Question

Information Amount owing to creditors on 01 March 2016 Credit purchases for the month Goods returned to creditors Payments to creditors

R 30 000 40 000 1 500 40 000

m

2

Additional information

• Discount received from creditors for prompt settlement of accounts amounted to R300.

• A credit note received from a creditor for an overcharge on goods purchased was not

  recorded, R500.
  The correct balance in the Creditors control account as at 31 March 2016 is ________.

1. A R27 700

2. B R28 700

3. C R28 000

4. D none of the above

Questions 1.9 and 1.10 are based on the following information:

The following totals, amongst others, appeared in the ledger of Tempur Stores on 29 February 2016, the end of the financial year, after the adjustment journal entries were made:

(3)

Sales Sales returns Opening inventory Purchases Carriage on purchases Closing inventory Discount received Rent income Interest on fixed deposit

R 500 000 10 000 50 000 200 000 5 000 30 000 1 000 12 000 2 000

1.9 The cost of sales of Tempur Stores for the year ended 29 February 2016 is __________.

1. A R265 000

2. B R225 000

3. C R220 000

4. D none of the above

1.10 The gross operating income in the Statement of Comprehensive Income of Tempur Stores for the year ended 29 February 2016 is __________.

1. A R278 000

2. B R280 000

3. C R288 000

4. D none of the above

Answer 1

Answer to first question in the list: Option-(B): R28 700 Reason: Amount owing to creditors on 01 March 2016 Add: Credit purchases for the month Less: Goods returned to creditors Less: Payments to creditors Less: Discount received from creditors Add: Credit note received from a creditor The correct balance in the Creditors control account R30 000 R40 000 [Would increase creditors' balance) -R1 500 [Would decrease creditors' balance] -R40 000 [Would decrease creditors' balance) -R 300 [Would decrease creditors' balance] R 500 (Would increase creditors' balance] R28 700 [As at 31 March 2016]