Cost of sales (250 000) Private Limited is a company that specialises in the manufacture and distribution of irrigation equipment. The Gross profit 250 000 below was obtained from the books of DripTech (Pvt) for the financial ended 28 February 2021. Other income 5 000 of Financial Position as at 28 February 2021 Administrative expenses (141 800) 2021 2020 Selling expenses (87 400) R R Other costs (8 000) buildings 350 000 340 000 Finance cost (7 300) machinery 105 000 124 000 Profit before tax 10 500 icles 108 900 67 300 Income tax expense assets at amortised cost 25 200 PROFIT FOR THE YEAR 10 500 67 000 50 000 Other comprehensive income for the year d other receivables 37 400 50 000 10 500 TOTAL COMPREHENSIVE INCOME FOR THE YEAR xpenses 500 2 600 2 000 670 800 659 100 Additional information 1. The long-term borrowing bears interest at 12% per annum, payable in arrears, and was repaid on 31 August pital (280000/250000 shares) 292 000 258 200 Interest did not qualify for capitalisation. m borrowings on surplus-land and buildings earnings Debentures 80 000 2 In August 2020, a piece of land that cost R15 000 was sold for its carrying amount and replaced with another 15 000 of land. On 28 February 2021, the remaining land was revalued. These were the only transactions in respect 188 700 220 000 and buildings for the current financial year. 40 000 3. During the current financial year, a machine with a carrying amount of R51 000 was sold at a loss of R8 00 hle 23 300 46 600 roplaced with a noa machine uhich cost P62.000 The tntal donrociation on ola machinonu for t
Cost of sales (250 000) Private Limited is a company that specialises in the manufacture and distribution of irrigation equipment. The Gross profit 250 000 below was obtained from the books of DripTech (Pvt) for the financial ended 28 February 2021. Other income 5 000 of Financial Position as at 28 February 2021 Administrative expenses (141 800) 2021 2020 Selling expenses (87 400) R R Other costs (8 000) buildings 350 000 340 000 Finance cost (7 300) machinery 105 000 124 000 Profit before tax 10 500 icles 108 900 67 300 Income tax expense assets at amortised cost 25 200 PROFIT FOR THE YEAR 10 500 67 000 50 000 Other comprehensive income for the year d other receivables 37 400 50 000 10 500 TOTAL COMPREHENSIVE INCOME FOR THE YEAR xpenses 500 2 600 2 000 670 800 659 100 Additional information 1. The long-term borrowing bears interest at 12% per annum, payable in arrears, and was repaid on 31 August pital (280000/250000 shares) 292 000 258 200 Interest did not qualify for capitalisation. m borrowings on surplus-land and buildings earnings Debentures 80 000 2 In August 2020, a piece of land that cost R15 000 was sold for its carrying amount and replaced with another 15 000 of land. On 28 February 2021, the remaining land was revalued. These were the only transactions in respect 188 700 220 000 and buildings for the current financial year. 40 000 3. During the current financial year, a machine with a carrying amount of R51 000 was sold at a loss of R8 00 hle 23 300 46 600 roplaced with a noa machine uhich cost P62.000 The tntal donrociation on ola machinonu for t
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
REQUIRED INDIRECT METHOD as at 29 February 2021. Show all the necessary workings
Transcribed Image Text:REQUIRED
Prepare the Statement of Cashflow using the INDIRECT METHOD as at 29 February 2021. Show all the necessary workings.
Transcribed Image Text:Statement of Comprehensive Income for the year ended 28 February 2021
R
Revenue
500 000
Cost of sales
(250 000)
DripTech Private Limited is a company that specialises in the manufacture and distribution of irrigation equipment. The
information below was obtained from the books of DripTech (Pvt) for the financial ended 28 February 2021.
Gross profit
250 000
Other income
5 000
Statement of Financial Position as at 28 February 2021
Administrative expenses
(141 800)
2021
2020
Selling expenses
(87 400)
R
R
Other costs
(8 000)
Land and buildings
350 000
340 000
Finance cost
(7 300)
Plant and machinery
105 000
124 000
Profit before tax
10 500
Motor vehicles
108 900
67 300
Income tax expense
Financial assets at amortised cost
25 200
PROFIT FOR THE YEAR
10 500
Inventory
67 000
50 000
Other comprehensive income for the year
Trade and other receivables
37 400
50 000
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
10 500
Prepaid expenses
500
2 600
Bank
2 000
670 800
659 100
Additional information
1. The long-term borrowing bears interest at 12% per annum, payable in arrears, and was repaid on 31 August 2020.
Share capital (280000/250000 shares)
292 000
258 200
Interest did not qualify for capitalisation.
Long- term borrowings
80 000
2.
In August 2020, a piece of land that cost R15 000 was sold for its carrying amount and replaced with another piece
Revaluation surplus – land and buildings
15 000
of land. On 28 February 2021, the remaining land was revalued. These were the only transactions in respect of land
Retained earnings
188 700
220 000
and buildings for the current financial year.
10%R200 Debentures
40 000
3. During the current financial year, a machine with a carrying amount of R51 000 was sold at a loss of R8 000 and
Таx payable
23 300
46 600
replaced with a new machine which cost R62 000. The total depreciation on plant and machinery for the current
Ordinary dividends payable
16 800
financial year amounted to R39 000.
Accumulated depreciation
4. A motor vehicle with a cost price of R14 400 on which depreciation of R7 400 had already been written off was
- Plant and machinery
27 000
18 000
traded in for R9 000 on a new vehicle that cost R35 000.
- Motor vehicles
27 200
10 000
5. No other machines or motor vehicles were sold during the year, but one additional motor vehicle was purchased.
Trade and other payables
38 800
26 000
6. The provision for tax for the current financial year was R15 000. This includes an under- provision of R5 100 for the
Accrued interest
2 000
2020 tax year.
Bank overdraft
300
7. New shares were issued on 31 December 2020.
670 800
659 100
8. On 31 July 2020, an interim ordinary dividend of 4c per share was declared and paid.
9. Ordinary dividends of 6c per share were declared on 28 February 2021.
10. The financial assets were sold at amortised cost on 1 March 2020. These shares were purchased without the
intention of short-term profit taking as part of the business model.
11. During the vear, dividends to the value of R3 000 were received.
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