Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 The following adjusting transactions appeared in the accounting records of ROPS Properties (Pty) Ltd: 1. The interest on the bond of R900 000

image text in transcribed Question 1 The following adjusting transactions appeared in the accounting records of ROPS Properties (Pty) Ltd: 1. The interest on the bond of R900 000 at 12.5% has not yet been accounted for at year-end. The bond was originally obtained on 1 March 2023 through Bruma Bank. 2. Included in the rental income account was an amount of R90 000, which related to income for November and December 2023. 3. Management decided to write off 25% of the debtors whose accounts were over 90 days. At year-end, the total debtors balance for accounts over 90 days is R175 000 . 4. On 31 October, the company received R28 000 from a debtor whose account was written off in the previous year. 5. Depreciation on office equipment should be provided for. Equipment was bought at a cost price of R240 000. On 1 November 2022, the accumulated depreciation for office equipment was R15 800 . The company uses the diminishing balance method to calculate the depreciation for office equipment at a rate of 25% per annum. The company's year-end is 31 October 2023: Required: Using the table below, indicate the effects of the above transactions on the accounting equation of ROPS Properties (Pty) Ltd for the year ended 31 October 2023. Example: The business rented out property worth R25 000 on credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions