ACCOUNTING

GRADE 12

[DOCUMENT TITLE]

INCOME STATEMENT/ STATEMENT OF

COMPREHENSIVE INCOME

PRACTICE
ACTIVITIES

1. Purpose of the Accounting Practice Activities:

To give learners quality Practice Activities in order to improve learner performance in Accounting in
Limpopo Province.

2. How to us this booklet

2.1 The Practice Activities are grouped per topic and are mandatory for all Accounting learners.
2.2 Each topic has a number of similar activities that are standardized to train learners for formal tasks
2.3 Teachers must work out these activities before giving them to learners.
2.4 Print the Practice Activities and their Answer books and give them to learners as written work.
NB: Do not give learners Marking Guidelines to Activities, but instead, assist them with feedback.

3. Message to Grade 12 Accounting teachers:

3.1 Accounting Practice Activities have been extracted from past exam papers and arranged according to topics.
3.2 Practice Activities must be given to learners as, and when, a particular topic is being taught.
3.3 Use these Practice Activities as Class work, Informal Tests and/or for Revision purposes.
3.4 Departmental monitors will be asking for these Activities to check content coverage.
3.5 Other Activities may be given to learners in addition to these Mandatory Practice Activities.
INCOME STATEMENT/STATEMENT OF COMPREHENSIVE INCOME ACTIVITIES

ACTIVITY 1 INCOME STATEMENT (23 marks; 17 minutes) NSC JUNE 2015, Q4

IDRI LIMITED
You are provided with information for the financial year ended 28 February 2019.
REQUIRED:
Complete the Income Statement for the year ended 28 February 2019. (42)
INFORMATION:
EXTRACT FROM THE PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY
2019

Balance Sheet Accounts Section DR CR

Ordinary share capital 6 800 000
Retained income (1 March 2018) 1 368 000
Loan: Y-Lend Bank 1 609 000
Trading stock 1 910 000
Bank 626 200
Petty Cash 6 605
Debtors' control 792 000
Creditors' control 974 600
SARS (Income tax) 523 600
Provision for bad debts 43 600
Fixed deposit: Money Bank (8%) 990 000
Nominal Accounts Section
Sales ?
Cost of sales 14 974 000
Rent income 374 950
Interest on fixed deposit 53 260
Bad debts recovered 4 150
Audit fees 147 600
Advertising 960 000
Salaries and wages 1 300 000
Directors' fees 1 130 000
Packing material 76 200
Sundry expenses ?
Bad debts 24 000
Ordinary share dividends ?

ADJUSTMENTS AND ADDITIONAL INFORMATION:

A. Selling prices are determined by using a mark-up of 40% on cost. However,
trade discounts of R53 600 were allowed to special customers during the
financial year.
B. The physical stocktaking on 28 February 2019 reflected the following stock on
hand: • Trading stock R1 890 000 • Packing material R8 500.
C. An amount of R20 500 is still outstanding to a director for his fees.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 2 | 25

 D. Total depreciation for the year is R299 200.
E. A debtor, B Khozo, with an outstanding balance of R42 000, has left the
country. His account must be written off as irrecoverable.
F. The provision for bad debts must be adjusted to 5% of the outstanding
debtors.
G. One of the employees was on sick leave and was omitted from the Salary
Journal for February 2019. His salary details are as follows: Gross salary
Deductions Net salary Employers' contribution? R5 000 R12 000 R3 000 All
employers' contributions are debited to the Salaries and Wages Account. .
H. Make provision for the outstanding interest on fixed deposit. The fixed deposit
has not changed during the financial year. Interest is not capitalised.
I. The rent income includes rent received for March 2019. The rent income
increased by R1 425 on 1 September 2014.
J. The loan statement received from Y-Lend Bank on 28 February 2019
indicated the following: R Balance at beginning of financial year 2 509 000
Repayments during financial year 900 000 Interest capitalised? Balance at
end of financial year 1 984 000.
K. Income tax for the financial year was calculated as R540 000. This is 30% of
the net profit before tax.
L. The figure for sundry expenses is the balancing figure in the Income
Statement.
M. Shares and dividends:
 The authorised ordinary share capital consists of 1 000 000 ordinary
shares of which 70% was issued before 1 March 2018.
 Interim dividends of 80 cents per share was declared and paid on 1
September 2018.
 During October 2018 a further 100 000 shares were issued at R12
each. This was properly recorded.
 On 28 February 2019 a final dividend of 65 cents per share was
declared.
 On 28 February 2019 it was decided to buy back 160 000 shares from
a dissatisfied shareholder at R9, 10 per share. This transaction has not
been recorded yet.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 3 | 25

ACTIVITY 2 INCOME STATEMENT (50 marks; 38 minutes) NSC MAR 2016, Q4

You are provided with information relating to TRENERY Limited for the year ended
31 December 2020.

