1. You have been presented with the following information for Simple Traders for the month ending August 2019.
• Inventory on hand at the end of the month was valued at R 17 400
• R 900 was still available in the petty cash box at the end of the month of August.
• The business’ bank statement showed a favourable balance of R 10 000 at the end of August 2019.
• The business acquired a computer for the manager’ office for R 17 200, as well as a motor vehicle for R 160 000.
• During the month of August 2019, the business sold goods on credit to customers for R 42 300 and no payment has been received to date.
Required:
1. You are required to identify and classify the assets that Simple Traders had in its possession at the end of August 2019 by completing the below table.
| Transaction | Asset | Current (R) | Non-current (R ) |
| a) | |||
| b) | |||
| c) | |||
| d) | |||
| e) | |||
| Total | |||
2. Classify the following liabilities by indicating with an X if they are either a current or a non- current.
| Liability | Classification | |
| Current | Non-Current | |
| Bank overdraft | ||
| Bank loan with a maturity less than a year | ||
| Trade payables | ||
| Mortgage loan | ||
3. You are presented with the following information for Simple Traders for the year ending 31 August 2019
| Equipment | R 134 000 |
| Motor Vehicles | R 3 00 000 |
| Trade receivables | R 10 300 |
| Bank | R 6 500 |
| Long term loan | R 120 000 |
| Trade payables | R 4 200 |
Required:
Calculate the owner’s equity for Simple Traders for the year ending 31 August 2019.
| Assets | (R ) | Liabilities | (R) |
Get completed answers on Accounting Principles
Answer 1:
| Transaction | Asset | Current (R) | Non-current (R ) |
| a) | Inventory | R17400 | |
| b) | Pety cash | R900 | |
| c) | Bank balance | R10000 | |
| d) | Computer | R17200 | |
| Motor vehicle | R160000 | ||
| e) | Sundry debtors | R42300 | |
| Total | R70600 | R177200 | |
Get completed answers on all the above questions on accounting from the best accounting assignment help South Africa experts available with Student Life Saviour South Africa.
Content Removal Request
If you believe that the content above belongs to you, and you don’t want it to be published anymore, then request for its removal by filling the details below. It will only be removed if you can provide sufficient evidence of its ownership.
