Question 1
Not yet answered
Marked out of 11.00
The following information is presented for Setlagole Catering, a business in providing luxury catering services to the areas
around the Dr Ruth Segomotsi Mompati District Municipality in the North West province.
These are the balances when they commenced a simultaneous liquidation of the partnership:
EXTRACT OF BALANCES
R
Trade payables 53,900
Trade receivables 87,300
Catering equipment (cost) 189,000
Vehicles (at cost) 180,000
Catering equipment (accumulated depreciation) 123,979
Vehicles (accumulated depreciation) 67,500
Building (at cost) 250,000
The following transactions took place as part of the liquidation:
1. Debtors were offered a 5% settlement discount. Only 94% of the debtors settled their balances and the remainder of
the debtors book was sold to a debt agency at 65% discount.
2. The creditors were all settled at a settlement discount of 11%.
3. The vehicle and the building were auctioned off for R112 000 and R283 300 respectively
4. The catering equipment was sold to another local catering company for R55 000.
Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation of
Setlagole Catering? Your answer must be rounded off to the nearest rand.
a. (R 19,367)
b. (R 28,708)
c. (R 21,200)
d. R 170,279
e. R 21,200
f. (R 170,279)
g. R 28,708
h. R 19,367
Clear my choice
Not yet answered
Marked out of 11.00
The following information is presented for Setlagole Catering, a business in providing luxury catering services to the areas
around the Dr Ruth Segomotsi Mompati District Municipality in the North West province.
These are the balances when they commenced a simultaneous liquidation of the partnership:
EXTRACT OF BALANCES
R
Trade payables 53,900
Trade receivables 87,300
Catering equipment (cost) 189,000
Vehicles (at cost) 180,000
Catering equipment (accumulated depreciation) 123,979
Vehicles (accumulated depreciation) 67,500
Building (at cost) 250,000
The following transactions took place as part of the liquidation:
1. Debtors were offered a 5% settlement discount. Only 94% of the debtors settled their balances and the remainder of
the debtors book was sold to a debt agency at 65% discount.
2. The creditors were all settled at a settlement discount of 11%.
3. The vehicle and the building were auctioned off for R112 000 and R283 300 respectively
4. The catering equipment was sold to another local catering company for R55 000.
Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation of
Setlagole Catering? Your answer must be rounded off to the nearest rand.
a. (R 19,367)
b. (R 28,708)
c. (R 21,200)
d. R 170,279
e. R 21,200
f. (R 170,279)
g. R 28,708
h. R 19,367
Clear my choice
