1.1 Refer to information A - NSC Accounting - Question 1 - 2024 - Paper 1

For the vehicles, the accumulated depreciation can be calculated using the straight-line method:

Depreciation on Old Vehicles = Cost × Depreciation Rate

Using the old cost of vehicles:

Depreciation = R526,000 × 15 ext{%} = R78,900

For the new vehicle purchased:

Depreciation = R260,000 × 15 ext{%} = R39,000

The carrying value of equipment can be calculated as follows:

Carrying Value = Cost - Accumulated Depreciation for sold equipment

Using the values:

Carrying Value = R57,600 - (R57,600 imes 20 ext{%} imes rac{3}{12}) = R54,720

To find the correct net profit:

1. Start with the net profit before tax: R1,150,000
2. Deduct audit fees of R45,600
3. Deduct donations of R11,000
4. Add rent income of R26,000
5. Subtract director's fees of R852,800
6. Use the formula for net profit after tax:

Net Profit After Tax = Net Profit Before Tax - Income Tax

Final Calculation: Net Profit After Tax = R844,500

In the Statement of Financial Position, list the non-current and current assets, along with liabilities to determine total equity and liabilities:

• Non-current Assets: R10,377,480

• Current Assets: R10,225,500

• Total Assets: R14,225,500

• Liabilities and Equity:

  • Ordinary Shareholders' Equity: R12,164,650
  • Non-current Liabilities: R564,000
  • Current Liabilities: R518,950

Summarize with Total Equity and Liabilities to ensure the accounting equation holds.