Effects of Ifrs
IFNS 401, FACC412, FACC 403 and FINREP 411: 2009 Mod 1, SUPP
QUESTION 1 (25 marks)
The following trial balance for the year ended 31 December 2008 of Smart Limited is presented to you:
| Debit/ (Credit) | | R | | | Preference share capital | ( 40 000 ) | Ordinary share capital | ( 200 000 ) | Share premium | ( 63 000 ) | Non-distributable reserve | ( 90 000 ) | Retained earnings (31/12/2007) | ( 221 000 ) | Land | 320 000 | Office equipment at cost | 100 000 | Vehicles at cost (used for distribution) | 60 000 | Accumulated depreciation – office equipment | ( 24 000 ) | Accumulated depreciation – vehicles | ( 18 000 ) | Investments at cost | 120 000 | Bank | 30 000 | Accounts receivable | 40 000 | Accounts payable | ( 25 000 ) | SA Revenue Service | ( 15 000 ) | Sales | ( 380 000 ) | Dividends received | ( 10 000 ) | Inventory (31/12/2007) | 90 000 | Purchases of goods | 185 000 | Depreciation – office equipment | 12 000 | Depreciation – vehicles | 8 000 | Other operating expenses | 25 000 | Administrative expenses | 10 000 | Distribution expenses | 15 000 | Interest paid | 12 000 | Salaries and wages (50% admin, 50% distribution) | 30 000 | Income tax expense | 29 000 | | | | - |
IFNS 401, FACC412, FACC 403 and FINREP 411: 2009 Mod 1, SUPP
Additional information
1. Inventory is valued at R 80 000 on 31 December 2008. 2. Dividends to the amount of R 23 000 were paid on 31 December 2008, but this has not yet been accounted for in the above trial balance. 3. A transfer of R 5 000 to the asset replacement reserve must still be made for the year ended 31 December 2008.
REQUIRED:
Prepare the statement of comprehensive income (according to the classification of expenses by function) and the statement of
QUESTION 1 (25 marks)
The following trial balance for the year ended 31 December 2008 of Smart Limited is presented to you:
| Debit/ (Credit) | | R | | | Preference share capital | ( 40 000 ) | Ordinary share capital | ( 200 000 ) | Share premium | ( 63 000 ) | Non-distributable reserve | ( 90 000 ) | Retained earnings (31/12/2007) | ( 221 000 ) | Land | 320 000 | Office equipment at cost | 100 000 | Vehicles at cost (used for distribution) | 60 000 | Accumulated depreciation – office equipment | ( 24 000 ) | Accumulated depreciation – vehicles | ( 18 000 ) | Investments at cost | 120 000 | Bank | 30 000 | Accounts receivable | 40 000 | Accounts payable | ( 25 000 ) | SA Revenue Service | ( 15 000 ) | Sales | ( 380 000 ) | Dividends received | ( 10 000 ) | Inventory (31/12/2007) | 90 000 | Purchases of goods | 185 000 | Depreciation – office equipment | 12 000 | Depreciation – vehicles | 8 000 | Other operating expenses | 25 000 | Administrative expenses | 10 000 | Distribution expenses | 15 000 | Interest paid | 12 000 | Salaries and wages (50% admin, 50% distribution) | 30 000 | Income tax expense | 29 000 | | | | - |
IFNS 401, FACC412, FACC 403 and FINREP 411: 2009 Mod 1, SUPP
Additional information
1. Inventory is valued at R 80 000 on 31 December 2008. 2. Dividends to the amount of R 23 000 were paid on 31 December 2008, but this has not yet been accounted for in the above trial balance. 3. A transfer of R 5 000 to the asset replacement reserve must still be made for the year ended 31 December 2008.
REQUIRED:
Prepare the statement of comprehensive income (according to the classification of expenses by function) and the statement of