January R Receipts Legal Fees (Billed and paid in Cash) Legal Fees Billed but not yet paid Payment received from a client billed in December 200 000 75 000 12 000 Expenses Wages and salaries Purchase of furniture on credin Electricity and Water Telephone Entertainment Expenditure Bank charpes Interest paid on overdraft account Purchase of new motor vehicle Rent paid of fax machine Petrol purchased Payment of suppliers Maintenance of offices 38 000 50 000 4 000 1.500 5 500 900 1 800 350 000 2 500 3 883 3 500 810 YOU ARE REQUIRED TO Calculate the VAT payable by or refundable to Migeroni Attorneys in respect of its first VAT return (15) QUESTIONS 20 MARKS) Part A You are required to in each of the following questions, indicate whother the statement is TRUE or FALSE s) Dividends are only paid to ordinary shareholders (1) b) One of the component of the financial statement is annual report? (1) c) Partnership is formed by two or more attomeys? (1) d) Final dividends is declared at the beginning of the financial year (1) c) Director's report forma part of the annual financial statement (1) Part B You are required to answer each of the following separate question 1) What are the main classes of shara? (2) b) What are the 4 types of prolit companies? (4) c) What must a momorandum of association of a personaliability company state? (2) d) What is the difference between authorized and issued share capital (2) e) What are the three ways a legal practice can be conducted? (3) f) Name any 2 component of the financial statements (2)