ACCOUNTING_P1_GR12_QP_JUNE_2022 questions with answers

QUESTION 1: STATEMENTS: COMPREHENSIVE INCOME AND FINANCIAL POSITION (60 marks; 45 minutes) The information relates to John-Vos Ltd for the financial year ended 28 February 2022. REQUIRED: Complete the following: (NOTE: Some information is printed in the ANSWER BOOK.) 1.1 Statement of Comprehensive Income for the year ended 28 February 2022. (40) 1.2 Retained income note on 28 February 2022. (7) 1.3 EQUITY and LIABILITIES section of the Statement of Financial Position on 28 February 2022. (13) INFORMATION: A. Amounts extracted from the records on 28 February 2022. R Loan: Sparks Bank 610 320 Creditors’ control 562 500 Fixed deposit: Winde Bank 150 000 Trading stock 900 000 Bank (favourable balance) 469 500 Debtors’ control 593 000 Provision for bad debts (1 March 2021) 34 120 SARS: Income tax (Dr) 660 000 SARS: PAYE 36 000 Pension fund 13 500 Sales 8 085 500 Insurance 48 750 Bad debts 33 260 Rent income 85 100 Directors’ fees 825 000 Consumable stores 33 900 Interest on fixed deposit 11 090 Bad debts recovered 11 760 Ordinary share dividends 237 500 B. Additional information: (i) Mark-up: A mark-up percentage of 100% on cost was maintained during the financial year. (EC/JUNE 2022) ACCOUNTING P1 5 Copyright reserved Please turn over (ii) Ordinary share capital and dividends  On 1 May 2021 an additional 300 000 shares were issued.  On 1 September 2021 the company repurchased 40 000 shares at 80 cents above the average share price of R8,50 each.  950 000 shares were in issue on 28 February 2022.  The total dividend for the year amounted to R570 000.