Accounting Paper
Grade 12
Amended Senior Certificate Exam
Past Papers And Memos-2016

INSTRUCTIONS AND INFORMATION
Read the following instructions carefully and follow them precisely.

  1. Answer ALL the questions.
  2. Show ALL workings to achieve part-marks.
  3. You may use a non-programmable calculator.
  4. You may use a dark pencil or blue/black ink to answer the questions.
  5. Where applicable, show ALL calculations to ONE decimal point.
  6. Write neatly and legibly.
  7. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it.
    QUESTION 1: 35 marks; 20 minutes  
    Topic of the question:  This question integrates:
    VAT and Reconciliations                                          Financial accounting
    VAT calculations
    Reconcile a Creditors' Ledger Account to a statement of account
    Managing resources
    Internal control and internal audit

      QUESTION 2: 50 marks; 30 minutes
     Topic of the question:  This question integrates:
     Manufacturing                                                                    Managerial accounting                                                    
    Production Cost Statement
    Analyse and interpret break-even point
    Managing resources
    Internal control and internal audit

      QUESTION 3: 40 marks; 25 minutes
     Topic of the question:  This question integrates:
     Inventory Valuation, Internal Control and Problem-solving Managing resources
    Inventory valuation: FIFO and weighted-average method
    Internal control and internal audit

    QUESTION 4: 65 marks; 40 minutes  
     Topic of the question:  This question integrates:
    Concepts, Balance Sheet and Audit Report                         Financial accounting
    Concepts
    Prepare Balance Sheet                                                    
    Ordinary share capital and retained income notes

    QUESTION 5: 70 marks; 40 minutes  
     Topic of the question:  This question integrates: 
    Fixed Assets, Cash Flow
    Statement and Analysis and Interpretation of                       
    Financial Statements
    Financial accounting
    Cash Flow Statement                                         
    Analyse and interpret financial information
    Managing resources                                                    
    Fixed asset management

      QUESTION 6: 40 marks; 25 minutes
     Topic of the question:  This question integrates:
     Budgeting                                                                              Managerial accounting
    Analyse and interpret a Projected Income Statement  
    Managing resources
    Internal control


QUESTIONS

QUESTION 1: VAT AND RECONCILIATIONS
VALUE-ADDED TAX                                                                                                                            (35 marks, 20 minutes)
1.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question number (1.1.1–1.1.3) in the ANSWER BOOK.

1.1.1 VAT paid by a business on goods purchased is called VAT input.
1.1.2 It is compulsory for all businesses to register for VAT.
1.1.3 VAT returns to SARS are submitted after every six months of trading activities.
                                                                                                                                                        (3 x 1)                (3)

1.2 You are provided with information relating to Super Stores for the VAT period ended 29 February 2016 (two months). The standard VAT rate is 14%.
REQUIRED:

1.2.1 Taking into account the errors and omissions, calculate the VAT amount that is either payable to or receivable from SARS.(12)
1.2.2 The internal auditor discovered that the owner, Nelson, used the VAT collected from customers to pay salaries and bonuses; therefore, he could not meet the VAT deadline.
What comment would you offer Nelson concerning this practice? State ONE point.                           (2)

INFORMATION:

  1. Amount due to SARS on 1 February 2016, R44 800.
  2. Amounts from the journals on 29 February 2016:
      INCLUDING VAT  VAT AMOUNT 
     Sales  564 300  69 300
     Credit purchases of stock  191 520  23 520
     Stock returned by debtors  52 440  6 440
     Bad debts written off  39 900  4 900
  3. The following errors and omissions were noted:•
    • Stock taken by the owner, cost price R6 000 (excluding VAT), has not been recorded.
    • VAT on sales was recorded incorrectly. Certain goods with a selling price of R50 000 (excluding VAT) should have been recorded as zero-rated items.
    • VAT on discounts granted to debtors was not recorded. The total discounts allowed amounted to R19 152.

