The normal

capacity of Reeses Ltd is 50 000 units per annum. The fixed production

overhead incurred is R800 000. The actual production of Reeses Ltd is

40 000 units.

 Required:

The fixed

production overhead per unit for Reeses Ltd is?

On 31 December 2023, the end of the financial

year, Spaza Ltd had inventories on hand with a cost of R250 000. On this date

these inventories were written down to the net realisable value of R245 000. On

31 December 2024, 20% of the original inventory are still on hand. The net

realisable value of this remaining inventory has been estimated at

R55 000. 

Required:

The value of the closing inventory on hand at the end of the 2024

financial year, will be:

Which one of the following

statements relating to dividends is

The following balances were taken from the books of BZN Ltd on 31

December 2024, the financial year end of the company:

Occasionally companies build up large reserves from their accumulated

profits. To enable shareholders to derive some tangible benefits from these

reserves, the company may decide to capitalise these reserves and distribute

them among the shareholders in the form of capitalisation shares.

Included

in the capital structure above are the following transaction that took place

during the current financial year that ended on 31 December 2024:

· 

A Capitalisation issue that the directors made on 1

December 2024 of one ordinary share for every four shares held at R1,00 per

share;

The directors of the company also approved

the following transactions during the year:

· 

The issue of 5 000 12% cumulative preferences

shares at R5 per share on 1 October 2024.

· 

Dividends on ordinary shares was declared at 10c

per share on 31 December 2024. No dividends were declared or paid

during the previous financial year.

Required:

What is the total dividend amount payable for

the year ended 31 December 2024?

Occasionally

companies build up large reserves from their accumulated profits. To enable

shareholders to derive some tangible benefits from these reserves, the company

may decide to capitalise these reserves and distribute them among the

shareholders in the form of capitalisation shares.

The following

balances were taken from the books of Congo Ltd on 31 December 2024, the

financial year end of the company:

Included

in the capital structure above are the following transaction that took place

during the current financial year that ended on 31 December 2024:

A capitalisation issue that the directors made on 1

December 2024 of one ordinary share for every four shares held at R1,00 per

share.

The directors of the company also

approved the following transactions during the year:

 · 

The issue of 10 000 12% cumulative preferences

shares at R5 per share on 1 November 2024.

·  

Dividends on ordinary shares was declared at 10c

per share on 31 December 2024. No dividends were declared or paid

during the previous financial year.

REQUIRED:

The dividend amount payable for the

year ended 31 December 2024 is:

One

of the key principles of IFRS 18 is that income and expenses from the derecognition

of an asset or a liability are classified in the same category as income and expenses

from that asset or liability immediately before it’s derecognition. 

Required:

The

derecognition of trade payables as a result of entering into a supplier finance

arrangement, will be classified into which category?

IFRS

18 does not change an entity’s net profit but promotes a more structured income

statement. Classification of income and expenses depends on the main business

activities of an entity. If an entity changes its main business activities then

it must disclose the following items? 

Required:

Which one of the following items is correct and needs disclosure?

The

process

According to the Conceptual Framework, the objective of

general-purpose

According to IFRS (Internation Financial Reporting

Standards), financial statements comprise various elements that must be clearly

defined before they can be recognized. 

Required:

Which of the following is not considered an element of financial statements?