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The following information is extracted from the accounting records of Ginger Limited: 1. EXTRACT OF STATEMENT OF FINANCIAL POSITION ITEMS 2021 2020 nventories Trade receivables 12 000 10 000 10 200 10 400 nvestment in Didi Ltd (at fair value) 22 500 15 600 Loans to directors Trade payables Prepayments (Insurance) Current tax payable Accrued expenses Dividends receivable Dividends payable 6 800 8 900 8 00 10 000 400 2 000 800 1000 1900 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 30 800 nterest on long-term loan 400 820 2 700 nterest income: loans to directors Dividend income Fair value loss on listed investments 1900 ncome tax expense 1 800 Additional information: . All sales and purchases are on credit. 2 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 the remaining nine months. Total sales for the current financial year amounted to R270 000. Included in the distribution, administrative and other expenses is the following: Depreciation R2 000 Credit losses R4 500 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 deciared by the company at year end amounted to R20 200. Loans to directors are immediately calahle and interest on these loans je canitalised

The following information is extracted from the accounting records of Ginger Limited: 1. EXTRACT OF STATEMENT OF FINANCIAL POSITION ITEMS 2021 2020 nventories Trade receivables 12 000 10 000 10 200 10 400 nvestment in Didi Ltd (at fair value) 22 500 15 600 Loans to directors Trade payables Prepayments (Insurance) Current tax payable Accrued expenses Dividends receivable Dividends payable 6 800 8 900 8 00 10 000 400 2 000 800 1000 1900 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 30 800 nterest on long-term loan 400 820 2 700 nterest income: loans to directors Dividend income Fair value loss on listed investments 1900 ncome tax expense 1 800 Additional information: . All sales and purchases are on credit. 2 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 the remaining nine months. Total sales for the current financial year amounted to R270 000. Included in the distribution, administrative and other expenses is the following: Depreciation R2 000 Credit losses R4 500 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 deciared by the company at year end amounted to R20 200. Loans to directors are immediately calahle and interest on these loans je canitalised

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 69.3C
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The following information is extracted from the accounting records of Ginger Limited: 1. EXTRACT OF STATEMENT OFE FINANCIAL POSITION ITEMS 2021 2020 Inventories 12 000 10 200 Trade receivables 10 000 10 400 Investment in Didi Ltd (at fair value) 22 500 15 600 Loans to directors 6 800 8 900 8 000 Trade payables Prepayments (Insurance) Current tax payable Accrued expenses 10 000 400 2 000 800 1 000 Dividends receivable 1 900 1 100 Dividends payable 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 30 800 Interest on long-term loan 400 Interest income: loans to directors 820 Dividend income 2 700 Fair value loss on listed investments 1 900 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 the remaining nine months. Total sales for the current financial year amounted to R270 000. 2. 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. 6. Loans to directors are immediately callable and interest on these loans is capitalised.
Transcribed Image Text:The following information is extracted from the accounting records of Ginger Limited: 1. EXTRACT OF STATEMENT OFE FINANCIAL POSITION ITEMS 2021 2020 Inventories 12 000 10 200 Trade receivables 10 000 10 400 Investment in Didi Ltd (at fair value) 22 500 15 600 Loans to directors 6 800 8 900 8 000 Trade payables Prepayments (Insurance) Current tax payable Accrued expenses 10 000 400 2 000 800 1 000 Dividends receivable 1 900 1 100 Dividends payable 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 30 800 Interest on long-term loan 400 Interest income: loans to directors 820 Dividend income 2 700 Fair value loss on listed investments 1 900 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 the remaining nine months. Total sales for the current financial year amounted to R270 000. 2. 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. 6. Loans to directors are immediately callable and interest on these loans is capitalised.
QUESTION 7 Which one of the following alternatives represents the correct amount that must be disclosed as dividends received under the cash flows from operating activities section in the statement of cash flows of Ginger Limited for the year ended 28 February 2021? O A. 1900 O B. 3 500 O C. (2 700) O D. (1 900) O E. 2 700
Transcribed Image Text:QUESTION 7 Which one of the following alternatives represents the correct amount that must be disclosed as dividends received under the cash flows from operating activities section in the statement of cash flows of Ginger Limited for the year ended 28 February 2021? O A. 1900 O B. 3 500 O C. (2 700) O D. (1 900) O E. 2 700
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