PART AThe following are extracts from the financial records of ABC Ltd for the year ended31 August 2021.АBC LtdExtract from the Statement of financial statement as at 31 Auqust 202131 August 2021 31 August 2020- R- RBank50 00020 000Inventories - trade goods22 00030 000Trade recelvables77 0069 D00Trade payables44 00046 000Prepaid expenses:1 8001 200Accrued expenses: Interest1 0002 400Accrued expenses; other5 7004 400SARS - Income tax payable8 0003 000Dividends payable1 5002 700ABC LtdExtract from the Statement of profit or loss and other comprehensive Incomefor the year ended 31 Auqust 2021Sales592 000Cost of sales(301 000)Gross profit291 000Profit on sale of Equipment9 000Depreciation41 000Interest expense2 600Income tax expense15 200Profit for the year110 300Additional 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 flowsfor 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.PART BA trial balance is a list of all accounts in the general ledger and their balances at a specifiedpoint in time or at a given date. All the debit balances are added together to arrive at anamount for "Total debits" and all the credit balances are added together to arrive at the "Totalcredits". If the value of "Total Debits" is equal to the value of "Total credits" then this iscommonly referred to as the trial balance – "balances" or "the trial balance is in equilibrium".This would mean that the method of the double entry system has been implementedaccurately. However, it would be incorrect to believe that because the trial balance is inequilibrium there are no errors or omissions in that accounting system. There are errors andomissions 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 trialbalance that is in equilibrium. Provide a brief description of each one or present examples oftransactions being recorded in a way that will still allow the trial balance to "balance".

Cash flow statement is prepared to present the flow of cash of an organization during the period.…

The following are extracts from the finandial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 Auqust 2021 31 August 2021 31 August 2020 Bank 50 00 20 000 Inventories - trade goods 22 000 30 00 Trade recelvables 77 000 69 00 Trade payables 44 00 46 00 1 800 1 O00 5 700 8 00 1 500 Prepaid expenses: 1 200 Accrued expenses: Interest 2 400 Accrued expenses; other 4 400 SARS - Income tax payable 3 000 Dividends payable 2 700 ABC Ltd Extract from the Statement of proft or loss and other comprehensive Income for the year ended 31 Auqust 2021 Gales 592 000 Cost of sales (301 000) Gross profit Profit on sale of Equipment Depreciation 291 000 9 D00 41 000 Interest expense 2 600 15 200 110 300 Income tax expense Profit for the year Additional Information: 1. The dividends deciared for the current year is R2 400.

The following are extracts from the finandial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 Auqust 2021 31 August 2021 31 August 2020 Bank 50 00 20 000 Inventories - trade goods 22 000 30 00 Trade recelvables 77 000 69 00 Trade payables 44 00 46 00 1 800 1 O00 5 700 8 00 1 500 Prepaid expenses: 1 200 Accrued expenses: Interest 2 400 Accrued expenses; other 4 400 SARS - Income tax payable 3 000 Dividends payable 2 700 ABC Ltd Extract from the Statement of proft or loss and other comprehensive Income for the year ended 31 Auqust 2021 Gales 592 000 Cost of sales (301 000) Gross profit Profit on sale of Equipment Depreciation 291 000 9 D00 41 000 Interest expense 2 600 15 200 110 300 Income tax expense Profit for the year Additional Information: 1. The dividends deciared for the current year is R2 400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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