QUESTION ONE [25] Moses, a qualified motor mechanic with 22 years of experience, began his own business, Command Vehicle Repairs. On 1 March 2023, Moses withdrew money from his Retirement Fund and deposited R80 000 into a business bank account on 9 March 2023. The following transactions for the month of June 2023 need to be recorded as required below: Date Transaction details 2023 June […]
Posted: November 14, 2023
1.1 Prepare the general journal entry to record the adjustment.(4 marks) INFORMATION The following balances, amongst others, appeared in the pre-adjustment trial balance of GH Stores on 28 February 2023, the end of the financial year: Debtors control R40 000 Provision for bad debts R1 800 The provision for bad debts must be adjusted to 5% of debtors. 1.2 REQUIRED Prepare the correct Creditors Control […]
Posted: November 11, 2023
QUESTION 1 (35 marks) Fastfoods (Pty) Ltd is a producer and retailer of nutritious ready-made meals based in the Western Cape. The company produces a wide range of frozen foods, meal kits, and craft pizzas which are sold on their online store and delivered to customers across South Africa. You are provided with the statement of profit or loss and other comprehensive income and trial […]
Posted: November 8, 2023
Question 1: Which of the following is the underlying assumption in the Framework for the Preparation and Presentation of Financial Statements? a) Consistency b) Materiality c) Going concern d) Comparability Question 2: What does the term “recognition” refer to in relation to the elements of financial statements? a) The process of measuring the monetary value of an asset b) The process of disclosing financial information […]
Posted: November 2, 2023
QUESTION ONE [20] Show how the below transactions affect the financial position of the business as represented by A = E + L. You need to clearly indicate whether the element has increased or decreased and provide the relevant amount and account that would be affected. EG. The business pays R6 333 per month for the rental of some business premises. All rentals were paid […]
Posted: October 30, 2023
QUESTION 1 (24 marks) Atlas Ltd., a South African company, specialises in importing and distributing high- tech machinery components for the manufacturing sector. The company sources these components from a renowned American supplier and sells them to various manufacturers across South Africa. Atlas Ltd.’s financial year-end is on 30 June. On 02 January 2023, Atlas Ltd. made a deposit of R100 000 to secure the […]
Posted: October 10, 2023
QUESTION 1 (31 marks) TechFusion Ltd. is an innovative technology company specialising in the development of sophisticated software solutions. TechFusion Ltd. has a financial year-end of 31 December. During the 2023 financial year, the company undertook a series of transactions involving the following: 1. Issuing Class A and Class B Shares: TechFusion Ltd. issued 1 000 Class A shares at R100 per share and 2 […]
Posted: October 3, 2023
Question 1: Wisdom Paine, a qualified dentist, decided to set up his own practice Paine-free Dentistry. The following are transactions for March 2020, the first month of business activities. Date Transactions Example 1.3.2020 W Paine, the owner, deposited R100 000 as his opening capital. 2.3.2020 3.3 6.3 7.3 10.3 16.3 24.3 27.3 28.3 31.3 W […]
Posted: September 11, 2023
QUESTION 1 (66 marks) Computerworld (Pty) Ltd is a wholesaler and distributor of laptops to local stores. The company has a December financial year-end. The following inventory transactions took place during November 2023. All purchases and sales are of the Proline V1 laptop: Date Transactions Purchase / sales price per unit excluding VAT (Rand) 2 November 2023 240 laptops purchased on […]
Posted: September 10, 2023
Question 1 [22 Marks] Read the below statement and answer the question that follows: The objective of accounting is to convert financial data into meaningful information for its users by recording, estimating, and summarising data. There are two main branches of accounting, namely, managerial accounting and financial accounting. Required: Provide a summary comparison between managerial accounting and financial accounting. [12 Marks] Study the below table […]
Posted: September 7, 2023
