QUESTION 1 (18 MARKS)
a) (5 marks)
You have been approached by a client who needs to register his business as a private company. The client advised that their company has been successfully reserved as a customer with CIPC on their website. The client needs assistance with details and documentary evidence required to register both manually or online
Outline to the client the details and documentary evidence needed to register as a private company once company name has been successfully reserved.
b) (13 marks)
Identify and discuss the way in which a company can dissolve and explain additional steps involved in the dissolution of a public company
QUESTION 2 (23 MARKS)
a) (11 marks)
You have been presented with the following information for Kingdom Traders that transpired during the month of June 2023
|01 June 2023||Purchased inventory amounting to R10 200|
|03 June 2023||Made a long-term investment by acquiring shares worth
R8 160 from Lady Sate Ltd.
|21 June2023||Cash in the petty cash box amounted to R1 000.|
|29 June 2023||Goods sold to customers amounted to R11 260. However,
only R4 000 was received from customers by the end of the month.
Identify the asset in each of the above transactions and classify it as either current or non-current by writing the total amount of the asset in the relevant column.
Answer the question by using the following format:
|Date||Asset||Current (R)||Non-current (R )|
b) You are presented with the following information for Kingdom Traders for the year ending 30 June 2023.
|Motor Vehicles||118 560|
|Bank overdraft||19 120|
|Trading inventory||14 100|
|SARS payables||17 290|
|Petty cash||11 565|
|Long term loan||110 225|
|Financial assets||81 630|
Calculate the owner’s equity for Kingdom Traders for the year ending 30 June 2023. Show all your workings. (12 marks)
QUESTION 3 (35 MARKS)
a) (26 marks)
You have been presented with the following information for Bubble Traders that transpired during the month of July 2023.
|1||The owner contributed an amount of R75 000 cash, as well as motor
vehicle valued at R60 000 to the business.
|3||Bubble Traders purchased trading inventory for R11 666 on credit from
|5||The insurance premium of R4 514 was paid through the electronic funds
|9||A cash sale amounting to R35 714 was made, the goods were originally
purchased at a cost of R30 285.
|13||Bubble Traders settled their account with Chain Suppliers in full by cash.|
|15||Sold goods on account to a customer, Mr. Bitcoin for R10 214. The
goods were originally purchased at a cost of R9 142.
|18||Purchased trading inventory amounting to R14 714 for cash.|
|19||Purchased a building in cash for R100 142.|
|27||Made electronic payments for the workers’ salaries and wages
amounting to R18 000.
|30||Received a payment of R10 214 from Mr. Bitcoin, a debtor.|
Show the effects of the transactions incurred by Bubble Traders during the month of July 2023 on the accounting equation. Clearly indicate which account needs to be debited or credited. Ignore VAT and answer this question by using the format of the table provided on the next page.
Example: Paid for repairs and maintenance amounting to R11 000 cash.
|Assets =||Equity +||Liabilities|
b) (9 marks)
Show how the following transactions for July 2023 will reflect in the ledger accounts of Bubble Traders.
i. Purchased motor vehicle on cash for R13 600.
ii. Paid monthly wages amounting to R15 220 cash.
iii. Paid the monthly rent for R4 500 cash.
QUESTION 4 (24 MARKS)
The following transactions for ABC Traders transpired during the month of September 2023.
|Date||Details of transactions|
|1||The owner for ABC Traders, contributed a delivery vehicle valued at
R 36 100 to the business. Journal voucher JV 012 was issued.
|3||The owner, for ABC Traders took trading inventory with a cost price of
R 500 for personal use. Journal voucher JV 013 was issued.
|6||Charged an amount of R 800 to Mr MC, a debtor, as interest on his
overdue account. Journal voucher JV 014 was issued.
|12||Settlement discount of R 550 was granted to C. Fortunes, a debtor, for
early settlement of his account. Journal voucher JV 015 was issued.
|20||The bookkeeper erroneously recorded the purchases of a motor vehicle
in the office equipment account. The motor vehicle was purchased for R 24 000 by bank. Journal voucher JV 016 was issued.
|26||Mr Owen, a debtor, was declared insolvent. As a result, he was not able to pay the amount owed of R 11 000. The bookkeeper decided to treat
the amount as being irrecoverable. Journal voucher JV 017 was issued.
Record the transactions (per the table above) in the general journal of ABC Traders for the month of September 2023. Ignore VAT and narrations are not required.
Answers to Above Questions on Accounting
Answer 1: Registration of a private company in South Africa requires sufficient amount of documentary evidence according to CIPC. It is important for the person to provide important details such as the company name reservation, details about the company such as registered name and business address, directors and incorporators of the company including its shareholders, about the Memorandum of Incorporation, the financial year applicable to the business, and necessary documents needs to be uploaded on CIPC website.
Hire accounting assignment help experts as available with Student Life Saviour South Africa to get answers of all above questions.
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