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Combined Grade 12 Paper One - Balance Sheet and Cashflow - Accounting-1
Combined Grade 12 Paper One - Balance Sheet and Cashflow - Accounting-1
TANGIBLE ASSETS
Land and Vehicles Equipment
Buildings
Carrying value at beginning (H) xxx xxx xxx
Cost (A) xxx xxx xxx
Session 12-16
Accumulated depreciation (B) (xxx) (xxx) (xxx)
Movements
Page 69 -78
Asset disposed @ Carrying
Additions at cost (C) xxx xxx xxx value = Cost Price LESS
Accumulated depreciation
Disposals at carrying value (D) (xxx) (xxx) (xxx)
Depreciation for the year (E) (xxx) (xxx)
Carrying value at end of year (I) xxx xxx xxx
Cost (F) xxx xxx xxx F = A + C - Cost price of
Asset disposed OR
Accumulated depreciation (G) (xxx) (xxx) Cost at beginning PLUS
additions LESS Cost price of
asset disposed
I=H+C-D–E
Carrying Value @beg PLUS
additions at cost LESS Disposal at
carrying value LESS depreciation
Prepare the Balance Sheet -28 February 2017
INFORMATION:
Income Statement
Note 5
Operating expenses Trade and other receivables
Insurance 25 200
(30 200 – 6 800) Prepaid expenses 6 800
10 200 X 8/12 =6 800
Adjustment F- Rent Income
A. Amounts extracted from the records on 28 February 2017:
Nominal accounts section (pre-adjustment amounts)
Rent Income 108 450
The rent for February 2017 has not been received yet. The rent
increased by 15% on 1 July 2016.
5 minutes to complete
Calculations for rent
M A M J J A S O N D J F
Rent for 4 months @ 100% 7 months @ 115% (100% +15%) 115%
Income Statement
Operating income
Rent income 118 800
(108 450 + 10 350 )
Note 5
Trade and other receivables
Accrued income 10 350
Adjustment G- Income tax
A. Amounts extracted from the records on 28 February 2017:
ADJUSTMENT G
SARS: Income tax (provisional payments) 209 000
Use UK
Net profit after tax, R518 000, was calculated after taking into account all 518 000 X 30/70 = 222 000
the adjustments above. Income tax is 30% of the net profit.
75% of the authorised share capital of 900 000 shares was in issue. The
directors declared a final dividend of 24 cents per share on 28 February
2017.
• The net asset value per share on 28 February 2017 is 620 cents.
NOTE
• 75% of the authorised share capital of 900 000 shares was in
issue. The directors declared a final dividend of 24 cents per share
on 28 February 2017. (Adjustment H)
• Number of shares in issue is 900 000 x 75% = 675 000
Calculate Retained income
Net asset value per share Note : the
shareholders equity
= cents is not provided only
the share capital has
been provided
= 620 cents
620 /100 = 6.20
x = 6.20 x
Short cut for SE
6.2 x 675 000 =
4 185 000
= 4 185 000 (Shareholders equity )
Balance Sheet
3.2 BALANCE SHEET OF ODETTE LTD ON 28 FEBRUARY 2017
ASSETS
INFORMATION
B. Extract from the Balance Sheet:
29 February 2020 28 February 2019
Fixed assets (carrying value) R 9 528 300 R 8 320 300
Fixed deposits 100 000 500 000
Current assets 1 002 000 755 000
Cash and cash equivalents 56 500 5 000
Bank overdraft 0 220 000
Shareholders' equity 8 980 300 7 411 500
Ordinary share capital 8 281 000 7 200 000
Retained income 699 300 211 500
Loan: BB Bank 900 000 1 200 000
Current liabilities 750 000 963 800
SARS: Income tax 4 500 Dr 23 800 Cr
Shareholders for dividends 120 000 160 000
INFORMATION
C. Fixed assets:
Old equipment was sold at carrying value, R48 000.
Extensions to the buildings were completed during the financial year.
Share capital:
D.
• On 1 March 2019, the ordinary share capital comprised 800 000 ordinary shares. A further
200 000 shares were issued on this date.
• On 29 February 2020, the company repurchased 90 000 shares at R81 000 above the
value of the shares based on the average share price of R9,10 per share. These shareholders
qualified for final dividends.
E. Dividends and earnings:
29 February 2020 28 February 2019
Interim dividends 28 cents 60 cents
Final dividends 12 cents 20 cents
Earnings per share ? 94 cents
TAKE NOTE
C. Fixed assets:
Old equipment was sold at carrying value, R48 000.
Debt-equity ratio
Workings Answer
900 000 : 8 980 300 0,1 : 1
EARNINGS PER SHARE
A. Extract from the Income Statement on 29 February 2020:
Net income after tax 968 800
D. Share capital:
• On 1 March 2019, the ordinary share capital comprised 800 000
ordinary shares. A further 200 000 shares were issued on this date.