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1. May/Jun 2012, Q234 marks

   The books of Jameson (Pty) Ltd, as at 28 February 2010, reflect the following balances: share capital R200 000; retained earnings at 01/03/2009 of R500 000; land at cost R800 000; factory building at cost (note 4) R1 500 000; accumulated depreciation on the factory building at 28/02/2010 (note 4) of R200 000; furniture and fittings at carrying amount at 28/02/2010 (note 5) of R225 000; investments at cost (note 7) of R13 000; inventory at cost (note 6) of R150 000; trade and other receivables of R557 000; provision for credit losses of R35 500; and a bank overdraft of R270 000. Additional information from the financial director is as follows. (1) Profit after tax for the year was R2 033 909, after all necessary adjustments have been recorded. (2) The office buildings are leased by Jameson (Pty) Ltd under an operating lease with a 6-year term commencing 1 March 2009; lease payments are R11 500 per month for the first 2 years and R12 700 per month for the remaining period. (3) On 1 March 2009 Jameson (Pty) Ltd entered into a finance lease with Daniels (Pty) Ltd for a new machine with a cash selling price of R105 000 at commencement, at an interest rate of 12% per annum; lease payments are made bi-annually in arrears over 3 years; depreciation is on the straight-line method over the asset's useful life of 5 years. The amortisation schedule prepared by the financial manager shows, for each date, the payment, interest, capital and outstanding balance as follows: 01/03/2009 outstanding balance R105 000; 31/08/2009 payment R21 353, interest R6 300, capital R15 053, balance R89 947; 28/02/2010 payment R21 353, interest R5 397, capital R15 956, balance R73 991; 31/08/2010 payment R21 353, interest R4 439, capital R16 914, balance R57 077; 28/02/2011 payment R21 353, interest R3 425, capital R17 928, balance R39 149; 31/08/2011 payment R21 353, interest R2 349, capital R19 004, balance R20 144; 28/02/2012 payment R21 353, interest R1 209, capital R20 144, balance R0. (4) The factory, situated on erf 235, Midrand, is owner-occupied and was revalued by sworn appraiser Mr J Wrong on 28 February 2010 at a net replacement value of R1 430 000 (excluding land); it is depreciated on the straight-line method over 15 years and was exactly 2 years old at year end. (5) All furniture and fittings were purchased on 1 March 2008 and are depreciated at 25% per annum on the reducing-balance method; none has been sold since purchase. (6) Closing inventories on hand at 28 February 2010 consisted of raw material at cost R100 000, work in progress at cost R30 000, and finished goods R20 000, totalling R150 000. Due to the current economic situation, the net realisable value of the raw material and finished goods was 5% lower than cost, while the net realisable value of work in progress exceeded cost by R7 000. (7) Investments consist of 6 000 ordinary shares of R2,00 each in J&B (Pty) Ltd, purchased for R12 000 with transaction costs of R1 000; J&B (Pty) Limited issued 60 000 ordinary shares during the year; a fair value adjustment gain of R5 000 at year end has not yet been recorded; these shares are classified as an investment not-held-for-trading. (8) The company declared a dividend of 5c per share on 28 February 2010, paid on 31 March 2010; the total issued share capital of Jameson (Pty) Ltd at year end consisted of 18 000 ordinary shares, out of an authorised share capital of 30 000 ordinary shares. Required: Prepare the Statement of Financial Position of Jameson (Pty) Limited as at 28 February 2010, together with only the following notes: Property, plant & equipment (PPE) and Finance lease obligation. Ignore comparative figures and the accounting policy note. Show all calculations. The Statement of Financial Position and notes must comply with the requirements of the Companies Act and Generally Accepted Accounting Practice.

