FAC1602 Assignment 3 2026 MEMO | Due 23 April 2026 - Distinction Guaranteed

FAC1602 ASSIGNMENT 3 2026

DUE 23 APRIL 2026 (10:00 PM)




KABOKWENI CC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR
THE YEAR ENDED 28 FEBRUARY 2026

R

Revenue (1 992 800 – 23 000 – 17 300) 1 952 500

Cost of sales (96 000 + 334 100 – 27 400 + 6 900 – 175 000) (234 600)

Gross profit 1 717 900

Other income

Rent income 41 700

Settlement discount received 15 700

Interest income (loan to Dlamini: 74 000 × 10% × 2/12) 1 233

58 633

Distribution, administrative and other expenses

Delivery expenses on sales (6 300)

Stationery expense (8 800)

Depreciation (104 800)

Salaries and wages (staff) (824 300 – 259 200) (565 100)

Salaries to members (10 800 × 12 × 2) (259 200)

, Travel expenses (134 300)

Water and electricity (116 300)

Cleaning expenses (56 100 – 12 600) (43 500)

Credit losses (23 500 + 1 200) (24 700)

(1 263 000)

Finance costs

Interest on long-term loan (288 800 × 20%) (57 760)

Interest on loan from Sithole (107 000 × 12% × 10/12) (10 700)

(68 460)

Profit before tax 445 073

Income tax expense (99 100)

Profit for the year 345 973

Other comprehensive income –

Total comprehensive income for the year 345 973




Opening inventory (1 March 2025) = R96 000

Closing inventory (28 February 2026) = R175 000

Members’ monthly salary = R10 800 × 12 × 2 = R259 200

Interest on loan to Dlamini (1 Jan – 28 Feb 2026): R74 000 × 10% × 2/12 = R1 233

Interest on loan from Sithole (1 May 2025 – 28 Feb 2026): R107 000 × 12% × 10/12 =
R10 700

Interest on long-term loan (full year): R288 800 × 20% = R57 760

, Credit losses: write-off R23 500 + increase in allowance (R7 200 – R6 000) = R24 700

Cleaning expense prepayment: R56 100 – R12 600 = R43 500