QUESTION 1 [25] B Dube is operating a business Swift Plumbers. He started the business on 1 May 2021. The following aro transactions that must be recorded for the financial year ended 30 April 2023 . No. Transactions that still need to be recorded 1. On 1miMay2022 Switt Plumbers took a Loan of R50 000 from inst Bank. The first payment on this loan is due on 1 May 2023. The Loan must be settled in full by 30 April 2027. The Loan needs to be recorded. 2. On 2Nd May 2022, Swift Plumbers purchased equipment to be used in the business for 240000 that was paid by electronic funds transfer (EFT). 3. Interest at 12% per year is payable on the loan from Inst Bank. Interest for the first year was paid on 29 April 2023, but needs to be recorded. 4. The April 2023 rent of R4 800 was deposited into Swift Plumbers' bank account by the tenant who is using a part of Switt Plumbers' premises. 5. Purchased consumable items from Plum Supplies for R43 000 on an account that must be paid within 45 days from the statement date. (Treat the Consumables as expenses.) 6. Records need to be updated for consumables to the value of R28 000 that have not been used in the current financial year but is available for use in the next financiat year. 7. Paid an amount of R3 800 by Electronic Funds Transfer (EFT) to set up a web page and on-line advertisements. 8. Paid creditor Plum Supplies R30 000 as part payment towards our account with them. Payment was made on the 25t day after the statement date. 9. Total cash of R91 000 was deposited into the bank account for plumbing services provided to clients relating to April 2023. 10. Further plumbing services totalling R16 000 were provided to a few clients who were granted accounts to settle their outstanding balances in May 2023. 1.1 Process the above transactions through the basic accounting equation and simultaneously record the account to be debited and the account to be credited by Swift Plumbers for the financial year ended 30 April 2023. Use the format shown below: Example of a transaction processed through the required format: Transaction: Paid R3 120 for telephone expenses.. Swilt Plumbers: Accounting equation and General ledger accounts to record transactions for the financial year ended 30 April 2023: NB: - The accounting equation is sensitive to increases and decreases being Shown as +1. Decreases can be shown with amounts in brackets. - Accounts must be shown by the name of the account. - Marks will be awarded for correctly processing a transaction through the accounting equation and separately for the debit and credit to the correct General Ledger accounts (20) 1.2 The definitions of the accounting elements are outined in the Conceptual Framework of the International Financial Reporting Standards (IFRS): - Provide brief evidence to show whether equipment satisfies or does not satisfy the definition of an asset. - Provide brief description of the identifying criteria that also needs to be satisfied before an item can be shown in the financial statements. (3) (2) [25]
