Accounting Grade 12 Supplementary 2013 Question Paper (Eng)

Downloaded from hlayiso.com GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING FEBRUARY/MARCH 2013 MARKS: 300 TIME: 3 hours This question paper consists of 18 pages and an 18-page answer book. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/Feb.–Mar. 2013 NSC INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. Workings must be shown in order to achieve part-marks. 4. Non-programmable calculators may be used. 5. You may use a dark pencil or blue/black ink to answer the questions. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/Feb.–Mar. 2013 NSC 6. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION 1: 35 marks; 20 minutes Topic of the question: Learning outcomes covered: LO2 Managerial accounting AS2 Production cost statement Manufacturing and internal control AS2 Unit costs and break-even point LO3 Managing resources AS6 Apply internal control and audit processes QUESTION 2: 35 marks; 20 minutes Topic of the question: Learning outcomes covered: LO1 Financial accounting AS4 Bank reconciliation Bank reconciliation Managing resources LO3 AS6 Apply internal control and audit processes QUESTION 3: 80 marks; 50 minutes Topic of the question: Learning outcomes covered: LO1 Financial accounting AS1 Concepts Company concepts, fixed assets AS5 Financial statements and financial statements LO3 Managing resources AS3 Asset disposal QUESTION 4: 65 marks; 40 minutes Topic of the question: Learning outcomes covered: LO1 Financial accounting AS1 Concepts Interpretation of company AS5 Final accounts, financial statements, and information and audit report analysis and interpretation of financial statements AS6 Audit reports QUESTION 5: 35 marks; 20 minutes Topic of the question: Learning outcomes covered: LO3 Managing resources Inventory valuation, internal control AS4 Calculate and validate inventories and ethics AS5 Ethics AS6 Apply internal control and audit processes QUESTION 6: 50 marks; 30 minutes Topic of the question: Learning outcomes covered: LO2 Managerial accounting AS3 Analyse and interpret a cash budget Cash budgets Managing resources LO3 AS6 Apply internal control and audit processes Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/Feb.–Mar. 2013 NSC QUESTION 1: MANUFACTURING AND INTERNAL CONTROL (35 marks; 20 minutes) Charley has a business which manufactures school dresses. He obtains fabric from local suppliers. You are provided with information for the year ended 31 December 2012. REQUIRED: 1.1 Indicate in which cost account each of the items (1.1.1–1.1.4) will be classified by choosing the answer from the options below. direct labour cost; direct/raw materials cost; factory overheads cost; administration cost; selling and distribution cost 1.1.1 Depreciation of factory equipment 1.1.2 Wages paid to the workers manufacturing the dresses 1.1.3 Rent paid for the office building 1.1.4 Carriage on purchases of raw materials (8) 1.2 Calculate the following: 1.2.1 Total selling and distribution costs (2) 1.2.2 Administration cost per unit (2) 1.2.3 Total cost of production for 2012 (4) 1.3 Break-even point: 1.3.1 Calculate the break-even point for 2012. (6) 1.3.2 Will Charley be satisfied with the number of units produced? Explain quoting figures to support your answer. (3) 1.4 The current inflation rate is 6%. Salary and wage increases were also 6%. Charley is concerned about the control over certain costs. Refer to Information 3 below for a comparison of this year's costs with the costs of last year. 1.4.1 Direct materials cost: Explain why Charley should not be too concerned about the direct materials cost. Provide figures to support your answer. (2) 1.4.2 Direct labour cost and factory overhead cost: Provide figures to explain why direct labour and factory overhead cost should be of major concern to him. In each case, name a possible problem which led to an increase in each of these costs. Provide practical advice to solve each of the problems you have suggested. (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/Feb.