Given information for questions 17 – 28
Vuyo and Wanda are in a partnership trading as VW Traders. They have an equal interest in the partnership and distribute profits acc
The following information is extracted from the accounting records of the partnership as at 31 July 2022, the financial year-end of th
EXTRACT OF BALANCES AS AT 31 July 2022:
R
OSCAR THE TUTOR
oscardiura@gmail.com
620 0844708483
Buildings for FAC,MAC,FIN,INV,TAX,QMI,BNU,ECS, DSC
140
85
Bank (Dr)
800
3 213
Sales
700
300
Investment in Pusha Ltd at fair value
000
5
Income received in advance
800
22
Prepaid expenses
700
8
Rental income
200 OSCAR THE TUTOR
994 oscardiura@gmail.com
Purchases 0844708483
200 for FAC,MAC,FIN,INV,TAX,QMI,BNU,ECS, DSC tutoring
66
Other general expenses
000
987
Salaries and wages
500
, 60
Carriage of purchases
900
62
Carriage on sales
200
74
Sales returns
300
11
Settlement discount granted
600
18
Settlement discount received
900
5
Allowance for credit losses
000
25
Purchases returns
700
2
Allowance for credit losses (Cr) OSCAR THE TUTOR
500 oscardiura@gmail.com
0844708483
135 for FAC,MAC,FIN,INV,TAX,QMI,B
Capital contribution: Vuyo
500
100
Capital contribution: Wanda
000
372
Retained earnings (1 August 2021)
400
58
Loan from KK Loans CC
700
44
Loan to partner: Wanda
400
51
Inventory (1 August 2021)
300
11
Petty cash
, 270
Trade receivables control
185
515
Trade payables control
100
Additional information:
1. An invoice relating to carriage on purchases amounting to R5 500 was received on 30 July 2022 and must still be taken into acco
2. The closing inventory amounted to R93 400.
3. The investment in Pusha Ltd consist of 80 000 shares bought for R201 000 and was acquired in March 2021. The investment was
purposes. At the end of the current financial year, the fair value of the investment amounted to R212 345.
4. Each member received a monthly salary of R22 000 paid in cash. Wanda the managing member of VW Traders is entitled to a bo
payable on 1 August 2022. These amounts were debited to the salaries and wages account.
5. The allowance for credit losses must be increased to R3 800.
6. Partners withdrew cash amounting to R20 000 equally to pay for holiday flights to Cape Town on 31 July 2022.
7. Interest must be recorded on the loan accounts to partners at 10% per annum on the opening balance of any existing loans as w
additional loans granted. On 1 February 2022, an additional loan of R10 000 was granted to Wanda and was correctly accounted for
close corporation. Interest on the loans to members is still to be accounted for and must be capitalised. All loans are unsecured and
8. Interest on loans from KK Loans CC is calculated at 15% per annum and is not yet accounted for. The loan amount is repayable in
2022.
QUESTION 17
Which one of the following alternatives represents the correct amount for revenue in the statement of profit or loss and other comp
VW Traders for the year ended 31 July 2022?
OSCAR THE TUTOR
oscardiura@gmail.com
0844708483
for FAC,MAC,FIN,INV,TAX,QMI,BNU,ECS, DSC tutoring
1.
, 2.
3 127 800
3.
3 202
100
4.
3 213
700
5.
3 176
400
Clear my choice
