Question 10

The following information pertains to the head office and the branch of Shakazulu Enterprises Branch inventory on hand at selling price 1 January 2018 31 December 2018 79 400 83 170 Transactions of the branch for the year ended 31 December 2018 Inventory transferred to the branch (selling price) Cash sales at the branch Cash receipts from branch debtors Settlement discount aranted to branch debtors Branch administrative Damaged i 440 000 392 700 164 484 796 27 864 4 000 expenses paid by head off written off (at Additional information 1.Inventory is purchased by the head office and supplied to the Durban branch at selling price, 2. During June 2018, inventory with a selling price of R3 750 was stolen at the branch. No 3. The branch held a clearance sale during April 2018 . Inventory was sold at selling price less 30%. which is cost price plus 25%. entries have been made to record this theft. The proceeds of the sale amounted to R84 000 and were included in the cash sales mount of R392 700 above. 20 FAC1601/101/32019 ASSIGNMENT 02- FIRST SEMESTER- QUESTION 10 (continued) QUESTION 10 Which one of the following alternatives represents the balance in the branch inventory account of Shakazulu Enterprises on 31 December 2018? 1. 2. 3. 4. R1 220 surplus R2 530 deficit R2 530 surplus R1 220 deficit