QUESTION 1 (34 Marks) Karoo Ltd is a retailer of furniture and fittings that allows customers to buy on credit. The following information pertains to Karoo’s for the year ended 31 March 2024: Extract from the pre-adjusted trial balance of Karoo as at 31 March 2024 Trade receivables R2 208 960 Allowance for doubtful debts R220 896 The following are the policies of Karoo Ltd: […]
Posted: April 24, 2024
Financial projections and capital expenditure of Elsies limited Elsies Limited is a nationally recognised supplier of catering equipment. It offers safe and secure shopping via its online store and its state-of-the-art premises in each of the provinces of South Africa. The company offers a wide selection of catering equipment and supplies at competitive prices. The target market includes restaurants, hotels, hostels and spaza shops. Their […]
Posted: April 21, 2024
Question 1: (25 marks) On 14 November 2023 Flying Solo Airlines (Pty) Ltd had a sale on their return tickets from Johannesburg to Cape Town. As a result, 15 return airline tickets of R1250 each were sold to passengers travelling in May 2024. Payment for these tickets were made by the passengers on the 15 November 2023 and transferred into Flying Solo Airlines (Pty) Ltd’s […]
Posted: April 17, 2024
Manitoba (Pty) Ltd manufactures and sells Manita Herbal Teabags as a healthy product. The company is based in South Coast, KwaZulu-Natal, has a 31 December financial year end and applies International Financial Reporting Standards. The draft results of operations for the year ended 31 December 2022 is shown below: R Sales 2 400 000 Rent income 150 000 Dividend income 600 000 Profit on […]
Posted: April 17, 2024
Question 1 [30] Majuba (Pty) Ltd is a South African resident. It is a small business corporation that manufactures shoes. The company’s financial year ends on 28 February. Majuba (Pty) Ltd is a registered vat vendor and the company does not apply IFRS 9 for financial reporting purposes. The following information is available for the year ended 29 February 2024 (all amounts exclude VAT unless […]
Posted: April 17, 2024
Question 1: You have recently been appointed as the Financial Manager’s Assistant of Prime Ltd, and you were provided with the following information for project Lime. Year Net cash flows 1 R87 015 2 R98 280 3 R94 038 4 R100 667 5 R103 983 The initial investment amounts to R288 519, and the cost of capital (required rate of return) of 15%. NOTE: YOU MAY […]
Posted: April 16, 2024
QUESTION 1 (100 marks) Carrier Ltd (“Carrier”) is a transporting entity that transports goods for customers between Gauteng and KwaZulu-Natal. The entity has a 31 January financial yearend. Carrier has a fleet of various trucks to provide the requested transport services to customers. Currently, the entity wishes to purchase another truck to add to their fleet. The decision lies between Truck X119 and Truck FGS4. […]
Posted: April 2, 2024
Question 1 Ms Minky is the owner of Minkies Ltd. The business specializes in buying and selling bottles of vegetable juice – “Vegy”. Minkies Ltd accounts for inventory using perpetual inventory system on the Fist-In First-Out (FIFO) basis. The business is NOT registered for VAT. Bottles of “Vegy” are sold at a mark-up of 80% on cost. The following transactions occurred during June 2016: 1. […]
Posted: March 20, 2024
QUESTION 1 (35 marks) Ms. Smith opened a vibrant bookstore in September 2022, situated in the heart of Cape Town, named “Smith’s Reading Den”. The bookstore has a financial yearend of 31 August. You have been provided with a trial balance for Smith’s Reading Den spanning from 1 September 2022 up until 31 July 2023. Smith’s Reading Den Trial Balance as at 31 July 2023: […]
Posted: March 12, 2024
QUESTION 1 (44 marks) Wonderful Walls (Pty) Ltd (‘Wonderful Walls’) is a premier décor company in South Africa, specialising in delivering top-quality wallpapers and wall murals. The company is a registered VAT vendor. The company’s current financial year ends on 31 December 2024. Asset Register Asset Category Asset Description Purchase Date Cost (R) Residual Value (R) Life Span: years / % Depreciatio n Method Land […]
Posted: March 8, 2024
