Really struggling with question 2

9. On 28 February 2014, an amount of R100 000 was invested in a fixed deposit account at Sanlam at a rate of 4.5% p.a. 10. Insurance included an amount of R400 which was payable for March 2014. [60] QUESTION 2 Use the information given below to prepare the Departmental Income Statement of RIDGEWAY TRADERS for the year ended 28 February 2014. INFORMATION: Take-away . RIDGEWAY TRADERS consists of the following two departments: Restaurant . ALL goods are marked up by 25% on cost. . The business operates by using the periodic inventory system. The following was extracted from the accounting records on 28 February 2014: TAKE-AWAY RESTAURANT DEPT DEPT BALANCES/TOTALS Rand Rand Rand Equipment (cost price) 480 000 190 000 Trading inventory (1/3/2013) 1 16 500 70 000 Trading inventory (28/2/2014) 55 000 32 500 Sales 525 000 369 000 Purchases 190 000 160 000 Carriage on purchases 2 000 6 000 Carriage on sales 10 600 4 000 Sales returns 1 000 200 Purchase returns 195 2 500 Sundry expenses 23 000 14 000 Insurance 28 500 Rent expense 228 000 Salaries 240 000 Advertising 45 000 ADDITIONAL INFROMATION: 1. Allocation of workers and floor space is as follows: DEPARTMENT NUMBER OF WORKERS FLOOR SPACE 80 m Take-away 8 120 m Restaurant 12 [Please turn over]