FAC1601 ASSESSMENT 2 SEM 2 OF 2025 EXPECTED QUESTIONS AND ANSWERS

QUESTION 1 (20 Marks)
CeeMenti

Statement of Profit or Loss and Other Comprehensive Income For the year ended 28 February 2025

R R
Revenue (.5) 1168000
Cost of sales (2) -584000
Opening Inventory 86200
Purchases 561200
Insuarance on purchases 1100
Closing Inventory -64500
Gross profit 584000
Other income 2 700
Settlement discount received 600
Bad debts recovered (Info 2.2) 2 100


Expenses 48804
Salaries and wages (3) 35800
Stationery (4) 590
Insurance on purchases 1100
Carriage on sales 1700
Rent expense 2200
Depreciation (5) 5775
Credit losses 1639


Profit before interest 515391
Interest on long-term loan (7) -5136
profit for the year

, bad debts 1320
Increse in allowance 319
less Allowance for bad debts 2024 2600
Alowance for bad debts
2919
2025(0.05*(59700-1320))
Credit losses 1639
Workings:
3. Salaries and Wages:
Per Trial Balance: R7,400

Add: Partner Salaries Paid (Info 2.7: R14,200 x 2): R28,400

Total Salaries = R7,400 + R28,400 = R35,800

4. Stationery:
Per Trial Balance: R700

Less: Closing Inventory (Stationery) (Info 2.1): (R110)

Stationery Expense = R700 - R110 = R590

5. Depreciation:

Carrying Amount (1 Mar 2024): Cost - Acc. Dep.

Cost: R38,500
Acc. Dep. (1 Mar 2024): (R4,000)
Carrying Amount: R34,500