QUESTION 4 REQUIRED Use the relevant information provided below to prepare the following: 4.1 Journal entries to record the payment of the first provisional tax and to record the total company tax for the financial year. 4.2 Statement of Financial Position as at 31 October 2024 INFORMATION The following balances were obtained from the accounting records of Tango Limited on 31 October 2024, the end of the financial year: Creditors control Debtors control Bank (Dr balance) R 1260 000 1 200 000 1675 500 Ordinary share capital Long-term loan 12% Preference shares Retained profit 1537 500 900 000 660 000 345 000 Equipment (cost) Vehicles (cost) 90 000 Accumulated depreciation on equipment (01 November 2023) 18 000 600 000 Accumulated depreciation on vehicles (01 November 2023) 120 000 Inventory Petty cash 441000 3 000 Shares invested in Amcor Limited 1 005 000 Additional information a) Depreciation on equipment and vehicles for the year ended 31 October 2024 amounted to R9 000 and R60 000 respectively. b) A final dividend of 30 cents per ordinary share was declared but not paid. There were 200 000 ordinary shares in issue. (This dividend was included in the calculation of the retained profit.) c) The total company tax for the financial year amounted to R600 000. The first and second provisional payments made to the tax authority were R300 000 (30 April 2024) and R255 000 (31 October 2024) respectively.
QUESTION 4 REQUIRED Use the relevant information provided below to prepare the following: 4.1 Journal entries to record the payment of the first provisional tax and to record the total company tax for the financial year. 4.2 Statement of Financial Position as at 31 October 2024 INFORMATION The following balances were obtained from the accounting records of Tango Limited on 31 October 2024, the end of the financial year: Creditors control Debtors control Bank (Dr balance) R 1260 000 1 200 000 1675 500 Ordinary share capital Long-term loan 12% Preference shares Retained profit 1537 500 900 000 660 000 345 000 Equipment (cost) Vehicles (cost) 90 000 Accumulated depreciation on equipment (01 November 2023) 18 000 600 000 Accumulated depreciation on vehicles (01 November 2023) 120 000 Inventory Petty cash 441000 3 000 Shares invested in Amcor Limited 1 005 000 Additional information a) Depreciation on equipment and vehicles for the year ended 31 October 2024 amounted to R9 000 and R60 000 respectively. b) A final dividend of 30 cents per ordinary share was declared but not paid. There were 200 000 ordinary shares in issue. (This dividend was included in the calculation of the retained profit.) c) The total company tax for the financial year amounted to R600 000. The first and second provisional payments made to the tax authority were R300 000 (30 April 2024) and R255 000 (31 October 2024) respectively.
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 45P
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Question
Transcribed Image Text:QUESTION 4
REQUIRED
Use the relevant information provided below to prepare the following:
4.1 Journal entries to record the payment of the first provisional tax and to record the
total company tax for the financial year.
4.2 Statement of Financial Position as at 31 October 2024
INFORMATION
The following balances were obtained from the accounting records of Tango Limited on 31 October
2024, the end of the financial year:
Creditors control
Debtors control
Bank (Dr balance)
R
1260 000
1 200 000
1675 500
Ordinary share capital
Long-term loan
12% Preference shares
Retained profit
1537 500
900 000
660 000
345 000
Equipment (cost)
Vehicles (cost)
90 000
Accumulated depreciation on equipment (01 November 2023)
18 000
600 000
Accumulated depreciation on vehicles (01 November 2023)
120 000
Inventory
Petty cash
441000
3 000
Shares invested in Amcor Limited
1 005 000
Additional information
a) Depreciation on equipment and vehicles for the year ended 31 October 2024 amounted to R9 000
and R60 000 respectively.
b) A final dividend of 30 cents per ordinary share was declared but not paid. There were 200 000
ordinary shares in issue. (This dividend was included in the calculation of the retained profit.)
c) The total company tax for the financial year amounted to R600 000. The first and second
provisional payments made to the tax authority were R300 000 (30 April 2024) and R255 000 (31
October 2024) respectively.
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