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GLYDIS TRADERS Information is provided for the budget period ending 31 July 2022 - NSC Accounting - Question 4 - 2022 - Paper 2

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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

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Answer

To complete the Debtors' Collection Schedule for July 2022, we need to track the credit sales and calculate the receipts from debtors based on their respective payment patterns. Accordingly:

  1. Credit Sales for July 2022:

    • Total Sales: R1 015 000
    • Credit Sales (60%): R1 015 000 * 60% = R609 000

  2. Receipts from Debtors in July:

    • From April 2022 (40% of R567 000): 0.40 * 567 000 = R226 800
    • From May 2022 (45% of R577 500): 0.45 * 577 500 = R260 875
    • From June 2022 (12% of R997 500): 0.12 * 997 500 = R119 700
    • Total Receipts in July: R226 800 + R260 875 + R119 700 = R607 375

  3. Total Receipts From Debtors for July:

    • R607 375

Step 2

Calculate (i) Commission income in July 2022

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Answer

To calculate the commission income for July 2022:

  1. Total Sales in July: R1 015 000
  2. Commission Rate: 8%
  3. **Commission Income **: R1 015 000 * 0.08 = R81 200

Step 3

Calculate (ii) Bad debts written off in July 2022

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Answer

To calculate the bad debts written off for July 2022:

  1. Bad Debts Percentage: 3%
  2. Bad Debts Written Off: If total credit sales are R609 000, then
  3. Calculation: R609 000 * 0.03 = R18 270
    • Alternatively, considering debtors from previous months (not fully paid): R567 000 - R549 900 = R17 010.

Step 4

Calculate (iii) Salaries and wages in July 2022

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Answer

To calculate salaries and wages:

  1. Salaries and Wages Amount: R196 980 for July 2022 will be used here.

Step 5

Calculate (iv) Discount allowed in June 2022

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Answer

To find the discount allowed in June 2022:

  1. Total Credit Sales in June 2022: R997 500
  2. Sale Amount Eligible for Discount (40%): R598 500
  3. Discount Percentage: 5%
  4. Calculation: R598 500 * 0.05 = R29 925.

Step 6

Payments to creditors in July 2022

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Answer

To calculate payments to creditors for July 2022:

  1. Total Purchases for May 2022: R962 500
  2. Calculation: Total Purchases * 75% mark-up / 1.75 = R110 000.

Step 7

Loan amount to be paid on 1 July 2022

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Answer

To determine the loan amount to be paid:

  1. Loan Amount: R45 000 to be paid.

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