JIMO LIMITED The information relates to the financial year ended 30 June 2021 - NSC Accounting - Question 1 - 2021 - Paper 1

To determine the correct net profit after tax:

1. Identify incorrectly reported profit before tax, which is R 4,918,950.
2. Adjust this with given figures:
   • Add Audit fees: +R 123,600
   • Subtract Interest on loan: -R 273,000
   • Subtract Rent income: -R 9,500
   • Calculate income tax: R 1,285,250

This results in:

$$ext{Net Profit After Tax} = 4,918,950 + 123,600 - 273,000 - 9,500 - 1,285,250 = R 3,474,800$$

Indicating a net profit after tax of R 3,474,800.

To complete the Retained Income note:

1. Start with the balance at beginning: R 4,074,800.

2. Add net profit after tax from 1.2: +R 3,474,800.

3. Subtract dividends for the year: -R 1,170,000.

4. Thus,

   $$ext{Balance at end} = 4,074,800 + 3,474,800 - 1,170,000 = R 6,379,600.$$

   The retained income at the end is R 6,379,600.

To complete the Statement of Financial Position:

1. List total assets:

   • Non-current assets and current assets = R 8,700,000.

2. Liabilities include mortgage loan and current liabilities totaling = R 4,842,000.

3. Total equity will sum up to: Shareholders' equity + Retained income = R 16,762,000.

4. The Statement must balance:

   $$ext{Total Assets} = ext{Total Liabilities} + ext{Total Equity}$$

   It confirms that both sides equal, verifying the Statement of Financial Position is accurate.