Question 1: Refer to the following transactions entered into by TH Traders during the year ended 30 June 2012 and answer the question that follow:
|1.||The owner deposited R 60 000 into business account as his contribution to the|
|2.||Sold goods on credit to F Meko, R 7 000|
|3.||The business obtained a loan of R30 000 from FNB.|
|4.||Bought stationery on credit, R300|
|5.||Cash sales of goods, R6 500. The goods were bought for R4 000|
|6.||Purchased furniture and equipment on credit from FBD Ltd R5 000|
|7.||The owner used a business cheque to pay for his personal accounts, R4 000|
|8.||Purchased Equipment worth R60 000. R42 000 was paid using cash and the|
remainder will be paid in 3 months’ time.
Record the above transactions using the Accounting Equation. Use the following format to answer this question:
Example: Paid for advertising R300.
Question 2: The following is a trail balance of ACC Limited for the year ended 31 December 2014:
|BALANCE SHEET ACCOUNTS|
|Land and buildings (at cost)||180 000|
|Vehicles (at cost)||120 000|
|Furniture (at cost)||15 000|
|Stock ( 1/01/2014)||4 000|
|Accumulated Depreciation: Vehicles||26 000|
|Accumulated Depreciation: Furniture||3 000|
|Bad Debts/credit losses||230|
|Water and electricity||3300|
Inventory on 31 December 2014 : Trading inventory R6 500
Packing Material R175
- Debtor Jacob is His debt of R140 has been written off as irrecoverable
- Provision must be made for depreciation as follows:
- Vehicles 20% on diminishing balance method/reducing
- Furniture 10% Straight Line
- A Debtor, Mr Fletcher who wed R230 finally managed to pay his debt that was previously written off as irrecoverable in This was not considered in the above trail balance.
Prepare the Statement of Comprehensive Income for ACC Limited for the year ended 31 December 2014.
The following transactions occurred in the books of Pay n Pick limited for the month of April 2015:
|1 April Purchases||10 000 units @ R1,20|
|10 April Purchases||12 000 units @ R1,50|
|15 April Sales||25 000 @ R3,00|
|20 April Purchases||8 000 @ R1,80|
|23 April Sales||10 000 units @ R3,30|
The stock count at 31 March 2015 revealed that 10 000 units at a cost of R1 per unit were on hand.
- Calculate closing stock at 30 April 2015 using First in First out (FIFO). (20)
- Calculate Cost of sales at 30 April (5)
- Calculate how much gross profit Pay n pick made in the month of (5)
Answers to Above Questions on Accounting
Answer 1: The recording of all the transactions using accounting equation is performed as follows:
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