QUESTION I Sam Bhd. is registered with an authorised capital of 600,000 ordinary sha following trial balance was extracted from the books of the company on 31 after the preparation of the trading account: Dr RM R Ordinary share capital, fully paid Land and buildings at cost 40 340,000 Sundry debtors 76,600
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- Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial balance was extracted from the books of the company on 31 March 2020, after the preparation of the trading account:Dr CrKshs KshsOrdinary share capital, fully paid 200,000Land and buildings at cost 170,000Sundry debtors 38,300Furniture and fittings at cost 80,000General expenses 3,800Sundry Creditors 25,000Stock at 31 March 2020…Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial balance was extracted from the books of the company on 31 March 2020, after the preparation of the trading account: Dr Cr Kshs Kshs Ordinary share capital, fully paid 200,000 Land and buildings at cost 170,000 Sundry debtors 38,300 Furniture and fittings at cost 80,000 General expenses 3,800 Sundry Creditors 25,000 Stock at 31 March 2020 42,000 Bank 12,000 Trading account: Gross Profit 98,050 Office salaries and expenses 25,000 Accumulated provision for depreciation on furniture and fittings 32,000 Share premium account 20,000 Advertising and selling expenses 5,000 Bad debts 250 Provision for doubtful debts 600 Profit and loss account 12,000 Directors’ fees 11,300 387650 387,650 ‘The following information is given: i. The provision for doubtful…The trial balance and additional information given below were extracted from the accounting records of Dysan Limited on 29 February 2020, the end of the financial year. REQUIRED Prepare the Statement of Financial Position as at 29 February 2020. The notes to the financial statements are not required. Show workings in brackets. INFORMATION DYSAN LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020 Debit (R) Credit (R) Balance sheet accounts section Ordinary share capital (100 000 shares) 200 000 Retained earnings 62 000 Vehicles at cost 180 000 Equipment at cost 120 000 Accumulated depreciation on vehicles 90 000 Accumulated depreciation on equipment 38 000 Trading inventory 70 000 Debtors control 32 000 Provision for bad debts 4 000 Bank 182 000 Cash float 2 000 Creditors control 40 000 South African Revenue…
- Entity A invested in 222,000 shares of a listed company on 1 November 2019 at a cost of $4.25 per share. On 31 December 2019, the shares have a market value of $4.73. The shares are held for trading. The end of the reporting period is 31 December. REQUIRED: (1) Measure the gain or loss of remeasurement of the shares recognised in the Statement of Profit or Loss on 31 December 2019. (2) Measure the value of the shares recognised in the Statement of Financial Position on 31 December 2019.The following trial balance was extracted from the accounts of Grooms Ltd as of 31 December 2019. The authorised capital was 1,000,000 ordinary shares of 50p each and £100,000 preference shares (6%) of £1 each Debit £ Credit £ Ordinary share capital(1,000,000 of 50p each) 500,000 Preference share capital (100,000 fully paid shares of £1 each) 100,000 Share premium 100,000 Premises at cost 400,000 Motor Vehicles at cost 80,000 Accumulated depreciation-Motor vehicle - 12,000 Accumulated depreciation on Premises 8,000 Investment at Cost 150,000 Investment Income 5,000 Retained Profit 50,000 Carriage Inwards 3,500 Wages and Salaries 96,500 Maintenance and repairs 30,000 Bad debts…Blossom SA reported the following balances at December 31, 2019: share capital-ordinary €530,000, share premium-ordinary €115,000, and retained earnings €310,000. During 2020, the following transactions affected equity. 1. Issued preference shares with a par value of €140,000 for €247,000. 2. Purchased treasury shares (ordinary) for €45,000. Earned net income of €174,000. Declared and paid cash dividends of €52,000 3. 4. Prepare the equity section of Blossom SA's December 31, 2020, statement of financial position.
