FAC1601 EXAM SEM 1 OF 2026 EXPECTED ANSWERS

QUESTION 1
(30 Marks)

TUBATSE
INDUSTRIAL
COMPONENTS CC


STATEMENT OF
PROFIT OR LOSS
AND OTHER
COMPREHENSIVE
INCOME FOR THE
YEAR ENDED 31
AUGUST 2025

R

Revenue 860 300
Sales 1 065 900
Less: Settlement
(3 400)
discount granted
Less: Allowance for
settlement discount (2 200)
granted



R
Purchases 421 300
Add: Carriage on
purchases (transport 5 900
costs)
Less: Closing
(31 400)
inventory
Cost of sales 395 800
Gross Profit 464500
Other income 8 249
Settlement discount
3 700
received

, Credit losses
4 300
recovered
Profit on sale of
249
equipment (W1)
Other expenses
R

Telephone expenses 2 100


Municipal expenses 25 000

General expenses 56 800
Software licence
31 200
subscriptions (W2)
Factory water and
19 800
electricity (W3)
Security expenses
41 000
(W4)
Salaries and wages
75 500
(W5)
Depreciation (W6) 92 742
344 142




(W1) Profit on sale
of equipment

R
Trade-in allowance 1 700
Less: Carrying
amount at date of (1 451)
sale
249

Carrying amount at
date of sale

R
Cost 16 800