QUESTION FOUR [15] W Vardy owns a general dealer shop for which he provides the following list of account balances for the six months ended 30 June 2020. Vardy was a little concerned about the shops trading results and requested your assistance. List of balances for six months ended 30 June 2020 R Inventory: trade goods at 2 January 2020 152 100 Consumable items 17 330 Purchases - cash 201 200 Purchases - credit 334 180 Sales - cash 711 500 Sales - credit 483 500 Goods returned by customers 74 200 Goods returned to suppliers 61 120 Railage inwards 45 500 Railage outwards 20 760 Import duty 34 440 Settlement discounts granted 28 600 Settlement discounts received 20 760 REGENT BUSINESS SCHOOL (RBS) - JULY 2020Enter BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Additional information: 1. Physical stock-take took place on 30 June 2020 and inventories were valued at: Trade goods R145 660 Consumable items R 21 900 Required: 4.1 Prepare the "trading section" of the statement of profit or loss and other comprehensive income for Vardy's General Dealers for the six months ended 30 June 2020. Calculate the gross profit % on cost and the gross profit % on sales. (12 ) 4.2 W Vardy was afraid to register as a VAT vendor as he felt that registration will affect the performance of the business because the VAT will consume some of his trading profit (gross profit). Advise Vardy about whether his fear is real. (3)BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE QUESTION FIVE [10] The following information was obtained from the financial records of J Moody. The information is in respect of month ended 31 May 2020. R The following are totals extracted from the relevant journals for the month ended 31 May 2020: Sales journal (Trade receivables column). 41 000 Cash receipts journal: Trade receivables column 34 720 Settlement discount granted column 2 940 Sales returns journal (Trade receivables column). 3 280 Purchases journal (Trade payables column). 26 840 Purchases returns journal (Trade payables column). 4 390 General journal: Credit losses written off. 1 400 Debit balances from Trade payables ledger transferred to Accounts in the trade receivable ledger. 490 Interest charged on overdue accounts. 520 Additional information: 1. The balance of trade receivables control account at 30 April 2020 was R39 380. 2. The total of the list of trade receivables at 31 May 2020 is R32 460. 3. An amount of R150 received from N Peter in full settlement of his account was analysed as sales in the cash receipts journal. 4. An invoice dated 16 May 2020 issued to K Lever was overstated by R2 000. The invoice was entered into the sales journal at the overstated amount. Required: Prepare the trade receivables control account at 31 May 2020 properly balanced. Each entry must indicate the correct contra ledger account. (10) END OF ACCOUNTING 1: ASSIGNMENT 1 REGENT BUSINESS SCHOOL (RBS) - JULY 2020