ACCE 312: GENERAL LEDGER ACCOUNTS OF A COMPANY

HOMEWORK 2: KASSIE LTD.

You are provided with information taken from the financial records of Kassie Ltd.
at the end of the financial year, 29 February 2016.
REQUIRED:
2.1 Complete the following accounts in the General ledger of Kassie Ltd.
for the year ended on 29 February 2016:
NOTE: Show all calculations in brackets next to the items in the
general ledger accounts.

 Ordinary Share capital (12)

 Retained Income (8)
 SARS (Income Tax) (12)
 Shareholders for dividends (5)
 Ordinary share dividends (8)
 Appropriation account (10)

INFORMATION:

EXTRACT FROM THE PRE-ADJUSTMENT TRAIL BALANCE ON

29 February 2016
Ordinary share capital ?
Retained income (1 March 2015) 850 000
Shareholders for dividends (1 March 2015) 720 000
SARS (Income tax) (Dr) 535 000

A. Share Capital

 The company's authorised share capital consists of 1 000 000 ordinary

shares.

 Six hundred thousand (600 000) of these shares were issued at 650 cents
per share by the end of the 2015 financial year.

 Seventy-five percent (75%) of the remaining shares were issued on

1 September 2015 at 800 cents a share.

 Fifty thousand (50 000) shares were bought back on 31 January 2016 for
250 cents each for more than the average share price.

B. Dividends

 Pay the dividends declared the previous financial year via EFT on
25 March 2015.

ACCE 312: Company ledger accounts/ Kassie Ltd./Question paper 1/2

  An interim dividend of 50 cents per share was paid on 31 August 2015.

 A final dividend of 80 cents per share was recommended on

29 February 2016. Shares repurchased on 31 January 2016 do not qualify
for final dividends.

C. Income tax

 Received a direct deposit from SARS on 25 March 2015 for R34 800 in
repayment of the overpayment received the previous financial year.

 The company made two equal provisional tax payment to SARS on the
1 September 2015 and the 1 February 2016.

 Income tax is calculated at 30% of the Net profit. The Net profit after tax
was R1 190 000.

ACCE 312: Company ledger accounts/ Kassie Ltd./Question paper 2/2