REQUIRED:

Prepare the Income Statement. (50)

INFORMATION:

Extract from Pre-adjustment Trial Balance on 31 December 2020:

Balance Sheet Accounts Section DEBIT CREDIT

Ordinary share capital 3 000 000
Retained income (1 January 2020) 628 000
Loan from Paris Bank 540 800
Debtors' control 125 000
Creditors' control 96 200
Provision for bad debts 7 150
Trading stock 376 000
SARS: Income tax 315 000
Nominal Accounts Section
Sales 8 412 000
Cost of sales 4 595 000
Debtors' allowances 112 000
Sundry expenses 257 400
Bank charges 41 905
Audit fees 75 600
Packing materials 15 400
Repairs and maintenance 107 500
Commission income 64 140
Directors' fees 736 000
Salaries and wages 1 020 000
Employer's contributions 156 000
Interest on current bank account 3 000
Bad debts 17 600
Rent income 87 720
Dividends on ordinary shares 360 000

Adjustments and additional information:

A. Provide for R278 200 depreciation for the financial year.
B. On 27 December 2020 P Maine, a debtor, returned merchandise. A credit
note for R1 600 was issued to her. (The cost price was R900.) No entries
were made for the return of the merchandise. These items were returned to
stock.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 4 | 25

 C. The insolvent estate of a debtor, J Jabaroo, paid out 45 cents in the rand and
made a direct deposit of R2 025 on 31 December 2020. The outstanding
balance must be written off. No entries were made to record the direct deposit
and the amount written off.
D. The provision for bad debts must be increased to R8 000.
E. The stock count on 31 December 2020 revealed:
 Trading stock R369 100
 Packing material R2 400
F. The company has two directors. Each director receives the same monthly
remuneration. One of the directors did not receive his directors' fee for
December 2020.
G. Interest on the loan from Paris Bank has not been entered yet. Interest is
capitalised. The loan statement received from Paris Bank reflected the
following: Balance on 1 January 2020 R601 600 Repayments made during
the year R100 800 Balance on 31 December 2020 R540 800.
H. There was no change in the monthly rent during the financial year. The tenant
paid R6 000 for repairs to the premises. As Trenery Limited is responsible for
all repairs, the tenant deducted this amount from the rent, which he paid for
November 2020. The repairs have not been recorded, and the rent for
December 2020 has not been received yet.
I. An employee was left out of the Salaries Journal. His details are: Net salary
R12 150 Deductions R6 350 Employer's contributions R5 050
J. Income tax for the year was correctly calculated at R300 300.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 5 | 25

ACTIVITY 3 INCOME STATEMENT (13 marks, 10 minutes) NSC NOV 2015, Q3

MONARCA LIMITED

The following information relates to Monarca Limited. The financial year ended on 30
June 2020. The business uses the perpetual (continuous) inventory system.

REQUIRED:

Refer to Information B. Calculate the correct net profit after tax for the year ended 30
June 2020. Indicate a + for increase and a – for decrease. (13)

INFORMATION:

A. List of balances/totals on 30 June 2020:

BALANCE SHEET ACCOUNTS SECTION

Ordinary share capital R5 600 000
Retained income (1 July 2019) 2 700 000
Mortgage loan: Custom Bank 262 200
Fixed assets 8 950 000
Trading stock 203 200
Debtors' control 316 000
Provision for bad debts (1 July 2019) 11 400
Cash and cash equivalents (balancing figure) ?
SARS: Income tax (provisional tax payments) 725 000
Income receivable (accrued) 5 200
Creditors' control 261 000

B. Net profit before tax of R2 493 600 was determined BEFORE taking
into account the following information:

(i) Trading stock on 30 June 2020 was valued at R191 900.

(ii) Provision for bad debts must be adjusted to R9 000.
(iii)Rent for July 2020, R2 800, had been received in advance.
(iv) An annual insurance premium of R6 000 was paid for the period 1
April 2020 to 31 March 2021.
(v) The auditor discovered that the profit on disposal of a vehicle, R6
800, was incorrectly shown as a loss.
(vi) Income tax amounts to R750 000 for the year.

