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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