–Mar. 2013 NSC INFORMATION: 1. Work-in-process There was no work-in-process stock or finished goods stock at the beginning or end of the year. 2. Production and sales 2012 2011 Dresses produced and sold 5 500 6 300 Selling price R250 R200 Break-even point see 3 310 QUESTION 1.3.1 3. Unit costs The following costs were extracted from the financial records of Charley Traders. 2012 2012 2011 Total Per unit Per unit Variable costs: ? R160 R141 Direct labour R275 000 R50 R32 Direct materials R522 500 R95 R94 Selling and distribution see R15 R15 QUESTION 1.2.1 Fixed costs: R231 000 ? R31 Factory overheads R165 000 R30 R21 Administration R66 000 ? R10 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/Feb.–Mar. 2013 NSC QUESTION 2: BANK RECONCILIATION (35 marks; 20 minutes) You are provided with information relating to Clayton Traders. They need your assistance with the bank reconciliation as they have fired their accountant due to problems with the way in which he handled the banking. REQUIRED: 2.1 Indicate whether the following statements are TRUE OR FALSE. Write only 'true' of 'false' next to the question number (2.1.1–2.1.4) in the ANSWER BOOK. 2.1.1 Preparing a Bank Reconciliation Statement is an important part of internal control in a business. 2.1.2 Interest on a bank overdraft is recorded as part of bank charges. 2.1.3 A credit balance on the Bank Statement is favourable. 2.1.4 A post-dated cheque issued must be recorded in the Cash Payments Journal on the date of issue. (8) 2.2 Calculate the correct totals for the Cash Receipts Journal and Cash Payments Journal for December 2012. (12) 2.3 Prepare the Bank Reconciliation Statement on 31 December 2012. (9) 2.4 Refer to cheque no. 620 in the Bank Reconciliation Statement for November 2012. How would this be recorded in the financial statements for the year ending 31 December 2012? Give a reason. (3) 2.5 Refer to Information 6 below. 2.5.1 Which GAAP principle was applied in writing off this amount? (1) 2.5.2 How can a similar problem be avoided in the future? (2) INFORMATION: 1. At the end of the previous month, 30 November 2012, the following items appeared in the Bank Reconciliation Statement: Debit balance per Bank Statement R16 300 Outstanding deposits:  28 June 2012 20 000  30 November 2012 5 400 Outstanding cheques:  402 (dated 15 June 2012) 3 250  614 (dated 10 October 2012) 2 850  616 (dated 25 November 2012) 4 530  620 (dated 10 February 2013) 2 550 Credit balance as per bank account 4 080 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/Feb.–Mar. 2013 NSC 2. The Bank Statement on 31 December 2012 reflected an unfavourable bank balance of R26 217. 3. The provisional totals for the journals for December 2012 before reconciling to the Bank Statement are:  Cash Receipts Journal – R23 500  Cash Payments Journal – R28 640 4. The following items appear on the December Bank Statement but do not appear in the cash journals for December:  The deposit of R5 400  Cheques no. 614 and no. 616 5. Cheque no. 402 must be cancelled as it is outdated. It was originally issued to the local SPCA as a donation. 6. An investigation revealed that the deposit of R20 000, dated 28 June 2012, was never deposited at the bank. The money has gone missing and it was decided to write off this amount. 7. The following items appear only on the Bank Statement for December 2012:  Bank charges, R150  Interest on bank overdraft, R90  Dishonoured cheque of R250, previously received from a debtor in settlement of his account of R280  Direct deposit by the tenant, R5 500  Debit order for insurance, R630 8. Cheque no. 653, issued on 10 December 2012 for R696, is incorrectly reflected in the Cash Payments Journal as R969. The Bank Statement is correct. 9. Cheque no. 1446 for R300 appears on the Bank Statement only. On investigation it was discovered that this was a cheque the owner issued from his private cheque account. The bank will correct this entry during January 2013. 10. During December a cheque was received from a debtor for R800. This was dated 30 April 2013 and was not entered in the Cash Receipts Journal or the Bank Statement. 