QUESTION 2 (30 MARKS) a) Describe the financial position of an entity in terms of the basic elements of the accounting equation. (3 Marks) b) You have been presented with the following information for Zanele Traders that transpired during the month of May 2021. On 1 May 2021 Owner' deposited R60 000 cash into the business account. During the month of May 2021 the following income and expenses were incurred. (R) 360 000 Rent income Rates & taxes 200 000 Rent expense 40 000 20 000 Repairs and maintenance Drawings 11 000 Required: Calculate the owner's equity for Zanele Traders for the month of May (11 Marks) Hint: Start by calculating the profit or loss using formulas provided on pages 45, 48& 49 of the prescribed c)List any six types of source documents. (6 Marks) d)The following transactions for the month of August 2021 relate to Sky Traders. Date Details 1 4 Sold trading inventory on account to Dream Traders for R46 250. (Invoice no: IV 200) Bought goods on credit from Swiss Dealers for R 46 250 (Invoice no: S101) Bought stationery from Jazz Stationers for R 1 500. Issued cheque no: CC100 Paid the monthly rentals by cheque R 5 875. Issued cheque no: CC 101 Credit note no: CN1 for R 2 750 was issued for goods previously sold on credit to Dream 10 11 Traders. 15 An amount of R 7 750 was paid by cheque in part payment of amount owed to Swiss Dealers. (Cheque no: CC102) Cash sales amounting to R 14 375 (CBR10) 21 23 24 Paid salaries by cash R 3 500 (CBP 11) Owner withdrew R 938 cash for own use (Cheque no CC103) Received an amount R21 250 from Locksmith Traders in part payment of their account. (CBR12) 28 Required: Identify the type of transactions and the correct book of original entry in which Sky Traders' transactions should be recorded. (10 Marks) Structure your answer as follows: Example: Paid for trading inventory R 4 500 by cash. Date Journal in which it is recorded Type of transaction Cash payment e.g Cash payments journal