The following information was obtained from the accounting records of Gift Dealers on the last day of the financial year of the business:

GIFT DEALERS

TRIAL BALANCE AS AT 30 JUNE 20.8

Trade receivables control............... ..............................................................................

R

35 476

Settlement discount granted.............. ........................................................................

450

Allowance for settlement discount granted...................................................................

945

Allowance for credit losses ..........................................................................................

1 950

Credit losses.............................................................................................

3 050

41 871

Additional information

(a) M Mike, a debtor who owed Gift Dealers an amount of R3 256. was declared insolvent. The amount must be written off as irrecoverable.

(b) Gift Dealers determined on 30 June 20.8, that the allowance for credit losses should amount to R2 510.

(c) Creditors with debit balances amounted to R1 200 and debtors with credit balances amounted to R955. The debit balances in the trade payable control account needs to be transferred to the trade receivables control account and the credit balance in the trade receivables control account needs to be transferred to the trade payables control account. No transfer regarding these debit and credit balances has been processed yet.

10. Which of the following amount will represent the correct balance for the trade receivable control account as at 30 June 20.8 after taking the additional information into consideration?

(1) R32 220

(2) R29 570

(3) R32 011

(4) R32 465

(5) R34 375

11. Which one of the following amounts will be disclosed on the face of the statement of financial position under current asset for trade and other receivables as at 30 June 20.8, if you assume the balance for the trade receivable control account, after the additional information was taken into consideration, amounted to R41 500?

(1) R38 990

(2) R38 045

(3) R38 605

(4) R39 100

(5) R30 920