11. The following items appear in the December cash journals but not on the Bank Statement:  A deposit of R13 500, dated 30 December 2012  Cheque no. 660, R750, dated 13 December 2012  Cheque no. 680, R5 600, dated 23 December 2012 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/Feb.–Mar. 2013 NSC QUESTION 3: COMPANY CONCEPTS, FIXED ASSETS AND FINANCIAL STATEMENTS (80 marks; 50 minutes) 3.1 Choose a GAAP principle from COLUMN B to match the description in COLUMN A. Write only the letter (A–D) next to the question number (3.1.1–3.1.4) in the ANSWER BOOK. COLUMN A COLUMN B 3.1.1 In preparing financial statements, A Matching concept assets are recorded at the amount that was originally paid B Materiality concept for them. C Historical cost concept 3.1.2 Expenses and income must be recorded in the appropriate D Going concern concept financial period. 3.1.3 In preparing the financial statements the accountant will assume that the business will continue for the foreseeable future. 3.1.4 Any amount which is significant to the decisions made by the reader of the financial statements should be disclosed separately in the financial statements. (8) 3.2 You are provided with information related to Global Ltd on 28 February 2013. Global Ltd has authorised share capital of 600 000 shares of R2 each. REQUIRED: 3.2.1 Complete the Fixed/Tangible Asset Note on 28 February 2013. (18) 3.2.2 Complete the Income Statement for the year ended 28 February 2013. (45) 3.2.3 Prepare the Retained Income Note on 28 February 2013. (9) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/Feb.–Mar. 2013 NSC INFORMATION: 1. GLOBAL LTD PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2013 DEBIT CREDIT Balance Sheet Accounts Section R R Ordinary share capital (par value 200 cents) 950 000 Share premium 38 000 Retained income (1 March 2012) 69 840 Mortgage loan: Pride Bank 288 700 Land and buildings 810 000 Vehicles 513 000 Equipment 235 600 Accumulated depreciation on vehicles 178 600 Accumulated depreciation on equipment 73 940 Debtors' control 71 820 Creditors' control 16 680 Trading stock 69 730 Bank 90 040 Cash float 1 000 SARS (Income tax) 57 142 Provision for bad debts 3 800 Nominal Accounts Section Sales 1 330 950 Debtors' allowances 950 Cost of sales 831 250 Stationery 1 630 Discount received 2 090 Bad debts 1 350 Bad debts recovered 550 Insurance 22 800 Interest on loan 32 300 Bank charges 5 770 Rent income 124 032 Salaries and wages 164 430 Asset disposal 3 100 Audit fees 31 470 Directors fees 110 000 Interest on current account 4 000 Ordinary share dividends (interim) 34 000 3 084 282 3 084 282 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/Feb.–Mar. 2013 NSC 2. ADJUSTMENTS AND ADDITIONAL INFORMATION A. Depreciation on vehicles is calculated at 30% p.a. on the diminishing- balance method. Take into account that a new vehicle with a cost price of R133 000 was bought on 1 November 2012 and was correctly recorded. B. The Trial Balance reflects a figure of R3 100 in respect of equipment sold. This relates to a computer which was sold for R3 100 cash on 31 October 2012. No other entries in respect of this sale have been made. The cost price of the computer was R6 000 and the book value at the date of sale was R2 700. Depreciation on equipment is calculated to be R35 040 after taking all of the above into account. C. Interest is capitalised on the mortgage loan. The annual loan statement from Pride Bank reflected the following: PRIDE BANK LOAN STATEMENT ON 28 FEBRUARY 2012 Balance on 1 March 2012 304 000 Interest capitalised for the year ? Repayments, including interest (R6 500 x 12) 78 000 Balance on 28 February 2013 288 700 D. The account of R Kingful, who owes R1 520, must be written off. Adjust the provision for bad debts to 4% of outstanding debts. E. A debtor, L Ndlovu, whose debt had previously been written off, paid R120. The bookkeeper incorrectly credited the amount to the Bad Debts account. Correct the error. F. Stationery on hand on 28 February 2013 is estimated at R190. G. A physical stocktaking on 28 February 2013 revealed the value of stock on hand as R67 240. H. An annual insurance premium of R11 400 was paid on 1 January 2013. I. The rent received from the tenant included the rent for March 2013. The rent was increased by R912 per month on 1 October 2012. J. A final dividend of 5 cents per share was declared on 28 February 2013. All shares issued to date qualify for this dividend. K. Income tax for the year amounts to R35 264. 