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You are required to: a) Prepare the statement of profit or loss for the reporting period ending on 31 December 2020 [15 marks] b) Prepare
You are required to: a) Prepare the statement of profit or loss for the reporting period ending on 31 December 2020 [15 marks] b) Prepare the statement of changes in equity for the reporting period ending on 31 December 2020 (6 marks] c) Provide a disclosure note in respect of share capital of the company . 213.550 LOOD 500.000 800.000 28.900 7.000 3.500 3.800 Cash at bank Allowance for expected credit losses Purchases Sales revenue Trade receivables Trade payables Sales returns and allowances Purchase returns and allowances Carriage inwards Carriage outwards Bank charges Municipal rates and taxes Salaries Wages Travelling expenses Settlement discounts allowed Settlement discounts received General expenses Gas and electricity Printing and stationary Advertising 60 70 20 4.280 5.970 3.130 1.980 20 15 8.100 9.385 1.850 2450 Additional data (all monetary figures are in R'000's): (i) Inventories as at 31 December 2020 are R12,000 (ii) Depreciation is to be charged as follows: Buildings 2% on cost Motor vehicles 10% on cost Furniture and fittings 5% on cost (iii) There is the following payment in advance: General expenses R500 (iv) There are the following accrued expenses: Business rates R300 Advertising R550 5 / 8 97% + (v) Authorised ordinary share capital is 1,000,000 shares of no-par value, and authorised preference share capital is 100,000 shares. Preference shares are redeemable at the option of the company directors and have a fixed dividend of 6,25%. (vi) Taxation has been calculated as R58,500. (vii) Debenture interest should be charged at 10% per annum. (viii) Provision for the impairment of receivables is increased to R1,600 after writing off a credit loss of R400 in bad credit customer accounts. (ix) During the February 2020, the board issue 50 000 ordinary shares at an aggregate issue price of R60 000. The share transaction costs, which were charged against share capital account, amounted to R13 000. No preference shares were issued in respect of the current year. (x) The board od directors met on 20 December 2020 and resolved to pay ordinary dividend of 3,5 cents to shareholders on record as at 25 January 2021. Preference 10:00 current year. (x) The board od directors met on 20 December 2020 and resolved to pay ordinary dividend of 3,5 cents to shareholders on record as at 25 January 2021. Preference dividends due ub in respect of the current year have not been paid. You are required to: a) Prepare the statement of profit or loss for the reporting period ending on 31 December 2020 [15 marks] b) Prepare the statement of changes in equity for the reporting period ending on 31 December 2020 (6 marks] c) Provide a disclosure note in respect of share capital of the company . 213.550 LOOD 500.000 800.000 28.900 7.000 3.500 3.800 Cash at bank Allowance for expected credit losses Purchases Sales revenue Trade receivables Trade payables Sales returns and allowances Purchase returns and allowances Carriage inwards Carriage outwards Bank charges Municipal rates and taxes Salaries Wages Travelling expenses Settlement discounts allowed Settlement discounts received General expenses Gas and electricity Printing and stationary Advertising 60 70 20 4.280 5.970 3.130 1.980 20 15 8.100 9.385 1.850 2450 Additional data (all monetary figures are in R'000's): (i) Inventories as at 31 December 2020 are R12,000 (ii) Depreciation is to be charged as follows: Buildings 2% on cost Motor vehicles 10% on cost Furniture and fittings 5% on cost (iii) There is the following payment in advance: General expenses R500 (iv) There are the following accrued expenses: Business rates R300 Advertising R550 5 / 8 97% + (v) Authorised ordinary share capital is 1,000,000 shares of no-par value, and authorised preference share capital is 100,000 shares. Preference shares are redeemable at the option of the company directors and have a fixed dividend of 6,25%. (vi) Taxation has been calculated as R58,500. (vii) Debenture interest should be charged at 10% per annum. (viii) Provision for the impairment of receivables is increased to R1,600 after writing off a credit loss of R400 in bad credit customer accounts. (ix) During the February 2020, the board issue 50 000 ordinary shares at an aggregate issue price of R60 000. The share transaction costs, which were charged against share capital account, amounted to R13 000. No preference shares were issued in respect of the current year. (x) The board od directors met on 20 December 2020 and resolved to pay ordinary dividend of 3,5 cents to shareholders on record as at 25 January 2021. Preference 10:00 current year. (x) The board od directors met on 20 December 2020 and resolved to pay ordinary dividend of 3,5 cents to shareholders on record as at 25 January 2021. Preference dividends due ub in respect of the current year have not been paid
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