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2. HBS Bank granted a loan to The Sitting Duck on 1 August 2022. The terms of the loan provide for interest on the loan to be charged at a rate of 11.5% per annum. 3. Mr Impofu was declared insolvent and management decided to write off his debt amounting to R1 350 . 4. Rental income includes an amount in respect of June 2023. Rental income was earned evenly throughout the year. 5. Each partner receives a monthly salary of R25 000 paid in cash. Jono, the managing partner of The Sitting Duck, is entitled to a bonus of 10% his yearly salary payable on 31 May 2023. The amounts were debited to the salaries and wages account as at 31 May 2023. 7. The allowance for credit losses must be increased to R5 600 . 8. An invoice relating to water and electricity for May 2023 amounting to R3 250 was received on 03 June 2023. 9. Depreciation is provided for as follows: - Vehicles: 20% per annum according to the diminishing balance method. A new vehicle with a cost of R450 000 and a residual value of R55 000 was purchased and brought into use on 1 January 2023. - Equipment: 10% per annum according to the straight-line method. On the 1st of May 2023, equipment with a cost price of R63 000 originally purchased on 01 June 2018 , was sold for R39 500. 10. The partners of The Sitting Duck decided to take out additional insurance on 1 January 2023. The monthly premium is R2 500 payable in advance on the 1st of every month. This has n been accounted for in the records of the entit! Which alternative represents the correct accounting treatment of settlement discount received in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023 ? a. Deducted from revenue amount b. Added to other general expenses c. Added to credit losses d. Deducted from purchases Which one of the following alternatives represents the correct amount for credit losses in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023 ? a. R5 300 b. R5 600 c. R5 250 d. R5 950 Which one of the following alternatives represents the correct amount for credit losses in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R5 300 b. R5 600 c. R5 250 d. R5 950 Which one of the following alternatives represents the correct amount for water and electricity in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R65750 b. R62 500 c. R58 800 d. R65 200 Which of the following alternatives represents the correct amount to be recorded as depreciation amount relating to the vehicles in the Statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R39 936 b. R72 853 c. R72 553 d. R46850 Which of the following alternatives represents the correct amount to be recorded as depreciation relating to the equipment in the Statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R54385 b. R53560 c. R68450 d. R53035 2. HBS Bank granted a loan to The Sitting Duck on 1 August 2022. The terms of the loan provide for interest on the loan to be charged at a rate of 11.5% per annum. 3. Mr Impofu was declared insolvent and management decided to write off his debt amounting to R1 350 . 4. Rental income includes an amount in respect of June 2023. Rental income was earned evenly throughout the year. 5. Each partner receives a monthly salary of R25 000 paid in cash. Jono, the managing partner of The Sitting Duck, is entitled to a bonus of 10% his yearly salary payable on 31 May 2023. The amounts were debited to the salaries and wages account as at 31 May 2023. 7. The allowance for credit losses must be increased to R5 600 . 8. An invoice relating to water and electricity for May 2023 amounting to R3 250 was received on 03 June 2023. 9. Depreciation is provided for as follows: - Vehicles: 20% per annum according to the diminishing balance method. A new vehicle with a cost of R450 000 and a residual value of R55 000 was purchased and brought into use on 1 January 2023. - Equipment: 10% per annum according to the straight-line method. On the 1st of May 2023, equipment with a cost price of R63 000 originally purchased on 01 June 2018 , was sold for R39 500. 10. The partners of The Sitting Duck decided to take out additional insurance on 1 January 2023. The monthly premium is R2 500 payable in advance on the 1st of every month. This has n been accounted for in the records of the entit! Which alternative represents the correct accounting treatment of settlement discount received in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023 ? a. Deducted from revenue amount b. Added to other general expenses c. Added to credit losses d. Deducted from purchases Which one of the following alternatives represents the correct amount for credit losses in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023 ? a. R5 300 b. R5 600 c. R5 250 d. R5 950 Which one of the following alternatives represents the correct amount for credit losses in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R5 300 b. R5 600 c. R5 250 d. R5 950 Which one of the following alternatives represents the correct amount for water and electricity in the statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R65750 b. R62 500 c. R58 800 d. R65 200 Which of the following alternatives represents the correct amount to be recorded as depreciation amount relating to the vehicles in the Statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R39 936 b. R72 853 c. R72 553 d. R46850 Which of the following alternatives represents the correct amount to be recorded as depreciation relating to the equipment in the Statement of profit or loss and other comprehensive income of The Sitting Duck for the year ended 31 May 2023? a. R54385 b. R53560 c. R68450 d. R53035