80 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/Feb.–Mar. 2013 NSC QUESTION 4: INTERPRETATION OF COMPANY INFORMATION AND AUDIT REPORTS (65 marks; 40 minutes) 4.1 Complete the statements (4.1.1–4.1.4) by choosing a word from the options below. Write only the option next to the question number (4.1.1–4.1.4) in the ANSWER BOOK. shareholder; director; internal auditor; independent auditor 4.1.1 A person who expresses an opinion on the financial statements of a company is a/an ... 4.1.2 A person who is appointed by shareholders to manage and make decisions in running a company is a/an ... 4.1.3 A person who is a part owner of a company is a/an ... 4.1.4 A person employed by a company to check the reliability of the accounting systems daily is a/an ... (8) 4.2 ELECTRO LTD You are provided with information relating to Electro Ltd. The par value of the shares is 500 cents. New shares were issued on 1 March 2012. REQUIRED: Use the information on Electro Ltd below to calculate the following figures or financial indicators for the financial year ended 28 February 2013. Calculate to ONE decimal place, where relevant. 4.2.1 Current ratio (3) 4.2.2 Earnings per share (in cents) (3) 4.2.3 Debt/Equity ratio (3) 4.2.4 Percentage return earned on total capital employed (before tax) (5) 4.2.5 The figures that will appear in the Cash Flow Statement for: (a) Repayment of loans (2) (b) Proceeds of issue of ordinary shares (4) (c) Fixed assets purchased (note that fixed assets with a book value of R115 500 were sold at carrying value) (5) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/Feb.–Mar. 2013 NSC INFORMATION: 28 February 28 February 2013 2012 Sales R1 650 000 R1 430 000 Depreciation 44 000 35 200 Interest on loans 112 000 141 000 Net profit before tax 518 500 587 700 Net profit after tax 363 000 411 400 Ordinary shareholders' equity 1 589 500 1 246 300 Ordinary share capital (par value 500 cents) 990 000 814 000 Share premium 206 800 145 200 Retained income 392 700 287 100 Non-current liabilities 550 000 693 000 Fixed/Tangible assets 1 883 700 1 782 000 Current assets (including inventories) 209 000 223 300 Current liabilities 132 000 187 000 Inventories 121 000 148 500 4.3 FINANCIAL INDICATORS OF TWO COMPANIES Your friend, Peter, is considering buying shares in a company that sells sportswear. He asks you for advice and presents you with the following financial indicators of two companies he is considering. The companies are of similar size, they have issued the same number of shares and the par values are the same. Peggy Ltd Lolly Ltd Market price per share on the JSE 755 cents 590 cents Net asset value per share 605 cents 625 cents Earnings per share 813 cents 179 cents Dividends per share 637 cents 182 cents % return on shareholders' equity 28,5% 11,5% % return on total capital employed (before tax) 35,6% 12,4% % interest rate on loans 14% 14% Debt/Equity ratio 0,2 : 1 1,9 : 1 Current ratio 5,8 : 1 1,7 : 1 Acid-test ratio 3,7 : 1 0,8 : 1 Period for which enough stock is on hand 140 days 80 days Debtors' average collection period 55 days 26 days Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/Feb.–Mar. 2013 NSC REQUIRED: Explain your answer to each of the following questions, in each case quoting financial indicators (figures, ratios or percentages) to support your answer. 