please refer to above attachments
order of images is acc from 1-4
ASSIGNMENT 1 (35 MARKS) The current reporting period of Grant (Pty) Lid, a successful company, ends on 31 December 2013. The following information is applicable: Income and expenses R Income Sales of merchandise 31 250 000 Rent income - lease of building 3 532 000 Interest on fixed deposit 65 000 Profit on sale of machinery 120 000 Expenses Cost of sales: Cost of normal sales and smaller inventory shortages 14 250 000 Cost of inventories destroyed in a fire 950 000 Recoupment from insurer (800 000) Write down of certain inventory items to net realisable value 300 000 Distribution costs, administrative expenses and other expenses 14 117 000 Interest on Bank overdraft 65 000 Interest on Mortgage bond 520 000 Income tax expense 1 441 300ADDITIONAL INFORMATION: 1112 following 1 1.1 1.2 1.3 1.4 Ofce supplies on hand on 31 December 2313, to the amount n! R45 HEIDI still have to be recognised. The allowance for doubtful debts. still has to be increased from R95 ODD to R1 1D 00D. On 15 November 2013, Delivery vehicle with a cost of R1 431 250 and an accumulated depreciation of R405 250 was damaged in an incident to such an extent that it was not possible to repair the vehicle. In settlement of the claim: the insurer paid an amount of R934 EGG nduding VA'I'] on 5 December 26-13 directlyr into Grant [Pty) Ltd's bank account. Grant (Pty) Ltd was summoned by a customer in respect of a claim for damages of R EGG {lll caused by a defective product, which was purchased from Grant (Ply) Ltd. Grant {Pty} Ltd's advocate indicated that it is probable that a court will decide in favour of the customer. Grant {Pty} Ltd's technical advisors reliably estimated the amount of the damages at Rd D. 2 Distribution costs, administrative expenses and other expenses Detail of the expenses, as summarised, for the reporting period ended 31 December 2013, excluding point 1.1 - 1.4 above, are as follows: R Depreciation on buildings 250 000 Depreciation on machinery 750 000 Depreciation on vehicles 250 000 Impairment on machinery 600 000 Employee benefits expense 3 850 000 Maintenance and insurance of PPE items 365 000 Technical support for implementing a new accounting software programme 1 750 000 Remuneration to auditors in respect of audit services 500 000 Remuneration to auditors in respect of taxation services 205 000 Remuneration to non-executive directors for attending meetings 200 000 Remuneration to executive directors for attending meetings 300 000 Salaries to executive directors 2 600 000 Bonuses to executive directors 800 000 Telephone and network costs 750 000 Office supplies 560 000 Doubtful debts 35 000 Water and electricity 352 000 14 117 000REQUIRED a) Present the statement of profit or loss of Grant (Pty) Lid for the reporting period ended 31 December 2013. (11) b) Disclose ONLY the following notes to the statement of profit or loss of Grant (Pty) Lid for the reporting period ended 31 December 2013. (24) Finance costs Profit before tax