2. May/Jun 2011, Q225 marks

   One Shot Limited: the following figures were extracted from the accounting records for the financial year ended 28 February 2011, and are common to questions 1 to 3. Trial balance amounts (in R) include: land at cost R200 000 (see note 3); buildings at cost R1 800 000 (see note 3); long-term loan owing by Lost it (Pty) Ltd R200 000 (see note 5); long-term loan owing by Abe Limited R60 000; trade and other receivables R172 000; inventory of raw materials R16 000; inventory of finished goods R484 000; inventory of work-in-progress R40 000; machinery and equipment at cost R320 000 (see note 9); delivery vehicles at cost R340 000 (see note 8); proceeds from the sale of a delivery vehicle during the year R76 000; accumulated depreciation at 28 February 2011 on delivery vehicles is unknown (see note 8), on machinery and equipment is R160 000 (see note 9), and on buildings is unknown (see note 3); short-term interest-free, uninsured loans to personnel R18 000; cash at bank R33 000; investments R344 000 (see note 4); provisional tax payments R32 400; 12% debentures of R100 each, issued during the year, secured by a first mortgage over land and buildings and redeemable 31 March 2014, R400 000; dividends received from Babe Limited R3 600 and from Cringe (Pty) Ltd R1 600; interest received from Abe Limited R5 000; ordinary share capital R2 000 000 (see notes 1 and 2); 10% non-cumulative preference share capital R220 000; 12% cumulative preference share capital R180 000; proceeds from 10 000 10% non-cumulative preference shares issued at par value on 31 August 2010 (amount not given); proceeds from 200 000 ordinary par-value shares issued on 31 May 2010, R420 000; share issue expenses relating to the above share issues R12 000; preliminary expenses R6 000; debenture issue expenses R8 000; trade and other payables R143 000; retained earnings at 1 March 2010 R787 600; income (VAT-inclusive at 14%) R20 520 000; VAT on income paid to SARS R2 020 000 (see note 11); distribution costs R107 200; and administrative expenses before adjustments R6 776 400 (see note 6). The additional information is as follows. (1) One Shot Limited was incorporated with an authorised share capital of 1 600 000 ordinary shares of R2 each, 200 000 10% non-cumulative preference shares of R5 each, and 100 000 12% cumulative preference shares of R4 each. (2) On 1 March 2010 the directors resolved on the following matters, still to be accounted for, in the order given: (2.1) a capitalisation issue to ordinary shareholders of one share for every ten shares held, to be made out of retained earnings; (2.2) writing off all share issue costs, preliminary expenses and debenture issue expenses with the minimum effect on distributable reserves at 28 February 2011. (3.1) The existing land, owner-occupied and situated at erf 90, Riviera, was bought on 1 March 2007 for R200 000; the buildings, costing R1 800 000, were completed on 2 March 2010. On 31 August 2010 a sworn appraiser, Mr Smit, revalued the land and buildings to R400 000 and R2 400 000 respectively on the gross replacement basis; the buildings' remaining useful life is unchanged. (3.2) Buildings are depreciated at 2% per annum on the straight-line basis and this still needs to be processed. (4) The investments comprise: (4.1) Abe Limited - 40 000 ordinary shares of R3 each, cost R120 000; Abe Limited's authorised share capital is 100 000 shares of which 60 000 have been issued; the directors valued this investment at R120 000 on 28 February 2011. (4.2) Babe Limited, listed on the Johannesburg Securities Exchange and held for speculative purposes - 4 000 ordinary shares of R40 each, cost R160 000; the market value on 28 February 2011 was R50 per share. (4.3) Cringe (Pty) Ltd, designated as not available-for-sale - 800 ordinary shares of R80 each, cost R64 000; the directors valued this investment at R80 000 on 28 February 2011. The three investments total R344 000. (4.4) In prior years the fair value of these investments equalled their cost; no entries for the current valuations have yet been recorded. (5) The unsecured long-term loan from Lost it (Pty) Ltd arose on 1 March 2010 and is repayable in five equal annual instalments starting 31 August 2010; interest at the current rate of 10% for the year must still be provided for