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Accounting Paper 1, November 2024, question 1.2(b)

Accounting P1 · Financial statements income statement
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Protea Ridge Ltd, financial year ended 29 February 2024. Balances in the books: Service fee income: R640 000 Rent income: R126 000 Debtors’ control: R480 000 Provision for bad debts (before adjustment): R31 200 Profit on sale of a vehicle (already calculated): R6 400 Adjustments: 1. The monthly rent did not change from 1 March 2023 to 30 November 2023. On 1 December 2023 the rent was decreased by 10%. Rent has been received up to 31 March 2024. 2. The provision for bad debts must be adjusted to 5% of the debtors.
1.2(b)10 marks
Calculate the total other income that Protea Ridge Ltd must show in its Statement of Comprehensive Income. Show your workings for the rent income and for the provision for bad debts.

NSCBased on Nov 2024 · Paper 1 · Q1.2(b)

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What examiners found

Bad debts were not adjusted before the provision was worked out. The new provision was also not compared with the opening provision to find the change.

In our words. Source: Department of Basic Education, NSC 2024 Diagnostic Report, Part 1 (Book 1), Q1.2.

Updated