Measurement is quantifying, in monetary terms, elements that

are recognised in financial statements. To measure is the result of applying a

measurement basis to an asset or liability and related income and expenses. 

Required:

In

terms of measurement basis what is the definition of value in use?

Dollars Ltd provided a loan to Moneyweb Ltd on

1 November 2021 of which the capital portion is repayable in nine equal annual instalments

starting on 1 July 2022. 

Interest on the loan is calculated at 15% per annum

and is payable at the end of each financial year. The year-end of

Money Ltd is 31 December. The outstanding balance on the loan, as at

31 December 2024, amounts to R1 620 000

REQUIRED: 

Which one of the following options

represents the amount of interest received by Dollars Ltd for the year

ended 31 December 2024?

Capital contributed by the shareholders of a company is known as share

capital. When companies require additional funds from the public, the company

would normally use the services of a financial institution to handle the

additional share issue on their behalf.

Craft Ltd underwrites an issue of 250 000 ordinary shares at R3

each in Sontech Ltd. Craft Ltd charges commission of 8% for their

services . The public took up 235 000 of the shares that were on offer.

Required: 

What

will the commission payable be to Craft Ltd?

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:

The issued share capital of PLC (Pty) Ltd on 1 March 2024, consist of:

All the ordinary shares were originally issued at

R3,50 each no additional shares were issued up to the beginning of the current

financial year.

During the current financial year ended on 28

February 2025, a further 15 000 ordinary shares were issued. At the end of

the current financial year the directors decided to make a capitalisation issue

of one ordinary share for every four ordinary shares held at R2,25 per share.

Required:

What

is the number of capitalisation shares issued during the 2025 financial year?

The following balances regarding the issued shares were extracted from

the accounting records of Celtic Ltd for the year ended 28 February 2025:

Celtic

Ltd was incorporated with the following authorised share capital:

On 1 July 2024 the shareholders authorised an

additional 80 000 6% preference share issue to the public at R4 per share.

Dividends on ordinary shares, at 4c per share, should still be provided for. No

dividends were declared or paid during the previous financial year.

Required:

The

dividend on 6% preference shares at 28 February 2025 will be?

Dekra

Ltd

Required:

Calculate the commission payable to Dekra Ltd?

USW Ltd a manufacturing entity manufactures

specialized robust cell phone cases for resale. The manufacturing cost per ton

is R850. Finished products are sold for R935 per ton. Sales expenses amount to

R45 per ton, delivery costs amount to R35 per ton and other directly associated

costs to inventory to make a sale is R25 per ton. Closing inventories on hand

at 31 December 2024 amounts to 3 500 tons.

 Required:

 The

amount that must be used to write down inventories to its net realisable value

is?

The following information consist of inventory of Nero Ltd at financial

year ended, 31 December 2023:

The following purchase, sales, and payment transactions below were

extracted from the accounting records of Nero Ltd for the financial year ended

31 December 2023:

Additional information

Fixed production overhead costs are allocated

at R60 per unit based on a normal capacity of 4 000 units.

Required:

The following is the gross

profit of Nero Ltd

Probikes

Ltd, a bicycle retailer who operates in Limpopo, ordered 3 000 new BMX Pro

Frames from Japan for their exhibition to be held at the JHB Bicycle Exhibition.

The BMX Pro Frames were received from their supplier on 1 February 2024. The invoice

price of the BMX Pro Frames was R1 800 each (before a trade discount of 8%) and

is payable on 31 March 2024, the year-end of Probikes Ltd.

A goods in transit insurance was taken

out for a non-refundable R5 500 deposit for delivery of the items to Probikes Ltd’s

warehouse. On route to Limpopo, an attempt was made to hijack the delivery

truck and 45 of the BMW Pro Frames were irreparably damaged, on 1 February

2024. A Claim was submitted to the insurance company.

The following cash costs regarding the

purchase were:

Additional information:

• Inventory is valued at the lower of cost

  and net realisable value on a first-in-first-out basis.

• Inventory shipping terms is free on

  board (products of Probikes Ltd when shipped)

 Required:

What will the cost of inventory be after delivery per unit at

year-end 31 March 2024 (Round up to the nearest rand)?