Transactions details R nventory on hand at 1March 2020 Purchases 226 700 360 480 mport duties 106 800 Transport costs on purchases 91 600 Settlement discounts received 26 900 Transport costs for delivery to customers 83 200
Bags Galore buy and sell a limited range of imitation leather bags. The following information
was extracted from their financial records for the year ended 28 February 2021
Transactions attached
Additional information:
1. Inventory on hand at 28 February 2020 was as follows:
1 109 bags at R175 = R194 075
2. 97 bags at R115 were returned to suppliers and the necessary credit notes were
received. However, this has not yet been recorded.
3. Additional transport costs on purchases of R4 200 were incurred. This was paid by EFT
but not yet recorded.
4. Additional import duties of R3 400 must still be recorded and paid.
5. Total sales for the year is as follows;
• 1 March 2020 to 28 February 2021; (Total number of bags sold = 5 300):
-Sold 2 100 bags at R165 each; and
-Sold 3 200 bags at R175 each.
6. Bags Wholesalers use the periodic inventory system to record their trading stock.
Required:
4.1 Prepare the trading section of the statement of profit or loss and other and other comprehensive income for the year ended 28 February 2021.
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