DUE 23 APRIL 2026 (11PM)
QUESTION 1.1 – Statement of Profit or Loss and Other Comprehensive Income
for the year ended 28 February 2026
Revenue (Sales – Settlement discount granted)
= R1 852 800 – R4 500 = R1 848 300
Cost of sales
= Opening inventory + Purchases – Settlement discount received + Carriage on
purchases – Closing inventory
= R36 600 + (R245 600 – R1 700) + R1 400 – R50 000
= R36 600 + R243 900 + R1 400 – R50 000
= R231 900
Gross profit (Revenue – Cost of sales)
= R1 848 300 – R231 900 = R1 616 400
Distribution, administrative and other expenses
Salaries and wages (given) R240 500
Carriage on sales R2 200
Telephone R5 200
Stationery (R7 000 – R1 200 closing on hand) R5 800