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Stokvel Traders (a registered VAT vendor) manufactures and sells luxury good...
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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
|
231 000
|
Rent received
|
110 400
|
Insurance
|
67 500
|
Advertising
|
43 700
|
Water and electricity
|
36 800
|
Telephone expenses
|
25 350
|
|
|
Additional information:
Since 1 July 2021, Stokvel Traders sublets a portion of its office space
to Tourists International for a monthly fee of R11 040 (VAT exclusive).
- SA Destinations is the only client that entered into a contract for marketing services with Stokvel Traders for the 2022 financial year. In terms of this contract SA Destinations pays a monthly fee of R21 000 (VAT exclusive) for marketing services, starting on 1 April 2021.
The insurance was paid on 1 April 2021 for a period of
15 months.
On 30 March 2022, Stokvel Traders received an invoice
for the water and electricity usage for March 2022 to the amount of R4 300
(VAT exclusive). This transaction has not yet been recorded.
What is the amount that will be reported as income received in advance in the statement of Financial position as at 31 March 2022?
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