paid on $18$ April $2021.$

$25$ Cashed a cheque for R$25160$ to pay for the following:

month's wages R$23000,$ and

electricity R$2160.$

$28$ An EFT of R$54500$ was deposited into the bank account being R$34500$ for

catering services and R$20000$ for hiring fees.

$30$ Sibah withdrew consumables worth R$3000$ for her own personal use.

$31$ The first instalment to Caterquip was paid by EFT $($refer $2$ March $2021).$

QUESTION TWO

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 R$50000$ as capital into the

partnership. The transaction has been recorded correctly.

$2$ The partnership agreement stipulates the following: $2\mathrm{.}1$ the partners are entitled to salaries as follows:

Singh is entitled to R$9000$ for the first $9$ months and R$10000$ for the

remaining $3$ months,

Song is entitled to R$7000$ per month..

$2\mathrm{.}2$ Interest on capital must be provided at $12\%$ per year.

$2\mathrm{.}3$ Interest on current accounts must be provided at $5\%$ per year on current account

balances at the beginning of the year $(1$ March$).$

$2\mathrm{.}4$ 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.

$2\mathrm{.}5$ Singh and Song share profits and losses in the ration of $3$:$2.$

$3$ During the year R$72000$ and R$48000$ 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.

QUESTION THREE

Cute Kids is a retail outlet that sells children's 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:

A physical stock$-$take on $31$ December $2021$ revealed that inventory was valued as

follows: Merchandise $-,R106360$;

Packing material $-R2340.$

K Mini invested R$90000$ into a $3$ year fixed deposit paying interest at $7\%$ per year. The

investment was made on $1$ December $2020.$

Salaries due but not yet paid at $31$ December $2021$ was $R5170.$

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 $6$

month's rent. Asif is the only tenant in the building.

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.

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

Rates include R$6500$ 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.

An amount of R$4000$ paid for administration expenses was erroneously allocated to the

advertising account.

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 $2022.$

The December $2021$ security fees have not been paid and needs to be recorded. On $1$

July $2021$ the monthly rent was increased by $20\%.$

Provide for depreciation of equipment at QUESTION ONE

After Sibah Dube obtained her Diploma in catering she was extremely happy to get a job at

Dubai's 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 d$$cor$,$

tables, chairs, crockery and cutlery.

The transactions that follow relate to "Sibalicious Caterers" for the month ended $31$ March

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 R$160000$ by making an electronic funds transfer

$($EFT$)$ from her personal investment account to the business account.

Table: