Bags Galore buy and sell a limited range of imitation leather bags. The following

information was extracted from their financial records for the year ended 28 February

2021:

Transactions details R

Inventory on hand at 1March 2020

Purchases

Import duties

Transport costs on purchases

Settlement discounts received

Transport costs for delivery to customers

226 700

360 480

106 800

91 600

26 900

83 200

Additional information:

1. Inventory on hand at 28 February 2020 was as follows:

1 109 bags at R175 = R194 075

BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE

REGENT BUSINESS SCHOOL (RBS) - JANUARY 2021 27

2. 97 bags at R115 were returned to suppliers and the necessary credit notes were

received. However, this has not yet been recorded.

3. Additional transport costs on purchases of R4 200 were incurred. This was paid by

EFT but not yet recorded.

4. Additional import duties of R3 400 must still be recorded and paid.

5. Total sales for the year is as follows;

? 1 March 2020 to 28 February 2021; (Total number of bags sold = 5 300):

Sold 2 100 bags at R165 each; and

Sold 3 200 bags at R175 each.

6. Bags Wholesalers use the periodic inventory system to record their trading stock.

Required:

4.1 Prepare the trading section of the statement of profit or loss and other and

other comprehensive income for the year ended 28 February 2021. (10)

4.2 List at least two disadvantages of the Periodic Inventory System.

BACHELOR OF COMMERCE YEAR 1 ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Required: 2.1 Process the above transactions through a table such as the one below. The transaction of 1 March 2021above is used as an example. Record amounts without brackets to indicate an increase; amounts in brackets to indicate a decrease; and 0 (a zero) for no effect. Example of the table required: Date Assets Equity Liabilities Account Account Mar. R R R Debited Credited (20) 2.2 Calculate the amount owing by clients at 31 March 2021. (1) 2.3 Will the amount owing by the clients be shown as a current or non-current asset. Motivate your answer. (1) 2.4 Calculate the amount ofinterest payable on 1 April to Kind Bank. (2) 2.5 Name the source document that we would use to record the services rendered to Alice Angle's clients on credit. (1) QUESTION THREE [25] Pat Mendi owns Mobi Electronics which carry's out repairs to all types of electronic devices and equipment. Pat provided the following list of selected account balances extracted from the pre-adjustment trial balance at 28 February 2021, the end of the current nancial year: REGENT BUSINESS SCHOOL (RB S) JANUARY 2021 23