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Please assist on answering the questions below QUESTION 16 A credit balance on a ledger account indicates........ 1. an amount owing to the business 2.
Please assist on answering the questions below
QUESTION 16 A credit balance on a ledger account indicates........ 1. an amount owing to the business 2. a liability or income 3. a liability or an expense 4. an asset or expense Question 17 As of 1 January 2021, Elena Store had a capital balance of R100 000. During the year Elena Store had revenues and expenses amounting to R80 000 and R54 000 respectively. On 31 December 2021, the owner conducted a stock take and realised that an inventory valued at R5 000 was damaged. The salvage value of the damaged inventory was estimated at R1 500. In addition, the owner (Elena), withdrew R20 000 for her personal use. Which one of the following alternatives represents the correct capital balance in the statement of financial position of Elena Store as at 31 December 2021? 1. R116 500 2. R102 500 3. R101 000 4. R110 000 5. R122 500 Question 18 On 13 February 2022, Ndabezitha Wholesalers sold R1 500 worth of inventory on credit to Sonke Grocery Store, subject to a trade discount of 25%. A cash discount of 15% will be given if the account is settled within 30 days. Which one of the following amounts represents the correct amount received by Ndabezitha Wholesalers on 15 March 2022? 1. R1 275,00 2. R956,25 3. R1 012,50 4. R1 500,00 5. R1 350,00 Question 19 The year-end of Mbuzana Traders, a business entity owned by Mr Zulu, is 31 December. On 1 January 2021, the statement received from the municipality showed that the company had overpaid by R2 500. Mbuzana Traders received electricity accounts for the four quarters starting 1 January 2021 and ending 31 December 2021 for R3 500, R3 570, R2 750 and R3 000 respectively. On 31 December 2021, the municipal account reflected a balance of R2 000 owing. Which one of the following alternatives represents the correct amount that die must be disclosed as electricity expense in the statement of profit or loss and other be comprehensive income of Mbuzana Traders for the year ended 31 December 2021? 1. R 8500 2. R17 500 7500 3. R17 320 4. R13 500 5. R12 500 Question 20 Which one of the following expenses should be included in cost of inventories sold during the year? 1. Depreciation on delivery vehicle 2. Carriage on sales 3. Carriage on purchases 4. Insurance on deliveriesStep by Step Solution
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