Rustenburg Ltd became a subsidiary of Midrand Ltd on 2 January 20.23. consider the carrying amount...

Transcribed Image Text:

Rustenburg Ltd became a subsidiary of Midrand Ltd on 2 January 20.23. consider the carrying amount of the assets and liabilities Rustenburg Ltd to be equal to the fair value thereof at the date of acquisition. The following are the trial balances Midrand Ltd and Rustenburg Ltd for the year ended 30 September 20.23. Credits Share capital - ordinary shares (75 000 / 125 000 shares) Preference shares (20 000 shares) 6% Debentures Retained earnings - 1 October 20.22 Sales Interest received Dividends received Trade and other payables Dividends payable Bank Accumulated depreciation Long term borrowing - FNGees Bank MIDRAND LTD R 75 000 20 000 100 000 800 000 607 000 3 750 8 300 10 000 4 000 53 500 1 681 550 RUSTENBURG LTD R 125 000 45 000 305 000 428 250 2 400 47 840 22 950 105 000 1 081 440 Property, plant and equipment Cost of sales Administrative expenses Depreciation Interest paid - debentures Income tax at 28% Trade and other receivables Bank Dividends-paid Dividends declared - 30 September 20.23 Investment in Rustenburg Ltd (75% equity) at fair value (cost price: R349 453) Investment in Jumbo Ltd - 6% debentures at fair value (cost price: R40 000) 481 100 390 000 65 000 15 500 4 500 36 960 314 037 15 000 10 000 349 453 1 681 550 452 000 285 500 47 000 2 300 2 700 20 202 208 738 18 000 5 000 40 000 1 081 440 Page 2 of 5 Additional information: 1. Rustenburg Ltd applied for a loan at FNGees Bankon 1 July 20.22. FNGees Ltd granted the loan at an interest rate of 20% per annum for a period of 5 years. The interest for the year ended 30 September 20.23 has not been recorded yet and is payable on 1 October 20.22. capital repayment will only start in 20.25. 2. The sales of Rustenburg Ltd are seasonal. 60% of the sales occurred during the first 6 months of the financial year. The remaining amount of the sales figure was earned evenly spread over the rest of the financial year. Rustenburg Ltd maintains a gross profit percentage of 50% on the cost price. All other income and expenditure were received and spent evenly throughout the year. Income tax must be apportioned according to the profit before tax for the period. QUESTION 1: REQUIRED 1. Draft the consolidated statement of financial position of the Midrand Ltd Group as at 30 September 20.23. 2. Draft the consolidated statement of profit or loss and other comprehensive income for the Midrand Group for the year ended 30 September 20.23 3. Draft the consolidated statement of changes in equity for the Midrand Group for the year ended 30 September 20.23. 4. Calculations Rustenburg Ltd became a subsidiary of Midrand Ltd on 2 January 20.23. consider the carrying amount of the assets and liabilities Rustenburg Ltd to be equal to the fair value thereof at the date of acquisition. The following are the trial balances Midrand Ltd and Rustenburg Ltd for the year ended 30 September 20.23. Credits Share capital - ordinary shares (75 000 / 125 000 shares) Preference shares (20 000 shares) 6% Debentures Retained earnings - 1 October 20.22 Sales Interest received Dividends received Trade and other payables Dividends payable Bank Accumulated depreciation Long term borrowing - FNGees Bank MIDRAND LTD R 75 000 20 000 100 000 800 000 607 000 3 750 8 300 10 000 4 000 53 500 1 681 550 RUSTENBURG LTD R 125 000 45 000 305 000 428 250 2 400 47 840 22 950 105 000 1 081 440 Property, plant and equipment Cost of sales Administrative expenses Depreciation Interest paid - debentures Income tax at 28% Trade and other receivables Bank Dividends-paid Dividends declared - 30 September 20.23 Investment in Rustenburg Ltd (75% equity) at fair value (cost price: R349 453) Investment in Jumbo Ltd - 6% debentures at fair value (cost price: R40 000) 481 100 390 000 65 000 15 500 4 500 36 960 314 037 15 000 10 000 349 453 1 681 550 452 000 285 500 47 000 2 300 2 700 20 202 208 738 18 000 5 000 40 000 1 081 440 Page 2 of 5 Additional information: 1. Rustenburg Ltd applied for a loan at FNGees Bankon 1 July 20.22. FNGees Ltd granted the loan at an interest rate of 20% per annum for a period of 5 years. The interest for the year ended 30 September 20.23 has not been recorded yet and is payable on 1 October 20.22. capital repayment will only start in 20.25. 2. The sales of Rustenburg Ltd are seasonal. 60% of the sales occurred during the first 6 months of the financial year. The remaining amount of the sales figure was earned evenly spread over the rest of the financial year. Rustenburg Ltd maintains a gross profit percentage of 50% on the cost price. All other income and expenditure were received and spent evenly throughout the year. Income tax must be apportioned according to the profit before tax for the period. QUESTION 1: REQUIRED 1. Draft the consolidated statement of financial position of the Midrand Ltd Group as at 30 September 20.23. 2. Draft the consolidated statement of profit or loss and other comprehensive income for the Midrand Group for the year ended 30 September 20.23 3. Draft the consolidated statement of changes in equity for the Midrand Group for the year ended 30 September 20.23. 4. Calculations

Answer rating: 100% (QA)

Certainly lets prepare the consolidated financial statements for Midrand Ltd Group as at 30 September 2023 Consolidated Statement of Financial Position as at 30 September 2023 in R plaintext Assets Cu... View the full answer