The following information is extracted from the accounting records of Ginger Limited: 1. EXTRACT OF STATEMENT OF FINANCIAL POSITION ITEMS 2021 2020 Inventories Trade receivables Investment in Didi Ltd (at fair value) Loans to directors Trade payables Prepayments (Insurance) Current tax payable Accrued expenses Dividends receivable Dividends payable 12 000 10 200 10 000 10 400 22 500 15 600 6 800 8 900 8 000 10 000 400 2 000 800 1 000 1 900 1 100 15 200 12 800 Current tax receivable 2 146 Cash and cash equivalents 4 000 1 400 2. EXTRACT FROM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR 28 FEB 2021: Distribution, administrative and other expenses Interest on long-term loan Interest income: loans to directors Dividend income 30 800 400 820 2 700 Fair value loss on listed investments 1900 Income tax expense 1 800 Additional information: 1. All sales and purchases are on credit. The company's trade is seasonal. The monthly sales of the business are 50% higher in November, December and January, than in the other nine months of the year. The business earns a gross profit of 55% on sales in the mentioned three months and 45% during g nine months. Total sales for the current financial year amounted to R270 000. 3. Included in the distribution, administrative and other expenses is the following: Depreciation R2 000 Credit losses R4 500 4. The balance of the allowance for credit losses amounted to R2 000 and R1 800 for the financial year ending 2020 and 2021 respectively. 5. The dividends declared by the company at year end amounted to R20 200. 5. Loans to directors are immediately callable and interest on these loans is capitalised.
The following information is extracted from the accounting records of Ginger Limited: 1. EXTRACT OF STATEMENT OF FINANCIAL POSITION ITEMS 2021 2020 Inventories Trade receivables Investment in Didi Ltd (at fair value) Loans to directors Trade payables Prepayments (Insurance) Current tax payable Accrued expenses Dividends receivable Dividends payable 12 000 10 200 10 000 10 400 22 500 15 600 6 800 8 900 8 000 10 000 400 2 000 800 1 000 1 900 1 100 15 200 12 800 Current tax receivable 2 146 Cash and cash equivalents 4 000 1 400 2. EXTRACT FROM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR 28 FEB 2021: Distribution, administrative and other expenses Interest on long-term loan Interest income: loans to directors Dividend income 30 800 400 820 2 700 Fair value loss on listed investments 1900 Income tax expense 1 800 Additional information: 1. All sales and purchases are on credit. The company's trade is seasonal. The monthly sales of the business are 50% higher in November, December and January, than in the other nine months of the year. The business earns a gross profit of 55% on sales in the mentioned three months and 45% during g nine months. Total sales for the current financial year amounted to R270 000. 3. Included in the distribution, administrative and other expenses is the following: Depreciation R2 000 Credit losses R4 500 4. The balance of the allowance for credit losses amounted to R2 000 and R1 800 for the financial year ending 2020 and 2021 respectively. 5. The dividends declared by the company at year end amounted to R20 200. 5. Loans to directors are immediately callable and interest on these loans is capitalised.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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