Question 1
Alphabets and Numbers
Answer saved
Use the following information to answer questions 1 to 12.
Marked out of
2.00 Alphabets and Numbers
1. Balances as at 28 February 2023:
R
Member’s contribution: Thabo 168000
Member’s contribution: Thabang 252000
Retained earnings (1 March 2022) 67920
Revaluation surplus 98400
Loan from Thabo 84000
Distribution to member: Thabo 38400
Distribution to member: Thabang 57600
Loan to Thabang 60000
Allowance for credit losses 3600
Land and buildings at valuation (cost price R153600) ??
Equipment at cost (01 March 2022) 198000
Investment at fair value 150000
Trading inventory 168600
Consumable inventory 7440
Long-term loan: Lethabong bank 72000
Accumulated depreciation: Equipment 74784
Accrued expenses 8160
Prepaid expenses 4200
Bank (overdraft) 30144
Petty cash 840
Trade receivables control 84528
Trade payables control 37848
Profit before tax 209256
SARS (Income tax) (Dr) 84504
Additional information
1.The following information relates to the fixed assets of Alphabets and Numbers:
· The depreciation on the old equipment for the year amounted to R42 250.
· On the 28 February 2023 Alphabets and Numbers purchased a new equipment for
R150 000. It is the accounting policy to depreciate equipment at 20% per annum with nill
residual value. The transaction still needs to be recorded.
· On 31 December 2022 the land and buildings were revalued for by Mr Two, an
independent sworn appraiser. The transaction has already been recorded.
· There were no other disposals of, or additions to the land and buildings and
equipment during the financial year except for the ones mentioned above.
2. On 1 September 2022, Alphabets and Numbers CC purchased 30 000 ordinary shares
at R4 each in Vodakom Limited. On 28 February 2023 the shares traded at R5,00 per
share.
3. Credit losses of R6 000 must be written off. The closing balance of the allowance for
credit losses account must be increased with R1 200.The transaction has not yet been
recorded.
4. The loan to Thabang is immediately callable.
5. During 2023 Alphabets and Numbers obtained an interest free loan from Thabo of R84
000, the first instalment of R21 000 must be paid on 31 January 2024.The loan is
unsecured.
, 6. The actual income tax for the financial year amounted to R62 850 and must still be
recorded.
7. A further distribution of R20 000 to Thabo and R35 000 to Thabang must still be made
to the members.
8. Alphabets and Numbers obtained a long-term loan from Lethabong Bank on 1 June
2022 at 15% interest per annum and is secured by mortgage bond over land and
buildings. The capital amount of the loan must be repaid on 31 May 2026.
QUESTION 1
Assuming a Revaluation Surplus of R56 400. Which alternative represents the correct
amount to be disclosed as carrying amount of Land and Buildings in the statement of
financial position of Alphabets and Numbers as at 28 February 2023?
A. R153 600
B. R97 200
C. R210 000
D. R324 070
Clear my choice
Question 2
QUESTION 2
Answer saved
Which alternative represents the correct amount to be disclosed as carrying amount of
Marked out of
2.00 Equipment in the statement of financial position of Alphabets and Numbers as at 28
February 2023?
A. R198 000
B. R192 250
C. R348 000
D. R273 216
Clear my choice
, Question 3
QUESTION 3
Answer saved
Which alternative represents the correct amount to be disclosed as Listed Shares
Marked out of
2.00 Investment in the statement of financial position of Alphabets and Numbers as at 28
February 2023?
A. R270 000
B. R135 000
C. R150 000
D. R120 000
Clear my choice
Question 4
QUESTION 4
Answer saved
Which alternative represents the correct amount to be disclosed as Inventory in the
Marked out of
2.00 statement of financial position of Alphabets and Numbers as at 28 February 2023?
A. R168 600
B. R176 040
C. R165 000
D. R161 160
Clear my choice
Question 5
QUESTION 5
Answer saved
Which alternative represents the correct amount to be disclosed as Trade Receivables in
Marked out of
2.00 the statement of financial position of Alphabets and Numbers as at 28 February 2023?