C. Dividends and shares:

(i) Interim dividends of R600 000 were paid on 31 December 2019.

(ii) The directors declared a final dividend of 22 cents Per share on 30
June 2020 on all shares issued to date. Shares repurchased on 31
May 2020 do not qualify for final dividends.
(iii) Share capita: 1 July 2019, R3 000 000 shares were in issue (R3 900
000) 15 August 2019, 1 000 000 new shares were issued at R1,70
each (R1 700 000). This has been recorded. 31 May 2020: 20 000
shares were repurchased at R2,50 each from an existing shareholder
(R50 000). This has not been recorded.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 6 | 25

 D. A debtor’s debit balance of R1 000 in the debtors’ Ledger must still
be transferred to his account in the Creditor’s Ledger.

E. The mortgage loan from Custom Bank was obtained on 1 April 2019.
This will be repaid over 6 years. A fixed loan repayment (excluding
interest) is made at the end of each month. The first monthly loan
repayment was made on 30 April 2019. All other loan repayments
have been made. Interest is not capitalised and has been correctly
recorded

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ACTIVITY 4 INCOME STATEMENT (33 marks; 25 minutes) NSC MAR 2017

You are provided with information from the records of SANTORINI Ltd for the
financial year ended 28 February 2021.

REQUIRED:

Complete the Income Statement for the year ended 28 February 2021. Note that
some information is included in the ANSWER BOOK. (33)

INFORMATION:

A. The following balances/totals, amongst others, appeared in the books on 28

February 2021:

R
Ordinary share capital ?
Retained income ?
Loan: Anca Bank 433 500
Trading stock (before the annual stock take) 231 700
Debtors' control 540 000
Provision for bad debts (1 March 2020) 19 600
Creditors' control 395 200
SARS: Income tax (provisional tax payments) 360 000
Rent income 61 900
Interest income ?
Sundry expenses ?
Directors' fees 605 500
Audit fees 29 000
Ordinary share dividends (interim) 420 000

B. The gross profit for the year ended 28 February 2021 was calculated at R3 150
000. A mark-up of 60% on cost was achieved.

C. The following adjustments must still be brought into account: •

 Stocktaking on 28 February 2021 reflected trading stock of R207 500 on
hand.
 Provision for bad debts must be increased to R21 600.
 One third (1 /3) of the audit fee was still due on 28 February 2021.
 One of the three directors is still owed his fee for February 2021. All three
directors received the same monthly fee.
 A vacant storeroom was rented out from 1 June 2020. On 1 January 2021 the
rent was increased by R2 700 per month. The rent for February 2021 is
outstanding.
 Sundry expenses are the balancing figure.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 8 | 25

D. Loan: Anca Bank Interest on the loan is capitalised, but no entry has been made
in the books. A monthly instalment of R5 200 (including interest) is paid. This was
taken into account. The loan statement showed a closing balance of R487 000.
The company plans to increase their loan repayments in order to settle 20% of the
loan balance in the next financial year.

E. Operating profit on sales was 14, 5%.

F. Income tax at 32% of the net profit amounted to R396 800.

G. Share capital and dividends:

 The company is registered with an authorised share capital of 1 200 000
ordinary shares.
 85% of the authorised shares were in issue on 1 March 2020.
 On 31 March 2020, the directors issued all the unissued shares. EFT
payments totalling R756 000 were received.
 On 27 February 2021, the company repurchased 250 000 shares at R4, 15
per share.
 An interim dividend was paid on 6 September 2020.
 A final dividend of 25 cents per share was declared on 28 February 2021. All
shareholders (including the shares repurchased) were entitled to final
dividends. This must still be brought into account.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 9 | 25

ACTIVITY 5 INCOME STATEMENT (28 marks; 21 minutes) NSC NOV 2018

TEMBISO LTD

You are provided with information for the financial year ended 28 February 2018.