 1.3 CREDITORS' RECONCILIATION
Thanda Stores buys goods on credit from Minty Suppliers.
REQUIRED:
1.3.1 Use the table provided to indicate the changes that must be made:

  • In the Creditors' Ledger Account in the books of Thanda Stores
  • In the Creditors' Reconciliation Statement on 29 February 2016                                                                       (14)

1.3.2 An investigation into the transaction on 2 February 2016 for Invoice 560 revealed that Pearl Fakude (purchasing manager) ordered goods for herself. These goods were not taken into stock.
State TWO internal control measures that the business can use to prevent similar incidents from happening in future.(4)

INFORMATION:

  1. Creditors' Ledger of Thanda Stores
    Minty Suppliers
     DATE   DETAILS  FOL.  DEBIT  CREDIT  BALANCE
     Feb.  01  Balance  b/d      52 200
       02  Invoice 560  CJ     44 200  96 400
       04  Debit Note  52  CAJ  2 700    93 700
       07  Cheque 443  CPJ   31 350    62 350
         Discount received  CPJ  3 300    59 050
       20  Invoice 996  CJ    11 100  70 150
      23 Cheque 575 CPJ 13 200   56 950
      24 Invoice 590 CJ   24 000 80 950
      28 Cheque 580 CPJ 13 800   67 150
        Discount received CPJ 1 380   65 770
       29  Invoice 592  CJ    44 400  110 170
  2. Statement of account received from Minty Suppliers

          MINTY SUPPLIERS                     No. 2169

    205 Kingsview Road
    Durban 3201

    Debtor: Thanda Stores                           25 February 2016
     DATE  DETAILS   DEBIT CREDIT  BALANCE 
     Jan.  25  Balance      67 200
       28  Receipt 110    15 000  52 200
     Feb.  02  Invoice 560  49 200    101 400
       04  Credit Note 09  2 700    104 100
       07  Receipt 122    31 350  72 750
        Discount allowed   1 650 71 100
      18 Invoice 571 28 800   99 900
      23 Receipt 138   13 200 86 700
      24 Invoice 590 21 600   108 300
      25 Delivery charges 3 300   111 600
  3. An investigation revealed the following errors and omissions:
    1. Invoice 996 was for goods that Thanda Stores bought from another supplier, Mondi Suppliers.
    2. Invoice 560 was recorded correctly on the statement of account.
    3. Invoice 571 was an error on the statement. This was for goods supplied to another business.
    4. The discount allowed on 7 February 2016 is correct as per the statement of account.
    5. Thanda Stores omitted to deduct the trade discount allowed on Invoice 590.
    6. Goods for R2 700 were returned by Thanda Stores to Minty Suppliers on 4 February 2016.
    7. In terms of the contract Minty Suppliers charges a delivery fee to all its customers.
    8. The statement of account only includes transactions up to 25 February 2016.
                                                                                                                                                        (35)

QUESTION 2: MANUFACTURING                                                                                   (50 marks; 30 minutes)
2.1  ABE ACCESSORIES
Abe Accessories manufactures cellphone covers. The information below is in respect of the financial year ended 29 February 2016.

REQUIRED:

2.1.1 Prepare the Factory Overhead Cost Note. Show ALL calculations in brackets.                             (15)
2.1.2 Prepare the Production Cost Statement for the year ended 29 February 2016.                              (8)

INFORMATION:

  1. Stock balances:
      29 FEBRUARY 2016  1 MARCH 2015
     Work-in-process stock  R9 320  R30 640
  2. Transactions for the year ended 29 February 2016:
    Consumable stores used in the factory R129 300 
    Salaries and wages:  
    Production wages  ?
    Other factory workers  R97 500
    Administration  R250 000
    Sales department  R130 000
    Sundry expenses:  
    Factory R31 500
    Offices R28 000
    Water and electricity R50 000
    Insurance R24 000
  3. Additional information and adjustments
    • The factory cleaner was omitted from the salaries and wages list for February 2016. Her details are as follows:

       Gross salary  Deductions Net salary   Employer's Contribution
       R3 800  R420  R3 380  R380
      The employer's contribution is added to the salaries and wages.
    • An amount of R4 000 is still outstanding for water and electricity for February 2016. The factory uses 60% of the water and electricity.
    • Insurance has been paid from 1 March 2015 to 30 June 2016. This expense must be allocated to the factory, administration and sales departments in the ratio 3 : 2 : 1 respectively.
  4. The business manufactured 10 500 cellphone covers at a cost of R82,40 per unit.

2.2NEW FASHION MANUFACTURERS
This business is owned by Gloria Smit. She makes and sells dresses. The financial year ends on 29 February 2016.

