Shukela CC is a close corporation entity formed by Mr Geza and Mr Muzi with the business objective to grow and sell sugarcane in Northern KwaZulu Natal. Before the applicable additional information was considered, the figure of the profit before taxation was correctly calculated by the bookkeeper but was mistakenly erased during the upgrade of the computer mainframe. You have been requested to finalise the preparation of financial statements The following information pertaining to Shukela CC, for the year ended 28 February 20.19, is presented to you: Trial balance as at 28 February 20.19: R Member’s contribution: Mr Geza 200 000 Member’s contribution: Mr Muzi 150 000 Retained earnings (1 March 20.18) 138 600 Loan from member: Mr Geza 70 000 Distribution to member: Mr Geza 32 000 Distribution to member: Mr Muzi 48 000 Loan to member: Mr Muzi 120 000 Allowance for credit losses 3 000 Land and buildings at cost 210 000 Equipment at cost 165 000 Investment (Fixed deposit at SR Bank) 50 000 Trading inventory 140 500 Consumable inventory 6 200 Long-term loan: LA Bank 60 000 Accumulated depreciation: Equipment 62 320 Interest received 4 000 Accrued expenses 6 800 Prepaid expenses 3 500 Bank (overdraft) 21 120 Petty cash 700 Trade receivables control 70 440 Trade payables control 31 540 SARS (Income Tax) (Dr) 70 420 2. Additional information: 2.1 The investment at SR Bank was made on 1 May 20.17 for 24 months at 12% interest per annum. The interest is receivable in cash, every six months, on 31 October and 30 April. 2.2 The loan from Mr Geza is unsecured and the first instalment of R15 000 is payable on 1 March 20.19. The loan to Mr Muza is unsecured, interest free and immediately callable. 2.3 An income tax for the year amounted to R50 570. 2.4 The long-term loan from LA Bank was obtained on 1 March 20.15 at 15% interest per annum and is secured by a first mortgage over land and buildings. The capital amount of the loan is repayable in total on 28 February 20.24. Interest on the loan is payable in cash on 2 March every year. QUESTION 5 Which of the following alternatives represent the amount for current liabilities in the statement of financial position of Shukela CC for the year ended 28 February 20.19? A. R 57 200 B. R 115 000 C. R 47 375 D. R 350 000 E. R 83 460
Shukela CC is a close corporation entity formed by Mr Geza and
Mr Muzi with the business objective to grow and sell sugarcane in Northern KwaZulu Natal.
Before the applicable additional information was considered, the figure of the profit before
The following information pertaining to Shukela CC, for the year ended 28 February 20.19, is presented to you:
| R | |
| Member’s contribution: Mr Geza | 200 000 |
| Member’s contribution: Mr Muzi | 150 000 |
| 138 600 | |
| Loan from member: Mr Geza | 70 000 |
| Distribution to member: Mr Geza | 32 000 |
| Distribution to member: Mr Muzi | 48 000 |
| Loan to member: Mr Muzi | 120 000 |
| Allowance for credit losses | 3 000 |
| Land and buildings at cost | 210 000 |
| Equipment at cost | 165 000 |
| Investment (Fixed deposit at SR Bank) | 50 000 |
| Trading inventory | 140 500 |
| Consumable inventory | 6 200 |
| Long-term loan: LA Bank | 60 000 |
| 62 320 | |
| Interest received | 4 000 |
| Accrued expenses | 6 800 |
| Prepaid expenses | 3 500 |
| Bank (overdraft) | 21 120 |
| Petty cash | 700 |
| Trade receivables control | 70 440 |
| Trade payables control | 31 540 |
| SARS (Income Tax) (Dr) | 70 420 |
2. Additional information:
2.1 The investment at SR Bank was made on 1 May 20.17 for 24 months at 12% interest per annum. The interest is receivable in cash, every six months, on 31 October and 30 April.
2.2 The loan from Mr Geza is unsecured and the first instalment of R15 000 is payable on 1 March 20.19. The loan to Mr Muza is unsecured, interest free and immediately callable.
2.3 An income tax for the year amounted to R50 570.
2.4 The long-term loan from LA Bank was obtained on 1 March 20.15 at 15% interest per annum and is secured by a first mortgage over land and buildings. The capital amount of the loan is repayable in total on 28 February 20.24. Interest on the loan is payable in cash on 2 March every year.
QUESTION 5
Which of the following alternatives represent the amount for current liabilities in the
A.
R 57 200
R 115 000
R 47 375
R 350 000
R 83 460
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Which of the following alternatives represent the amount of non current liabilities in the
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