- Style Ltd is a company with an authorised share capital of 2 million ordinary shares. The company commenced business on 1 July 2008 primarily retailing fabric. The following list of balances as at 30 June 2020 was extracted from the pre-adjustment trial balance of Style Ltd. Additional Information:1) Physical stock was taken at financial year end and valued as follows:Trading inventory…………….R366 690Consumables inventory……..R 2 040 2) Generous Bank provided the following details as at 30 June 2020 in respect of the loan they provided to Style Ltd:Balance outstanding at 1 July 2019 R227 500Balance outstanding at 30 June 2020 R183 750Total payments for the year inclusive of interest R 79 625Interest on the loan is capitalised. Style Ltd has not yet recorded the interest for the current financial year.3) On 25 June 2020, directors of Mine Ltd declared a dividend of 15 cents per share payable to all shareholders registered on 30 June 2020. Style Ltd bought its shares in Mine Ltd during the…Style Ltd is a company with an authorised share capital of 2 million ordinary shares. The company commenced business on 1 July 2008 primarily retailing fabric. The following list of balances as at 30 June 2020 was extracted from the pre-adjustment trial balance of Style Ltd. Additional Information:1) Physical stock was taken at financial year end and valued as follows:Trading inventory…………….R366 690Consumables inventory……..R 2 0402) Generous Bank provided the following details as at 30 June 2020 in respect of the loan they provided to Style Ltd:Balance outstanding at 1 July 2019 R227 500Balance outstanding at 30 June 2020 R183 750Total payments for the year inclusive of interest R 79 625 Interest on the loan is capitalised. Style Ltd has not yet recorded the interest for the current financial year.3) On 25 June 2020, directors of Mine Ltd declared a dividend of 15 cents per share payable to all shareholders registered on 30 June 2020. Style Ltd bought its shares in Mine Ltd during…On 1 July 2021, Mel Ltd took control of the assets and liabilities of Syd Ltd. At this date the statement of financial position of Syd Ltd was as follows: Required Prepare the journal entries in the records of Mel Ltd at 1 July 2021 in each of the following situations, assuming the costs of issuing the shares by Mel Ltd cost $1600. Mel Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Syd Ltd Mel Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Syd Ltd. Mel Ltd acquired the shares of Syd Ltd. The agreement was that Mel Ltd would pay the shareholders of Syd Ltd one share in Mel Ltd for every two shares held in Syd Ltd plus $1 in cash for each share held in Syd Ltd. Shares in Mel Ltd have a fair value of $1.80 per share.
- Bay Holdings Limited: 30 June 2021.Required: Statement of financial position as at: 30 June 2021InformationBALANCE SHEET ACCOUNTSOrdinary share capital 2 648 000Retained income (1 Jul 2020) 490 000Shareholders for dividends 280 000Fixed deposit 60 000Mortgage bond 336 000Fixed/tangible assets (Carrying value) 4 021 000Debtors control 45 000Creditors control 85 200Creditors for salaries 12 300Provision for bad debts ?SARS (Income tax) 400 000SARS (PAYE) 6 650Expenses payable (accrued) 7 200Income receivable (accrued) 7 950Bank 28 450Trading stock/inventory 129 600Consumable stores 5 600 Additional information1.The net profit after tax for the year amounted to R875 0002.Provision for bad debts should be adjusted to 5 % of debtors.3.One third of total fixed assets matures on 31 August 2021.4.A portion of loan amounting to R48 000 will be paid on 31 December 2021.5.SARS (Income tax) owes the business R25 000 for tax overpayment.Required: Give the journal entries to record the foregoing transactions and prepare the equity section of the statement of financial position as of January 31, 2020 under a. memorandum entry method, b.journal entry method The following are the transactions of JEYA Inc. for the month of January 2020. January 5 officially formed the corporation with 5,000,000 authorized share capital at P10 par value. January 6 the incorporators subscribed and paid in full 1,000,000 shares. January 8 issued 500,000 shares to an investors for P15 per share. January 10 received subscription from an investor for 200,000 shares at P20 per share. January 15 issued 5,000 shares for incorporation services rendered by a consultancy firm. The service is worth P100,000. January 20 issued 500,000 shares for P16 per share. January 24 collected the payment for subscription on January 10. January 27 received subscription for 1,000,000 shares at P11 per share receiving 50% advanced payment. January 30 issued 2,000…Style Ltd is a company with an authorised share capital of 2 million ordinary shares. The company commenced business on 1 July 2008 primarily retailing fabric. The following list of balances as at 30 June 2020 was extracted from the pre-adjustment trial balance of Style Ltd. Additional information Balances R 900 000 List of selected accounts Ordinary share capital (issued at R2 each) Retained earnings 675 340 147 875 200 000 Loan from Generous Bank Investment in Mine Ltd – shares of R2 each 3 Inventory – trade goods Trade debtors 1 370 190 4 99 460 Allowance for credit losses 1 200 Sales 2 174 485 Cost of sales 1018 120 Interest received (on favourable bank balances) Commission received 13 100 69 300 Advertising 7 20 000 Credit losses 4 2 650 Electricity & water Consumable expenses SARS - provisional income tax paid Suspense account - Safe Insurance Company Other operating expenses 8 83 570 17 190 10 103 500 6. 12 000 664 860 Additional Information: 1) Physical stock was taken at…