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

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