Use the information provided below for Herbie to answer questions 4 to 6. The following is the general ledger balances of Herbie a herb trading business entity as at 31 July 20.8: HERBIE EXTRACT FROM THE LIST OF BALANCES AT 31 JULY 20.8

R
Capital.. Drawings.. Vehicles at cost (1 August 20.7)...... Accumulated depreciation: Vehicles (1 August 20.7).	100 000 52 000 100 000 46 000
Inventory: Trading (1 August 20.8).. Stationery (1 August 20.7).... Fixed deposit... Bank (favourable).. Mortgage (ZZC bank) Commission income.. Insurance expenses.. Packing materials (1 August 20.7).. Rental income. Water and electricity expenses Deposit water and electricity. Advertising... Bank charges.. Communication and website expenses. Interest income... Salaries Trade receivables control.. Trade payables control..	116 000 11 200 200 000 38 974 380 000 192 888 27 000 9 000 77 900 105 100 2 000 260 000 5 564 7 600 8 500 376 000 80 000 67 000

FAC1502/101/3/2020 45 ASSIGNMENT 02 (continued) Additional information

(a) (b)

An annual rental income of R27 000 was received on 1 October 20.7. On 31 June 20.8 water and electricity of R33 000 was paid for the period up to 30 December 20.8.

(c) (d) (e)	On 31 July 20.8 stationery on hand amounted to R13 000. On 31 August 20.7 Herbie bought a new delivery van for R60 000 cash. Depreciation must still be provided for as follows:
-	Vehicles at 20% per annum on the diminishing-balance method.
(f) (g)	Packing materials on hand at 31 July 20.8 amounted to R6 000. On 31 August 20.8 an instalment of 5% on the mortgage was due. The interest payable on the mortgage is at a rate of 15% per annum and is still due for the current year. An inventory count on 31 July 20.8 revealed that inventory amounting to R66 000 was on hand. You may assume that the total comprehensive loss for the year, after all the above adjustments have been taken into account, amounted to R31 243.
(h)
(i)

4. The amount for rental income to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 July 20.8 will be (1) R22 500 (2) R73 400 (3) R 4 500 (4) R77 900 (5) R55 400 5. The amount for water and electricity to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 July 20.8 will be (1) R107 100 (2) R105 100 (3) R 79 600 (4) R 77 600 (5) R 99 600 6. The amount for finance charges to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 July 20.8 will be (1) R57 000 (2) R48 500 (3) R54 150 (4) R45 650 (5) R65 500 46 ASSIGNMENT 02 (continued) Use the information provided below, for Hey Dealers for the financial year ended 30 November 20.8, to answer questions 7 to 9: On 1 November 20.6, Hey Dealers bought a second-hand motor vehicle for a cash amount of R224 579 to be used in the business. On 31 August 20.8, Hey Dealers sold the second-hand motor vehicle to his friend for a cash amount of R155 000 and bought a new motor vehicle for a cash price of R450 780 on the same day. It is the accounting policy for Hey Dealers to provide for depreciation on motor vehicles at 20% per annum on the diminishing-balance method. Round your answer off to the nearest Rand. The financial year-end of Hey Dealers is at 30 November of each year. 7. What is the total accumulated depreciation of the disposed motor vehicle to be transferred to the realisation account at the date of disposal? (1) R 82 346 (2) R 78 603 (3) R 74 410 (4) R109 595 (5) R 73 662 8. What is the carrying amount of motor vehicles at the end of the financial year, 30 November 20.8? (1) R360 624 (2) R428 241 (3) R420 728 (4) R510 793 (5) R150 169 9. What is the profit/loss amount on the sale of motor vehicle to be disclosed in the statement of profit or loss and other comprehensive income for the year ended 30 November 20.8, if the total accumulated depreciation at the date of disposal amounted to R90 000? (1) R12 767 (Profit) (2) R20 421 (Loss) (3) R12 767 (Loss) (4) R20 421 (Profit) (5) R 4 083 (Profit) FAC1502/101/3/2020 47 ASSIGNMENT 02 (continued) 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 48 ASSIGNMENT 02 (continued) 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 49 ASSIGNMENT 02 (continued) 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 50 ASSIGNMENT 02 (continued) 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