REQUIRED:

Complete the income Statement (Statement of Comprehensive Income) for the year
ended 28 February 2018: (28)

INFORMATION:

A. Balances/Totals on 28 February:

2018 2017
Ordinary share capital 8 816 000 6 976 000
Retained income 384 600 376 600
Loan: LSO Bank ? 1 725 500
Trade creditors 414 120
SARS: Income tax (provisional payments) 341 800
Sales ?
Cost of sales 4 856 000
Total operating income 879 440
Salaries and wages 501 200
Audit fees 65 400
Rent expense 79 240
Directors' fees 497 800
Sundry expenses 91 680
Interest on fixed deposit ?
Interest on loan 242 500

B. Adjustments and additional information:

a) Sale of goods: The company maintains a mark-up of 40% on cost. Note that
old goods costing R96 000 (included in cost of sales) were sold at 10% below
cost price.
b) Audit fees: 75% of the annual fees have been paid.
c) Directors' fees: The company has three directors who earn the same fee. One
director was paid two months in advance.
d) Rental: A storeroom was rented from 1 June 2017 at R11 200 per month.
Rent increased by 7,5% on 1 December 2017. Provide for outstanding rent.
e) Loan: LSO Bank • Fixed monthly repayments, including interest, are R31
600. • Capitalised interest amounted to R242 500 for the year ended 28
February 2018. • Interest for the next financial year is expected to be R162
000. • Part of the loan will be repaid within the next financial year.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 10 | 25

 f) Income tax for 2018:
 R31 300 is still due to SARS.
 The correct net profit after tax is R959 400.

g) Share capital and dividends: Authorised share capital: 1 600 000 ordinary
shares 1 March 2017 80% of the shares were in issue. 1 May 2017 300 000
shares were repurchased at R465 000 above the average share price. 31
August 2017 Interim dividends paid: 30 cents per share. 31 October 2017
Additional shares were issued. 28 February 2018 Final dividends were
declared.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 11 | 25

ACTIVITY 6 INCOME STATEMENT (30 marks; 23 minutes)

You are provided with information from the records of Khaya Limited for the financial
year ended 30 June 2020.
REQUIRED:

Complete the Statement of Comprehensive Income (Income Statement for the year
ending 30 June 2020. (30)

INFORMATION:
KHAYA LIMITED supplies and installs one specific type of air conditioner. The
company also repairs data projectors for which it charges a fee.
The air conditioners are sold at a standard price of R15 200, 00 per unit. KHAYA
LIMITED applies a mark-up of 60% on cost. In an attempt to attract customers the
selling price has remained unchanged for the past 2 years.
KHAYA LIMITED has an authorized share capital of 1 200 000 ordinary shares.
Some figures have been entered into the answer booklet and these are correct.

A. Extract from the Financial Statements as at 30 June:

30 June 2020 30 June 2019

R R
Retained Income ? 605 000
Loan: First Rand Financers 1 100 000 ?
Shareholders for dividends ? 308 000
Total Sales ? 6 840 000
Debtors' allowances 160 800 144 600
Rent Income ? 1 200 000

B. Adjustments and additional information:

1. The company reported a 12% increase in sales for the year ended
30 June 2020.

2. Debtors' allowances was correctly recorded last year, but has been
incorrectly treated in the Statement of Comprehensive Income for 2020.This
error needs to be corrected, and the amount shown where it should have
been recorded.

3. Although they kept their rental the same for the financial year ended June 2019,
KHAYA LIMITED decided to increase the rental by 18% on 1 April 2020.

4. 3 air conditioners were donated to the local clinic as part of their corporate
social responsibility initiative. This donation must be treated as advertising.
This has not yet been recorded.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 12 | 25

 5. According to a physical stock count at the end of the year, 2 air conditioners
are missing and have been presumed stolen.

6. Provision for bad debts must be increased by R3 600

7. Operating expenses on sales as at 30 June 2020 is 45%.

8. Directors' fees is the missing figure in the Statement of Comprehensive

Income and this needs to be calculated.

9. The annual loan repayment of R100 000 was made on 1 February. An

increase of 1% in the prime lending rate was announced and introduced
on1 February 2020. KHAYA LIMITED is now charged 15% p.a. interest on
the loan. Interest is not capitalized.

10. The directors declared a final dividend of 22 cents per share

on 30 June 2019.

11. An additional 330 000 ordinary shares were issued on 1 July 2019 at R6,50
per share.

12. The directors declared a final dividend of 17 cents per share

on 30 June 2020.

13. After the declaration of the final dividend on 30 June 2020, 110 000 ordinary
shares were repurchased at R16 per share. The necessary entries to record
the repurchase have been made. The weighted average per share on this
date was R12, 20 per share.

14. The earnings per share (EPS) as at 30 June 2020 is 39 cents. These earnings
apply to all shares that were in issue during the year.

