Prepare the statement of comprehensive income for UPhongolo Ltd. Prepare the Statement of changes in equity for UPhongolo Ltd.
Prepare the statement of comprehensive income for UPhongolo Ltd. Prepare the Statement of changes in equity for UPhongolo Ltd.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Ordinary share dividends (interim)
32 000
Repairs
58 320
4 996 000
4 996 000
Additional information
1. The provision for bad debts must be increased by R3 680.
2. Trading inventory according to stocktaking on 30 June 2020 amounted to R192 000.
3. Capital repayments totalling R48 000 are payable on the unsecured loan from Box Bank in the next financial
уear.
4. Depreciation must be provided for as follows:
a. On vehicles at 20% on cost
b. On equipment at 28% on cost
5. A dividend of 20% of the investment value has been declared by Vac (Pty) Ltd. The dividend has not yet
been received.
6. The authorised share capital consists of 500 000 ordinary shares.
7. Note: On 01 July 2019, the company increased the ordinary share capital by issuing 100 000 shares at R2
each.
8. A non-distributable asset replacement reserve of R200 000 must be created.
9. Debentures consist of 20 000 13% debentures of R20 each, issued on 01 July 2019 and redeemable on 30
June 2024. The debentures are secured by a first mortgage bond over land. Provision must be made for the
current year's interest.
10. The company tax for the year amounted to R124 800.
11. The directors declared a final dividend of 16 cents per share.
Required:
2.1 Prepare the statement of comprehensive income for UPhongolo Ltd.
2.2 Prepare the Statement of changes in equity for UPhongolo Ltd.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d28997d-8fba-4746-81c8-46a23a002f39%2F226f3510-3cc0-4660-8d27-875fb6dff143%2Ftjaevl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ordinary share dividends (interim)
32 000
Repairs
58 320
4 996 000
4 996 000
Additional information
1. The provision for bad debts must be increased by R3 680.
2. Trading inventory according to stocktaking on 30 June 2020 amounted to R192 000.
3. Capital repayments totalling R48 000 are payable on the unsecured loan from Box Bank in the next financial
уear.
4. Depreciation must be provided for as follows:
a. On vehicles at 20% on cost
b. On equipment at 28% on cost
5. A dividend of 20% of the investment value has been declared by Vac (Pty) Ltd. The dividend has not yet
been received.
6. The authorised share capital consists of 500 000 ordinary shares.
7. Note: On 01 July 2019, the company increased the ordinary share capital by issuing 100 000 shares at R2
each.
8. A non-distributable asset replacement reserve of R200 000 must be created.
9. Debentures consist of 20 000 13% debentures of R20 each, issued on 01 July 2019 and redeemable on 30
June 2024. The debentures are secured by a first mortgage bond over land. Provision must be made for the
current year's interest.
10. The company tax for the year amounted to R124 800.
11. The directors declared a final dividend of 16 cents per share.
Required:
2.1 Prepare the statement of comprehensive income for UPhongolo Ltd.
2.2 Prepare the Statement of changes in equity for UPhongolo Ltd.
![UPhongolo Limited Trial Balance as at 30 June 2020.
Debit (R)
Credit (R)
Balance Sheet Accounts Section
Ordinary share capital
800 000
Retained earnings
864 000
Land and buildings
1 983 200
Vehicles (cost)
160 000
Equipment (cost)
300 000
Accumulated depreciation on vehicles
28 000
Accumulated depreciation on equipment
56 000
Long-term loan: Box Bank (14% p.a.)
528 000
Debentures (13% p.a.)
400 000
Investment in Vac (Pty) Ltd
96 000
Inventory (01 July 2019)
224 000
Debtors control
256 000
Provision for bad debts
5 120
Bank
228 520
Creditors control
108 520
SARS: Company tax
70 000
Nominal accounts Section
Sales
2 110 160
Purchases
916 000
Sales returns
20 000
Purchases returns
24 000
Customs duty
21 600
Carriage on purchases
70 000
Carriage on sales
12 000
Sundry expenses
59 480
Salaries
256 000
Motor expenses
7 200
Interest on loan
73 920
Discount allowed
7 760
Commission income
72 200
Directors' fees
120 000
Auditor's fee
24 000
2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d28997d-8fba-4746-81c8-46a23a002f39%2F226f3510-3cc0-4660-8d27-875fb6dff143%2F18fwuogr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:UPhongolo Limited Trial Balance as at 30 June 2020.
Debit (R)
Credit (R)
Balance Sheet Accounts Section
Ordinary share capital
800 000
Retained earnings
864 000
Land and buildings
1 983 200
Vehicles (cost)
160 000
Equipment (cost)
300 000
Accumulated depreciation on vehicles
28 000
Accumulated depreciation on equipment
56 000
Long-term loan: Box Bank (14% p.a.)
528 000
Debentures (13% p.a.)
400 000
Investment in Vac (Pty) Ltd
96 000
Inventory (01 July 2019)
224 000
Debtors control
256 000
Provision for bad debts
5 120
Bank
228 520
Creditors control
108 520
SARS: Company tax
70 000
Nominal accounts Section
Sales
2 110 160
Purchases
916 000
Sales returns
20 000
Purchases returns
24 000
Customs duty
21 600
Carriage on purchases
70 000
Carriage on sales
12 000
Sundry expenses
59 480
Salaries
256 000
Motor expenses
7 200
Interest on loan
73 920
Discount allowed
7 760
Commission income
72 200
Directors' fees
120 000
Auditor's fee
24 000
2.
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