10. what is the correct amount that must be disclosed as income tax paid in the cash flows from operating activities section of the statement of cash flows of Moletji Limited for the year ended 31 December 2020? Additional information:1. The following relates to property, plant and equipment:• On 31 October 2020, a vehicle with a cost price of R71 000 and accumulated depreciation of R50 000 (on 1January 2020) was sold for cash. A replacement vehicle was bought on 1 December 2020.On 20 June 2020, furniture with a cost price of R4 000 and accumulated depreciation of R1 200 was sold forcash. A replacement furniture was bought on 31 July 2020.All other purchases were in cash.2. It is the accounting policy of the company to provide for depreciation as follows:Vehicles: According to the diminishing balance method, at 20% per annum.• Furniture: According to the straight-line method, at 25% per annum.3. The following relates to the shares of the company:On 31 August 2020, the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4)ordinary shares held. On that date the number of ordinary shares issued were 98 000 shares. The capitalisationissue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash.• The company allotted and issued 45 000 ordinary shares and 12% preference shares on 31 October 2020.• On 15 December 2020, the company declared an ordinary dividend of 30 cents per share.4. The investments consist of listed shares in Mankweng Ltd, bought for R3 each on 1 January 2020. The company sold4 000 of these shares on 30 November 2020.5. The following relates to loans for the company:Interest on long-term loans is capitalised.Loans to directors are interest free and immediately callable.Loans from shareholders are interest free and repayable on 30 November 2022. Moletji Ltd is public company owned by two prominent business women and the local community trust around the CapricornDistrict Municipality. The company was founded in the year 2018 and the following information pertains to the company:Extract of accounts pertaining to the statement of financial position as at 31 December:20202019RLong-term loan112 50089 100Loans to directors47 90013 800Loans from shareholders11 10034 100Trade payables control59 90048 000Accrued security expense7 1001 800Land and buildings at cost758 700615 500Vehicles at cost267 100130 100Furniture at cost86 00071 300Investments at fair value168 700Accumulated depreciation: Vehicles62 60047 600Accumulated depreciation: Furniture15 70013 300Share capital: ordinary shares515 200266 800Share capital: 12% preference sharesRetained earnings265 500177 900484 100370 400Inventory115 70077 200Dividends payable46 90014 900Dividends receivable3 0002 500SARS (income tax)46 900Dr 103 800Trade receivables control66 40077 900Prepaid expenses (advertising)7 9005 500Bank37 6002 100Items disclosed in the statement of profit or loss and other comprehensive income for the year ended 31 December2020:RRevenue2 107 300Cost of sales780 500Profit on sale of non-current assets: furniture900Loss on sale on listed investments3 600Dividend income: listed investments8 900Fair value gain: listed investments14 900Other operating expenses140 600Administrative expenses (including salaries and wages)161 700Depreciation51 500Loss on sale of non-current asset: vehicle12 100Interest expense11 500Income tax expense232 100Profit for the year597 600

Cash flow statement is an important tool in every organization as it shows the cash flows from the…

Moletji Ltd is public company owned by two prominent business women and the local community trust around the Capricorn District Municipality. The company was founded in the year 2018 and the following information pertains to the company: Extract of accounts pertaining to the statement of financial position as at 31 December: 2020 2019 R R Long-term loan 112 500 89 100 Loans to directors 47 900 13 800 Loans from shareholders 11 100 34 100 Trade payables control 59 900 48 000 Accrued security expense 7 100 1 800 Land and buildings at cost 758 700 615 500 Vehicles at cost 267 100 130 100 Furniture at cost 86 000 71 300 Investments at fair value 168 700 Accumulated depreciation: Vehicles 62 600 47 600 Accumulated depreciation: Furniture 15 700 13 300 Share capital: ordinary shares 515 200 266 800 Share capital: 12% preference shares 265 500 177 900 Retained earnings 484 100 370 400 Inventory 115 700 77 200 Dividends payable 46 900 14 900 Dividends receivable 3 000 2 500 SARS (income tax) 46 900 Dr 103 800 Trade receivables control 66 400 77 900 Prepaid expenses (advertising) 7 900 5 500 Bank 37 600 2 100 Items disclosed in the statement of profit or loss and other comprehensive income for the year ended 31 December 2020: R Revenue 2 107 300 Cost of sales 780 500 Profit on sale of non-current assets: furniture 900 Loss on sale on listed investments 3 600 Dividend income: listed investments 8 900 Fair value gain: listed investments 14 900 Other operating expenses 140 600 Administrative expenses (including salaries and wages) 161 700 Depreciation 51 500 Loss on sale of non-current asset: vehicle 12 100 Interest expense 11 500 Income tax expense 232 100 Profit for the year 597 600

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q