15. According to the Cash Flow Statement for the year ending 30 June 2020:
 An inflow of R60 000 resulted from a change in Inventories.
 Dividends paid R800 000.

16. The current liabilities for the year amounted to R675 000 and the acid-test
Ratio on 30 June 2020 was 1, 25:1

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 ACTIVITY 7 INCOME STATEMENT (57 marks; 43 minutes) ASC 2019, Q4

MUVAVAS LTD

7.1 Choose a term in COLUMN B that matches an explanation in COLUMN A. Write only
the letters (A–E) next to the question numbers (4.1.1 to 4.1.4) in the ANSWER BOOK.

COLUMN A COLUMN B
7.1.1 Reflects the financial position of the A Audit report
business on a specific date
B Cash Flow Statement
7.1.2 Shows whether the business made a
profit or loss C Balance Sheet

7.1.3 Provides details about the movement D Income Statement

of money with regard to operating,
investing and financing activities E Directors' report

7.1.4 Provides an unbiased opinion on the

reliability of the financial statements of
a business
(4 x 1) (4)

7.2 MUVAVAS LTD

The information relates to the financial year ended 31 March 2019.

REQUIRED:

Complete the Statement of Comprehensive Income (Income Statement) for the

year ended 31 March 2019. (53)

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 14 | 25

 INFORMATION:

Figures extracted from the Pre-adjustment Trial Balances on 31 March:

2019 2018
R R
Ordinary share capital 9 300 000 4 800 000
Mortgage loan: Sapphire Bank 1 430 200 1 658 000
Land and buildings 12 500 000 12 500 000
Vehicles 1 377 000 750 000
Equipment ? 398 000
Accumulated depreciation on vehicles ? 475 000
Accumulated depreciation on equipment ? 117 500
Provision for bad debts ? 30 100
Trading stock 364 200
Debtors' control 578 000
Sales 10 563 280
Cost of sales 6 236 000
Rent income 99 500
Directors' fees 1 262 100
Water and electricity 218 000
Telephone 75 600
Audit fees 104 000
Sundry expenses 61 001
Salaries and wages 1 280 000
Employer's contributions (medical, pension and
316 000
UIF)
Bad debts 22 300
Consumable stores 53 200
Interest income ?
Insurance 79 500
Depreciation (on equipment sold) 1 750
Interest on loan ?
Bad debts recovered 6 000
Ordinary share dividends (interim) 375 000

Adjustments and additional information:

A. A credit invoice for R36 720 (after deducting a 10% trade discount) issued
on 31 March 2019, was not recorded. Goods are marked up at 70% on cost.

B. The physical stock count on 31 March 2019 revealed the following on hand:

 Trading stock, R334 500

 Consumable stores, R3 400

C. Debtor S Magnum was declared insolvent. His estate paid R2 000, which
was 20% of his debt. The difference must be written off as a bad debt.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 15 | 25

 D. R1 800 was received from a debtor, J Misting, whose debt had previously
been written off. The bookkeeper incorrectly credited the amount to the
Debtors' Control Account. Correct the error.

E. Adjust the provision for bad debts to R28 500.

F. Insurance includes an annual premium of R51 000 paid for the period
1 January 2019 to 31 December 2019.

G. An employee was left out of the Salaries Journal for March 2019.
The following details are applicable:

 Net salary of the employee, R9 100

 The deductions by the employer totalled 30% of the gross salary
 Employer's contributions were R2 200

H. Interest on loan is capitalised. A fixed monthly repayment (including

interest) of R25 400 was paid for the financial year.

I. Fixed assets and depreciation:

(i) Vehicles:

 Details for the three vehicles are as follows:

Accumulated depreciation
Cost price Date purchased
31 March 2018
1 R350 000 R315 000 1 October 2013
2 R400 000 R160 000 1 April 2016
3 R627 000 30 November
2018

 Vehicles are depreciated at 20% p.a. on cost.

(ii) Equipment:

 Equipment was sold for R9 600 cash on 31 August 2018. Only the
following entries in respect of this sale were processed:

Cost price 28 000

Accumulated depreciation at the date of disposal 21 500
Depreciation for the current financial year 1 750

 Depreciation on the remaining equipment is calculated at R92 500

after taking all of the above into account.

J. Interest income is the missing figure in the Income Statement.

K. Income tax is calculated at 28% of the net profit. The net profit before tax
was R691 000.

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 16 | 25

 L. Shares and dividends:

 The company has an authorised share capital of 8 000 000 shares.

