Determine the balance of accounts in the general ledger


Response to the following problem:

The following information relates to the books of Randburg limited Balance of accounts in the general ledger of Randburg limited on 31 July 2014 are as Follows:

Retained Earnings 1 August 2013 697400

Ordinary share capital 850000

10% preference share capital 500000

Land and buildings 2595000

Equipment 245000

Replacement Reserve 85000

Accumulated depreciation: Equipment 55000

Trading inventory 131000

Debtors control 87500

Allowance for credit losses 3000

Bank 33500

Petty cash 2900

Investment: 10 000 ordinary shares in AA LTD 100000

Creditors control 31300

Mortgage loan 720000

Net profit before tax 253200

Additional information

1. The company tax rate is 28%

2. R15000 must be transferred to the replacement reserve.

3. Provide for the preference dividend at year end as well for a final dividend of 10c per Ordinary share issued. At 31 July 2014 there were 200 000 ordinary shares in issue.

4. Land and buildings were revalued from R2 595 000 to R2 900 000 during the past Financial year but this revaluation has not yet been recorded.

5. A fresh issue of 20 000 ordinary shares took place during the past financial year at an Issuing price of R5 per share. The issue has been properly recorded.

Required :

Prepare the Statement of changes in equity for the year ended 31 July 2014 .

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Accounting Basics: Determine the balance of accounts in the general ledger
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