QUESTION 1
KWAGGA PACKAGING CC
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 28
FEBRUARY 2026
Revenue 103 500
Sales 319 900
Less: Settlement discount
(215 600)
granted
Less: Allowance for settlement
-800
discount granted
Cost of sales 61 900
Opening inventory 13 200
Add: Purchases 58 400
Add: Carriage on purchases 1 300
Less: Closing inventory (9 800)
Gross Profit 41600
(W3) Other income
Interest on loan to member
– Lerato (83 600 × 11% ×
3 832
5/12) (1 Oct 2025 – 28 Feb
2026)
Gross Income 45432
Other expenses
120500
, Salaries (110 500 – 34 000 –
42 500
34 000)
Stationery 8 700
Depreciation – buildings 28 000
Depreciation – equipment 37 600
Credit losses (W4a) (3 500)
Interest – loan from member
7 200
Thabiso (given)
Loss before tax -75068
Income tax -3500
Loss after tax -78568
workings
Credit losses (3 500)
Decrease in allowance for
(5 800)
credit losses
Write-off of irrecoverable debt 2 300
Income tax
QUESTION 2 (40 Marks)
KWAGGA PACKAGING CC
KWAGGA PACKAGING CC
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 28
FEBRUARY 2026
Revenue 103 500
Sales 319 900
Less: Settlement discount
(215 600)
granted
Less: Allowance for settlement
-800
discount granted
Cost of sales 61 900
Opening inventory 13 200
Add: Purchases 58 400
Add: Carriage on purchases 1 300
Less: Closing inventory (9 800)
Gross Profit 41600
(W3) Other income
Interest on loan to member
– Lerato (83 600 × 11% ×
3 832
5/12) (1 Oct 2025 – 28 Feb
2026)
Gross Income 45432
Other expenses
120500
, Salaries (110 500 – 34 000 –
42 500
34 000)
Stationery 8 700
Depreciation – buildings 28 000
Depreciation – equipment 37 600
Credit losses (W4a) (3 500)
Interest – loan from member
7 200
Thabiso (given)
Loss before tax -75068
Income tax -3500
Loss after tax -78568
workings
Credit losses (3 500)
Decrease in allowance for
(5 800)
credit losses
Write-off of irrecoverable debt 2 300
Income tax
QUESTION 2 (40 Marks)
KWAGGA PACKAGING CC