 The company had 1 200 000 shares in issue on 1 April 2018.
 150 000 shares were repurchased on 30 November 2018.
EFT payments totalling R825 000 were made for these shares.
 850 000 additional shares were issued on 30 September 2018.

71

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 17 | 25

ANSWER BOOK TO THE INCOME STATEMENT PRACTICAL ACTIVITIES

ACTIVITY 1 INCOME STATEMENT (23 marks; 17 minutes) NSC JUNE 2015, Q4

IDRI LIMITED

INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2019

Sales
Cost of sales (14 974 000
Gross profit
Other income

Gross operating income

Operating expenses
Auditors' fees 147 600
Advertising 960 000

Operating profit

Income tax (540 000)

23

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ACTIVITY 2 INCOME STATEMENT (50 marks; 38 minutes) NSC MAR 2016, Q4

TRENERY LIMITED INCOME STATEMENT FOR THE YEAR ENDED 31

DECEMBER 2020

Sales (8 412 000

Cost of sales (4 595 000

Gross profit
Other income
Commission income 64 140

Gross income
Operating expenses
Sundry expenses 257 400
Bank charges 41 905
Audit fees 75 600

Operating profit
Interest income 3 000
Profit before interest expense
Interest expense

Net profit before tax

Income tax (300 300)
Net profit after tax
50

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 19 | 25

ACTIVITY 3 INCOME STATEMENT (13 marks, 10 minutes) NSC NOV 2015, Q3

MONARCA LIMITED

Calculation of the correct net profit after tax for the year ended 20 June 2020

Incorrect net profit 2 493 600

Correct net profit

Income tax

Net Profit After tax 13

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 20 | 25

ACTIVITY 4 INCOME STATEMENT (33 marks; 25 minutes) NSC MAR 2017

SANTORINI LIMITED

INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2021

Sales
Cost of sales
Gross profit 3 150 000
Other income
Commission income 12 000

Gross operating income

Operating expenses
Salaries and wages 824 000
Depreciation 216 500
Sundry expenses

Operating profit
Interest Income
Net profit before interest expense

Interest expense
Net profit before tax
Income tax (396 800)
Net profit after tax 33

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 21 | 25

ACTIVITY 5 INCOME STATEMENT (28 marks; 21 minutes) NSC NOV 2018

TEMBISO LTD INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY

2018

Sales

Cost of sales (4 856 000)

Gross profit
Other operating income 879 440
Gross income
Operating expenses
Salaries and wages 501 200

Operating profit
Interest income
Net profit before interest expense
Interest expense
Net profit before tax
Income tax
Net profit after tax 959 400 28

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 22 | 25

ACTIVITY 6 INCOME STATEMENT (30 marks; 23 minutes)

KHAYA LIMITED

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDING 30 JUNE

2020
Sales

Cost of Sales
Gross profit 2 812 500
Other Operating Income DO NOT CALCULATE

Rent income
Discount received 19 200
Fee income 446 000
DO NOT CALCULATE
Gross income for the year
Operating expenses
Advertising (74 200
Audit fees 180 000
Bank charges 22 800
Debtors' allowances
Delivery expenses 290 000
Discount allowed 58 700
Lease on vehicle 322 000
Salaries and wages 1 010 400
Directors' fees
Trading stock deficit
Provision for bad debts
DO NOT CALCULATE
Operating profit for the year
Interest income 25 250
DO NOT CALCULATE
Profit before interest expense
Interest expense (66 000
Profit before taxation 1 015 200
Taxation for the year
Net profit after taxation 30

Income Statement/Statement of Comprehensive Income – Practice Assessment ActivitiesA&B 23 | 25

ACTIVITY 7 INCOME STATEMENT (57 marks; 43 minutes) 2019, Q4

MUVAVAS

7.1
7.1.1
7.1.2
7.1.3
7.1.4 4

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7.2 MUVAVAS LTD
Statement of Comprehensive Income (Income Statement) for the year
ended 31 March 2019

Sales
Cost of sales
Gross profit
Operating income
Rent income 99 500

Gross operating income

Operating expenses
Directors' fees 1 262 100
Water and electricity 218 000
Telephone 75 600
Audit fees 104 000
Sundry expenses 61 001

Operating profit
Interest income
Profit before interest expense
Interest expense
Net profit before tax 691 000
Income tax
Net profit after tax
53

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