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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

Question 1

QUESTION 1: FIXED ASSETS AND STATEMENT OF COMPREHENSIVE INCOME The information relates to Robbie Ltd for the financial year ended 28 February 2021: REQUIRED: ... show full transcript

Worked Solution & Example Answer: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

Step 1

1.1.1 The missing amounts denoted by (i) to (iii) on the Fixed Asset Note

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Answer

To calculate the missing amounts, we follow these steps:

(i) Carrying value of the vehicle on hand on 1 March 2020:
- Given the initial value of the vehicle is R460,000 and we deduct the accumulated depreciation of R396,750.
$ext{Carrying Value} = R460,000 - R396,750 = R63,250$
(ii) Depreciation on vehicles for the year:
- Calculate depreciation for the year:
$ext{Depreciation} = R25,500 + R63,249 = R88,749$
(iii) Carrying value of equipment sold:
- Based on the provided information:
$ext{Carrying Value of Equipment Sold} = R360,000 - R285,000 - R41,080 = R33,920$

Step 2

1.1.2 Profit/Loss on the sale of equipment on 1 October 2020

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Answer

To determine the profit or loss on the sale of equipment, we compute:

Carrying value of the equipment sold: R33,920, as calculated above.
Sale price of the equipment: R40,000.

Using the formula:

$ext{Profit/Loss} = ext{Sale Price} - ext{Carrying Value}$

Substituting the values:

$ext{Profit/Loss} = R40,000 - R33,920 = R6,080$

Step 3

1.2 Calculate the trading stock deficit.

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Answer

To calculate the trading stock deficit, we need to determine:

Initial stock: 280 units
Stock sold: 262 units
Remaining stock: 4,050.

We can apply the formula:

$ext{Trading Stock Deficit} = ( ext{Initial Stock} - ext{Stock Sold}) imes ext{Stock Price}$

Substituting the values:

$ext{Trading Stock Deficit} = (280 - 262) imes R4,050 = R72,900$

Step 4

1.3 Prepare the Statement of Comprehensive Income for the financial year ended 28 February 2021.

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Answer

To prepare the Statement of Comprehensive Income, we outline:

Sales: R1,535,200
Cost of Sales: Calculate as follows:
- Cost of Sales = Opening Stock + Purchases - Closing Stock
- Opening Stock = R680,000
- Purchases = R6,966,000
- Closing Stock (sum of units valued) = R2,000
Gross Profit = Sales - Cost of Sales
Operating Expenses: Include salaries, depreciation, trading stock deficit, etc.
Net Profit Before Taxation derived from total sales and deducting total expenses.
Net Profit After Tax reflects final profit after tax is calculated.

Final structured format can include all totals clearly to show comprehensive income.

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

Worked Solution & Example Answer: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

1.1.1 The missing amounts denoted by (i) to (iii) on the Fixed Asset Note

1.1.2 Profit/Loss on the sale of equipment on 1 October 2020

1.2 Calculate the trading stock deficit.

1.3 Prepare the Statement of Comprehensive Income for the financial year ended 28 February 2021.

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