QUESTION 1: FIXED ASSETS AND STATEMENT OF COMPREHENSIVE INCOME The information relates to Robbie Ltd for the financial year ended 28 February 2021: REQUIRED: 1.1 Refer to INFORMATION B(a) for fixed assets - NSC Accounting - Question 1 - 2020 - Paper 1

To find the profit/loss on the sale of the equipment, we use the formula:

$ext{Profit/Loss} = ext{Selling Price} - ext{Carrying Value}$
Given:
Selling Price = 40,000
Carrying Value (calculated above) = 33,920
Calculating:

$ext{Profit/Loss} = 40,000 - 33,920 = 6,080$

To calculate the trading stock deficit, use:

$ext{Trading Stock Deficit} = ext{Stock at Start} - ext{Stock at End}$
Given:
Stock at Start = 280
Stock at End = 262
Using quantities:

$ext{Deficit} = (280 - 262) imes 4,050 = 72,900$

The Statement of Comprehensive Income can be prepared as follows:

Sales:
Sales = 15,325,200

Cost of Sales:
Cost of Sales = 6,966,000

This gives us:
Gross Profit = Sales - Cost of Sales = 15,325,200 - 6,966,000 = 8,359,200

Operating Expenses:

• Salaries and wages = 1,468,120
• Depreciation = 120,030
• Trading stock deficit = 72,900
  Total Operating Expenses = 1,468,120 + 120,030 + 72,900 = 1,661,050

Therefore, Profit before Tax:
Gross Profit - Operating Expenses = 8,359,200 - 1,661,050 = 6,698,150

Finally, the Net Profit after Tax:
6,698,150 × (1 - Tax Rate) = 1,054,000 (assuming tax has been deducted).