“VIRTUAL AIR (PTY) LTD” is a small company which, because of its aggressive
advertising campaigns, has a significant profile. The company is engaged in the
manufacturing of gas filled hot air balloons. At 31 December 2020 (the company’s year-
end is 31 December) the following trial balance was extracted from its books:
Account details Debit Credit
Bank overdrafts
Furniture and office equipment at cost
Listed investment at cost
Loan secured by notarial bond
Loose tools, valuation
Accumulated depreciation: Furniture and office
equipment
Accumulated depreciation: Vehicles
Provisional tax paid
Unlisted investments
Retained income
Stated capital (Authorised share capital of 500 000
share of no par value)
Inventories
Accounts payable
Accounts receivable
Vehicles at cost
19 725
5 120
3 260
11 200
2 260
280 473
197 747
25 620
7 266
125 000
6 225
10 250
51 163
193 621
123 439
519 803 519 803
Most of the closing entries had been passed already. You are able to ascertain that:
o The following depreciation rates are applicable:
o Furniture and office equipment-10% on the straight line method
o Vehicles- 25% on the straight line method
o The listed investment were acquired for speculative purposes.
o Inventory are valued at lower of cost and net realisable value on a FIFO basis
o An interim dividend of N$ 5 000 was declared and paid on 01 October 2020 and a
final dividend of N$ 5 000 was declared on 30 December 2020. This dividend will
be paid on 18 January 2021.
o Normal taxation amounted to N$23 441.
o The loan of N$ 125 000 is to be repaid in five (5) years’ time and is secured by a
notarial bond.
Required: prepare financial position as at 31 December 2020
Answers
Answer:
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Answer:
A hot-air balloon is a lighter-than-air aircraft consisting of a bag, called an envelope, which contains heated air. Suspended beneath is a gondola or wicker basket (in some long-distance or high-altitude balloons, a capsule), which carries passengers and a source of heat, in most cases an open flame caused by burning liquid propane. The heated air inside the envelope makes it buoyant, since it has a lower density than the colder air outside the envelope. As with all aircraft, hot-air balloons cannot fly beyond the atmosphere. The envelope does not have to be sealed at the bottom, since the air inside the envelope is at about the same pressure as the surrounding air. In modern sport balloons the envelope is generally made from nylon fabric, and the inlet of the balloon (closest to the burner flame) is made from a fire-resistant material such as Nomex. Modern balloons have been made in many shapes, such as rocket ships and the shapes of various commercial products, though the traditional shape is used for most non-commercial and many commercial applications.
Explanation:
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