Question
The following information pertains to the head office and the branch of Kgaphamadi Traders: 1. Branch inventory on hand (selling price): 1 January 2020......................................................................................................... 5
The following information pertains to the head office and the branch of Kgaphamadi Traders:
1. Branch inventory on hand (selling price):
2. Transactions during the year ended 31 December 2020:
3.1 All inventories are purchased by the head office and supplied to the branch at selling price, which is cost price plus 25%.Additional information:
3.2 Due to the continuing job losses in the area, there has been a significant decline in sales at the branch in Hlogotlou. As a result, the head office has allowed the Hlogotlou branch to sell certain products at selling price less 30%. The net proceeds of the products sold at discount amounted to R8 400. This amount is included in the above cash sales figure of R71 600. 3.3. During the year a burglary took place at the Hlogotlou branch and R1 400 in cash (in respect of cash sales) was stolen. No entries regarding the burglary were made in the books.
QUESTION 1 BELOW: Which of the following alternatives represents the correct amount that must be recorded as as mark-up on inventory stolen in the branch adjustment account ?
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Which of the following alternatives represents the correct amount that must be recorded as branch expense (inventory stolen) in the branch expense account ?
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Which of the following alternatives represents the correct amount that must be recorded as cash sales in the branch inventory account ?
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Which of the following alternatives represents the correct amount that must be recorded as credit sales in the branch inventory account ?
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Which one of the following alternatives is correct?
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