18 April 2023 - Tutorial

Delivery of a client's inventory is delayed, but we already received payment.

• Deferred Income

• Accrued Income

• Prepaid Income

• Income received in advance

We are planning to pay a Marketing company next month, but our ad is already on a billboard.

• Deferred Expenses

• Expenses paid in advance

• Accrued Expenses

• Prepaid Expenses

We paid our Water and Electricity for 2 months after the end of the reporting period

• Deferred Expenses

• Expenses paid in advance

• Accrued Expense

• Prepaid Expense

THS (Pty) Ltd, a company renting our property, have not yet paid us for the month of March 2023.

• Deferred Income

• Accrued Income

• Prepaid Income

• Income received in advance

Calculate the cost price:

Selling Price = R 10 000

Margin = 25%

• 13 333

• 8 000

• 7 500

• 12 500

Calculate the selling price:

Profit = R 1 500

Mark-up = 30%

• 6 500

• 5 000

• 1 050

• 1 950

Calculate the cost price:

Profit = R 5 600

Gross profit margin = 20%

• 1 120

• 22 400

• 7 000

• 33 600

What is the element of the following account?

(i.e., Inventory = SFP)

Advertising

What is the element of the following account?

(i.e., Inventory = SFP)

Income received in advance

What is the element of the following account?

(i.e., Inventory = SFP)

Drawings