Question 1:

1. “To uphold high standards of business ethics, IAS 1 mandates the publication of financial statements for various stakeholders, both internal and external, in South Africa, particularly for public This requirement ensures transparency and accountability, fostering trust and confidence among investors, regulators, and the general public”. Discuss the different users of financial information..

Question 2:

The following transactions during February 2023 related to the business of B Baloyi, a dentist:

Required
Record the above transactions using a table as illustrated below:

Question three:

The following information relates to N Nkuna LTD Balance at 30 June 2022

Additional information
a. Only 11 months’ rental was received.
b. Stationery on hand on 30 June 2022 amounted to R50.
c. R600 commission was received in advance.
d. An additional amount of R150 must be written off as irrecoverable.
e. Provision must be made for depreciation of R30 000 on machinery.
f. June 2022’s water and electricity account of R160 has not yet been paid.
Required
Prepare general journal entries for the following transactions of a business called N Nkuna LTD for June 2022.
NB: Narrate all your transactions.

Question Four:

The following information was extracted from the records of Celesta Traders. The business uses the official bank statement, available on 26th of each month, to complete the bank reconciliation process.

Information
A. Extract of items that appeared on the bank reconciliation statement on 31 Mrach 2023:
• Outstanding deposits: on 26 March 2023 R9 500
• Favourable balance on bank account in the ledger R18 795
NOTE:
• The deposit on 26 March 2023 appeared on the April bank statement as 4500. The difference must be written off as the cashier no longer works for the business.
B. The cash journals reflected the following provisional totals before the bank statement for April 2023 were received.
• CRJ R91 230
• CPJ R101 050
C. The following items on the bank statement for April 2023, must still be taken into account:
• Service fees R245; credit card levies R750; cash handling fees R430
• Interest on fixed deposit R200
• Debit order to Matimba Secure for business insurance, R2 100
• Direct deposit of R7 500 by a debtor
D. EFT no. 375 was recorded as R6 000 in the CPJ. This EFT appeared on the April bank statement with the correct amount of 600.
E. A stop order for repayment on loan R10 000, appeared on the April bank statement. The loan however, was settled in March 2023. The loan company was informed of this mistake. This will be rectified on the next statement
F. The following items appeared in the cash journals for April 2023, but not on the bank statement for April 2023:
• Deposit on 30 April 2023 R21 500
• EFT no. 554 R2 250
G. The debit balance on the bank statement on 30 April was R15 700

REQUIRED
1. Calculate the correct totals for the CRJ & CPJ for May 2023.
2. Calculate the bank balance on 31 May 2023.
3. Prepare the Bank reconciliation statement on 31 May.
Question Five:

The following information was obtained from the financial records of Fine Traders on 28 February 20.8 (Ignore VAT)

Additional information
a. The trade receivables column in the cash receipts journal was overcast by R1 000
b. A sales invoice for the amount of R600 was entered twice in the sales journal and posted twice to the personal account B Broad.
c. Credit note no 31, for R500, was credit to the account of T Thin, but no other entry was made in the books.
d. The balance of P Pauper’s account for R1 420 has still to be written off as irrecoverable.
Required
Prepare a properly balanced trade receivables control account for the month ending February 20.8

Answers to Above Questions on Financial Accounting

Answer 1: 

Hire the best accounting assignment help experts in South Africa from the team of Student Life Saviour to get answers to above accounting questions.