REQUIRED:

2.2.1           

  • Gloria is concerned about the wastage of direct materials. Calculate the number of metres of fabric that was wasted.(5)
  • Gloria feels that the wastage is significant. Give a calculation to support her opinion.(3)

2.2.2 Give TWO possible reasons for this wastage and, in EACH case, give advice to prevent this from happening in future.(4)
2.2.3 Break-even point and production:

  • Calculate the break-even point for the year ended 29 February 2016.(4)
  • Explain why the business should be satisfied with the number of units made during the current financial year. State TWO points.(4)

2.2.4 The direct material used to make the dresses is purchased locally at a cost of R150 per metre. Gloria is considering importing the fabric, as it will cost R120 per metre (all costs included). If she decides to import the fabric:

  • What effect will it have on the production cost of a dress? Provide a calculation to support your answer.(3)
  • State TWO other consequences of importing the direct material.(4)

INFORMATION:

  1. Direct materials:
    2,5 metres of fabric is used for each dress.
      Number of metres of fabric 
     Opening stock  525
     Purchases  12 450
     Raw materials issued to factory  ?
     Closing stock  1 475
  2. Production levels:
      2016 2015 
     Total number of units produced and sold 4 500  3 800
     Break-even point ?  3 200
  3. Additional information:
       Total  Per unit
     Sales  R2 925 000  R650
     Fixed cost  R900 000  R200
     Variable cost  R1 575 000  R350
                                                                                                                    [50]

QUESTION 3: INVENTORY VALUATION, INTERNAL CONTROL ANDPROBLEM-SOLVING     (40 marks; 25 minutes)

3.1 CONCEPTS
Give ONE word/term for each of the following descriptions by choosing a word/term from the list below. Write only the word/term next to the question number (3.1.1–3.1.4) in the ANSWER BOOK.

perpetual inventory system; weighted-average method; specific identification method; periodic inventory system; first in first out (FIFO) 

 

3.1.1This method assumes that stock is sold in order of date purchased.
3.1.2This system ensures that cost of sales is calculated at the point of sale.
3.1.3This method of stock valuation assigns a unique or individual value to each stock item.
3.1.4This stock system is more suited for low-value goods that are purchased in bulk. 
                                                                                                                                                         (4 x 1)             (4)

3.2LYNN STORES
You are provided with information relating to Lynn Stores. The business sells one type of leather shoes. The financial year ends on 29 February 2016. The business uses the weighted-average method for stock valuation and the periodic stock system.
REQUIRED:

3.2.1Calculate the value of the closing stock on 29 February 2016 using the weighted-average method.(8)
3.2.2Calculate the following for the year ended 29 February 2016:

    • Cost of sales
    • Gross profit                                                                              (6)

3.2.3Calculate the average stock-holding period (in days) on 29 February 2016.(5)
3.2.4Calculate the value of the closing stock by using the FIFO method.(7)

INFORMATION:

  1. Stock:
    Date  Pairs of shoes   Total value(including carriage)
     1 March 2015  520  R320 770
     29 February 2016  325  ?
  2. Purchases:
     Date  Pairs of shoes Cost price per pair  Total purchases  Carriage per pair  Total cost (including carriage) 
     31/05/2015  460  R650  R299 000  R18  R307 280
     01/08/2015  700  R680  R476 000  R18  R488 600
     15/10/2015  500  R710  R355 000  R30  R370 000
     01/02/2016  300  R725  R217 500  R30  R226 500
     TOTAL  1 960    R1 347 500    R1 392 380
  3. Returns:
    Thirty pairs of shoes from the purchases on 1 February 2016 were not of a high quality. These were returned to the supplier. The business account was credited with R22 650 (including carriage on purchases).
  4. Sales:
    2 115 pairs of leather shoes were sold during the financial year. The selling price was kept constant at R1 400 per pair.

3.3 PROBLEM-SOLVING
You are provided with information of three jeans shops with different owners in Johannesburg. Each shop has a floor space of 100 m2.
REQUIRED:

3.3.1Identify ONE problem in Shop 1 and ONE problem in Shop 2. Quote figures. In EACH case, give ONE point of advice.(6)
3.3.2Explain TWO good decisions that Chad has made in respect of Shop 3.
Quote figures.(4)
Information per shop for December 2015:

   SHOP 1 SHOP 2   SHOP 3
 Managers  Andy Bob   Chad
Sales R350 000 R240 000 R950 000
Returns from customers R7 000 R36 000 R19 000
 Mark-up percentage  90%  50%  60%
 Stock-holding period  180 days  30 days  30 days
 Advertising  R14 000  R4 800 R47 500 
 Rent expense  R35 000  R24 000  R96 000
 Days worked per week  6  5  7
 Shop assistants  4  2  6

                                                                                                                                               [40]

QUESTION 4: CONCEPTS, BALANCE SHEET AND AUDIT REPORT
                                                                                                               (65 marks; 40 minutes)
4.1CONCEPTS
Choose an explanation from COLUMN B that matches a concept in COLUMN A. Write only the letter (A–D) next to the question number (4.1.1–4.1.4) in the ANSWER BOOK.

