Unused leave days per employee as at 30 june 2020

Unused leave days, per
employee, as at 30 June 2020
Number of days expected to be
used, per employee, during the
next leave cycle
Directors 9
Sales managers 15
Production operators 7
5
8
7
ANSWER THE FOLLOWING QUESTIONS BY CHOOSING THE CORRECT OPTION OUT
OF THE FIVE OPTIONS GIVEN FOR EACH QUESTION.
QUESTION 1
The total annual gross salaries included in the short-term employee benefits of Moringa Ltd
for the year ended 30 June 2020 amounts to:
QUESTION 2
The total bonus provision for sales managers at 30 June 2020 amounts to:
QUESTION 3
The total amount of bonuses paid year ended 30 June 2020 amounts to:

FAC3703/101
QUESTION 4
The total leave pay accrual at 30 June 2020 amounts to:
1) R178 543
2) R180 236
3) R31 906
4) R275 276
5) R190 148
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QUESTIONS 6 TO 10 ARE BASED ON THE FOLLOWING INFORMATION:
Durag Ltd is a company that manufactures head scarfs and has a 31 December year end.
The directors of Durag Ltd approved the construction of a new factory on a piece of land
owned by Durag Ltd. The factory is a qualifying asset in terms of IAS 23, Borrowing Costs .
On 1 May 2020 the plans for the construction of the new factory were approved by the city
council.
Zero Bank granted Durag Ltd a loan of R3 800 000 on 1 May 2020 for the construction of the
factory. The loan will be paid out, by Zero Bank, in four progress payments made directly to
the contractor as and when the invoices are received, by Durag Ltd, from the contractor. The
loan bears interest at 8.5% per annum and is repayable, starting from 1 January 2021, over
six years in bi-annual instalments of R410 794 each.
QUESTION 5 IS BASED ON THE FOLLOWING INFORMATION:
Gomora Ltd entered into an agreement with its long-term CEO. In terms of the agreement, the
CEO will vacate his position, effective on 28 February 2020. On this date, the CEO will no
longer be entitled to his normal salary. He will however be entitled to an allowance of R45 000
per month for a period of 6 months provided he does not render his services to any other
employer during that period.
QUESTION 5
In term of IAS 19, Employee Benefits the amount paid to the CEO during the period
1 March 2020 to 31 August 2020 can be categorised as:

24
The construction of the factory commenced on 1 June 2020. The total cost of the factory
(excluding interest) was R3 800 000, and the progress payments were made as follows:
Date
01 June 2020 1 000 000
01 August 2020 250 000
30 September 2020 1 400 000
30 November 2020 1 150 000
Total expenditure 3 800 000
The construction of the factory was completed on 1 December 2020. The factory was ready
for use on 1 December 2020 and brought into use on 1 March 2021.
The factory will be depreciated using the straight-line method over its useful life of 15 years
and has a residual value of R230 000.
R