and is payable on 5 March 2011; One Shot Limited applies settlement date accounting for its financial instruments. (6) Administrative expenses include, among others: auditors' remuneration of R9 000 (including R4 200 of travel costs); a travelling and entertainment allowance to the managing director of R13 600; directors' remuneration for attending meetings of R7 200 to the managing director and R7 200 to the non-executive director (with a further R8 000 paid to the managing director by a subsidiary for attending meetings); salaries of R800 000 (including R280 000 paid to the managing director, and the company's pension fund contribution of 5% of gross salaries); bank charges of R2 800; overdraft interest of R27 600; debenture interest of R32 000; and an as-yet-uncalculated depreciation charge on machinery and equipment. (7) Normal company tax of R76 000 must still be provided for. On 28 February 2011 the directors declared a dividend of 5c per ordinary share which still has to be provided for; no dividend was declared or paid in the prior year. (8) One Shot Limited sold its only delivery vehicle on 31 May 2010; it originally cost R140 000 and was bought on 1 September 2007; a new delivery vehicle replaced it on the same date. Depreciation on delivery vehicles is written off at 20% per annum on the straight-line method, and the current year's depreciation still needs to be provided for. (9) Depreciation on machinery and equipment is written off at 20% per annum on the diminishing-balance method; there were no purchases or sales of machinery during the year. (10) The company maintained a gross profit percentage of 40% during the year. (11) VAT on income for January and February 2011 has not yet been paid; input VAT must be ignored for purposes of this question. Using all of the One Shot Limited information and notes given above, prepare the asset side of the Statement of Financial Position, together with the relevant supporting notes, at 28 February 2011, in compliance with the requirements of the Companies Act and Generally Accepted Accounting Practice. Comparative figures and accounting policy notes may be ignored, but all calculations must be shown.

3. May/Jun 2011, Q318 marks

   One Shot Limited extracted the following trial balance figures from its books for the year ended 28 February 2011: land at cost (see note 3.1) R200 000; buildings at cost (see note 3.1) R1 800 000; long-term loans owing to Lost It (Pty) Ltd (see note 5) R200 000 and to Abe Limited R60 000; trade and other receivables R172 000; inventory of raw materials R16 000, finished goods R484 000 and work-in-progress R40 000; machinery and equipment at cost (see note 9) R320 000; delivery vehicles at cost (see note 8) R340 000; proceeds from the sale of a delivery vehicle during the year R76 000; accumulated depreciation at 28 February 2011 on delivery vehicles (see note 8) unstated (must be calculated), on machinery and equipment (see note 9) R160 000, and on buildings (see note 3.1) unstated (must be calculated); short-term interest-free, uninsured loans to personnel R18 000; cash in bank R33 000; investments (see note 4) R344 000; provisional tax payments R32 400; 12% debentures of R100 each issued during the year, secured by a first mortgage over land and buildings and redeemable on 31 March 2014, R400 000; dividends received from Babe Limited R3 600 and from Cringe (Pty) Ltd R1 600; interest received from Abe Limited R5 000; ordinary share capital (see notes 1 and 2) R2 000 000; 10% non-cumulative preference share capital R220 000; 12% cumulative preference share capital R180 000; proceeds from 10 000 10% non-cumulative preference shares issued at par value on 31 August 2010 unstated (must be calculated); proceeds from 200 000 ordinary par-value shares issued on 31 May 2010 R420 000; share issue expenses relating to the above share issues R12 000; preliminary expenses R6 000; debenture issue expenses R8 000; trade and other payables R143 000; retained earnings at 1 March 2010 R787 600; income (VAT included at 14%) R20 520 000; VAT on income paid to SARS (see note 11) R2 020 000; distribution costs R107 200; and administrative expenses before adjustments (see note 6) R6 776 400. Additional information: (1) One Shot Limited was incorporated with an authorised share capital of 1 600 000 ordinary