Financial reporting is done uniformly in terms of the International Financial Reporting Standards to allow comparison. Indicate where the following general ledger accounts will be reported in the Statement of Financial Position:

Reported account class affected

Reporting classification

A: Accounts payable

1: Equity: Capital

B: Accounts receivable

2: Equity: Share capital

C: Inventory

3: Equity: Preference shares

D: Share capital

4: Equity: Retained Income

E: Property, Plant and Equipment

5: Non-current liabilities

F: Cash and cash equivalents

6: Current liabilities

G: Dividends payable

7: Non-current assets

H: Preference shares

8: Current assets

I: Capital

J: Retained income

K: Drawings

L: Investments

From the below transaction select the correct combination of Column A and Column B from the drop-down list corresponding to your choice next to the question number.

1. Living expenses of R1 000 paid on behalf of the business partner.

Answer 1

2. The final tax assessment was calculated at R14 000. Provisional tax of R4 000 was paid during the financial year.

Answer 2

3. Accumulated depreciation on office equipment totals R5 400 for the year.

Answer 3

4. Rental of R5 000 was prepaid for six months to assist with the companys cashflow.

Answer 4

5. The periodic inventory valuation amounts to R2 500 at reporting date.

Answer 5

6. The statement of comprehensive income reported a profit of R100 000 for the year.

Answer 6

7. The allowance for credit losses has a final credit balance of R5 000 for the year.

Answer 7

8. 8% preference share dividends remain payable.

Answer 8

9. Excess cash of R25 000 was invested in a 24-month interest accruing account.

Answer 9

10. A new motor vehicle to the value of R250 000 was purchased at year-end.

Answer 10