FINAL ONLINE SUMMATIVE ASSESSMENT

PROGRAMME

Bachelor of Commerce in Accounting

Bachelor of Commerce in Corporate Communication MODULE

Introduction to Financial Accounting YEAR

One $(1)$ INTAKE

July $2023$ Semester $2$ DATE

$14$ May $2024$ TOTAL MARKS

$100$

Answer ALL questions.

$(100$ MARKS$)$

QUESTION $1$

$(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

State the double entries $($Account Debit and Account Credit$)$ for each of the following transactions of JKL Stores.

$(5$ marks$)$

TRANSACTIONS OF JKL STORES

$1\mathrm{.}1\mathrm{.}1$

The bank credited the account of JKL Stores with R$200$ for interest on fixed deposit.

$1\mathrm{.}1\mathrm{.}2$

The owner took R$300$ cash for her personal use.

$1\mathrm{.}1\mathrm{.}3$

Purchased stationery on credit, R$400.$

$1\mathrm{.}1\mathrm{.}4$

Paid the monthly insurance premium by means of a debit order, R$500.$

$1\mathrm{.}1\mathrm{.}5$

An account payment of R$2000$ was made to a creditor by means of an electronic funds transfer.

$1\mathrm{.}2$

If a debtor settles her account with PQ Stores via an electronic funds transfer, answer the following questions related to five of the stages in the accounting cycle of PQ Stores.

$(6$ marks$)$

State the source document.

In which journal will the transaction be recorded?

Which two accounts in the ledger will change?

$1.$

$2.$

Which financial statement will be affected?

Which resource utilisation ratio will be affected?

$1\mathrm{.}3$

REQUIRED

Use the information provided below to prepare the following accounts in the general ledger of Avery Stores: The accounts must be balanced or closed off as at $31$ March $2024.$

$1\mathrm{.}3\mathrm{.}1$

Equipment

$(4$ marks$)$

$1\mathrm{.}3\mathrm{.}2$

Asset disposal

$(5$ marks$)$

INFORMATION

The information given below was obtained from the records of Avery Stores:

$1.$

The following balances, amongst others, appeared in the ledger on $01$ March $2024,$ the beginning of the financial year:

Equipment

R$300000$

Accumulated depreciation for equipment

R$140000$

$2.$

On $01$ March $2024$ equipment with an expected useful life of five years and a cost price of R$50000$ was sold for R$12000$ cash. The equipment was originally purchased on $01$ March $2020.$

$3.$

New equipment was purchased on $31$ March $2024$ for R$80000$ from a supplier on credit.

$4.$

Depreciation on equipment is calculated using the straight$-$line method.

QUESTION $2$

$(20$ Marks$)$

REQUIRED

Use the relevant information from the transactions of Tiago Traders provided below to answer the following questions:

$2\mathrm{.}1$

Prepare the Statement of Comprehensive Income for the month ended $30$ April $2024.$

$(14$ marks$)$

$2\mathrm{.}2$

Calculate the value of inventory as at $30$ April $2024.$

$(2$ marks$)$

$2\mathrm{.}3$

Prepare the Statement of Changes in Equity for the month ended $30$ April $2024.$

$(4$ marks$)$

INFORMATION

Date

Transactions of Tiago Traders for April $2024$

$01$

K$.$ Bheki started her trading business, Tiago Traders, by means of an electronic funds transfer $($EFT$)$ of R$300000$ into the bank account of her business.

$02$

Equipment was purchased for R$70000$ cash.

Purchased merchandise by means of an EFT, R$80000.$

$05$

Purchased consumables on credit, R$1000.$

$09$

Paid R$3000$ to a local newspaper for weekly advertisements.

$12$

Purchased a motor vehicle on credit for R$150000.$

$14$

Cash sales to date amounted to R$45000($Cost of sales R$30000).$

$15$

Sold goods on credit for R$3000.$ The goods were priced at cost plus $50\%.$

$19$

K$.$ Bheki took consumables for her personal use, R$200.$

$24$

A direct deposit of R$2000$ cash was made into the account of the business for the goods sold on $15$ April.

$25$

Paid R$100$ to repair a punctured tyre on the motor vehicle.

$26$

A payment was made to Telkom for the telephone account, R$1200.$

$27$

Goods with a cost price of R$4000$ were sold on credit to a customer at cost plus $50\%.$

$28$

Paid the employees for their salaries, R$28000.$

$29$

Goods that cost R$40000$ were sold for R$60000$ cash.

$30$

Paid the monthly rental of R$6000.$

The bank statement for April reflected the following:

Bank charges, R$500$

Interest on favourable bank balance, R$60.$

QUESTION $3$

$(20$ Marks$)$

REQUIRED

Prepare the following accounts in the general ledger of Mazda Traders as at $29$ February $2024.$ Balance or close off the accounts.

$3\mathrm{.}1$

Appropriation a$/$c

$(12$ marks$)$

$3\mathrm{.}2$

Current a$/$c: Dan. Note: The partner$$s drawings must be transferred to his current account.

$(8$ marks$)$

INFORMATION

The information given below was extracted from the accounting records of Mazda Traders, a partnership business with Mazibuko and Dan as partners.

Balances in the ledger as at $29$ February $2024$

Debit $($R$)$

Credit $($R$)$

Capital: Mazibuko

$300000$

Capital: Dan

$200000$

Current a$/$c: Mazibuko $(01$ March $2023)$

$20000$

Current a$/$c: Dan $(01$ March $2023)$

$12000$

Drawings: Mazibuko

$190000$

Drawings: Dan

$180000$

The following must be considered:

$($a$)$

The net profit according to the statement of comprehensive income for the year ended $29$ February $2024$ amounted to R$500000.$

$($b$)$

The partnership agreement makes provision for the following:

$$

Interest on capital must be provided at $15\%$ per annum on the balances in the capital accounts. Note: Dan decreased his capital balance by R$100000$