Question 1

Indicate by choosing the correct option whether the following statement is true or false: The owner of Thabo Stores contributed a motor vehicle to be used for deliveries. The account to be debited for this transaction will be vehicles and the account to be credited will be bank.

A. True

B. False

QUestion 2

Indicate by choosing the correct option whether the following statement is true or false: The gross profit calculated in the trading statement of a non-profit entity is transferred to receipts and payments statement.

A. True

B. False

Question 3

GBV Club is a non-profit organisation that was started by 120 members on 1 January 20.7. The objective of GBV Club is to address gender-based violence that is faced by South African citizens, by conducting workshops, road shows and counselling to perpetrators, victims and those who have not yet experienced it. The constitution of GBV Club indicated the following: (a) Membership fees amount to R1 500 per member per annum. (b) Entrance fees to join the club amount to R150 per member and it should be capitalised. (c) Membership fees needs to increase by 10% at the beginning of every year, starting from 1 January 20.8. (d) Members can pay their membership fees in advance. (e) Members who have not paid their previous' years membership fees by 30 June of the following year, are considered as irrecoverable and must be written off. (1) GBV Club does not provide members with refunds if they leave the club. In order to prepare the financial statements for the current financial period ended 31 December 20.8, the bookkeeper presented the following information regarding the finances of the club to members at a meeting held on 31 December 20.8: Membership fees and entrance fees: (1) Out of the 24 members who did not pay their membership fees for the previous financial period, only 16 members have paid their outstanding membership fees by 30 June 20.8. (2) 6 members paid their membership fees on 31 December 20.7 for the financial period ending 31 December 20.8. (3) 60 new members joined the club and each member paid their entrance fees of R150. (4) 12 members have paid their membership fees for the financial period ended 31 December 20.9. (5) Only 8 members have not yet paid their membership fees for the current period. (6) Membership fees received of R306 480 for the current financial year ended 31 December 20.8. The total amount for membership fees to be transferred to the income and expenditure statement for the year ended 31 December 20.8, will be ... A. R283 800 B. R246 600 C. R331 380 D. R270 900 E. R260 700