ACCOUNTING_P1_GR12_QP_JUNE_2022_English.pdf
QUESTION 1: STATEMENTS: COMPREHENSIVE INCOME AND FINANCIAL
POSITION (60 marks; 45 minutes)
The
... [Show More] information relates to John-Vos Ltd for the financial year ended 28 February 2022.
REQUIRED:
Complete the following:
(NOTE: Some information is printed in the ANSWER BOOK.)
1.1 Statement of Comprehensive Income for the year ended 28 February 2022. (40)
1.2 Retained income note on 28 February 2022. (7)
1.3 EQUITY and LIABILITIES section of the Statement of Financial Position on
28 February 2022. (13)
INFORMATION:
A. Amounts extracted from the records on 28 February 2022.
R
Loan: Sparks Bank 610 320
Creditors’ control 562 500
Fixed deposit: Winde Bank 150 000
Trading stock 900 000
Bank (favourable balance) 469 500
Debtors’ control 593 000
Provision for bad debts (1 March 2021) 34 120
SARS: Income tax (Dr) 660 000
SARS: PAYE 36 000
Pension fund 13 500
Sales 8 085 500
Insurance 48 750
Bad debts 33 260
Rent income 85 100
Directors’ fees 825 000
Consumable stores 33 900
Interest on fixed deposit 11 090
Bad debts recovered 11 760
Ordinary share dividends 237 500
B. Additional information:
(i) Mark-up:
A mark-up percentage of 100% on cost was maintained during the financial year.
(ii)
Ordinary share capital and dividends
• On 1 May 2021 an additional 300 000 shares were issued.
• On 1 September 2021 the company repurchased 40 000 shares at 80 cents above the average share price of R8,50 each.
• 950 000 shares were in issue on 28 February 2022.
• The total dividend for the year amounted to R570 000.
C. Adjustments not taken into account:
(i) Totally damaged goods returned on 26 February 2022 was incorrectly recorded as R7 200. The amount according to the credit note issued is R2 700.
(ii) Consumable stores on hand on 28 February 2022, R5 900.
(iii) An amount of R2 240 received from F. Solomon, whose account had been written off as irrecoverable, was posted in error to the bad debts account.
(iv) Provision for bad debts should be adjusted to R29 660.
(v) The insurance account includes an annual premium of R22 500 paid for the period 1 July 2021 to 30 June 2022.
(vi) The premises has been rented since 1 April 2021 with an agreement that rent will be reduced by R1 000 per month with effect from
1 January 2022. The rent for February 2022 is still outstanding.
(vii) The company pays the same monthly fee to all directors. One of the three directors resigned on 30 November 2021 and a new director was appointed on 1 February 2022. The fees of the new director is still outstanding.
(viii) Sundry expenses is the missing figure in the Statement of Comprehensive Income.
(ix) After taking all adjustments into account, the operating profit was accurately calculated as R1 602 190.
(x) Extract from the loan statement received from Sparks Bank:
Interest capitalised ?
Repayments (including interest) 161 280
Balance at the end of the financial year 703 800
R100 000 of the loan will be paid back in the next financial year.
(xi) The income tax rate is 30%.
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