UNISA 2024 FAC1601-24-S2 Welcome Message Assessment 5
QUIZ
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GreenFields Fertilizer Ltd is a company specialising in the production and
distribution of high-quality fertilizers for maize and other crops. The company
operates a large manufacturing plant located in Broederstroom, North West
Province, where it produces a variety of fertilizers tailored to optimise soil
nutrients and increase crop yields. GreenFields Fertilizer Ltd has gained a
significant presence in the agricultural sector and serves clients across
Southern Africa.
The company's financial year-end is 28 February, and it has consistently
maintained strong financial performance since its incorporation.
GREENFIELDS FERTILIZER LTD
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:
R
Investments 359,375
Land and buildings at revaluation (1 March 2023) 1,119,500
Equipment at cost 658,200
Accumulated depreciation: Equipment 88,000
Revaluation surplus (1 March 2023) 120,100
Inventory (1 March 2023) 46,300
Bank 137,200
Trade receivables control 283,600
Petty cash 7,900
Share capital: Ordinary shares (1 March 2023) 755,400
Retained earnings (1 March 2023) 280,600
Loan: Broederstroom Bank 125,600
SARS (income tax) (Dr) 35,200
Sales 3,205,200
Allowance for settlement discount granted 7,300
Carriage on purchases 22,700
Trade payables control 265,800
Income received in advance 8,100
Allowance for credit losses 7,100
Settlement discount granted 5,600
Auditor's remuneration 141,700
Carriage on sales 28,400
Settlement discount received 2,300
Purchases 305,100
Salaries and wages 379,100
Directors’ remuneration 200,200
Stationery 11,300
Telephone 16,700
Additional information:
1. The income tax for the financial year ended 28 February 2024 amounted to
R138,000 and must still be recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus
amounting to R114,000.
3. A provision of R53,000 must still be made for depreciation on equipment.
4. Directors made the following resolutions at year-end, which are yet to be
recorded:
· Dividends declared at R1.4 per share and will be paid at the end of
April 2024.
· A total bonus amounting to R163,000 must be paid to directors on
30 April 2024.
5. The loan from Broederstroom Bank was acquired on 1 March 2023 at an
interest rate of 10% per annum. Interest on all loans for the current financial
year has not yet been accounted for. The loan is repayable in five (5) annual
, equal instalments with effect from 1 March 2024.
6. Authorised share capital consists of 1000,000 NPV ordinary shares. Share
capital stated above consists of ordinary shares issued at R4.00 per share.
On 01 December 2023, the directors issued 50,000 shares at R5.4 per
share. The shares were taken up by the public on 27 February 2024, and
this transaction has not been recorded.
7. Inventory on 28 February 2024 consisted of the following:
· Inventory (stock) on hand: R50,000
· Stationery on hand: R5,100
8. The allowance for credit losses must be adjusted to R8,400. A debtor who
owes the business R12,200 was declared insolvent and must be written off
as irrecoverable.
9. Investments consist of
· Investment in Mkhaya Institute (Pty) Ltd at a cost of R140,000 – this
investment is measured at cost.
· 17,550 shares in Mkhuluwa Ltd at fair value on 28 February 2023 –
this investment is held for trading and the fair value gain/losses are
recognised in profit or loss. These shares were trading at R15.5 per
share on 28 February 2024. On the 27th of February 2024, Mkhuluwa
Ltd declared a dividend of R4.5 per share.
REQUIRED:
Complete the amounts in the EXTRACT (presented below) of the statement of
profit or loss and other comprehensive income of Greenfields Fertilizers CC for
the year ended 28 February 2024.
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer. It
will be marked incorrect.
3. Do not use any abbreviations.
4. Please remember the brackets around the amounts must be indicated by a
negative amount [eg: (50) will be -50].
GREENFIELDS FERTILIZERS CC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR
THE YEAR ENDED 28 FEBRUARY 2024
R
Revenue 3192300
Cost of sales Xxx xxx
Inventory (opening) 46300
Purchases 302800
Carriage on purchases 22700
Inventory (closing) -50000
Gross profit Xxx xxx
Other income Xxx xxx
Fair value adjustment: Listed share investment 52650
Dividend income: Listed share investment 78975
Distribution, administrative and other expenses Xxx xxx
Salaries and wages 379100
, Director's remuneration 363200
Auditor's remuneration 141700
Credit losses 13500
Depreciation 53000
Carriage on sales 28400
Stationery consumed 6200
Telephone expenses 16700
Finance costs Xxx xxx
Interest on loan 12560
Profit before tax Xxx xxx
Income tax expense -138000
Profit for the year Xxx xxx
Other comprehensive income for the year Xxx xxx
Revaluation surplus 114000
Total comprehensive income for the year Xxx xxx
