20 QUESTION THREE You are provided with information relating

[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

Solution

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