NOTE: Except for question 3.2 ignore VAT. QUESTION 1 (20 Marks) 1.1 REQUIRED Show the effect of the following transactions of ST Services on the accounting equation. Assume that the bank balance is always favourable. Use + to denote an increase, to denote a decrease and 0 to denote no change. (4 marks) Transactions a) Purchased a computer on credit, R22 000. b) The proprietor drew cash from the business for his personal use, R5 000. c) Received R3 000 from a debtor in settlement of her account. d) ST Services obtained a loan of R100 000 from Ben Bank. 1.2 REQUIRED Use the information provided below to calculate the value of closing inventory as at 31 October 2022, using the weighted average cost method (with the weighted average cost per unit expressed to the nearest cent). (4 marks) INFORMATION The following information was extracted from the books of Orlando Stores on 31 October 2022 for Product Max: Date Transactions Units of inventory Unit Cost Price 01 Opening inventory 6 000 R20 13 Purchased from a supplier 30 000 R21 24 Purchased from a supplier 14 000 R22 31 Sales 40 000 1.3 REQUIRED Use the information provided below to prepare the correct Debtors List. (4 marks) INFORMATION The Debtors list given below appeared in the books of Duzi Traders on 30 September 2022: Debtors List as at 30 September 2022 Debtor Debit (R) R. Williams 10 800 B. White 13 800 J. Naidoo 5 100 S. Gerber 3 900 33 600 The following errors and omissions were discovered after the above Debtors List was drawn up: 1. A receipt for R2 710 to R. Williams an account payment was erroneously posted to her account in the Debtors Ledger as R2 170. 2. A credit note to J. Naidoo was posted to the account of S. Gerber in error, R4 000. 3. A receipt for R1 000 issued to B. White for an account payment was incorrectly debited to her account and her account balance calculated accordingly. Correct the error. 1.4 REQUIRED Record the adjustment journal entry in respect of rent income in the books of NT Stores as at 28 February 2022. (4 marks) INFORMATION The Rent Income account of NT Stores reflected a total of R276 000 on 28 February 2022, the end of the accounting period. This was in respect of rent for an office occupied by a tenant for the entire financial year. The monthly rental was increased by 10% with effect from 01 September 2021. The rent for February 2022 was due to be received on 01 March 2022. 1.5 REQUIRED Use the information provided below to calculate the value of Non-Current Liabilities and Current Liabilities in the Statement of Financial Position of Lenovo Traders as at 28 February 2022 (4 marks) INFORMATION The following balances appeared in the Post-Closing Trial Balance of Lenovo Traders on 28 February 2022, the end of the financial year: R Creditors control 324 000 Income received in advance 18 000 Accrued income 24 000 Accrued expenses 14 000 Mortgage bond 1 000 000 Bank (CR balance) 86 000 Note: R180 000 of the mortgage bond balance is payable during the financial year ended 28 February 2023.