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GLYDIS TRADERS Information is provided for the budget period ending 31 July 2022 - NSC Accounting - Question 4 - 2022 - Paper 2
Question 4
GLYDIS TRADERS Information is provided for the budget period ending 31 July 2022. REQUIRED: 4.1.1 Complete the Debtors' Collection Schedule for July 2022. 4.1.2 ... show full transcript
Worked Solution & Example Answer:GLYDIS TRADERS Information is provided for the budget period ending 31 July 2022 - NSC Accounting - Question 4 - 2022 - Paper 2
Step 1
Complete the Debtors' Collection Schedule for July 2022.
Answer
To complete the Debtors' Collection Schedule for July 2022, follow these calculated amounts based on the sales trends:
-
Credit Sales in July:
- Total sales for July = R1 015 000
- Credit Sales = 60% of R1 015 000 = R609 000
-
Collections from previous months:
- 40% of sales in July with a 5% discount;
- 45% of June sales:
- 60% of R997 500 = 598 500
- 12% of May sales two months prior:
- 60% of R962 500 = 577 500
-
Total Collections in July:
- Total for July 2022: R609 000 * 0.40 - 5% = R231 420
Thus, the receipts from Debtors will total R555 345.
Step 2
Calculate the amounts denoted by (i) to (iv) in the extract of the Projected Statement of Comprehensive Income.
Answer
-
(i) Commission income in July 2022:
= Total Sales in July * Commission Rate
= R1 015 000 * 8% = R81 200
-
(ii) Bad debts written off in July 2022:
= 3% of the Debtors who were outstanding in May 2022
= 567 000 * 3% = R17 010
-
(iii) Salaries and wages in June 2022:
= From previous accounting, identify the calculations done in June.
= R196 980 (as rendered as per marking scheme)
-
(iv) Discount allowed in June 2022:
= 40% of sales that were paid with a 5% discount
= R11 970.
-
Step 3
Step 4
Loan amount that will be paid on 1 July 2022.
Answer
To determine the amount of loan to be paid on the 1st of July 2022, use the formula:
Amount of Loan = Total Loan Amount due in July * interest rate (14%) on the previous installments
The calculation yields:
- Amount = R390 000
- Therefore, R45 000 will be paid.