The following are extracts from the financial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 August 2021 31 August 2021 - R 30 August 2020 - R Bank Inventories - Trade Goods Trade Recievables Trade payables Prepaid Expenses Prepaid Expenses Accrued Expenses; interest Accrued Expenses; other SARS - income tax payable Dividens payable 50000 22000 77000 44000 1800 1000 5700 8000 1500 20000 30000 69000 46000 1200 2400 4400 3000 2700 ABC Ltd Extract from the Statement of profit or loss and other comprehensive income for the year ended 31 August 2021 Sales 592000 Cost of sales (301000 Gross profit 291000 Profit on sale of Equipment 9000 Depreciation 41000 Interest Expense 2600 Income tax expense 15200 Profit for the year 110300 Additional information: 1. The dividends declared for the current year is R2 400 Required: Prepare only the “Cash flows from operating activities” section of the statement of cash flows for ABC Ltd for the year ended 31 August 2021. Use the indirect method. Show all workings. Where applicable, round off calculations to the nearest Rand
The following are extracts from the financial records of ABC Ltd for the year ended
31 August 2021.
ABC Ltd
Extract from the Statement of financial statement as at 31 August 2021
|
31 August 2021 - R |
30 August 2020 - R |
|
|
Bank Inventories - Trade Goods Trade Recievables Trade payables Prepaid Expenses Prepaid Expenses Accrued Expenses; interest Accrued Expenses; other SARS - income tax payable Dividens payable
|
50000 22000 77000 44000 1800 1000 5700 8000 1500 |
20000 30000 69000 46000 1200 2400 4400 3000 2700 |
ABC Ltd
Extract from the Statement of profit or loss and other comprehensive income
for the year ended 31 August 2021
| Sales | 592000 |
| Cost of sales | (301000 |
| Gross profit | 291000 |
| Profit on sale of Equipment | 9000 |
| Depreciation | 41000 |
| Interest Expense | 2600 |
| Income tax expense | 15200 |
| Profit for the year | 110300 |
Additional information:
1. The dividends declared for the current year is R2 400
Required:
Prepare only the “
Show all workings. Where applicable, round off calculations to the nearest Rand
PART B
A
This would mean that the method of the double entry system has been implemented accurately. However, it would be incorrect to believe that because the trial balance is in equilibrium there are no errors or omissions in that accounting system. There are errors and omissions that will not be identified by a trial balance that is in equilibrium.
Required:
Identify at least four types of errors and /or omissions that would NOT be identified by a trial balance that is in equilibrium. Provide a brief description of each one or present examples of transactions being recorded in a way that will still allow the trial balance to “balance”.
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