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1. The financial year ends annually on 30 June 2020. 2. 60% of all raw materials are purchased for cash and the balance is purchased on credit. 3. Finished goods are sold at cost plus 60%. 4. Indirect raw materials: On hand on 1 July 2019, R2500. Purchased during the year, R85000. Returned to suppliers during the year, R3000. On hand on 30 June 2020, R32000. 5. Depreciation: Machinery is depreciated at 20% per annum on cost price. The cost price of the machinery purchased was R960000. Accumulated depreciation written off until 30 June 2019 amounted to R820000. 6. Rent expense: The rent expense account has a balance of R495000 on 30 June 2020. Rent expense amounted to R35000 per month from 1 July 2019. Rent expense increased by R10000 per month effective from 1 April 2020.
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