QUESTION ONE (20 MARKS) THE FOLLOWING INFORMATION WAS EXTRACTED FROM THE RECORDS OF UNITY SUPPLIERS 28 FEBRUARY 2020 Inventory (1 March 2019) Trade receivables Trade payables Purchases Purchases returns Settlement discount granted Freight on sales Sales returns Insurance expenses Settlement discount received Allowance for credit losses Allowance for settlement discount granted Carriage on purchases Insurance on purchase Bank Additional information: R 43 000 150 000 65 000 174 000 4 100 3217 14 100 2 300 48 160 1000 1 900 4 500 200 1300 112 580 1. On 28 February 2020 the inventory on hand amounted to R65 000 2. Included in the amount of inventory on hand is consumables and stationery amounting to R2 080 and R800 3. The owner took some of the stock bought for R3 800 as a gift for his aunt. 4. Unity Supplies were offered a discount of 10% on an amount of R9 500 owing to a supplier provided the supplier is paid before 28 February 2020. Unity Supplies intends taking the advantage of the discount offered. 5. Unity maintains a mark-up on sales (margin) of 40%. 6. The balance of the allowance for settlement discount granted account on 1 Jan 2020 must be written back since the trade debtor to whom the discount offering pertained did not settle his account as required. On 31 December 2020, a trade debtor who owes R34 000 was offered a 5% settlement discount, on condition that she settles her account before 15 January 2021. This offering must still be provided for. Required Determine the Revenue Amount for the year ended 28 February 2020.
QUESTION ONE (20 MARKS) THE FOLLOWING INFORMATION WAS EXTRACTED FROM THE RECORDS OF UNITY SUPPLIERS 28 FEBRUARY 2020 Inventory (1 March 2019) Trade receivables Trade payables Purchases Purchases returns Settlement discount granted Freight on sales Sales returns Insurance expenses Settlement discount received Allowance for credit losses Allowance for settlement discount granted Carriage on purchases Insurance on purchase Bank Additional information: R 43 000 150 000 65 000 174 000 4 100 3217 14 100 2 300 48 160 1000 1 900 4 500 200 1300 112 580 1. On 28 February 2020 the inventory on hand amounted to R65 000 2. Included in the amount of inventory on hand is consumables and stationery amounting to R2 080 and R800 3. The owner took some of the stock bought for R3 800 as a gift for his aunt. 4. Unity Supplies were offered a discount of 10% on an amount of R9 500 owing to a supplier provided the supplier is paid before 28 February 2020. Unity Supplies intends taking the advantage of the discount offered. 5. Unity maintains a mark-up on sales (margin) of 40%. 6. The balance of the allowance for settlement discount granted account on 1 Jan 2020 must be written back since the trade debtor to whom the discount offering pertained did not settle his account as required. On 31 December 2020, a trade debtor who owes R34 000 was offered a 5% settlement discount, on condition that she settles her account before 15 January 2021. This offering must still be provided for. Required Determine the Revenue Amount for the year ended 28 February 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Calculate the revenue amount.
Transcribed Image Text:QUESTION ONE
(20 MARKS)
THE FOLLOWING INFORMATION WAS EXTRACTED FROM THE RECORDS OF UNITY SUPPLIERS 28 FEBRUARY
2020
Inventory (1 March 2019)
Trade receivables
Trade payables
Purchases
Purchases returns
Settlement discount granted
Freight on sales
Sales returns
Insurance expenses
Settlement discount received
Allowance for credit losses
Allowance for settlement discount granted
Carriage on purchases
Insurance on purchase
Bank
Additional information:
R
43 000
150 000
65 000
174 000
4 100
3217
14 100
2 300
48 160
1000
1 900
4 500
200
1300
112 580
1. On 28 February 2020 the inventory on hand amounted to R65 000
2. Included in the amount of inventory on hand is consumables and stationery amounting to R2 080 and
R800
3. The owner took some of the stock bought for R3 800 as a gift for his aunt.
4. Unity Supplies were offered a discount of 10% on an amount of R9 500 owing to a supplier provided
the supplier is paid before 28 February 2020. Unity Supplies intends taking the advantage of the
discount offered.
5. Unity maintains a mark-up on sales (margin) of 40%.
6. The balance of the allowance for settlement discount granted account on 1 Jan 2020 must be written
back since the trade debtor to whom the discount offering pertained did not settle his account as
required. On 31 December 2020, a trade debtor who owes R34 000 was offered a 5% settlement
discount, on condition that she settles her account before 15 January 2021. This offering must still be
provided for.
Required
Determine the Revenue Amount for the year ended 28 February 2020.
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