shares of R2 each, 200 000 10% non-cumulative preference shares of R5 each, and 100 000 12% cumulative preference shares of R4 each. (2) On 1 March 2010 the directors resolved on two matters that must still be accounted for, in the following order: (2.1) a capitalisation issue to ordinary shareholders in the ratio of one new share for every ten ordinary shares held, to be made out of retained earnings; and (2.2) the writing off of all share issue costs, preliminary expenses and debenture issue expenses, with the minimum effect on distributable reserves, on 28 February 2011. (3.1) The existing land (owner-occupied, situated at erf 90, Riviera) was purchased on 1 March 2007 for R200 000, and buildings costing R1 800 000 were completed on 2 March 2010; on 31 August 2010 a sworn appraiser, Mr Smit, revalued the land and buildings to R400 000 and R2 400 000 respectively on the gross replacement basis, with the buildings' economic life unchanged. (3.2) Buildings are depreciated at 2% per annum on the straight-line basis and this still needs to be accounted for. (4) Investments consist of: (4.1) Abe Limited - 40 000 ordinary shares of R3 each, R120 000, out of an authorised 100 000 shares of which 60 000 are issued, with a directors' valuation on 28 February 2011 of R120 000; (4.2) Babe Limited, listed on the JSE and held for speculative purposes - 4 000 ordinary shares of R40 each, R160 000, with a market value on 28 February 2011 of R50 per share; (4.3) Cringe (Pty) Ltd, designated as not-available-for-sale - 800 ordinary shares of R80 each, R64 000, with a directors' valuation on 28 February 2011 of R80 000; the three investments total R344 000. (4.4) In previous years the fair value of these investments equalled their cost price, and no entries regarding these valuations have yet been recorded. (5) The unsecured long-term loan from Lost It (Pty) Ltd originated on 1 March 2010 and is repayable in five equal annual instalments starting 31 August 2010; interest for the current year at the current rate of 10% must still be provided for and is payable on 5 March 2011, and One Shot Limited uses settlement date accounting for its financial instruments. (6) Administrative expenses (before adjustments) include, among others: auditors' remuneration of R9 000 (including R4 200 travelling costs); a travelling and entertainment allowance for the managing director of R13 600; directors' remuneration for attendance of meetings of R7 200 for the managing director and R7 200 for the non-executive director (an additional R8 000 was paid to the managing director by the subsidiary for attending meetings); salaries of R800 000 (including R280 000 paid to the managing director, and the company's pension fund contributions of 5% on gross salaries); bank charges of R2 800; interest on overdraft of R27 600; interest on debentures of R32 000; and depreciation on machinery and equipment (amount to be calculated). (7) Normal company tax of R76 000 must still be provided for; on 28 February 2011 the directors declared a dividend of 5c per ordinary share which must still be provided for; no dividends were declared or paid in the previous year. (8) One Shot Limited sold its only delivery vehicle on 31 May 2010; the original cost of that vehicle was R140 000 and it had been purchased on 1 September 2007; it was replaced on the same date with a new delivery vehicle; the company's policy is to depreciate delivery vehicles at 20% per annum on the straight-line method, and depreciation for the year must still be provided for. (9) The company's policy is to depreciate machinery and equipment at 20% per annum on the diminishing-balance method; no machinery was purchased or sold during the year. (10) One Shot Limited maintained a gross profit percentage of 40% during the year. (11) VAT on income for January and February 2011 has not yet been paid; input VAT must be ignored for purposes of this question. Using the information given about One Shot Limited for the year ended 28 February 2011, prepare the 'liabilities' side of the Statement of Financial Position and the relevant supporting notes at 28 February 2011, in accordance with the requirements of the Companies Act and Generally Accepted Accounting Practice. Comparative figures and accounting policy notes may be ignored, but all calculations must be shown.