4.3.1 Explain why the liquidity financial indicators of Lolly Ltd are better than those of Peggy Ltd. Quote THREE financial indicators to support your answer. (9) 4.3.2 Which company uses more loans? Explain whether this is a good idea or not. In each case, quote a financial indicator to support your answer. (6) 4.3.3 The market price of the shares of Peggy Ltd is doing much better than that of Lolly Ltd. Explain, quoting TWO financial indicators to support this opinion. (4) 4.3.4 Peggy Ltd has a better percentage return, earnings and dividends than Lolly Ltd. Explain THREE financial indicators to support this opinion. (9) 4.4 AUDIT REPORTS You are provided with extracts from the independent audit reports of Peggy Ltd and Lolly Ltd. Extract from audit report of Lolly Ltd: In our opinion, the financial statements fairly present, in all material respects, the financial position of this company at 29 February 2012 and the results of their operations and cash flow for the year ended in accordance with International Financial Reporting Standards, and in the manner required by the Companies Act of South Africa. Extract from audit report of Peggy Ltd: We found that internal control procedures were not adhered to and that documentation did not exist for a significant portion of the transactions tested. Because of the significance of the matter described in the previous paragraph we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements for the year ended 29 February 2012. REQUIRED: Comment on the audit reports of Lolly Ltd and Peggy Ltd. In each case, explain how the report will affect Peter's decision concerning the shares he wishes to purchase in the company. (4) 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/Feb.–Mar. 2013 NSC QUESTION 5: INVENTORY VALUATION, INTERNAL CONTROL AND ETHICS (35 marks; 20 minutes) You are provided with information relating to Highveld Traders for the financial year ended 28 February 2013. The business is owned by Anele and managed by Chris, who is responsible for running the shop. The business buys and sells cricket bats and cricket balls. REQUIRED: 5.1 Calculate the value of the closing stock for the following stock items. Show all workings, using both the number of units and the value of the units. 5.1.1 Cricket bats (use the FIFO method) (5) 5.1.2 Cricket balls (use the weighted-average method) (7) 5.2 For cricket bats, calculate the following: 5.2.1 Cost of sales (6) 5.2.2 Gross profit (3) 5.3 Anele is concerned that a number of cricket bats have gone missing. 5.3.1 Calculate the number of cricket bats that appear to be missing. (3) 5.3.2 Explain TWO control measures she could put in place to avoid this from happening in future. (4) 5.4 Anele is concerned about the way in which Chris has managed the cricket balls. Anele has found that Chris had changed the supplier of cricket balls in November without informing her. Provide evidence from the information provided to support Anele's concern. State TWO points and quote figures to support your answer. (4) 5.5 Anele has since discovered that the new supplier of cricket balls is a family member of Chris. What advice would you offer to Anele in this regard? (3) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/Feb.–Mar. 2013 NSC INFORMATION: 1. Inventories: The physical stock counts revealed the following stock on hand at the beginning and at the end of the financial year: Date Cricket bats Cricket balls No. of Per unit Total No. of Per unit Total units (including value units (no value carriage) carriage) 01/03/2012 110 R450 R49 500 320 R60 R19 200 28/02/2013 175 ? ? 220 ? ? 2. Purchases: During the financial year ended 28 February 2013 the following stock items were purchased. Refer below to returns and carriage: Date Cricket bats Cricket balls No. of Per unit Total No. of Per unit Total units value units value 30/05/2012 80 R500 R40 000 220 R60 R13 200 30/08/2012 105 R550 R57 750 180 R65 R11 700 28/11/2012 250 R600 R150 000 280 R85 R23 800 25/01/2013 100 R625 R62 500 160 R95 R15 200 TOTALS 535 R310 250 840 R63 900 3. Returns during the year: Returns of faulty cricket balls No. of Per unit Total units value From November purchases 40 R85 R3 400 From January purchases 20 R95 R1 900 60 R5 300 4. Carriage on purchases: The total amount of carriage on purchases paid:  Cricket bats – R30 per bat on all purchases (not included in the purchase price in table above)  Cricket balls – no carriage payable 5. Sales during the year: Item Units Per unit Total value Cricket bats 455 R875 R398 125 Cricket balls 880 ? ? 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/Feb.