CASH PAID TO SUPPLIERS AND EMPLOYEES in the cash flows from operating activities section according to direct method in the statement of cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (738,400) b. (727,000) c. (336,000) d. (347,400) Clear my choice Question 36 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount of cash purchases in the cash generated from operations section in the statement of cash flows for Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (370,000) b. (370,600) c. (561,800) d. (550,700) Clear my choice Question 37 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as addition/replacement of computer equipment under investment in property, plant and equipment to expand operating capacity in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. 0 b. (120,200) c. (77,200) d. 77,200 Clear my choice Question 38 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as addition/replacement of land and buildings under investment in property plant and equipment to maintain operating capacity in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (341,200) b. 160,700 c. 341,200 d. (160,700) Clear my choice Question 39 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as PROCEEDS FROM SALE OF LAND AND BUILDINGS in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. 281,400 b. (122,600) c. 122,600 d. (281,400) Clear my choice Question 40 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as PROCEEDS FROM SALE OF COMPUTER EQUIPMENT in the cash flows from investing activities in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (55,600) b. (30,400) c. 30,400 d. 55,600 Clear my choice Question 41 Not yet answered Marked out of 3.00 Flag question Which of the following alternatives represents the correct amount that must be disclosed as PROCEEDS FROM MEMBERS CONTRIBUTIONS in the financing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. 77400 b. 62,700 c. 57,400 d. 14,700 Clear my choice Question 42 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as REPAYMENT OF LONG-TERM LOANS in the financing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (45,200) b. 57,400 c. 45,200 d. (57,400) Clear my choice Question 43 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as INTEREST PAID in the cash generated from operations section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. 13,030 b. 13,300 c. (13,030) d. (13,300) Clear my choice Question 44 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as DIVIDENDS RECEIVED in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. 21,000 b. 5,400 c. (5,400) d. (21,000) Clear my choice Question 45 Not yet answered Marked out of 3.00 Which of the following alternatives represents the correct amount that must be disclosed as distributions to members paid in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023? a. (20,700) b. 46,100 c. (46,100) d. 20,700 Clear my choice Question 46 Not yet answered Marked out of 2.00 Which of the following statements is INCORRECT relating to preparation of statement of cash flows? a. Capitalization share issue is regarded as a cash item. b. Dividends received is a separately disclosable item. c. Interest paid is a separately disclosable item. d. Loss on sale of equipment is a non-cash item. e. Depreciation is a non-cash item. Where inventory to the branch is invoiced at cost, which of the following are the two accounts to be opened in the accounting records of the head office? a. Branch inventory adjustment account and inventory to branch account b. Branch inventory account and inventory to branch account c. Head office inventory account and inventory to branch account d. Inventory to branch account and inventory from branch account Clear my choice Question 48 (2marks) Which of the following statements is incorrect in regard to the accounting for branch inventory? a. When dealing with a dependent branch and the accounting functions of the branch are performed by the main branch of the entity (head office). b. The branch inventory account serves the same purpose as the trading account. When balanced at the end of the accounting period, the balance on the account represents the gross profit/loss that the branch made. c. Branches can be managed as dependent or independent units, each with its own distinct accounting requirements. d. The gross profit/loss is the result of the difference between the price at which inventory is received (from head office) and the price at which inventory is sold by the branch. This profit/loss is transferred to the branch expense account. Clear my choice Question 49 (2marks) Which one of the following statements is incorrect? a. In certain circumstances, the branch inventory account serves the same purpose as the normal trading account. b. When petty cash is embezzled at the branch, the branch inventory account is credited, and the branch expense account debited. c. The cost price of inventory that cannot be found is credited to the branch inventory account and debited to the branch expenses account. d. Where inventory is invoice to branch at cost price, the mark-down on sales does not require any entries in the books.