Question 1.1

The trial balance for Metorex (Pty) is provided below. Use Template 1 in the spreadsheet provided to do the following:

1. Prepare an income statement (8 marks)
2. Prepare a balance sheet (12 marks)

   Question 1.2

   An abbreviated income statement and balance sheet are provided below. (10 marks)

   Use Template 2 in the spreadsheet provided, then calculate the following ratios:

3. GP/sales
4. PAT/Sales
5. ROABIT
6. ROI
7. Current
8. Quick/Acid
9. Debtor days
10. Inventory days
11. Debt ratio
12. Debt to equity ratio

13. The ratio formulas are provided at the bottom of this exam paper.

    ______________________________

    Question 1.3

    Prepare a cash book payment journal using Template 3 in the Excel spreadsheet provided.

    The following transactions were made: (10 marks)

14. Materials for R161,460 VAT inclusive, purchased on the 2021-10-06
15. Supplier Peabody CC was paid R180,000 on the 2021-10-14
16. Rent of R249,600 VAT inclusive was paid to Passat properties on the 2021-10-19
17. Tools to the value of R7,245 VAT inclusive were purchased from Jakes Hardware on the 2021-10-26
18. Supplier Quintus was paid R302,400 on the 2021-10-27

19. ______________________________

    Question 1.4

    The records from a cash book and a bank statement are provided below. Use Template 4 in the spreadsheet provided to set out a bank reconciliation using the information below. (10 marks)

    Use template 4 of the XL workbook

    ______________________________

    Question 1.5

    The following transactions took place in a new business: (10 marks)

20. The owner puts R1,600,000 into the new business
21. They purchase a vehicle for R300,00
22. They purchase inventory for R500,000 from a supplier who gave him credit
23. They sell R400,000 to a customer on credit
24. The inventory taken to service the sale above (in 4) is R197,500
25. They incur the expenses below paying cash for all of them
27. • Rent R22,500
    • Salaries R134,250
    • Advertising R29,000
    • Stationery R1,830