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
Question 1 The following extracts were made from the books and records of Sandy Dandy for the year ended 31 December 2022: 1. Cash book summary Receipts Payments R R Opening balance 13 600 Cash sales 36 280 Interest 890 470 Additional capital introduced 25 000 Rental of premises 2 220 Trade creditors (all for purchases) 48 875 […]
Posted: February 9, 2024
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
