After Sibah Dube obtained her Diploma in catering she was extremely happy to get a job at Dubais Sea World Adventure Restaurant run by a world famous chef. When she returned to South Africa, she decided to start her own business catering for functions and hiring dcor, tables, chairs, crockery and cutlery.

The transactions that follow relate to Sibalicious Caterers for the month ended 31 March 2021. You are required to record all the transactions to show how they affect the basic accounting equation and show the account debited and the account credited. Prepare a table such as the one shown below and record each transaction separately. Totals for the accounting equation are not required.

Example: Sibah Dube contributed R160 000 by making an electronic funds transfer (EFT) from her personal investment account to the business account.

and

I Singh and U Song are in partnership sharing profits and losses in the ratio of 2:3. The following relates to their business Best Deals whereby they sell furniture to the public. They are not registered as VAT vendors.

The list of balances at 28 February 2021 before relevant additional information was taken into account is as follows:

Additional information: 1 On 1 September 2020, A Song contributed a further R50 000 as capital into the partnership. The transaction has been recorded correctly. 2 The partnership agreement stipulates the following:

2.1 the partners are entitled to salaries as follows:

Singh is entitled to R9 000 for the first 9 months and R10 000 for the remaining 3 months, Song is entitled to R7 000 per month..

2.2 Interest on capital must be provided at 12 % per year. 2.3 Interest on current accounts must be provided at 5% per year on current account balances at the beginning of the year (1 March). 2.4 Singh is entitled to a bonus equal to 10% of the profit for the year before any appropriation is made in terms of the partnership agreement. 2.5 Singh and Song share profits and losses in the ration of 3:2.

3 During the year R72 000 and R48 000 were paid as salaries to Singh and Song respectively. These amounts were credited to the bank account but incorrectly debited to the debtors control account.

Required: Prepare a statement of changes in equity for the year ended 28 February 2021 of Best Deals that is appropriate to the business of the partnership. Show all workings.

and

Cute Kids is a retail outlet that sells childrens clothing to the public. Cute Kids are not registered as a VAT vendor and utilise the perpetual inventory method to keep records of trade goods and the Asset method to account for consumable material.

The following is the pre-adjustment trial balance at 31 December 2021.

Additional Information: 1. A physical stock-take on 31 December 2021 revealed that inventory was valued as follows: Merchandise - R106 360; Packing material - R 2 340.

2. K Mini invested R90 000 into a 3 year fixed deposit paying interest at 7% per year. The investment was made on 1 December 2020.

3. Salaries due but not yet paid at 31 December 2021 was R5 170.

4. F Asif entered into a rental agreement with K Mini to utilise a part of the premises to open a cell phone repair shop from 1 September 2021. The lease agreement is for a period of 1 year with an option to extend. Asif made an EFT payment for the first 6 months rent. Asif is the only tenant in the building.

5. Interest on the mortgage is payable quarterly in arrears at 8% per year. The loan was negotiated on 31 March 2021. No repayment of the capital amount was made during the year.

6. Create an allowance for credit losses equal to 5% of outstanding debtors.

7. Rates include R6 500 paid for the period 1 January 2021 to 30 June 2021. The balance was paid for the period 1 July 2021 to 30 June 2022. Make the adjustment to the rates account.

8. An amount of R4 000 paid for administration expenses was erroneously allocated to the advertising account.

9. The December 2021 telephone account of R800 was received on 31 December but was paid and recorded in the cash payments journal on 23 January 2022.

10. The December 2021 security fees have not been paid and needs to be recorded. On 1 July 2021 the monthly rent was increased by 20%.

11. Provide for depreciation of equipment at 20% per year on the reducing balance method. There were no purchases or sales of equipment during the year.

Required:

3.1 Prepare the statement of profit and loss and other comprehensive income for Cute Kids for the year ended 31 December 2021. 3.2 Prepare a statement of changes in equity for the year ended 31 December 2021. (4)

and

Blunt (Pty) Ltd provided the following information that was extracted from the financial records for the year ended 31 December 2021. Relevant financial information from the statement of profit and loss and other comprehensive income and the statement of financial position with comparative figures are shown below.

Additional information: 1. Inventory is disclosed at cost. 2. Land has not been revalued in the current financial year 3. An extension was added to the building and completed in the current financial year. All building costs were paid for in cash. Buildings are not depreciated. 4. Interest on the long term loan is not capitalised. 5. No equipment was sold during the current financial year. Some equipment was sold during the year for cash. 6. Dividends for the year as shown in the statement of changes in equity was R75 000.

