Additional information
1. The bookkeeper of the company records income and expenses strictly when
they are paid.
2. HinaHina rents a building to run its business for R2 000 per month. Hina Hina
has occupied the building for the full financial year ending 31 December 2023.
3. HinaHina used water and electricity amounting to R12 000 in the current year.
4. On 31 December 2023, Hina Hina discovered that one of its debtors, who
purchased clothes during the previous year, was no longer able to pay for
them. The company decided to write the debt off. The balance owing on 31
December 2023 was R5 000.
5. Based on past experience, Hina Hina believes that it is probable that the
business will not collect 5% of the outstanding receivables balance on 31
December 2023.
6. Total interest on the loan that Hina Hina had taken out amounted to R6 000 for
the year.
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