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Mancosa Financial reporting and analysis Revision unit 1 to 5
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FINANCIAL REPORTING AND ANALYSISUNIT 1: ACTIVITIES
REQUIRED
Use the transactions of SS Stores provided below to prepare the following financial statements:
1. Statement of Comprehensive Income for the month ended 30 April 2023.
2. Statement of Changes in Equity for the month ended 30 April 2023.
3. Statement of Financial Position as at 30 April 2023.
INFORMATION
Date Transactions of SS Stores for April 2023
01 The proprietor, V. Bheki, commenced her business by depositing R200 000 directly into the
bank account of the business.
01 A loan of R100 000 was obtained from Benbank and a direct deposit was made into the account
of the business.
05 Purchased stationery from FD Stationers by means of an electronic funds transfer (EFT), R800.
07 Purchased equipment from JK Furnishers via EFT, R40 000.
09 Purchased trading goods on credit from VB Wholesalers, R44 000.
12 Paid the monthly rental to CS Agency, R4 000.
17 Sold goods on credit to T. Tall for R3 000 (Cost R2 000).
18 Cash sales as per cash register tape, R21 000 (Cost R14 000).
19 An EFT for R10 000 was made to VB Wholesalers in part settlement of account. Received a
discount of R300 on this payment.
23 V. Bheki, the proprietor, took goods at cost for her personal use, R700.
25 Purchased consumables on credit from RAQ Suppliers, R2 000.
27 Sub-let part of the premises to a tenant, HiHo Boutique. Received a direct deposit of R1 000
from them.
28 Received R500 cash from T. Tall in part settlement of his account. Allowed him a discount of
R20.
29 Paid the water and electricity bill to the municipality, R3 000.
30 Salaries and wages were paid to the employees, R10 000.
30 Cash sales of merchandise to date, R36 000 (cost R24 000).
30 Paid interest on loan to Benbank for April 2023 at a rate of 12% per annum.
, Page 1 of 3
FINANCIAL REPORTING AND ANALYSIS
UNIT 1: SOLUTIONS (Figures in red are the dates of the transactions)
1.
SS STORES
STATEMENT OF COMPREHENSIVE INCOME FOR THE MONTH ENDED 30 APRIL 2023
WORKINGS R
Sales 17 R3 000 + 18 R21 000 + 30 R36 000 60 000
Cost of sales 17 R2 000 + 18 R14 000 + 30 R24 000 (40 000)
Gross profit R60 000 – R40 000 20 000
Other operating income R300 + R1 000 1 300
Discount received 19 300
Rent income 27 1 000
Gross operating income R20 000 + R1 300 21 300
Operating expenses R800 + R4 000 + R2 000 + R20 + R3 000 + R10 000 (19 820)
Stationery 05 800
Rent expense 12 4 000
Consumable stores 25 2 000
Discount allowed 28 20
Water and electricity 29 3 000
Salaries and wages 30 10 000
Operating profit R21 300 – R19 820 1 480
Interest income 0
Interest expense 30 R100 000 X 12% X 1/12 (1 000)
Net profit for the month R1 480 – R1 000 480
2.
STATEMENT OF CHANGES IN EQUITY FOR THE MONTH ENDED 30 APRIL 2023
R
Balance on 31 March 2023 0
Additional capital contributed 01 200 000
Net profit for the month (See statement of comprehensive income) 480
Drawings 23 (700)
Balance on 30 April 2023 199 780
, Page 2 of 3
3.
SS STORES
STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2023
WORKINGS R
ASSETS
Non-current assets 40 000
Property, plant and equipment 07 R40 000 40 000
Current assets R3 300 + R2 480 + R289 700 295 480
Inventories 09 R44 000 – 17 R2 000 – 18 R14 000 – 23 R700 3 300
– 30 R24 000
Trade and other receivables 17 R3 000 – 28 R500 – 28 R20 2 480
Cash and cash equivalents 01 R200 000 + 01 R100 000 – 05 R800 – 289 700
07 R40 000 – 12 R4 000 + 18 R21 000 –
19 R10 000 + 27 R1 000 + 28 R500 – 29 R3 000
– 30 R10 000 + 30 R36 000 – 30 R1 000
Total assets R40 000 + R295 480 335 480
EQUITY AND LIABILITIES
Equity 199 780
Capital See the Statement of Changes in Equity 199 780
Non-current liabilities 100 000
Loan: Benbank 01 R100 000 100 000
Current liabilities 35 700
Trade and other payables 09 R44 000 – 19 R10 000 – 19 R300 + 35 700
25 R2 000
Total equity and liabilities R199 780 + R100 000 + R35 700 335 480
NOTE:
• For each amount in a transaction two entries must be made.
• Cash sales (18th and 30th): Sales + Bank +; Cost of sales + Inventories –
• Credit sales (17th): Sales+ Trade and other receivables +; Cost of sales + Inventories –
• Payment to creditor (19th): Cash and cash equivalents –; Trade and other payables –
: Discount received +; Trade and other payables –
, Page 3 of 3
• Cash from debtor (28th): Cash and cash equivalents +; Trade and other receivables –
: Discount allowed +; Trade and other receivables –
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