FAC1601 Assignment 5 Semester 12022 (810580)

Moletji Ltd is public company owned by two prominent business women and the local community trust around the Capricorn District Municipality. The company was founded in the year 2018 and the following information pertains to the company: Extract of accounts pertaining to the statement of financial position as at 31 December: Extra from the statement of financial position R R Land and buildings at cost Vehicles at cost Furniture at cost Accumulated depreciation: Vehicles Accumulated depreciation: Furniture Share capital: ordinary shares Share capital: 12% preference shares Dividends receivable - 2 300 Investments at fair value 134 100 - SARS (income tax) 37 300 Dr 84 600 Loans from shareholders - 29 300 Long-term loan Loans to directors Retained earnings Trade payables control Accrued security expense Dividends payable Prepaid expenses (advertising) Inventory Trade receivables control Bank Items disclosed in the statement of profit or loss and other comprehensive income for the year ended 31 December 2020: Extract from the statement of profit and loss R Revenue 1 660 000 Cost of sales 614 800 Other operating expenses 118 800 Administrative expenses (including salaries and wages) 136 600 Dividend income: listed investments 6 900 Interest expense 9 600 Loss on sale on listed investments 2 800 Fair value gain: listed investments 12 600 Income tax expense 196 100 Depreciation 33 100 Profit on sale of non-current assets: furniture 550 Loss on sale of non-current asset: vehicle 10 200 Profit for the year 505 000 Additional information: 1. The following relates to property, plant and equipment: · On 31 October 2020, a vehicle with a cost price of R71 000 and accumulated depreciation of R50 000 (on 1 January 2020) was sold for cash. A replacement vehicle was bought on 1 December 2020. · On 20 June 2020, furniture with a cost price of R4 000 and accumulated depreciation of R1 200 was sold for cash. A replacement furniture was bought on 31 July 2020. · All other purchases were in cash. 2. It is the accounting policy of the company to provide for depreciation as follows: · Vehicles: According to the diminishing balance method, at 20% per annum. · Furniture: According to the straight-line method, at 25% per annum. 3. The following relates to the shares of the company: · On 31 August 2020, the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4) ordinary shares held. On that date the number of ordinary shares issued were 98 000 shares. The capitalisation issue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash. · The company allotted and issued 45 000 ordinary shares and 12% preference shares on 31 October 2020. · On 15 December 2020, the company declared an ordinary dividend of 30 cents per share. 4. The investments consist of listed shares in Mankweng Ltd, bought for R3 each on 1 January 2020. The company sold 4 000 of these shares on 30 November 2020.  Dashboard / Courses / UNISA / 2022 / Semester 1 / FAC1601-22-S1 / Welcome Message / Assessment 5  Dashboard Calendar Downloaded by: nemhlamanzana | Distribution of this document is illegal S - The study-notes marketplace 07/06/2022, 09:56 Assessment 5 (page 1 of 7)