5. The accountant of Beemer Ltd prepared the following detailed statement of income: BEEMER LIMITED Statement...

  
 

Transcribed Image Text:

5. The accountant of Beemer Ltd prepared the following detailed statement of income: BEEMER LIMITED Statement of Income for the year ended 31 October 20.1 Note N$ Sales Cost of sales Opening inventories Purchases Closing inventories Gross profit Other income Rent income Dividends income Interest income Profit on sale of machinery Profit on sale of shares Expenses Salaries and wages: Staff Salary: Managing director (Mr. S Mutonga) Fuel Water and electricity Bad debts Transfer to allowance for bad debts Auditors remuneration Loss on sale of vehicles Loss on re-measurement of financial assets Interest expense 1 2 2 3 4 150,000 560,000 710,000 (110,000) 12,000 14,000 6,000 8,000 5,000 280,000 120,000 25,000 41,000 9,000 1,000 15,000 7,000 2,000 3,000 N$ 1,200,00 (600,000) 600,000 45,000 (580,000) Depreciation Advertising expense Donations Penalty expense Income tax expense Ordinary dividends Preference dividends Profit for the year Additional Information: 1. Dividends are received from 5 сл сл 5 24,000 48,000 4,000 1,000 20,000 11,000 65,000 (20,800) 44,200 (31,000) 13,200 N$ 4,000 10,000 Benz Ltd Swagen (Pty) Ltd Interest is received from Benz Ltd. The shares of Benz Ltd are traded on the securities exchange. 2. Included in the salaries and wages is N$60,000 that was paid to directors for their attendance of meetings, while N$5,000 of the fuel expenses was for the fuel of directors to attend the meetings. Mr. N Mupupa and M Shikongo each received N$30,000 for the attendance of meetings and N$2,500 for fuel. 3. Auditors' remuneration is compiled as follows: Audit of the record Special tax investigation Travelling cost of auditors N$ 10,000 3,000 2,000 4. Depreciation for the year amounted to N$16,000 for vehicles and N$8,000 for machinery. 5. On 31 October 20.1, the issued share capital of Beemer Ltd consisted of the following: 400,000 ordinary shares 220,000 5% redeemable preference shares The shares were issued as follows: 300,000 ordinary shares on 1 January 20.0 at N$660,000 100,000 ordinary shares on 30 June 20.1 at N$220,000 20,000 5% redeemable preference shares on 30 June 20.1 at N$ 22,000 Except for the N$20,000 ordinary dividends paid by the company, additional N$10,000 ordinary dividends were declared. The dividends on the preference shares were paid in full. 6. On 31 October 20.0, Beemer Ltd had a retained earnings of N$44,000. You are required to: a) Prepare the statement of profit & loss and other comprehensive income for the year ended 31 October 2011. (16 marks) b) Prepare statement of changes in equity of Beemer Ltd for the year ended 31 October 2011. These statements must comply with the minimum requirements of the Companies Act 71 of 2008 and International Financial Reporting Standards (38). (8 marks) 5. The accountant of Beemer Ltd prepared the following detailed statement of income: BEEMER LIMITED Statement of Income for the year ended 31 October 20.1 Note N$ Sales Cost of sales Opening inventories Purchases Closing inventories Gross profit Other income Rent income Dividends income Interest income Profit on sale of machinery Profit on sale of shares Expenses Salaries and wages: Staff Salary: Managing director (Mr. S Mutonga) Fuel Water and electricity Bad debts Transfer to allowance for bad debts Auditors remuneration Loss on sale of vehicles Loss on re-measurement of financial assets Interest expense 1 2 2 3 4 150,000 560,000 710,000 (110,000) 12,000 14,000 6,000 8,000 5,000 280,000 120,000 25,000 41,000 9,000 1,000 15,000 7,000 2,000 3,000 N$ 1,200,00 (600,000) 600,000 45,000 (580,000) Depreciation Advertising expense Donations Penalty expense Income tax expense Ordinary dividends Preference dividends Profit for the year Additional Information: 1. Dividends are received from 5 сл сл 5 24,000 48,000 4,000 1,000 20,000 11,000 65,000 (20,800) 44,200 (31,000) 13,200 N$ 4,000 10,000 Benz Ltd Swagen (Pty) Ltd Interest is received from Benz Ltd. The shares of Benz Ltd are traded on the securities exchange. 2. Included in the salaries and wages is N$60,000 that was paid to directors for their attendance of meetings, while N$5,000 of the fuel expenses was for the fuel of directors to attend the meetings. Mr. N Mupupa and M Shikongo each received N$30,000 for the attendance of meetings and N$2,500 for fuel. 3. Auditors' remuneration is compiled as follows: Audit of the record Special tax investigation Travelling cost of auditors N$ 10,000 3,000 2,000 4. Depreciation for the year amounted to N$16,000 for vehicles and N$8,000 for machinery. 5. On 31 October 20.1, the issued share capital of Beemer Ltd consisted of the following: 400,000 ordinary shares 220,000 5% redeemable preference shares The shares were issued as follows: 300,000 ordinary shares on 1 January 20.0 at N$660,000 100,000 ordinary shares on 30 June 20.1 at N$220,000 20,000 5% redeemable preference shares on 30 June 20.1 at N$ 22,000 Except for the N$20,000 ordinary dividends paid by the company, additional N$10,000 ordinary dividends were declared. The dividends on the preference shares were paid in full. 6. On 31 October 20.0, Beemer Ltd had a retained earnings of N$44,000. You are required to: a) Prepare the statement of profit & loss and other comprehensive income for the year ended 31 October 2011. (16 marks) b) Prepare statement of changes in equity of Beemer Ltd for the year ended 31 October 2011. These statements must comply with the minimum requirements of the Companies Act 71 of 2008 and International Financial Reporting Standards (38). (8 marks)