Question

The following information was extracted from the Statement of Changes in Equity of Ace Traders on 28 February 2019, the end of the financial year 1.8 700 000 Capital balance (01 March 2018) 260 000 Additional capital contributed on 01 June 2018 102 000 Drawings for the year Net profit for the year 1 080 000 Capital balance (28 February 2019) The net profit for the year is A R222 000 R18 000 C R53 800 none of the above (3) Questions 1.9 and 1.10 are based on the following information: The following balances, amongst others, appeared in the Post-Closing Trial Balance of Bally Stores on 28 February 2019, the end of the financial year R 500 000 Property, plant and equipment 60 000 Creditors control 70 000 Debtors control 5 000 Prepaid expenses 30 000 Bank overdraft 6 000 Accrued-expenses 4 000 Accrued Income 3 000 Provision for bad debts 1 000 Income received in advance Trade and other receivables" in the Statement of Financial Posiion as at 28 February 2019 amounts 1.9 to R82 000 A R76 000 R73 000 C none of the above (3)

Answer 1

1.8) Net profit for the year = 1080000-700000-260000+102000 = 222000

Option A is correct.

1.9) Trade and other receivables in the statement of financial position as at 28 Feb 2019 amounts to 67000.

Trade and other receivables = Debtors control (-) Provision for bad debts

= 70000-3000

= 67000

The correct option is None of the above.