4. Oct/Nov 2010, Q340 marks

   The following list of balances was extracted from the books of Maklik Limited on 30 June 2010: land at cost (as at 1 July 2009, per note 1.1) R100 000; land and buildings at cost (per notes 1.2 and 1.3) R2 500 000; machinery at cost R800 000; furniture and equipment at carrying amount (as at 1 July 2009) R200 000; investments R400 000; loan to Swop Limited R80 000; trade and other receivables R375 000; inventory R910 000; dividends receivable R18 000; trade and other payables R340 000; sundry expenses (per note 1.4) R150 000; cash at bank R60 000; and profit for the current year before tax and depreciation R930 000. Additional information is as follows. Note 1 deals with property, plant and equipment. Note 1.1: the land comprises erf 200, Nelspruit, and was valued on 30 June 2010 at R200 000 by Mr Ken, an independent sworn appraiser; the land is not an investment property. Note 1.2: the land and buildings comprise a shopping centre and offices situated on erf 100, Nelspruit; the building was completed on 2 January 2010 and is depreciated at 2% per annum on the straight-line basis; the buildings were erected to let out shops and offices; land and buildings are revalued using the fair value model; direct costs debited to the cost of land and buildings were raw materials R1 800 000 and labour R600 000, totalling R2 400 000. Note 1.3: the fair value of the land and buildings referred to in note 1.2 was R2 550 000 on 30 June 2010, per Mr Ken's valuation. Note 1.4: the accountant was uncertain how to treat certain costs incurred during the erection of the buildings in note 1.2, and recorded them as sundry expenses; these were the cost of dismantling old buildings from the premises R60 000, advertising and marketing costs of the new shopping centre R50 000, and the installation cost of an escalator R40 000, totalling R150 000. Note 1.5: all machinery was purchased on 31 December 2008 for R600 000, with installation costs on that date of R200 000; depreciation on machinery is provided at 20% per annum on the reducing-balance method; during the current financial year all machinery was withdrawn from the production process for a period of three months and used instead in the construction of the buildings. Note 1.6: on 31 December 2009, furniture and equipment that originally cost R100 000 and had already been in use for four years at the start of the year was traded in at a loss of R5 000 as part payment for new equipment worth R80 000; furniture and equipment is depreciated at 10% per annum on the straight-line basis; accumulated depreciation on furniture and equipment on 1 July 2009 was R200 000; no other furniture and equipment was purchased or sold during the year. Note 2 deals with investments, which consist of: (2.1) 120 000 ordinary shares in Swop Limited at a cost of R200 000 - the issued share capital of Swop Limited consists of 200 000 ordinary shares of R1 each, each share carrying one vote, and the market value of this investment was R200 000 on 30 June 2010; (2.2) 20 000 12% preference shares in Tops Limited at a cost of R60 000 - the issued share capital of Tops Limited consists of 30 000 ordinary shares of R5 each and 30 000 preference shares of R2 each, each share carrying one vote, the shares of Tops Limited are traded on the Johannesburg Security Exchange, the market value of the preference shares on 30 June 2010 was R5 each, and these shares were mainly acquired for the purpose of making a short-term profit; (2.3) 70 000 ordinary shares in Sun Limited at a cost of R140 000 - the issued share capital of Sun Limited consists of 4 000 000 ordinary shares of R1 each, each share carrying one vote, the shares of Sun Limited are traded on the Johannesburg Security Exchange, the market value on 30 June 2010 was R5 each, and this investment is treated in the books of Maklik Limited as an available-for-sale investment; the three investments together total R400 000. Note 2.4: no entry has yet been recorded in respect of any of the investments in the books of Maklik Limited as at 30 June 2010. Note 3 sets out that inventory on 30 June 2010 consists of raw materials at cost R200 000, work in progress at cost R500 000, handling costs of finished goods R20 000, storage costs of finished goods R40 000, and finished goods at cost R150 000, totalling R910 000; the net realisable value of the raw materials is currently 10% lower than their original cost price. Using all of the information given about Maklik Limited above, prepare the 'Asset' side of the Statement of financial position, together with the relevant supporting notes, of Maklik Limited as at 30 June 2010, in compliance with the requirements of the Companies Act and Generally Accepted Accounting Practice. Comparative figures and the notes regarding accounting policy may be ignored. All calculations must be shown.