3. The warehouse in Johannesburg is rented from SPACE-AGE Ltd as from 1 January 2015. Monthly rental, according to the contract signed on this date, amounted to R17 100 per month (inclusive of VAT), payable in advance on the last day of the previous month, with an annual escalation clause of 8%. The bookkeeper always records the cheque amount for rent paid, as an expense, when it is paid. 4. The allowance for credit losses, as reflected on the trial balance, represented an amount for outstanding debt from Medi-loss, a pharmacy group, who experienced serious cashflow problems in the past year. After consultation with the debt collectors, it was decided to write off their debt as they are in the process of liquidation, and to make an allowance for credit losses of 5% of outstanding debtors at year-end. 5. Juandre signed an advertising contract with Cosmetropol Magazines According to the contract, Juandre paid R41 040 for advertisements running from 1 February 2016 up to 31 January 2017. 6. Furniture and equipment were purchased on 1 March 2014. No other furniture and equipment were bought or sold after this date. The depreciation charge as per the trial balance is correct for the year ended 29 February 2016. 7. Stationery on hand at 29 February 2016 amounted to R3 270. 8. The computer system classifies salaries as a 'main' account, grouping together several 'sub-accounts', such as salaries and wages paid, employer contribution to UIF, employer contribution to medical aid and employer contribution to pension fund accounts. The salary run for February was completed on 28 February 2016. According to the salary register, net salaries amounted to R164 000, deductions from employees amounted to R77 600 and employer contributions amounted to R23 180. The accounting entries to record the run still need to be passed Payment of salaries takes place on the last day of the month. All deductions and contributions are paid on the fifth day of the next month. MARKS QUESTION 1-REQUIRED Sub- Total total a) Based on the given information, prepare the statement of profit or loss and other comprehensive income for the year ended 29 February 2016. 16 Communication skills-layout and structure General Jounal 1 12 17 b) Present and disclose current assets and current liabilities in the statement of financial position as at 29 February 2016. The accounting policy notes are not required. Communication skills- layout and structure 72 17 19 TOTAL MARKS 36 Comparatives are not required. 3. The warehouse in Johannesburg is rented from SPACE-AGE Ltd as from 1 January 2015. Monthly rental, according to the contract signed on this date, amounted to R17 100 per month (inclusive of VAT), payable in advance on the last day of the previous month, with an annual escalation clause of 8%. The bookkeeper always records the cheque amount for rent paid, as an expense, when it is paid. 4. The allowance for credit losses, as reflected on the trial balance, represented an amount for outstanding debt from Medi-loss, a pharmacy group, who experienced serious cashflow problems in the past year. After consultation with the debt collectors, it was decided to write off their debt as they are in the process of liquidation, and to make an allowance for credit losses of 5% of outstanding debtors at year-end. 5. Juandre signed an advertising contract with Cosmetropol Magazines According to the contract, Juandre paid R41 040 for advertisements running from 1 February 2016 up to 31 January 2017. 6. Furniture and equipment were purchased on 1 March 2014. No other furniture and equipment were bought or sold after this date. The depreciation charge as per the trial balance is correct for the year ended 29 February 2016. 7. Stationery on hand at 29 February 2016 amounted to R3 270. 8. The computer system classifies salaries as a 'main' account, grouping together several 'sub-accounts', such as salaries and wages paid, employer contribution to UIF, employer contribution to medical aid and employer contribution to pension fund accounts. The salary run for February was completed on 28 February 2016. According to the salary register, net salaries amounted to R164 000, deductions from employees amounted to R77 600 and employer contributions amounted to R23 180. The accounting entries to record the run still need to be passed Payment of salaries takes place on the last day of the month. All deductions and contributions are paid on the fifth day of the next month. MARKS QUESTION 1-REQUIRED Sub- Total total a) Based on the given information, prepare the statement of profit or loss and other comprehensive income for the year ended 29 February 2016. 16 Communication skills-layout and structure General Jounal 1 12 17 b) Present and disclose current assets and current liabilities in the statement of financial position as at 29 February 2016. The accounting policy notes are not required. Communication skills- layout and structure 72 17 19 TOTAL MARKS 36 Comparatives are not required. 