Selected Accounting Standards andSimple Group Structures
FAC2602
, Assignment 01 - Questions
Block Ltd operates a crypto mining facility in Cape Town. The management decided to invest in
Chain Ltd, a company in the same industry. The following data represents the statements of
financial position for the two companies on 30 June 2018:
Block Chain
Ltd Ltd
R R
ASSETS
Non-current assets
Property, plant and equipment 1 800 000 1 000 000
Investment in Chain Ltd at cost price (fair value equals cost price) 625 000 -
2 425 000 1 000 000
Current assets
Inventory 400 000 300 000
Trade and other receivables 760 000 455 000
Cash and cash equivalents 591 200 -
Current account – Block Ltd - 60 000
1 751 200 815 000
Total assets 4 176 200 1 815 000
EQUITY AND LIABILITIES
Share capital – ordinary shares (250 000/200 000 shares) 500 000 400 000
Other components of equity – revaluation of land and buildings 231 200 50 000
Retained earnings 2 000 000 300 000
Total equity 2 731 200 750 000
Non-current liabilities
Long-term borrowings 900 000 700 000
900 000 700 000
Current liabilities
Trade and other payables 485 000 320 000
Bank overdraft - 45 000
Current account – Chain Ltd 60 000 -
545 000 365 000
Total liabilities 1 445 000 1 065 000
Total equity and liabilities 4 176 200 1 815 000
FAC2602
, Assignment 01 - Questions
Block Ltd operates a crypto mining facility in Cape Town. The management decided to invest in
Chain Ltd, a company in the same industry. The following data represents the statements of
financial position for the two companies on 30 June 2018:
Block Chain
Ltd Ltd
R R
ASSETS
Non-current assets
Property, plant and equipment 1 800 000 1 000 000
Investment in Chain Ltd at cost price (fair value equals cost price) 625 000 -
2 425 000 1 000 000
Current assets
Inventory 400 000 300 000
Trade and other receivables 760 000 455 000
Cash and cash equivalents 591 200 -
Current account – Block Ltd - 60 000
1 751 200 815 000
Total assets 4 176 200 1 815 000
EQUITY AND LIABILITIES
Share capital – ordinary shares (250 000/200 000 shares) 500 000 400 000
Other components of equity – revaluation of land and buildings 231 200 50 000
Retained earnings 2 000 000 300 000
Total equity 2 731 200 750 000
Non-current liabilities
Long-term borrowings 900 000 700 000
900 000 700 000
Current liabilities
Trade and other payables 485 000 320 000
Bank overdraft - 45 000
Current account – Chain Ltd 60 000 -
545 000 365 000
Total liabilities 1 445 000 1 065 000
Total equity and liabilities 4 176 200 1 815 000