 COLUMN A  COLUMN B

4.1.1 Shareholder

4.1.2 Director

4.1.3 Internal auditor

4.1.4 External auditor

A monitors control measures to prevent mismanagement and fraud

B owners of the company

C expresses an opinion on the financial statements of a company

D appointed by the shareholders to manage the company

                                                                                                                                          (4 x 1)         (4)
4.2 PARADISE LIMITED
The information below relates to Paradise Ltd. The financial year ended on 29 February 2016.

REQUIRED:
4.2.1 Prepare the following notes for the year ended 29 February 2016:

  • Ordinary share capital(6)
  • Retained income(10)

4.2.2 Prepare the Balance Sheet (Statement of Financial Position) on 29 February 2016. Show ALL workings.(35)

INFORMATION:

  1. List of balances extracted from the accounting records of Paradise Ltd on 29 February 2016, the end of the financial year, unless otherwise stated.
      R 
    Ordinary share capital (See Information B.)  ?
    Retained income (1 March 2015) 1 634 000 
    Loan from director: J Jonas (See Information E.)  1 155 000
    Fixed assets at carrying value (1 March 2015)  12 278 400
    Fixed deposit: Sandton Bank  ?
    Trading stock (balancing figure)  ?
    Creditors' control  478 000
    Debtors' control 356 000
    Provision for bad debts (1 March 2015) 16 000
    Bank (favourable) ?
    Accrued expenses (expenses payable) 12 000
    Prepaid expenses 6 800
    SARS: Income tax (provisional tax payments) 1 012 000
  2. Share capital:
    • Paradise Ltd is authorised to sell 5 000 000 ordinary shares.
    • 3 000 000 shares were in issue on 1 March 2015, the beginning of the financial year, R6 000 000.
    • 1 000 000 new shares were issued on 1 December 2015 at a market-related value of R5,00 per share.
    • 200 000 shares were repurchased on 20 February 2016 from a shareholder who was relocating to another country. A payment of R770 000 was made on 20 February 2016.
  3. Dividends:
    • The directors paid an interim dividend of R840 000 on 28 August 2015.
    • A final dividend of 44 cents per share was declared on 29 February 2016. All shares (including the shares repurchased on 20 February 2016) qualify for final dividends. These dividends will be paid on 31 March 2016.
  4. Net profit before tax:
    • After taking into account all relevant information, the net profit before tax was accurately calculated to be R3 800 000.
    • Income tax at the rate of 28% must still be brought into account.
  5. Loan from Director J Jonas:
    • The loan was originally received on 1 December 2013.
    • This loan is to be repaid over 5 years in equal monthly instalments with effect from 31 December 2013. All payments have been made.
    • Interest is not capitalised and has been paid in full.
  6. Provision for bad debts:
    The provision for bad debts must be maintained at 5% of the outstanding debtors.
  7. Fixed assets and depreciation:
    • No fixed assets were purchased or sold during the financial year.
    • Depreciation for the financial year ended 29 February 2016 was R890 000.
  8. The following financial indicators were calculated after all adjustments had been taken into account:
     Current ratio  1,3 : 1
     Acid-test ratio  0,8 : 1

4.3 AUDIT REPORT
You are provided with an extract of the independent auditor's report of Topstar Ltd for the financial year ended 31 October 2015.

REQUIRED:

4.3.1 What type of audit report did Topstar Ltd receive? Choose from the following: unqualified, qualified, disclaimer. Give a reason for your choice.(3)
4.3.2 To whom is an audit report addressed? Give a reason for your answer.(3)
4.3.3 Explain why the auditor mentioned the following in the audit report:

    • IFRS(2)
    • Companies Act (Act 61 of 1973)(2)

INFORMATION:
Extract from the audit report:

In our opinion, the financial statements fairly present in all material respects the financial position of the company at 31 October 2015 as well as the financial results of its operations and the cash flows for the year then ended. This is in accordance with the International Financial Reporting Standards (IFRS) and the manner required by the Companies Act (Act 61 of 1973) in South Africa. 

