60.1K

Verified Solution

Link Copied!

Credit Question 4 (12) COMPANY FINANCIAL STATEMENTS The following information was taken from the books of Bongi Limited. Balances of the accounts in the General Ledger of Bongi Ltd on 31 March 2020 Details Debit Statement of financial position section Retained earnings (1 April 2019) Ordinary share capital 12% preference share capital Land and buildings 3 824 000 Machinery 824 000 Replacement reserve Revaluation surplus Accumulated depreciation: Machinery Trading inventory 80 000 Trade receivables 72 000 Allowance for credit losses Bank 361 230 1 805 000 750 000 65 000 100 000 188 000 2 700 14 145 ACN300 ACCOUNTING FOR MANAGERS III 1155 250 000 Petty cash Investment: 20 000 shares in Attar Limited Trade payables Mortgage loan Nominal accounts section Net profit before tax 145 880 902 000 717 200 5051 1555 051 155 Additional information: 1. The company tax rate is 28%. 2. R20 000 must be transferred to the replacement reserve. 3. Provide for the preference share dividend at year end as well as for a final ordinary share dividend of 8c per ordinary share issued. 4. Land and buildings were revalued from R3 824 000 to R4 000 000 during the past financial year, but this revaluation has not yet been recorded. 5. A fresh issue of 25 000 ordinary shares was made during the past financial year at an issuing price of R3.75 per share. This issue has been properly recorded. 6. At 31 March 2020 there were 700 000 ordinary shares in issue. Required: Prepare the statement of changes in equity of Bongi Ltd for the year ended 31 March 2020

Answer & Explanation Solved by verified expert

See Answer