Reference no: EM133186387
Question - Stokvel Traders (a registered VAT vendor) manufactures and sells luxury goods. Stokvel Traders further provides certain marketing and advertising services to clients in the tourism industry. The periodic inventory system and control accounts are in use.
The following balances and totals were extracted from the financial records of Stokvel Traders for the year ended 31 March 2022:
|
R
|
|
Sales
|
1 230 045
|
|
Services rendered
|
230 000
|
|
Rent received
|
95 000
|
|
Insurance
|
71 940
|
|
Advertising
|
43 700
|
|
Water and electricity
|
36 800
|
|
Telephone expenses
|
37 500
|
Additional information:
1. The insurance was paid on 1 April 2021 for a period of 11 months.
2. On 1 October 2020, Stokvel Traders' entered into a two-year contract with TelePhon Inc whereby they pay a fixed monthly fee of R2 875 (VAT inclusive) for line rental, unlimited phone calls and unlimited data.
3. SA Destinations, made a direct deposit to the amount of R3 565 in to the bank account of Stokvel Traders for marketing consultation services to be delivered during April 2022. The transaction was recorded as income in the accounting records.
4. Stokvel Traders sublets a portion of its office space to Tourists International for a monthly fee of R11 615 (VAT inclusive).
Required - What is the amount that will be reported as insurance in the statement of Profit or loss and other comprehensive income for the year ended 31 March 2022?