–Mar. 2013 NSC QUESTION 6: CASH BUDGETS (50 marks; 30 minutes) You are provided with information relating to DIY Hardware. The business is owned by John Temba. His inexperienced bookkeeper, Mabel, has prepared a Cash Budget. REQUIRED: 6.1 Refer to the cash budgets under Information 4. Identify TWO items that Mabel (4) has incorrectly entered in the Cash Budget. 6.2 Apart from the items in QUESTION 6.1 above, name TWO other items in the Payments Section of the Cash Budget (see Information 4 below) that would NOT appear in a Projected Income Statement. (4) 6.3 After correcting all the errors John has identified the following: JAN 2013 FEB 2013 Cash deficit for the month (14 950) (52 400) Cash at the beginning of the month 35 350 Cash at the end of the month A B Identify or calculate A and B. Indicate negative figures in brackets. (3) 6.4 Identify or calculate the missing figures C and D in the extract from the Cash Budget (Information 4 below). (7) 6.5 Complete the Debtors' Collection Schedule for February 2013. (10) 6.6 Calculate the percentage increase in salary and wages with effect from 1 February 2013. (2) 6.7 Calculate the interest on the fixed deposit for January 2013. (2) 6.8 John pays Speedy Deliveries to deliver hardware to his customers free of charge. He budgets for this at a rate of 8% of total monthly sales. 6.8.1 Calculate the delivery expense figure budgeted for January 2013. (2) 6.8.2 John is of the opinion that this expense is costing him too much. Which TWO points should John consider before deciding on whether or not to discontinue this service? (4) 6.9 On 31 January 2013 you identified the figures below. Explain what you would say to John about each of the following items at the end of January 2013. Give ONE point of advice in each case. JANUARY 2013 BUDGETED ACTUAL Advertising 1 600 0 Stationery 1 000 4 400 Staff training 2 000 700 (6) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 17 DBE/Feb.–Mar. 2013 NSC 6.10 John will have a problem to replace his old computers and cash registers in March 2013. The cost of these items amounts to R150 000 and he expects them to last 5 years. However, he does not have cash available to pay for this. His options are:  Raise a new loan at an interest rate of 14% p.a. to be repaid over 36 months  Hire (Lease) the assets from IT Connect Ltd at R5 100 per month  Invite his friend James to become an equal partner in the business and provide capital of R150 000 John realises that all three options have the advantage of not requiring the R150 000 outlay in March 2013. Consider each of these options and explain ONE other advantage and ONE disadvantage of each option. Provide figures to support your answer. (6) INFORMATION: 1. Sales, purchases of stock and cost of sales:  Total sales for November 2012 to February 2013 were as follows: o November: R150 000 o December: R200 000 o January: R160 000 o February: R140 000  60% of all sales are cash, the rest is on credit  The mark-up is 33⅓% on cost of sales at all times  Stock is replaced on a monthly basis  50% of all purchases are cash, the rest is on credit 2. Debtors' collection: Debtors are expected to pay as follows:  30% of debtors pay their accounts in the month of sale (current)  50% pay in the month following the sales transaction month (30 days)  18% pay in the second month (60 days)  2% are written off 3. Creditors' payment: Creditors are paid in the month after purchases to receive 5% discount. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 18 DBE/Feb.–Mar. 2013 NSC 4. DIY HARDWARE STORES EXTRACT FROM THE CASH BUDGET FOR JANUARY AND FEBRUARY 2013 JAN 2013 FEB 2013 RECEIPTS Cash sales 96 000 84 000 Collection from debtors 70 000 ? Interest on fixed deposit (7% p.a.) ? 0 Fixed deposit: Magic Bank maturing on 1 Feb. 2013 0 42 000 Commission income ? ? Rent income 8 500 8 800 PAYMENTS Salary and wages 15 000 16 800 Stationery 1 000 1 000 Telephone ? ? Payment to creditors 71 250 D Cash purchase of stock C 52 500 Repayment of existing loan 100 000 Furniture bought on credit 30 000 Delivery expenses of hardware to customers ? 11 200 Training of staff 2 000 2 000 Advertising 1 600 1 400 Depreciation 12 500 12 500 Sundry expenses 3 500 3 600 Drawings by owner ? ? Vehicle expenses 0 500 50 TOTAL: 300 Copyright reserved