QUESTION 1 (12 marks) FutureTech is a software development company that specialises in creating custom business software solutions. The company has a 31 December year end. You are presented with the Statement of Financial Position of FutureTech for the year ended 31 December 2023: Assets 2023 R 2022 R Non-current assets Property, plant, and equipment 100 000 90 000 Investment […]
Posted: October 19, 2023
QUESTION 1 REQUIRED Study the information provided below and answer the following questions. 1.1 Were there any additions to or disposals of property, plant and equipment during the financial year ended 31 December 2022? Motivate your answer. 1.2 Comment on the decrease in retained earnings. 1.3 Comment on FIVE (5) other significant changes that occurred in the cmpany’s financial position during 2022. 1.4 Apart from […]
Posted: October 3, 2023
QUESTION ONE (25 Marks) As a business owner discuss why you would prefer to acquire debt finance that you have been offered by a bank institution. (6 Marks) The pooling of funds principle states that the various sources of finance available to any entity are grouped together and used in total various projects. Discuss the two ways or methods that are used to calculate the […]
Posted: October 2, 2023
QUESTION 1 [30 MARKS] On the 15th of December 2023, Four Roses Pty Ltd is planning its working capital management for January 2024. Beginning January 2024, the predicted financial information is as follows: Item Value (R) Inventory 4 550 000 Trade receivables 4 083 500 Trade payables 1 867 000 Overdraft 2 402 500 For 2024, the company expects to generate sales revenue worth R35 […]
Posted: September 20, 2023
Question 1 (16 Marks) You have recently been appointed as the Financial Manager’s Assistant of Jay Ltd and you were provided with the following information for project Joint. Year Net cash flows 1 110 219 2 124 488 3 119 112 4 127 512 5 131 712 The initial investment amount to R365 457 and cost of capital (required rate of return) of 16%. Required; […]
Posted: May 8, 2023
QUESTION 1 (4 marks) Briefly define the following terms used in accounting, in no more than 2 sentences: Trade payables or creditors. (1 mark) Purchases. (1 mark) Credit customers of a business. (1 mark) Journal in which all credit sales are recorded. (1 mark) QUESTION 2 (28 marks) You are the accountant for Lolly-Pop Traders (Pty) Ltd. You received the following statement of account from […]
Posted: April 30, 2023
QUESTION 1 (10 marks) Electronicworld (Pty) Ltd (‘Electronic’) buys and sells television sets. During the current financial year, Electronic purchased television sets from its supplier, Gadgetwarehouse (Pty) Ltd (‘Gadget’), on 1 September 2022 and took delivery of the goods on 30 September 2022. The cash cost of the television sets was R4 000 000. Gadget provided Electronic with deferred settlement terms of the purchase price […]
Posted: April 22, 2023
Question 1 (16 Marks) You have recently been appointed as the Financial Manager’s Assistant of Jay Ltd and you were provided with the following information for project Joint. Year Net cash flows 1 110 219 2 124 488 3 119 112 4 127 512 5 131 712 The initial investment amount to R365 457 and cost of capital (required rate of return) of 16%. Required; […]
Posted: April 18, 2023
Question 1 [27 marks](12 marks) Briefly explain the term exchange rate and discuss the four factors that cause a change in a floating exchange rate.(15 marks) Future Ltd is a coal mining company situated Bloemfontein in South Africa. The company is not as large as some of their competitors, but because of their prime location on a large placer deposit containing coal in the earth’s […]
Posted: March 30, 2023
QUESTION 1 (16 marks) One of your friends, Bob, is the owner of a tuck shop called Bob’s Breads and the entity has a 31 December year-end. Bob requires your assistance with the accounting element liabilities, as set out in the Conceptual Framework, and therefore he sent you the following queries: Query 1 Do I have a liability if I have taken delivery of inventory […]
Posted: March 28, 2023