                                                                                                                                                                                                                               [65]
QUESTION 5: FIXED ASSETS, CASH FLOW STATEMENT, ANALYSIS ANDINTERPRETATION OF FINANCIAL STATEMENTS

                                                                                                                                                                      (70 marks; 40 minutes)
5.1CONCEPTS
Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (5.1.1–5.1.4) in the ANSWER BOOK.

5.1.1 The mortgage bond to finance the purchase of a fixed asset is a (financial asset/non-current liability).
5.1.2 Distributable reserves, such as retained income, are part of (shareholders' equity/non-current assets).
5.1.3 The amount due by SARS in respect of income tax is a (current asset/current liability).
5.1.4 An investment, such as a fixed deposit at 9% p.a. interest over five years, will be shown as a (current asset/financial asset).
                                                                                                                                                                                       (4 x 1)       (4)

5.2 MAFUSA LTD
The information presented relates to the financial year ended 30 April 2016.
NOTE:  When financial indicators are required to support answers, you have to give the name of the financial indicator and the actual figure, ratio or percentage.
REQUIRED:

5.2.1 Refer to Information C.Calculate the missing amounts denoted by (a) to (d) for equipment in the Fixed Asset Note. Show all workings.(16)
5.2.2 Calculate the following amounts for the Cash Flow Statement. Show ALL workings

    • Income tax paid(5)
    • Net changes in cash and cash equivalents(4)

5.2.3 Complete the section on FINANCING ACTIVITIES in the Cash Flow Statement.(7)
5.2.4 Calculate the following financial indicators on 30 April 2016:

    • Return on average shareholders' equity(5)
    • Net asset value(3)

5.2.5 Comment on the overall liquidity position of the company. Quote THREE relevant financial indicators (with figures).(8)
5.2.6 The directors decided to change the dividend pay-out policy in 2016.

    • Provide calculations that indicate the policy change.(4)
    • Explain the effect of this change of policy on the company. State TWO points.(4)

5.2.7 One of the directors feels that the company should pay back the loan as soon as possible. What are your views about this? Quote and explain TWO relevant financial indicators with figures.(6)
5.2.8 Explain why the shareholders are satisfied with:

    • The market price of the shares on the JSE(2)
    • The price at which the 75 000 shares were repurchased on 25 April 2016(2)
      In EACH case, quote figures/financial indicators.

INFORMATION:

  1. Information extracted from the Income Statement on 30 April 2016:
       R
    Operating profit   1 590 000
     Interest expense  300 000
     Net profit before income tax  1 279 000
     Net profit after income tax  895 300
  2. Information extracted from the Balance Sheet on 30 April 2016:
       2016(R) 2015(R) 
    Fixed deposit   200 000  520 000
    Current assets(including cash and cash equivalents)  946 550  887 250
    Cash and cash equivalents  125 750  54 750
     Shareholders' equity  7 166 850  6 142 800
     Ordinary share capital  6 660 000  5 600 000
     Retained income  506 850  542 800
     Non-current liabilities  1 800 000  2 750 000
    Current liabilities 526 750 509 500
    Trade and other payables 285 600 232 800
    Bank overdraft 0 92 000
    Shareholders for dividends 231 250 176 000
    SARS: Income tax 9 900 8 700
  3. Fixed assets:
    Fixed assets comprise land and buildings and equipment.
    Extract from the Fixed Asset Note:
       EQUIPMENT
    Cost (1 May 2015)   3 640 000
    Accumulated depreciation (1 May 2015) (a)
    Carrying value (1 May 2015) 2 002 000
    Movements:  
     Additions  900 000
     Disposals  (b)
     Depreciation  (c)
     Carrying value (30 April 2016)  
     Cost (30 April 2016)  (d)
     Accumulated depreciation (30 April 2016)  

    • Equipment is depreciated at 15% p.a. on cost.
    • On 31 August 2015 old equipment costing R750 000 was sold for cash at its carrying value. The accumulated depreciation on this equipment was R491 750 on 1 May 2015.
    • On 1 December 2015 new equipment valued at R900 000 was purchased.
    • There were no other movements.