Required: Prepare the statement of cash flows of Blunt (Pty) Ltd for the year ended 31 December 2021 to comply with the International Financial Reporting Standards (IFRS) in as much as possible. Use the indirect method. Comparative figures are not required.

paid on 18 April 2021. 25 Cashed a cheque for R25 160 to pay for the following: - month's wages R23 000, and - electricity R2 160. 28 An EFT of R54 500 was deposited into the bank account being R34 500 for catering services and R20 000 for hiring fees. 30 Sibah withdrew consumables worth R3 000 for her own personal use. 31 The first instalment to Caterquip was paid by EFT (refer 2 March 2021). Extract of items shown on the statement of profit and loss and other comprehensive income for the year ended 31 December 2021: R Table: \begin{tabular}{|c|c|c|c|c|c|c|} \hline Date & \begin{tabular}{c} Assets \\ R \end{tabular} & = & \begin{tabular}{c} Equity \\ R \end{tabular} & \begin{tabular}{c} Liabilities \\ R \end{tabular} & \begin{tabular}{l} Account \\ Debited \end{tabular} & \begin{tabular}{l} Accol \\ Credit \end{tabular} \\ \hline \begin{tabular}{l} Eg \\ 1 \end{tabular} & +160000 & = & +160000 & 0 & Bank & Capital: S \\ \hline \begin{tabular}{l} 2021 \\ March \\ \end{tabular} & \multicolumn{6}{|c|}{ Transactions for the month ended 31 March 2021} \\ \hline Eg. & \multicolumn{6}{|c|}{\begin{tabular}{l} Sibah Dube contributed R160 000 by making an electronic funds transfer (EFT) \\ from her personal investment account to the business account. \end{tabular}} \\ \hline 2 & \multicolumn{6}{|c|}{\begin{tabular}{l} She also contributed her personal vehicle valued R140 000 to be used for \\ business purposes. \end{tabular}} \\ \hline 3 & \multicolumn{6}{|c|}{\begin{tabular}{l} Purchased equipment including a desktop computer that was installed with the \\ latest software packages on credit from Caterquip for R90 000. Made an \\ immediate EFT payment equal to 40% of the purchase price. The balance will be \\ paid by 6 equal monthly instalments starting 31 March 2021 . \end{tabular}} \\ \hline 5 & \multicolumn{6}{|c|}{\begin{tabular}{l} A business web site was set up and further advertising in the local media was \\ undertaken for a total cost of R 800 that was paid for by cheque. \end{tabular}} \\ \hline 7 & \multicolumn{6}{|c|}{\begin{tabular}{l} Purchased furniture including tables, chairs, dcor, crockery and cutlery from \\ Osman's Warehouse for R43 000. Paid by EFT. \end{tabular}} \\ \hline 15 & \multicolumn{6}{|c|}{ Purchased consumables for catering and paid R15 700 by cheque. } \\ \hline 18 & \multicolumn{6}{|c|}{\begin{tabular}{l} Dock Ltd deposited an EFT of R30 000 into the Sibalicious bank account, for \\ catering at a business conference. The outstanding balance of R20 000 will be \end{tabular}} \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline & R \\ Furniture and equipment at carrying amount & 323090 \\ Inventory & 315450 \\ Debtors control & 351400 \\ Allowance for credit losses & 25850 \\ Bank & 33900 \\ Capital: Singh & 200000 \\ Capital; Song & 300000 \\ Current account - Singh (1 March 2020) - Debit & 22000 \\ Current account - Song (1 March 2020) - Credit & 65000 \\ Drawings - Singh & 45540 \\ Drawings - Song & 43980 \\ Long term borrowing & 120000 \\ Creditors control & 146270 \\ Profit and loss account - profit for the year & 542400 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & \begin{tabular}{c} Debit \\ R \end{tabular} & \begin{tabular}{c} Credit \\ R \end{tabular} \\ \hline Land and buildings & 437500 & \\ \hline Equipment & 185000 & \\ \hline Accumulated depreciation: Equipment & & 66600 \\ \hline Inventory - merchandise & 103060 & \\ \hline - Packing material & 21740 & \\ \hline Debtors control & 158000 & \\ \hline Fixed deposit & 90000 & \\ \hline Bank & 42500 & \\ \hline Capital - K Mini & & 446600 \\ \hline Drawings & 32500 & \\ \hline Mortgage bond (8%) & & 125000 \\ \hline Creditors control & & 115000 \\ \hline Sales & & 1360000 \\ \hline Cost of sales & 710000 & \\ \hline Interest income & & 2100 \\ \hline Rent income & & 6000 \\ \hline Advertising & 24500 & \\ \hline Interest on mortgage bond & 7500 & \\ \hline Credit losses / Bad debts & 6500 & \\ \hline Administration expenses & 75000 & \\ \hline Rates & 22500 & \\ \hline Telephone & 6000 & \\ \hline Salaries and wages & 175000 & \\ \hline \multirow[t]{2}{*}{ Security fees } & 24000 & \\ \hline & 2121300 & 2121300 \\ \hline \end{tabular} Information from the statement of financial position as at 31 December