Exam (elaborations)
MANCOSA FIN REP & ANALYSIS UNIT 2 SOLUTIONS
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Page 1 of 4FINANCIAL REPORTING AND ANALYSIS: UNIT 2: SOLUTIONS
AQUELLE TRADERS
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2023
Workings R
Sales R1 277 000 – R15 000 1 262 000
Cost of sales R700 000 (700 000)
Gross profit 562 000
Other operating income 74 000
Rent income R66 000 + R6 000 (R66 000 ÷ 11) 72 000
Discount received R2 000 2 000
Gross operating income 636 000
Operating expenses (313 850)
Wages R123 000 123 000
Bank charges R4 000 4 000
Packing materials R37 000 37 000
Advertising R18 000 18 000
Rates R7 000 7 000
Bad debts R2 000 + R800 (R2 000 X 40%) 2 800
Discount allowed 1 000 1 000
Stationery R20 000 – R1 000 19 000
Water and electricity R9 000 9 000
Insurance R16 000 – R4 500 (R6 000 ÷ 12 X 9) 11 500
Telephone R9 000 + R900 9 900
Donation 1 000
Trading inventory deficit R140 000 – Donation R1 000 – R136 000 3 000
Provision for bad debts adjustment R6 000 – R5000 1 000
Depreciation on vehicles (R275 000 – R94 000) X 20% 36 200
Depreciation on equipment R203 000 X 15% 30 450
Operating profit 322 150
Interest income 0
Interest expense R10 000 + R2 000 (12 000)
Net profit for the year 310 150
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