QUESTION ONE The following financial information relates to Sporty Limited. Statement of changes in equity for the year ended 31 December 2019 R Dividends on ordinary shares 60000 Additional information 1. No equipment was purchased or sold during the financial year ended 31 December 2019 2. Ordinary shares were issued during the year. Required: Use the information provided above to prepare the cash flow statement for the year ended 31 December 2019 (indirect method). QUESTION TWO [20] Show the effect of the following transactions of TikTok Limited on accounting equation using the format provided. Use + if the element increases, - if the element decreases and 0 if the element remains unchanged. Also indicate the amount. Transactions: 2.1 Bought invoice books on credit, R1 300 . 2.2 Bought a computer by cheque, R230 000 . 2.3 Cash received for services rendered, R14 000. 2.4 Paid the annual fire insurance by cheque R22 400. 2.5 Received R2 000 from a debtor in part settlement of her account. 2.6 The tenant paid the monthly rental to TikTok Limited, R15 000 2.7 Received an account for repairs to the machinery, R17 500. 2.8 Bought fuel for delivery vehicle by cheque, R400. 2.9 TikTok took R1 800 drawings from the business. 2.10 Cash received for services rendered to Mr Henry who is a valued a customer, R101 150 . QUESTION THREE [20] The following information was obtained from the accounting records of Nick Traders for year ended 31 December 2019: Closing stock for the 2019 year was R15 000 Required: 3.1. Differentiate using examples the different types of inventory systems. (4) 3.2. Calculate the gross profit percentages for both the 2018 and 2019 years. (16) QUESTION FOUR [20] 4.1. Define each of the following terms, provide an example where applicable: 4.1.1. Current asset (3) 4.1.2. Net asset value (2) 4.1.3. Going concern (2) 4.1.4. Noncurrent Liability (3) 4.2. With the aid of an appropriate flowchart, illustrate the accounting process. (10) QUESTION FIVE [15] The following list of balances was taken from the books of UBUNTU TRADERS at 28 February 2019 , end of financial year. Additional Information: a. Inventory on hand at 28 February 2019 is R15 350 b. The loan was granted on 01 March 2017 at 12% pa, payable every three months. Interest for the period 01 December 2018 to 28 February 2019 is payable on 01 March 2019. c. A store room was sublet from 01 June 2018 at R1 050 per month. d. Depreciation must be provided as follows: - Vehicles R3400 - Equipment R 560 Required: Prepare the statement of comprehensive income for the year ended 28 February 2019. END OF QUESTION PAPER QUESTION ONE The following financial information relates to Sporty Limited. Statement of changes in equity for the year ended 31 December 2019 R Dividends on ordinary shares 60000 Additional information 1. No equipment was purchased or sold during the financial year ended 31 December 2019 2. Ordinary shares were issued during the year. Required: Use the information provided above to prepare the cash flow statement for the year ended 31 December 2019 (indirect method). QUESTION TWO [20] Show the effect of the following transactions of TikTok Limited on accounting equation using the format provided. Use + if the element increases, - if the element decreases and 0 if the element remains unchanged. Also indicate the amount. Transactions: 2.1 Bought invoice books on credit, R1 300 . 2.2 Bought a computer by cheque, R230 000 . 2.3 Cash received for services rendered, R14 000. 2.4 Paid the annual fire insurance by cheque R22 400. 2.5 Received R2 000 from a debtor in part settlement of her account. 2.6 The tenant paid the monthly rental to TikTok Limited, R15 000 2.7 Received an account for repairs to the machinery, R17 500. 2.8 Bought fuel for delivery vehicle by cheque, R400. 2.9 TikTok took R1 800 drawings from the business. 2.10 Cash received for services rendered to Mr Henry who is a valued a customer, R101 150 . QUESTION THREE [20] The following information was obtained from the accounting records of Nick Traders for year ended 31 December 2019: Closing stock for the 2019 year was R15 000 Required: 3.1. Differentiate using examples the different types of inventory systems. (4) 3.2. Calculate the gross profit percentages for both the 2018 and 2019 years. (16) QUESTION FOUR [20] 4.1. Define each of the following terms, provide an example where applicable: 4.1.1. Current asset (3) 4.1.2. Net asset value (2) 4.1.3. Going concern (2) 4.1.4. Noncurrent Liability (3) 4.2. With the aid of an appropriate flowchart, illustrate the accounting process. (10) QUESTION FIVE [15] The following list of balances was taken from the books of UBUNTU TRADERS at 28 February 2019 , end of financial year. Additional Information: a. Inventory on hand at 28 February 2019 is R15 350 b. The loan was granted on 01 March 2017 at 12% pa, payable every three months. Interest for the period 01 December 2018 to 28 February 2019 is payable on 01 March 2019. c. A store room was sublet from 01 June 2018 at R1 050 per month. d. Depreciation must be provided as follows: - Vehicles R3400 - Equipment R 560 Required: Prepare the statement of comprehensive income for the year ended 28 February 2019. END OF QUESTION PAPER