FAC1601 ASSESSMENT 3 SEM 2 OF 2025 EXPECTED ANSWERS(7pm sesssion 23 sept)

Question 1 Solution: Statement of Profit or Loss and Other
Comprehensive Income for Mvilo (Year ended 31 August 2025)



Step 1: Calculation of Gross Profit

Description Calculation Amount (R)
Sales 601,300
Cost of Sales -307,360
Opening Inventory 0
+ Purchases 329,800
+ Delivery expenses on purchases 5,160
Cost of goods available for sale 334,960
- Closing Inventory -27,600
Gross Profit 293,940

Step 2: Calculation of Other Income

Other Income
Settlement discount received 2,000
Profit on disposal(1600-(800 - 68)) 868
Credit losses recovered 3,600
Total Other Income 6,468
Step 3: Calculation of Operating
Expenses
Operating Expenses

, Salaries and wages (136,000 - 37,200 - 36,100) 62,700

Water and electricity 46,100
Telephone expenses 2,200


(25,500 - 15,600 + (15, *
Municipal expenses 24,300
12)) = (25,500 - 15,600 + 14,400)


(6,500 + Accrual 2,950) = (6,500 +
Interest on loan (Accrued) 9,450
(162,000 × 14% × 5/12 - 6,500))

General expenses 44,200
Depreciation - Vehicles (157,000 × 18%) 28,260

(128,300 × 17% +(14,400 - 13,600
Depreciation - Equipment )*17%*6/12+(24,200 × 17% × 25,028
(5/12))

Settlement discount granted 2,800
Allowance for settlement discount 1,600
Total Operating Expenses 246,638




MKHAMBI MANUFACTURING



STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2025