QUESTION 1 (41 marks) Nadia Botha is a 42-year-old South African resident. Nadia is employed by Brand Sculpt (Pty) Ltd and received the following amounts during her 2024 year of assessment: • Cash salary of R500 000. • Nadia owns a flat that she rents out at a monthly rental of R10 000. The lease contract was concluded on 1 June 2023. As part of […]
Posted: March 28, 2024
QUESTION ONE [70] The accounting equation is the Alpha of Accounting rules. As the junior accountant at the stationery shop, Polka-Dots (Pty) Ltd. Transactions related to the 2022 financial year: 1. Posters to the value of R550 was purchased by the primary school. Payment was made in cash. 2. Unwanted goods of R800 purchased by Mrs. Strong on account, was returned. The cost of the […]
Posted: March 9, 2024
QUESTION 1: ASSET DISPOSAL (20 MARKS) The information provided was extracted from the financial records of Caribbean Traders. Their financial year ends on the 28 February 2022. INFORMATION A. INCOMPLETE FIXED ASSET NOTE Equipment Cost 900 000 Accumulated depreciation (370 000) Carrying value Movements Additions 120 000 Disposals Depreciation Carrying value Cost 930 000 Accumulated […]
Posted: November 29, 2023
Question One (20 Marks) You recently accepted an assignment with Esprit Limited as a financial consultant. One of your first assignment is the analysis of two proposed capital investment projects. Details of initial investments, after-tax cash flows and average annual profits are represented below: DESCRIPTION YEAR AFTER TAX CASH FLOWS PROJECT A PROJECT B R R Initial […]
Posted: October 23, 2023
Question 1 (Marks: 25) HQ Connect (Pty) Ltd (referred to hereunder as HQC), is a resident company that sells various technological products, including smartphones and tablets. The company is a small business corporation as defined in the Income Tax Act and its financial year ends on the last day of March. You are provided with an extract of the statement of profit or loss and […]
Posted: October 17, 2023
XYZ Traders: DATA-SET PROVIDED FOR THE YEAR ENDED 31 DECEMBER 2022 Account Debit Credit Bank charges 1 300 Cleaning 1 500 Computer equipment 12 500 Cost of sales 32 000 Credit losses 420 Depreciation 2 300 Fuel and oil 56 000 Garden maintenance 1 300 Goods sold 125 000 Interest on loan 2 600 Interest […]
Posted: May 20, 2023
Question 1 The following information relates to Stimulus Traders: Balance at 31 December 2012 R Trading inventories on 01 January 2012 15 000 Trading inventories on 31 December 2012 12 000 Inventory of stationary on 31 December 2012 1 500 Sales 166 000 Purchase 90 000 Sales Returns 3 000 Purchases Returns 5 500 Freight on purchases 3 000 Freight on sales 10 000 Import […]
Posted: February 6, 2023
QUESTION 1 a. In a business, provide two examples of explicit cost and two examples of implicit cost. Explain how these costs affect accounting and economic profit. 2 Marks b. With relevant assumptions, use a numerical example to explain the significance of diminishing marginal returns to a firm. 3 Marks QUESTION 2 Do you agree with the following comment, “Firms are to continue production despite […]
Posted: November 22, 2022
QUESTION ONE (30 MARKS) The following information was taken from the books of Nhlakanipho & Shaun: Balances in the general ledger of Nhlakanipho & Shaun at the financial year end – 31 March 2019 Account Debit (R) Credit (R) Capital: Nhlakanipho (1 April 2016) 95 000.00 Capital: Shaun (1 April 2016) 80 000.00 Current: Nhlakanipho (1 April 2016) 19 000.00 Current: Shaun […]
Posted: October 7, 2022
Following is the independent situation of the taxpayers in Malaysia in 2021: Bryan formed ECO Sdn Bhd on 1 January 2018 with paid up Ordinary Share Capital of RM2,230,000. The company recorded a statutory income of RM617,800 and rental income of RM45,260. Belina and five other shareholders commenced a business named Graphics Sdn Bhd since 2019. In year 2021, the company has a gross income […]
Posted: September 17, 2022
