Reference no: EM133272794
Question 1.
Refer to the following transactions entered into by TH Traders during the year ended 30 June 2012 and answer the question that follow: Transaction
1. The owner deposited R 60 000 into business account as his contribution to the business
2. Sold goods on credit to F Meko, R 7 000
3. The business obtained a loan of R30 000 from FNB.
4. Bought stationery on credit, R300
5. Cash sales of goods, R6 500. The goods were bought for R4 000
6. Purchased furniture and equipment on credit from FBD Ltd R5 000
7. The owner used a business cheque to pay for his personal accounts, R4 000
8. Purchased Equipment worth R60 000. R42 000 was paid using cash and the remainder will be paid in 3 months' time.
REQUIRED: Record the above transactions using the Accounting Equation. Example: Paid for advertising R300. TRANSACTION ASSETS =EQUITY + LIABILITIES Example -300 -300 0
Question 2.
The following is a trail balance of ACC Limited for the year ended 31 December 2014: R BALANCE SHEET ACCOUNTS Capital 250 000 Drawings 4 400 Land and buildings (at cost) 180 000 Vehicles (at cost) 120 000 Furniture (at cost) 15 000 Bank 5 900 Debtors 40 140 Stock ( 1/01/2014) 4 000 Creditors 50 750 Accumulated Depreciation: Vehicles 26 000 Accumulated Depreciation: Furniture 3 000 NOMINAL ACCOUNTS Sales 252 145 Sales returns 615 Commission Income 670 Rent received 1950 Purchases 170 550 Purchases Returns 550 Bad Debts/credit losses 230 Insurance 2 750 Packing material 800 Salaries 38 500 Water and electricity 3300 Additional information:
1. Inventory on 31 December 2014 : Trading inventory R6 500 Packing Material R175
2. Debtor Jacob is insolvent. His debt of R140 has been written off as irrecoverable
3. Provision must be made for depreciation as follows:
a. Vehicles 20% on diminishing balance method/reducing balance.
b. Furniture 10% Straight Line method.
4. A Debtor, Mr Fletcher who wed R230 finally managed to pay his debt that was previously written off as irrecoverable in 2010. This was not considered in the above trail balance.
REQUIRED: Prepare the Statement of Comprehensive Income for ACC Limited for the year ended 31 December 2014.
Question 3.
The following transactions occurred in the books of Pay n Pick limited for the month of April 2015: 1 April Purchases 10 000 units @ R1,20 10 April Purchases 12 000 units @ R1,50 15 April Sales 25 000 @ R3,00 20 April Purchases 8 000 @ R1,80 23 April Sales 10 000 units @ R3,30 Additional Information: The stock count at 31 March 2015 revealed that 10 000 units at a cost of R1 per unit were on hand.
REQUIRED: 1. Calculate closing stock at 30 April 2015 using First in First out (FIFO).
2. Calculate Cost of sales at 30 April 2015.
3. Calculate how much gross profit Pay n pick made in the month of April.