Reference no: EM132609229

Adjustments:

1) In addition to the interim profit distribution the following needs to be paid to members:

Y Yellow: Members distribution R27 000

B Blue: Members distribution R52 500

2) SA normal tax for the financial year amounted to R37 150

3) The long-term loan was acquired from Pretty Bank on 1 May 2018 at 12% interest per annum, payable at the end of the year. A further loan of R12 000 was received from Pretty Bank on 01 October 2019. The full loan must be repaid in 6 annual instalments with the first instalment due on 1 March 2021. The loan is unsecured. The interest on loan has not yet been taken into account in arriving at the profit before tax.

4) Interest on the loan from Y Yellow is charged at 12% per annum and is capitalised at the end of each financial year end. The interest that is due to Y Yellow has not been taken into account in this current year. The loan from Y Yellow is repayable in full on 31 July 2029.

Problem 1: Which one of the following alternatives represents the correct amount that must be disclosed as retained earnings in the statement of financial position of YBlue CC as at 31 July 2020?

1) R 131 110

2) R 156 060

3) R 141 310

4) R 145 860

Problem 2: Which one of the following alternatives represents the correct amount that must be disclosed as non - current assets in the statement of financial position of YBlue CC as at 31 July 2020?

1) R 508 000

2) R 598 000

3) R 559 120

4) R 469 120

Problem 3: Which one of the following alternatives represents the correct amount that must be disclosed as current assets in the statement of financial position of YBlue CC as at 31 July 2020?

1) R 261 000

2) R 298 150

3) R 45 955

4) R 257 540

Problem 4: Which one of the following alternatives represents the correct amount that must be disclosed as current liabilities in the statement of financial position of YBlue CC as at 31 July 2020?

1) R 106 860

2) R 110 420

3) R 22 920

4) R 114 860