QUESTION FIVE: FINANCIAL ACCOUNTING INFORMATION [25 MARKS] 5.1 The IASBs Framework for the Preparation and Presentation of Financial Statements requires financial statements to be prepared on the basis that they comply with certain accounting concepts, underlying assumptions and (qualitative) characteristics. Five of these are:

- Matching Concept

- Historical Cost Concept

- Prudence Concept

-Realisation Concept

-Materiality Concept

REQUIRED: Briefly explain the meaning and provide examples of each of the above concepts/assumptions. (10 marks) 5.2 Thabo Mdluli decided to start a laundromat business called Tibos Laundry . He entered into the following transactions during February 2021:

Date	Transaction
1 Feb 2021	Thabo Mdluli withdrew R130 000 from his personal savings account and deposited it in Tibos Laundrys bank account
2 Feb 2021	Tibos Laundry obtained a loan of R25 000 with a payback period of more than a year from ABC Bank. The amount was paid into its bank account
6 Feb 2021	Tibos Laundry bought equipment from XY Furnishers for R100 000 and paid by cheque.
10 Feb 2021	Tibos Laundry bought furniture for R2 000 on credit from Joc Limited.
11 Feb 2021	Tibos Laundry paid Joc Limiteds account of R2 000.
12 Feb 2021	The owner withdrew R1 000 for his own use.
13 Feb 2021	Tibos Laundry provided services for a client S Silver and received a cheque for R1 000.
16 Feb 2021	Tibos Laundry paid wages by cheque, R800.
18 Feb 2021	Tibos Laundry provided services worth R6 000 to C Canon on credit.
21 Feb 2021	Tibos Laundry placed an advertisement in a local newspaper for R200. Payment was due only in 30 days.
28 Feb 2021	C Canon settled his account in part, R2 000.

REQUIRED: Show the effect of Tibos Laundrys transactions on the basic accounting equation using the following format: (15 marks)

ASSESTS EQUITY LIABILITIES

date	debtors	furniture	Equipment	Bank	Capital	Income/Expenditure	Loan: ABC Bank	Creditors
Total

NB: -Indicate if the account is increasing (+) or decreasing (-).

-Fill in the total column with the total amount at the end of each account.