Question 5

The following information appears in the book of Under Armaour at the end of May

Partial Balance sheet at 31 May
	2019	2020
Stock	R42250	R87250
Debtor	R37250	R97 250
Cash	R30050	R27250
Creditors	R42250	R67250

Partial Income statement on 31 May
	2019	2020
Sales	R1145250	R1171510
Gross Profit	R58800	R59954
Intrest received	R12850	R12750
Discount Received	R12480	R12570
Intrest paid	R14760	R19750
Depreciation	R17150	R18050
Other Expanses	R25250	R23250
Net Income to Capital	R34230	R79975

Adjustment and additional information

• A motor vehicle costing R224000 was purchased on 1 June 2019
• Management sold this vehicle for R180 500 to an employee on 30 November 20219.
• The Account clerk omitted (not done) to enter the depreciation on this motor vehicle was in the possession of the business (Under Armour)
• Depreciation on the motor vehicle is calculated at 20 % p.a

1. Calculate Net Profit