COMPANY FINANCIAL STATEMENTS The information relates to DBN Ltd - NSC Accounting - Question 1 - 2024 - Paper 1

The depreciation on vehicles can be calculated using the accumulated depreciation and the cost price. Here, we will apply the appropriate depreciation rate, which is 15% for the old vehicle and 15% for the new:

For the old vehicle:

ext{Depreciation} = 	ext{Cost Price} 	imes 	ext{Rate} = 526,000 	imes 0.15 = 78,900

For the new vehicle:

ext{Depreciation} = 260,000 	imes 0.15 = 39,000

Combine both to find the total depreciation:

ext{Total Depreciation} = 78,900 + 39,000 = 117,900

The carrying value of the equipment sold can be calculated using the selling price and the depreciation for the sold equipment:

Selling Price = R57,600

Depreciation is calculated at 20% on the diminishing balance:

ext{Depreciation} = 80,000 	imes 0.20 	imes rac{3}{12} = 4,800

Thus, the carrying value can be calculated as:

ext{Carrying Value} = 	ext{Selling Price} - 	ext{Depreciation} = 57,600 - 4,800 = 52,800

First, calculate the net profit before tax by summarizing all revenues and expenses:

Net Profit Before Tax = 1,150,000

Adjust for:

• Audit fees: -45,600
• Donations: -11,100
• Rent Income: +26,000 + 1,300
• Directors Fees: -852,800

Final Net Profit After Tax calculation becomes:

Net Profit After Tax = 1,150,000 - 45,600 - 11,100 + 27,300 - 852,800 = 844,500

Prepare the Statement of Financial Position considering the calculations for all fixed assets, total assets, equity, liabilities, and ensure all figures align:

Total Non-Current Assets: 10,377,480 Total Current Assets: 10,225,500 Total Assets = Non-Current + Current Assets = 14,225,500

Ordinary Shareholders’ Equity = 12,164,650 Non-Current Liabilities and Current Liabilities must also be balanced to ensure the statement is complete.