A. R84 528
B. R86 928
C. R79 728
D. R78 528
Clear my choice
Alphabets and Numbers
Answer saved
Use the following information to answer questions 1 to 12.
Marked out of
2.00 Alphabets and Numbers
1. Balances as at 28 February 2023:
R
Member’s contribution: Thabo 168000
Member’s contribution: Thabang 252000
Retained earnings (1 March 2022) 67920
Revaluation surplus 98400
Loan from Thabo 84000
Distribution to member: Thabo 38400
Distribution to member: Thabang 57600
Loan to Thabang 60000
Allowance for credit losses 3600
Land and buildings at valuation (cost price R153600) ??
Equipment at cost (01 March 2022) 198000
Investment at fair value 150000
Trading inventory 168600
Consumable inventory 7440
Long-term loan: Lethabong bank 72000
Accumulated depreciation: Equipment 74784
Accrued expenses 8160
Prepaid expenses 4200
Bank (overdraft) 30144
Petty cash 840
Trade receivables control 84528
Trade payables control 37848
Profit before tax 209256
SARS (Income tax) (Dr) 84504
Additional information
1.The following information relates to the fixed assets of Alphabets and Numbers:
· The depreciation on the old equipment for the year amounted to R42 250.
· On the 28 February 2023 Alphabets and Numbers purchased a new equipment for
R150 000. It is the accounting policy to depreciate equipment at 20% per annum with nill
residual value. The transaction still needs to be recorded.
· On 31 December 2022 the land and buildings were revalued for by Mr Two, an
independent sworn appraiser. The transaction has already been recorded.
· There were no other disposals of, or additions to the land and buildings and
equipment during the financial year except for the ones mentioned above.
2. On 1 September 2022, Alphabets and Numbers CC purchased 30 000 ordinary shares
at R4 each in Vodakom Limited. On 28 February 2023 the shares traded at R5,00 per
share.
3. Credit losses of R6 000 must be written off. The closing balance of the allowance for
credit losses account must be increased with R1 200.The transaction has not yet been
recorded.
4. The loan to Thabang is immediately callable.
5. During 2023 Alphabets and Numbers obtained an interest free loan from Thabo of R84
000, the first instalment of R21 000 must be paid on 31 January 2024.The loan is
unsecured.
, 6. The actual income tax for the financial year amounted to R62 850 and must still be
recorded.
7. A further distribution of R20 000 to Thabo and R35 000 to Thabang must still be made
to the members.
8. Alphabets and Numbers obtained a long-term loan from Lethabong Bank on 1 June
2022 at 15% interest per annum and is secured by mortgage bond over land and
buildings. The capital amount of the loan must be repaid on 31 May 2026.
QUESTION 1
Assuming a Revaluation Surplus of R56 400. Which alternative represents the correct
amount to be disclosed as carrying amount of Land and Buildings in the statement of
financial position of Alphabets and Numbers as at 28 February 2023?
A. R153 600
B. R97 200
C. R210 000
D. R324 070
Clear my choice
Question 2
QUESTION 2
Answer saved
Which alternative represents the correct amount to be disclosed as carrying amount of
Marked out of
2.00 Equipment in the statement of financial position of Alphabets and Numbers as at 28
February 2023?
A. R198 000
B. R192 250
C. R348 000
D. R273 216
Clear my choice
, Question 3
QUESTION 3
Answer saved
Which alternative represents the correct amount to be disclosed as Listed Shares
Marked out of
2.00 Investment in the statement of financial position of Alphabets and Numbers as at 28
February 2023?
A. R270 000
B. R135 000
C. R150 000
D. R120 000
Clear my choice
Question 4
QUESTION 4
Answer saved
Which alternative represents the correct amount to be disclosed as Inventory in the
Marked out of
2.00 statement of financial position of Alphabets and Numbers as at 28 February 2023?
A. R168 600
B. R176 040
C. R165 000
D. R161 160
Clear my choice
Question 5
QUESTION 5
Answer saved
Which alternative represents the correct amount to be disclosed as Trade Receivables in
Marked out of
2.00 the statement of financial position of Alphabets and Numbers as at 28 February 2023?
A. R84 528
B. R86 928
C. R79 728
D. R78 528
Clear my choice
