Dingo Limited was incorporated on 1 January 2013 with an authorised share capital consisting of 200...

  
 

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Dingo Limited was incorporated on 1 January 2013 with an authorised share capital consisting of 200 000 ordinary shares and 50 000 7% preference shares. On 31 December 2019, 50 000 ordinary shares and 50 000 7% preference shares were issued. The trial balance of Dingo Limited as at 31 December 2019 reflects the following balances: Debit R Ordinary share capital Preference share capital Retained earnings on 1 January 2019 Replacement reserve on 1 January 2019 Bank loan Machinery Accumulated depreciation on machinery (01/01/2019) Vehicles Accumulated depreciation on vehicles (01/01/2019) Investment in Xeron Ltd Investment in Yebo (Pty) Ltd Inventories on 1 January 2019 Receivables control Bank Petty cash Payables control Dividends paid - ordinary shares Dividends paid - preference shares Sales Purchases Profit on realisation of investment Directors' remuneration Auditing fees Cleaning Advertising Printing Bad debts Salaries and wages Interest expense Stationery Water and electricity Rent expense-buildings Telephone Additional information: 250 000 100 000 25 000 4 000 12 000 14 000 140 500 4 000 3 000 3.500 65 000 12 500 12 500 2400 200 150 215 55 600 462 450 5 400 61 500 3 423 775 800 Credit R 75 000 50 000 54 000 16 000 23 000 50 000 25 000 14 200 465 000 3 600 775 800 Additional information: The investment in Xeron Ltd, a company listed on the JSE Securities Exchange consisted of 10 000 ordinary shares. The market value of the shares on 31 December 2019 was R40 000. 1. 2. The investment in Yebo (Pty) Ltd consisted of 2 500 ordinary shares. The directors revalued the investment on 30 October 2019 at R6 000. It is custom that the directors revalue the unlisted investments every year. FSAO-ACCOBB1/REKOB01 - Accounting B 3. 4. 5. 6. 7. 8. Non-current assets are written off on a straight-line method at the following rates: Machinery: 20% per annum Vehicles: 25% per annum . Page 5 of 7 The 20% bank loan was entered into on 1 November 2019. The original value of the bank loan was R25 000. The loan is repayable in equal monthly instalments of R1 000 each. Inventories consist of merchandise. The closing inventories amount to R8 000. The directors have decided that R12 000 must be transferred to the replacement reserve. Director's remuneration consisted of R10 000 for attendance of meetings and the balance refers to the salary of the managing director. The total comprehensive income for the year was R133 845 while the retained earnings were R169 345 on 31 December 2019 and the taxation for the year amounts to R52 955. REQUIDEn REQUIRED: Prepare the statement of changes in equity for the reporting period ended 31 December 2019 for Dingo Limited. (31) b) Prepare ONLY the following notes to the statement of financial position: Property, Plant and Equipment Financial assets Share capital Note: Dingo Limited is not registered for VAT purposes. a) (21) (10) (11) Dingo Limited was incorporated on 1 January 2013 with an authorised share capital consisting of 200 000 ordinary shares and 50 000 7% preference shares. On 31 December 2019, 50 000 ordinary shares and 50 000 7% preference shares were issued. The trial balance of Dingo Limited as at 31 December 2019 reflects the following balances: Debit R Ordinary share capital Preference share capital Retained earnings on 1 January 2019 Replacement reserve on 1 January 2019 Bank loan Machinery Accumulated depreciation on machinery (01/01/2019) Vehicles Accumulated depreciation on vehicles (01/01/2019) Investment in Xeron Ltd Investment in Yebo (Pty) Ltd Inventories on 1 January 2019 Receivables control Bank Petty cash Payables control Dividends paid - ordinary shares Dividends paid - preference shares Sales Purchases Profit on realisation of investment Directors' remuneration Auditing fees Cleaning Advertising Printing Bad debts Salaries and wages Interest expense Stationery Water and electricity Rent expense-buildings Telephone Additional information: 250 000 100 000 25 000 4 000 12 000 14 000 140 500 4 000 3 000 3.500 65 000 12 500 12 500 2400 200 150 215 55 600 462 450 5 400 61 500 3 423 775 800 Credit R 75 000 50 000 54 000 16 000 23 000 50 000 25 000 14 200 465 000 3 600 775 800 Additional information: The investment in Xeron Ltd, a company listed on the JSE Securities Exchange consisted of 10 000 ordinary shares. The market value of the shares on 31 December 2019 was R40 000. 1. 2. The investment in Yebo (Pty) Ltd consisted of 2 500 ordinary shares. The directors revalued the investment on 30 October 2019 at R6 000. It is custom that the directors revalue the unlisted investments every year. FSAO-ACCOBB1/REKOB01 - Accounting B 3. 4. 5. 6. 7. 8. Non-current assets are written off on a straight-line method at the following rates: Machinery: 20% per annum Vehicles: 25% per annum . Page 5 of 7 The 20% bank loan was entered into on 1 November 2019. The original value of the bank loan was R25 000. The loan is repayable in equal monthly instalments of R1 000 each. Inventories consist of merchandise. The closing inventories amount to R8 000. The directors have decided that R12 000 must be transferred to the replacement reserve. Director's remuneration consisted of R10 000 for attendance of meetings and the balance refers to the salary of the managing director. The total comprehensive income for the year was R133 845 while the retained earnings were R169 345 on 31 December 2019 and the taxation for the year amounts to R52 955. REQUIDEn REQUIRED: Prepare the statement of changes in equity for the reporting period ended 31 December 2019 for Dingo Limited. (31) b) Prepare ONLY the following notes to the statement of financial position: Property, Plant and Equipment Financial assets Share capital Note: Dingo Limited is not registered for VAT purposes. a) (21) (10) (11)

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a Statement of Changes in Equity for the Year Ended 31 December 2019 Ordinary Share Capital 75 000 P... View the full answer