Question

QUESTION 3 10 points Save Answer Complete the following statement of profit or loss and other comprehensive income of Thabang Traders for the financial year ended 31 October 2019, taking the information below into consideration: INFORMATION 1. The owner purchased a delivery vehicle for the entity to the value of R235 000 and paid by an electronic fund transfer (EFT) from his personal bank account. 2. Purchased inventory to the value of R12 000 on credit. 3. Paid R4 500 for the rent of the business premises via an EFT from the business's bank account. 4. Sold inventory for R140 000 on credit (cost R93 000). 5. The water and electricity for the entity amounts to R22 000 for the period 1 November 2018 to 30 September 2019. The water and electricity account, to the value of R1 800, for October 2019 was received but not paid yet. 6. Stationery to the value of R5 000 was purchased during the year. A physical stock take on 31 October 2019, revealed that stationery of R850 was still unused. 7. During the year, wages of R15 000 were paid to employees.

Answer 1

Preparation of Statement of Profit and Loss account and other comprehensive income for the year ended October 31: R140,000 (R93,000) R47,000 (R4,500) Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Rent Expenses Less: Water and Electricity (R22000+R1800) Less: Stationary Expenses (R5000-R850) Less: Wages Expenses Net Income (R23,800) (R4,150) (R15,000) (R450)