The following information was taken from the books of Nhlakanipho & Shaun: Balances in the general ledger of Nhlakanipho & Shaun at the financial year end – 31 March 2019

AccountDebit (R)Credit (R)
Capital: Nhlakanipho (1 April 2016) 95 000.00
Capital: Shaun (1 April 2016) 80 000.00
Current: Nhlakanipho (1 April 2016)19 000.00 
Current: Shaun (1 April 2016) 16 000.00
Drawings: Nhlakanipho9 500.00 
Drawings: Shaun8 000.00 
Replacement reserve 105 000.00
Profit and loss 525 000.00
Property, plant and equipment784 500.00 

Appropriations according to the partnership agreement at the financial year end 31 March 2019:

  1. Interest on capital must be appropriated at 8% per annum. Capital account balances remain
  2. Interest on drawings must be appropriated at 15% per annum, as if the drawings were made 7 months prior to the end of the financial
  3. Interest on current accounts must be appropriated at 11% per annum (on opening balances).
  4. Both partners must receive an annual salary at the end of the financial year:
    • Nhlakanipho – R 36750.00
    • Shaun – R 73500.oo
  1. Shaun must receive an annual bonus at the end of the financial year: R 42000.oo
  2. R 63 000.00 is to be transferred to the general reserve at the financial year-end.
  3. The remaining profit must be split between the partners in the following ratio:
  • Nhlakanipho – 4
  • Shaun – 3


Open, post to and balance the following accounts in the general ledger of Nhlakanipho & Shaun for the year ended 31 March 2019.

  • Appropriation account (10)
  • Current: Nhlakanipho (10)
  • Current: Shaun (10)


The accountant of Richfield Pty Ltd did not provide for the depreciation on non-current assets in the current financial year. He approached you to assist her in calculating the depreciation and with the disclosure of property, plant and equipment in the financial statements for the year ended 30 June 2018.

The following balances were extracted from the records of Richfield Pty Ltd on 30 June 2018

Machinery at costR660 000
Accumulated depreciation on machineryR131 250
Vehicles at costR360 000
Accumulated depreciation on vehiclesR21 600
Equipment at costR480 000
Accumulated depreciation on equipmentR70 000

Additional information

  1. A manufacturing machine was purchased on 31 July 2016 at a cost of R660 000. The estimated production capacity of the machine is 180 000 units over the useful life of the machine. The estimated residual value at the end of its useful life is R30 000. During the financial year, 42 000 units (2017: 37 500 units) were manufactured by the
  2. Depreciation on vehicles is provided at 30% per annum on the carrying amount method. A new vehicle with a cost of R216 000 was purchased on 31 August 2017 and correctly recorded.

The other vehicles were purchased on 1 January 2017.

  1. Equipment with an estimated economic useful life of six years was depreciated using straight-line New equipment with a cost of R120 000 was purchased on 1 April 2018 and is included in the balance on 30 June 2018. The other equipment was purchased on 1 May 2016.


Disclose property, plant and equipment on the statement of financial position and in the notes to the financial statements of Richfield Pty Ltd on 30 June 2018.


Using the information below calculate the following ratios for MTN Corporation. Information from the December 31, 2012 Statement of Financial Position is presented below.

Item2012 (R )
Sales909 000
Cost of sales(319 813)
Gross Profit589 187
Add Other Income1 432
Gross Income590 619
Operating Expenses(474 732)
Operating Profit (Earnings before Interest and Tax)115 887
less Interest Expense(21 000)
Profit before tax94 887
Income tax expense(27 517)
Net Profit for the Year67 370


Statement of Financial Position 31 December 2012
 Item2012 (R ) 
Non-Current Assets512 690
Current Assets102 157
Inventories12 100
Trade Receivables85 757
Cash and Cash Equivalents4 300
Total Equity422 486
Non-Current Liabilities96 000
Current Liabilities96 361
Total Equity and Liabilities614 847


  • Current Ratio (6)
  • Acid Test Ratio (6)
  • Debt to Equity Ratio (6)
  • ROA (6)
  • ROE (6)

Answers to Above Questions on Accounting Subject

Answer 1:” The general ledger account in relation to Nhlakanipho & Shaun is calculated as follows. The important ledger accounts that are prepared are in relation to appropriation account, current account of Nhlakanipho and current account of Shaun ………….


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