3. The warehouse in Johannesburg is rented from SPACE-AGE Ltd as from 1 January 2015. Monthly rental, according to the contract signed on this date, amounted to R17 100 per month (inclusive of VAT), payable in advance on the last day of the previous month, with an annual escalation clause of 8%. The bookkeeper always records the cheque amount for rent paid, as an expense, when it is paid. 4. The allowance for credit losses, as reflected on the trial balance, represented an amount for outstanding debt from Medi-loss, a pharmacy group, who experienced serious cashflow problems in the past year. After consultation with the debt collectors, it was decided to write off their debt as they are in the process of liquidation, and to make an allowance for credit losses of 5% of outstanding debtors at year-end. 5. Juandre signed an advertising contract with Cosmetropol Magazines. According to the contract, Juandre paid R41 040 for advertisements running from 1 February 2016 up to 31 January 2017. 6. Furniture and equipment were purchased on 1 March 2014. No other furniture and equipment were bought or sold after this date. The depreciation charge as per the trial balance is correct for the year ended 29 February 2016 7. Stationery on hand at 29 February 2016 amounted to R3 270. 8. The computer system classifies salaries as a 'main' account, grouping together several 'sub-accounts', such as salaries and wages paid, employer contribution to UIF, employer contribution to medical aid and employer contribution to pension fund accounts. The salary run for February was completed on 28 February 2016. According to the salary register, net salaries amounted to R164 000, deductions from employees amounted to R77 600 and employer contributions amounted to R23 180. The accounting entries to record the run still need to be passed Payment of salaries takes place on the last day of the month. All deductions and contributions are paid on the fifth day of the next month QUESTION 1-REQUIRED MARKS Sub- Total total a) Based on the given information, prepare the statement of profit or loss and other comprehensive income for the year ended 29 February 2016, Communication skills-layout and structure General Jounal 111 16 17 b) Present and disclose current assets and current liabilities in the statement of financial position as at 29 February 2016. The accounting policy notes are not required. Communication skills-layout and structure TOTAL MARKS Comparatives are not required. 17 72 19 19 16 36 3. The warehouse in Johannesburg is rented from SPACE-AGE Ltd as from 1 January 2015. Monthly rental, according to the contract signed on this date, amounted to R17 100 per month (inclusive of VAT), payable in advance on the last day of the previous month, with an annual escalation clause of 8%. The bookkeeper always records the cheque amount for rent paid, as an expense, when it is paid. 4. The allowance for credit losses, as reflected on the trial balance, represented an amount for outstanding debt from Medi-loss, a pharmacy group, who experienced serious cashflow problems in the past year. After consultation with the debt collectors, it was decided to write off their debt as they are in the process of liquidation, and to make an allowance for credit losses of 5% of outstanding debtors at year-end. 5. Juandre signed an advertising contract with Cosmetropol Magazines. According to the contract, Juandre paid R41 040 for advertisements running from 1 February 2016 up to 31 January 2017. 6. Furniture and equipment were purchased on 1 March 2014. No other furniture and equipment were bought or sold after this date. The depreciation charge as per the trial balance is correct for the year ended 29 February 2016 7. Stationery on hand at 29 February 2016 amounted to R3 270. 8. The computer system classifies salaries as a 'main' account, grouping together several 'sub-accounts', such as salaries and wages paid, employer contribution to UIF, employer contribution to medical aid and employer contribution to pension fund accounts. The salary run for February was completed on 28 February 2016. According to the salary register, net salaries amounted to R164 000, deductions from employees amounted to R77 600 and employer contributions amounted to R23 180. The accounting entries to record the run still need to be passed Payment of salaries takes place on the last day of the month. All deductions and contributions are paid on the fifth day of the next month QUESTION 1-REQUIRED MARKS Sub- Total total a) Based on the given information, prepare the statement of profit or loss and other comprehensive income for the year ended 29 February 2016, Communication skills-layout and structure General Jounal 111 16 17 b) Present and disclose current assets and current liabilities in the statement of financial position as at 29 February 2016. The accounting policy notes are not required. Communication skills-layout and structure TOTAL MARKS Comparatives are not required. 17 72 19 19 16 36