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.

TransactionAssetCurrent (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.

LiabilityClassification
CurrentNon-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

  
EquipmentR 134 000
Motor VehiclesR 3 00 000
Trade receivablesR 10 300
BankR 6 500
Long term loanR 120 000
Trade payablesR 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: 

TransactionAssetCurrent (R)Non-current (R )
a)InventoryR17400 
b)Pety cashR900 
c)Bank balanceR10000 
d)Computer R17200
Motor vehicle R160000
e)Sundry debtorsR42300 
TotalR70600R177200

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