Reference no: EM131761273

Question 1: 1.1 Define Accounting?

1.2 What is the main objective of financial statements?

1.3 Name the two main underlying assumptions of accounting?

1.4 Name and explain the four elements of financial Statement?

1.5 Define accounting Cycle and Name the steps of Accounting Cycle.

Question 2: W (PTY) LTD opened their business on the

1 January 2015. During the first month of operations the following transactions were recorded.

2. Started the business with N$90 000 of which (N$60 000) is a Loan from FNB and (N$30 000) is personal Cash. They deposited all in the business bank account.

3. Sold goods on credit for N$4 200, the goods Cost price was N$900 and issue a credit invoice #A1001

4. Purchased equipment to the value of N$ 79 800 on credit from Kojak Suppliers and (invoice 0769) paid a deposit of N$ 8 000.

5. Purchased merchandise on credit from Goto Corporation (invoice 1325), N$ 72,732. Returned a camera, invoiced at N$ 456, which was damaged in transit from Goto Corporation and received their credit note number C0172.

6. Issued a cheque for N$ 855 to Express Printers for advertising brochures printed.

7. Received a cheque for N$ 57 from Express Printers with a note that indicated that a calculation error had been made on their invoice (refer 12 August).

Required: (a) Journalise the above-mentioned transactions, draw up individual ledger account and close off the ledger accounts. Narratives are not required.

Question 3: The following figures are from the books of Godzilla store for the year 2004.

Land and Buildings 90,000

Loan 20,000

Accrued Income 10,000

Drawings 12,000

Uniform 13,000

Net Profit 14,000

Debtors 13,000

Creditors 16,000

Telephone 11,000

Machinery 13,000

Motor vehicle expenses 12,000

Administration fees 18,000

Fixtures and fittings 30,000

Water and Electricity 10,000

Using elements of financial statement, group the accounts under the respective elements and calculate the amount of Capital missing.

Question 4: Cymot cash and Carry owned by James K and Jones K had the following transactions for January 2014.

2. Started a business with N$50,000 in the business bank account of which 25% was a loan from Bank of Africa

4. Sold goods on credit

6. Bought machinery cash N$20,000.

8. Paid water and electricity N$3,000.

9. Bought goods on credit N$16,000.

11. Repair of the company machinery at the amount of N$6,000

14. Owner took goods N$6 000 for personal use.

16. Debtors owing N$ 1 800 were declared unable to pay.

Required: Copy, the table format above in your answer book, and classify each transaction on the accounting equation table showing the effects of each transaction on the accounting equation.

Include account name, +/- and amounts.

Question 5: The following are information from Clifton Trading Company that has a financial year end of 31 November 19x5. From the information bellow you are required to draw up a debtors and creditors control account.

Sales Cash                         3,44,890

Sales Credit                          2,68,187

Purchases Credit                4,96,600

Purchases Cash                  14,440

Total Receipts from Customers    6,00,570

Total Payments from to suppliers 5,03,970

Discount allowed to all credit customers 5,520

Bad Debts Written Off 780

Credit notes issued to credit customers 4,140

Discount received from credit suppliers 3,510

Balance in the Debtors Ledger sett off against balance in the creditors Ledger         70

Refunds Issued to Cash Customers                      5,070

Increase in provision for bad debts                       90

Credit notes received from Credit suppliers            1,480