Question
Given information for questions 1, 2, 3 and 4: S van Wyk and B Khumalo are in a partnership trading as Bafana Traders. The following
Given information for questions 1, 2, 3 and 4: S van Wyk and B Khumalo are in a partnership trading as Bafana Traders. The following information pertains to 28 February 2020, the end of the financial year of the partnership: 1. EXTRACT of balances as at 28 February 2020:
R . 3 000 32 280 400 . 50 000 . 60 000 . 4 000 . 3 000 . 64 500 . 45 000 . 15 000 45 000 63 950 . 4 500 . 7 000 . 500 . 1 610 . 3 000 . 88 400 . 3 600 . 30 000 252 130 2 130 . 12 000 33 750 398 270 1 140 1 200 | Allowance for credit losses .......................................................................................... Bank (cr) ......................................................................................................................... Bank charges.................................................................................................................. Capital: S van Wyk ...................................................................................................... Capital: B Khumalo...................................................................................................... Current account: S van Wyk (dr) ................................................................................. Current account: B Khumalo (cr)................................................................................. Trade debtors control................................................................................................... Drawings: S van Wyk................................................................................................... Drawings: B Khumalo .................................................................................................. Equipment at cost........................................................................................................... Vehicles at cost ............................................................................................................. Accumulated depreciation: Equipment (1 March 2019) .............................................. Accumulated depreciation: Vehicles (1 March 2019).................................................. Insurance ..................................................................................................................... Interest on bank overdraft............................................................................................ Interest on long-term loan............................................................................................ Inventory (1 March 2019)............................................................................................. Delivery expenses (on sales) ...................................................................................... Long-term loan............................................................................................................. Purchases................................................................................................................. Purchases returns .......................................................................................................... Rent paid...................................................................................................................... Salaries and wages........................................................................................................ Sales............................................................................................................................... Settlement discount granted .......................................................................................... Stationery (purchased)................................................................................................... |
2. Additional information: 2.1 The allowance for credit losses must be adjusted to R3 500. 2.2 The original loan was acquired from Bowler Bank on 1 March 2018 at 12% interest per annum, payable every six months. A further loan of R20 000 was acquired on 01 November 2019 from Bowler Bank. The capital amount of the loan is repayable in 5 equal instalments with the first instalment due on 1 March 2022. 2.3 Provision must be made for depreciation on equipment at 15% per annum on the straight line method. 2.4 A new vehicle with a value of R33 950 was purchased on 01 September 2019. Depreciation is provided at 20% per annum on the diminishing balance method on all vehicles. 2.5 Inventory on hand at 28 February 2020: Merchandise: R83 000 Stationery: R 120
QUESTION 1 Which one of the following alternatives represents the correct amount that must be disclosed as gross profit in the statement of profit or loss and other comprehensive income of Bafana Traders for the year ended 28 February 2020? 1. R141 730 2. R142 610 3. R143 730 4. R142 870
QUESTION 2 Which one of the following alternatives represents the correct amount that must be disclosed as depreciation in the statement of profit or loss and other comprehensive income of Bafana Traders for the year ended 28 February 2020? 1. R19 540 2. R18 140 3. R14 745 4. R16 145
QUESTION 3 Assuming that the depreciation only for this question amounted to R10 000. Which one of the following alternatives represents the correct amount that must be disclosed as Distribution, administrative and other expenses in the statement of profit or loss and other comprehensive income of Bafana Traders for the year ended 28 February 2020? 1. R62 330 2. R56 330 3. R58 230 4. R61 830
QUESTION 4 Which one of the following alternatives represents the correct amount that must be disclosed as Finance Costs in the statement of profit or loss and other comprehensive income of Bafana Traders for the year ended 28 February 2020? 1. R4 400 2. R6 010 3. R6 410 4. R6 000
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