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Concepts of Financial Reporting F$...$

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SECTION A

$[100$ MARKS$]$

Answer ALL the questions in this section.

QUESTION $1$

$(25$ Marks$)$

$\backslash$table$[[$BLUE BEN $($Pty$)$ Ltd$,,],[$PRE$-$ADJUSTMENT TRIAL BALANCE AS AT $31$ DECEMBER $2022],[$Balance Accounts Section$],[$Ordinary Share Capital,,$60000000],[$Retained Income,,$232000,00],[$Land and Buildings,$89160000,],[$Vehices @ Cost,$17000000,],[$Equipment @ Cost,$60000,00,],[$Accumulated Depreciation: motor vehicles,,$2800000],[$Accumulated Depreciation: equipment,,$14000,00],[$Long lerm loan: TB Bank $(14\%),,26400000],[$Debentures $(13\%),,200000,00],[$Invesiment in RX $($Pty$)$ I td$,4800000,],[$Trading Stock,$10000000,],[$Debters control,$128000\mathrm{.}00,],[$Provision for bad debts,,$2560,00],[$Bank$,114260\mathrm{.}00,],[$Credilors Control,,$54260,00],[$SARS Income tax,$35000,00,],[$Nominal Accounts Section$],[$Sales$,,1066250,00],[$Cost of sales,$603800\mathrm{.}00,],[$Debtcrs allowance,$1800000,],[$Salaries$,120000\mathrm{.}00,],[$Motor expenses,$3450,00,],[$Interest on loan,$36960\mathrm{.}00,],[$Discount allowed,$3880,00,]]$

$\backslash$table$[[$Commission income,,$24930,00],[$Directors$\text{'}$ fees,$50150\mathrm{.}00,],[$Auditor$\text{'}$s fees,$13000,00,],[$Dividends on ordinary shares,$16000,00,],[$Repars$,28160\mathrm{.}00,],[$Other operating assets,$15740\mathrm{.}00,],[248600000,2486000,00]]$

ADJUSTMENTS AND ADDTIONAL INFORMATION.

Trading inventory accordng to stocktaking on $31$ December $2022$ amounted to R$99000.$

The provision for bad debts must be increased by R$1940.$

Capital repayments totaling R$24000$ are payable on the unsecured loan from TB Bank in the next financial year.

Depreciation must be previded for as follows:

$4\mathrm{.}1$ O vehicles at $20\%$ p$.$a$.$ using the diminishing balance method;

$4\mathrm{.}2$ On equiprnent at $10\%$ p$.$a$.$ on cost

A dvidend of $15\%$ of the investment value has been declared by BX $($Pty$)$ Ltd$.$ The dividend has not yet been received.

The authorised share capital consists of $600000$ ordinary shares.

Note: On $01$ Julv $20\mathrm{.}20.$ the combanv increased the ordinarv share cavital bv sellino

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