FAC1601 ASSIGNMENT 3 MEM0 2026
DUE 23 APRIL 2026 (11PM)
QUESTION 1.1 – Statement of Profit or Loss and Other Comprehensive Income
for the year ended 28 February 2026
Revenue (Sales – Settlement discount granted)
= R1 852 800 – R4 500 = R1 848 300
Cost of sales
= Opening inventory + Purchases – Settlement discount received + Carriage on
purchases – Closing inventory
= R36 600 + (R245 600 – R1 700) + R1 400 – R50 000
= R36 600 + R243 900 + R1 400 – R50 000
= R231 900
Gross profit (Revenue – Cost of sales)
= R1 848 300 – R231 900 = R1 616 400
Distribution, administrative and other expenses
Salaries and wages (given) R240 500
Carriage on sales R2 200
Telephone R5 200
Stationery (R7 000 – R1 200 closing on hand) R5 800
, Directors’ remuneration (R7 000 + R80 000 bonus) R87 000
Depreciation (vehicles) R43 000
Credit losses (R11 500 write-off + R2 000 increase in allowance) R13 500
Audit fees (full amount – see working) R137 500
Total R534 700
Finance costs – Interest on loan (R103 600 × 15% × 6/12) R7 770
Profit before tax
= Gross profit – Operating expenses – Finance costs
= R1 616 400 – R534 700 – R7 770 = R1 073 930
Income tax expense R135 000
Profit for the year
= R1 073 930 – R135 000 = R938 930
Other comprehensive income
– Revaluation surplus on land (given) R112 000
Total comprehensive income for the year
= R938 930 + R112 000 = R1 050 930
QUESTION 1.2 – Statement of Financial Position (extract: Current assets, Equity
and Liabilities) as at 28 February 2026
DUE 23 APRIL 2026 (11PM)
QUESTION 1.1 – Statement of Profit or Loss and Other Comprehensive Income
for the year ended 28 February 2026
Revenue (Sales – Settlement discount granted)
= R1 852 800 – R4 500 = R1 848 300
Cost of sales
= Opening inventory + Purchases – Settlement discount received + Carriage on
purchases – Closing inventory
= R36 600 + (R245 600 – R1 700) + R1 400 – R50 000
= R36 600 + R243 900 + R1 400 – R50 000
= R231 900
Gross profit (Revenue – Cost of sales)
= R1 848 300 – R231 900 = R1 616 400
Distribution, administrative and other expenses
Salaries and wages (given) R240 500
Carriage on sales R2 200
Telephone R5 200
Stationery (R7 000 – R1 200 closing on hand) R5 800
, Directors’ remuneration (R7 000 + R80 000 bonus) R87 000
Depreciation (vehicles) R43 000
Credit losses (R11 500 write-off + R2 000 increase in allowance) R13 500
Audit fees (full amount – see working) R137 500
Total R534 700
Finance costs – Interest on loan (R103 600 × 15% × 6/12) R7 770
Profit before tax
= Gross profit – Operating expenses – Finance costs
= R1 616 400 – R534 700 – R7 770 = R1 073 930
Income tax expense R135 000
Profit for the year
= R1 073 930 – R135 000 = R938 930
Other comprehensive income
– Revaluation surplus on land (given) R112 000
Total comprehensive income for the year
= R938 930 + R112 000 = R1 050 930
QUESTION 1.2 – Statement of Financial Position (extract: Current assets, Equity
and Liabilities) as at 28 February 2026
