Accounting paper 1 consist of
•Company financial statements ( approximate marks 55)
• cash flow statement and financial indicator( 40 marks)
• interpretation of financial information ( 40 marks)
• corporate Governance ( 15 marks )
Use the paper to reinforce your understanding.
QUESTION 1: COMPANY FINANCIAL STATEMENTS (55 marks; 45 minutes)
The information relates to DBN Ltd. The company sells household products. The
financial year ended on 29 February 2024.
REQUIRED:
1.1 Refer to information A.
The bookkeeper has recorded all the entries regarding fixed assets in the
books. Complete the amounts denoted by (i) to (iii) on the Fixed Asset Note. (12)
1.2 Refer to information C and D.
Calculate the correct net profit after tax for the year ended 29 February 2024.
Indicate (+) for increase and (-) for decrease, next to each amount. (13)
1.3 Complete the Statement of Financial Position on 29 February 2024. (30)
NOTE: Some amounts are provided in the ANSWER BOOK.
Depreciation is calculated as follows:
- Vehicles: 15% p.a. on cost
- Equipment: 20% on the diminishing-balance method
A new vehicle was bought on 1 October 2023.
Extract from the Fixed Assets Register in respect of equipment sold:
KINOPA MWALIMU 234
Cost price: R80 000
Date purchased: 1 September 2021
Date sold: 31 May 2023 Sold for: R53 000
CARRYING VALUE
28 February 2022 R72 000
28 February 2023 R57 600
31 May 2023 ?
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