[20] QUESTION THREE You are provided with information relating to Samora Sports

Question

[20] QUESTION THREE You are provided with information relating to Samora Sports Limited. The company sells sports equipment and repairs equipment for their customers INFORMATION: 1.Figures extracted from the Pre-Adjustment Trial Balance on 30 June 2017: Ordinary share capital Fixed deposit Trading stock Debtors control Equipment (for office and shop) Accumulated depreciation on office and shop equipment Mortgage loan from Credbank Sales Debtors allowances Cost of sales Service fee income (in respect of repair services) Rent income Interest income Salaries and wages Employers' contributions to Pension Fund (expense) Audit fees Directors fees Consumable stores Bank charges Sundry expenses R 1 200 000 160 000 219 800 39 090 224 000 130 000 281 200 1 680 000 17 000 050 000 297 140 105 000 11 200 240 750 53 890 30 000 230 000 51 100 5 240 15 910

Explanation / Answer

Statement of comprehensive income

9900(8400+1500)

8400(224000-30000-130000)*10%

1500(30000*10%*6/12)

Thank you

Particulars Amount Amount Sales 1680000 Less: Debtor allowances (17000) 1663000 Other income Service fee income 297140 Rental income 89400(105000-15600) Interest income 11200 397740 Total Revenue 2060740 Less: Cost of sales (1050000) Less Administrative expenses Salaries and wages 240750 Employer contribution to pension 53890 Audit fees 58000(30000+28000) Directors fees 230000 Stores and consumables 51100 Sundry expenses 15910 (649650) Less: Finance costs Bank charges 5550(5240+310) Interest expense 44800(51600-6800) (50350) Depreciation

9900(8400+1500)

8400(224000-30000-130000)*10%

1500(30000*10%*6/12)

(9900) Changes in inventory 219800-202900) 16900 Other expenses (540) Profit before tax 317200 Income tax expense 317200*30% 95160 Profit for the year 222040

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