Question
Use the information provided below, for Gift Dealers for the financial year ended 30 June 20.8, to answer questions 10 and 11: The following information
Use the information provided below, for Gift Dealers for the financial year ended 30 June 20.8, to answer questions 10 and 11: The following information was obtained from the accounting records of Gift Dealers on the last day of the financial year of the business: GIFT DEALERS TRIAL BALANCE AS AT 30 JUNE 20.8
Trade receivables control............... .............................................................................. | R |
35 476 | |
Settlement discount granted.. ........................................................................ | 450 |
Allowance for settlement discount granted................................................................... | 945 |
Allowance for credit losses .......................................................................................... | 1 950 |
Credit losses | 3 050 |
41 871 |
Additional information
(a) | M Mike, a debtor who owed Gift Dealers an amount of R3 256. was declared insolvent. The amount must be written off as irrecoverable. |
(b) | Gift Dealers determined on 30 June 20.8, that the allowance for credit losses should amount to R2 510. |
(c) Creditors with debit balances amounted to R1 200 and debtors with credit balances amounted to R955. The debit balances in the trade payable control account needs to be transferred to the trade receivables control account and the credit balance in the trade receivables control account needs to be transferred to the trade payables control account. No transfer regarding these debit and credit balances has been processed yet. 10. Which of the following amount will represent the correct balance for the trade receivable control account as at 30 June 20.8 after taking the additional information into consideration? (1) R32 220 (2) R29 570 (3) R32 011 (4) R32 465 (5) R34 375 11. Which one of the following amounts will be disclosed on the face of the statement of financial position under current asset for trade and other receivables as at 30 June 20.8, if you assume the balance for the trade receivable control account, after the additional information was taken into consideration, amounted to R41 500? (1) R38 990 (2) R38 045 (3) R38 605 (4) R39 100 (5) R30 920 Use the information provided below, for C City for the financial year ended 31 December 20.8, to answer questions 12 and 13: C City runs a business. He wants to apply a double entry system for the very first time and he needs your assistance. After an investigation, you ascertained the following information regarding his small business: On 1 January 20.8 C City had the following assets and liabilities: R Land and building ...150 000 Inventory...... 6 800 Bank. 9 500 Trade receivables control. 3 960 Trade payable control... 10 200 An analysis of his cash journals revealed the following:
Receipts | Payments |
R Received from debtors...146 960 | R Creditors and suppliers of merchandise.78 000 |
Refund from creditors. 450 | Debtors cheques dishonoured. 560 |
Rent income. 2 550 | Water and electricity.. 1 500 |
Interest on positive bank balance. 125 | Telephone expenses. 900 |
Wages.. 3 500 | |
Drawings..... 6 700 |
You also ascertain the following: (a) H Head, a debtor who owed R568 was written off during the year as irrecoverable.
(b) | Settlement discount granted amounted to R496 and settlement discount received amounted to R1 250. |
(c) | On 31 December 20.8, C City valued inventory at R 5 500, debtors owed him R5 900 and he owed creditors R12 500. |
12. The amount for net sales to be disclosed as revenue in the statement of profit or loss and other comprehensive income for the year ended 31 December 20.8? (1) R148 908 (2) R149 404 (3) R148 809 (4) R146 960 (5) R149 635 FAC1502/101/3/2020 13. Amount to be disclosed as cost of sales in the statement of profit or loss and other comprehensive income for the year ended 31 December 20.8? (1) R79 300 (2) R78 000 (3) R81 150 (4) R69 900 (5) R78 050 Use the information provided below, for Canoeing Club for the financial year ended 31 March 20.8, to answer questions 14 and 15: PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 MARCH 20.8
Accumulated fund................ ........................................................................... | R |
12 540 | |
Membership fees received.. ........................................................................ | 31 000 |
Membership fees in arrears 1 April 20.7 ................................................................ | 4 000 |
Membership fees prepaid 1 April 20.7............................. | 5 000 |
Donations received | 3 500 |
56 040 |
Additional information (a) Entrance fee and donations received must be capitalized. (b) Membership fees: In arrears at 31 March 20.8 R2 500 Received in advance at 31 March 20.8. R2 000
(c) | Five new members joined the club during the year. Each new member paid entrance fee of R200 and this entrance fee was included in membership fees received. |
(d) | Half of the membership fees that were in arrears on 1 April 20.7, must be written off as irrecoverable. |
(e) Canoeing Club has a deficit of R6 300 for the year ended 31 March 20.8. 14. Amount to be disclosed as membership fees in the income and expenditure statement for the year ended 31 March 20.8? (1) R37 500 (2) R33 500 (3) R34 500 (4) R28 500 (5) R31 500 15. The amount to be disclosed for accumulated fund in the statement of financial position for the year ended 31 March 20.8 will be (1) R 9 740 (2) R 6 240 (3) R10 740 (4) R18 840 (5) R17 040
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