Deep Fried Chicken CC
EXTRACT FROM TRIAL BALANCE AS AT 28 FEBRUARY 2022:
	R
Members contribution: Amber	138 600.0
Members contribution: Johnny	109 725.0
Land and buildings (at cost)	862 785.0
Catering Equipment (at cost)	150 000.0
Vehicles at cost (Purchased 31 August 2019)	630 000.0
Loan from member: Amber	108 339.0
Loan to member: Johnny	81 427.5
Inventory (28 February 2021)	114 705.4
Trade receivables control	41 118.0
Trade payables control	28 990.5
Bank (Dr)	55 555.5
Petty cash	3 234.0
Salaries cost per month (28 February 2021)	90 000.0
Loan from Nugget Bank	315 000.0
Investments (at cost)	340 725.0
Allowance for settlement discount granted	1 732.5
Retained earnings (1 March 2021)	545 160.0
Interim profit distribution paid to members	48 510.0
Accumulated depreciation: Vehicles	107 668.8
Accumulated depreciation: Catering Equipment (01 March 2021)	42 000.0
Stationery (28 February 2021)	5 250.0
Income received in advance	16 932.3
Prepaid expenses	5 000.0
Allowance for credit losses	5 775.0
Insurance premiums	12 000.0
SARS (income tax)	134 673.0
Sales	800 100.0

Additional Information:

1. Revenue

The sales amount includes VAT.

2. Inventories

Purchases for the current year amounted to R441 000,00.

Delivery cost for the year amounted to R13 650.00

On the 28 February 2022 Inventory balance amounted to R131 250,00.

3. The allowance for credit losses must be adjusted to R15 000,00.

4. Stationery

Purchases for the current year amounted to R9 000,00.

Amber took stationery with a cost price of R3000 for personal use.

The closing balance for Stationery R2 100,00.

4. Depreciation

Vehicles: 10% per annum on diminishing method.

Residual value of R65 000,00 for the two vehicles, namely:

Toyota Hiluz - Purchased and brought into use 01 September 2018.

Nissan KP2008 Purchased and brought into use 31 June 2018.

On the 01^{st of} March 2021 the Nissan was sold for R290 000,00 cash. Cost of the vehicle was R350 000,00.

Catering Equipment: 20% per annum on the straight-line method.,

Residual value Rnill.A new stove was purchased cash for R45 000, 00 on the 31^{st of} December 2021. The stove is depreciated at 20% on the straight-line method with an estimated residual value of R10 000.There were no other purchases/disposals relating to assets in the current year.5. The CC employees are entitled to an annual salary increase of 1% above inflation rate at the beginning of December every year, the current years adjustment has not been recorded.6. Deep Fried took out insurance on the 01^st of January 2022. The monthly premiums are R1 000,00. The annual payment for the insurance was made on the 5^th of January.7. Loan from Nugget BankThe loan was granted on the 1^{st of} June 2020 at an interest rate of 15% per annum payable on 28 February every year. The loan is unsecured and is repayable in bi-annually in 8 equal instalments from 1 December 2022.8. The income tax for the year R76 088.25 must still be provided for. 9. Assume inflation rate of 5%

Question 47

Which of the following alternatives represents the correct amount to be recorded as depreciation relating to the Vehicles in the Statement of Profit/Loss for the financial year financial year ending 28 February 20.22?

a.R 50 825,00

b.R 63 000,00

c.R 48 307,50

d.R 56 500,00

e.R 43 476,75

Question 48

Question text

Which of the following alternatives represents the correct amount for the profit/loss on sale of vehicles in the Statement of Profit/Loss for the financial year ending 28 February 20.22?

a.(R 11 820,00)

b.R 5 000,00

c.R 9 540,00

d.(R 9 540,00)

e.R 11 820,00

Question 49

Question text

Which of the following alternatives represents the correct amount for the Salary expense in the Statement of Profit/Loss for the financial year ending 28 February 20.22?

a.R 675 000,00

b.R 1 096 200,00

c.R 1 080 000,00

d.R 810 000,00

e.R 90 000,00

Question 50

Which of the following alternative is the correct amount to be recorded as Insurance expense in the Statement of Profit/Loss for the for the year ended 28 February 20.22?

a.R 1 000,00

b.R 600,00

c.R 500,00

d.R 12 000,00

e.R 2 000,00