  4. Share capital and dividends:
    The business is registered with an authorised share capital of 1 200 000 ordinary shares.
     1 May 2015 The issued share capital consisted of 800 000 ordinary shares. 
     1 February 2016  200 000 ordinary shares were issued at R8,00 per share.
     25 April 2016  75 000 ordinary shares were repurchased from a retired shareholder at a total cost of R600 000.
     30 April 2016  There were 925 000 shares in issue.Total dividends for the financial year amounted to R871 250.
  5. The following financial indicators were calculated on 30 April:
       2016 2015 
     Current ratio  1,8 : 1  1,7 : 1
     Acid-test ratio  0,9 : 1  1,3 : 1
    Stock-holding period 52 days 68 days
    Debtors' collection period 47 days 30 days
    Creditors' payment period 30 days 30 days
    Debt-equity ratio 0,3 : 1 0,4 : 1
    Return on capital employed 11% 13%
    Return on shareholder's equity ? 14,5%
    Earnings per share 107 cents 112 cents
    Dividends per share  105 cents  40 cents
    Net asset value per share  ? 768 cents 
    Market price per share (JSE)  960 cents  777 cents
    Repurchase price per share  800 cents  -
    Interest rate of loan  14%  13%
                                                                                                       [70]

QUESTION 6: BUDGETING
                                                                                                                                                                (40 marks; 25 minutes)
You are provided with a partially completed Projected Income Statement of Senoge Stores prepared by the bookkeeper for the period 1 May 2016 to 30 June 2016. The business is owned by Susan Senoge.
REQUIRED:
6.1 Calculate the missing amounts denoted by (a) to (d) in the Projected Income Statement.(12)
6.2 Taking into account the additional information, calculate the following:

6.2.1 The monthly salary due to the sales manager in June 2016(4)
6.2.2 The total credit sales expected in July 2016(4)
6.2.3 The cost price of the new vehicle purchased on 1 May 2016(4)

6.3 Comment on the control of the telephone and water and electricity. What advice would you offer Susan? State ONE point.(4)
6.4 Susan wants to reduce the maintenance budget to R500 per month and then use this saving for staff training. What should she consider before making this change? State TWO points.(4)
6.5 A new competitor started operating from nearby premises in May 2016. Refer to the actual figures for May 2016 and:

  • Explain how Susan responded to this threat. State THREE points. Provide figures/calculations to support your answer.(6)
  • Explain whether Susan's response was successful or not. Provide figures.(2)

INFORMATION:

  1. Salaries and wages:
    • The cleaner will receive an 8% increase in June 2016.
    • The business employs a sales manager and an administration manager. The sales manager earns R400 more than the administration manager (per month). The managers are entitled to an increase of 7% p.a. from 1 June 2016.
  2. The business uses a mark-up percentage of 60% on cost.
  3. Credit sales comprise 80% of total sales. Sales are expected to increase by 10% per month and by 12% during July 2016.
  4. A delivery vehicle was purchased on 1 May 2016. Vehicles are depreciated at 15% per annum on cost. The accountant did not take this into account when preparing the Projected Income Statement for May 2016.
  5. Rent income increased by 9% on 1 June 2016.
  6. Information (amongst others) from the Projected Income Statement for May 2016 to June 2016:
       MAY BUDGETED  MAY ACTUAL  JUNE BUDGETED 
    Sales   180 000  195 000  198 000
    Cost of sales  (112 500)   (150 000)  (b)
    Gross profit  67 500    
    Other income    19 200  
    Rent income  (d)    10 028
    Commission income  12 500  8 000  13 000
    Discount received  1 800    1 980
           
    Gross operating income      
    Operating expenses  (45 650)    
    Salaries (two managers)  18 000  18 000  
    Wages (cleaner)  1 800  1 800  (c)
    Maintenance  5 000  2 000  5 000
    Motor vehicle expenses  0  4 000  0
    Administration expenses  8 450  8 420  8 500
    Telephone, water and electricity  2 000  4 880  2 000
    Insurance  1 800  1 800  1 800
    Advertising  2 400  9 600  2 400
    Depreciation  6 200  9 000  
    Trading stock deficit  0  1 680  
           
    Operating profit  (a)    
    Interest income  350  350  350
    Profit before interest expense  46 500    
     Interest expense  (500)  (500)  (500)
     Net profit 46 000     
                                                                                                                                                  [40]
                                                                                                                                    TOTAL:300
Last modified on Tuesday, 21 September 2021 09:36