ADJUSTMENTS AND ADDITIONAL INFORMATION: A. Selling…
ADJUSTMENTS AND ADDITIONAL INFORMATION: A. Selling prices are determined by using a mark-up of 40% on cost. Note: Trade discounts of R120 000 were allowed to customers during the financial year. B. The physical stocktaking on 28 February 2021 reflected the following stock on hand: · Trading stock R1 899 000 · Consumable stores R 4 800 C. The provision for bad debts must be adjusted to R37 700. D. Advertising includes a yearly contract of R48 000 which was paid on 1 May 2020. E. The rent income includes rent received for March 2021. The rent income increased by R3 600 on 1 November 2020. F. Fixed assets and depreciation: (i) Vehicles: Details for the only two vehicles are as follows: VW Polo Audi TT Cost price 300 000 600 000 Accumulated depreciation on 28 February 2020 270 000 Date purchased 1 September 2015 1 November 2020 · Vehicles are depreciated at 20% p.a. on cost. (ii) Equipment: Equipment was sold on 1 September 2020 for R9 000. The details from the fixed asset register were: R Cost price 24 000 Accumulated depreciation at the beginning of the financial year 13 100 Pro-rata depreciation for the year 900 Accumulated depreciation on 1 September 2020 14 000 · Depreciation on the remaining equipment is calculated at R28 900 after taking all the above into account.