QUESTION 2 (15 marks)

You are required to:

Correctly classify the following transactions into their respective Financial

statements (Income statement, Balance sheet, Cash flow and notes. An example

has been given for you. (15 marks)

Transaction	Income statement	Balance sheet	Cash flow statement Inflow / (Outflow)	Notes to AFS
Purchased a depreciable asset	Depreciation	Noncurrent asset	Outflow - Acquisition of assets	Depreciation policy PPE
Proceeds on sale of asset
Used a Bank overdraft for inventory
Placed a 32 Day call account with bank
Loan for purchase of Building
Loan repayable within 12 months
Land sold for cash waiting for transfer. Cash received already
Deposit paid to local petrol station
Deposits received for electricity usage
Finance Lease portion payable within business cycle
Operating lease payments
Finance lease that qualifies according to the recognition criteria
Depreciation on motor vehicle
Amounts received in advance for gas
Depreciation policy
Pending lawsuit against the municipality. Unsure as to the outcome of this lawsuit as at year-end