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.

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 )

2. Classify the following liabilities by indicating with an X if they are either a current or a 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

EquipmentR 134 000
Motor VehiclesR 3 00 000
Trade receivablesR 10 300
BankR 6 500
Long term loanR 120 000
Trade payablesR 4 200

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 )
b)Pety cashR900 
c)Bank balanceR10000 
d)Computer R17200
Motor vehicle R160000
e)Sundry debtorsR42300 

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