Write down corresponding correct letter next to the question number only. Eg. 1.11 A

Additional information:

Non-current assets with a cost of R2 000 000 were sold during the year, and a loss of R400 000 was incurred.

Depreciation of R4 800 000 was provided for during the 2015 financial year.

Long-term loans of R4 000 000 were paid during the year.

An investment of R1 200 000 was both acquired and disposed of during the year.

All sales were made on credit.

ABC Limited marks up its goods for resale by 50% on cost in order to calculate its selling price.

5.1.9 In the statement of cash flows, which one of the following is it not possible to consider as an investing activity?

a) The cash payment to acquire inventory

b) The cash payment to acquire property

c) The cash payment to acquire shares in another company

d) The cash payment to acquire goodwill in another company

e) The cash payment of a loan to a third party 5.1.10 Which one of the following will result in a decrease in the cash position in a company?

a) The acquisition of a mortgage bond

b) The decrease in accounts receivable

c) The increase in accounts payable

d) The increase in inventory

) The issue of shares

5.2 Discuss three (3) disadvantages of a partnership.

5.3 Explain the purpose of preparing a bank reconciliation

Information for questions 5.1.1 to 5.1.8 ABC LIMITED Trial balance as at 31 December 2015 2015 2014 R'000 R'000 Non-current assets cost Investments Trade receivable Inventory Accrued income Bank Administration and selling expenditure Loss on disposal of investments Interest expense Taxation expense Dividends declared 22 000 6 000 7 200 10 000 800 2 400 48 400 800 2 000 4 000 1 600 105 200 16 000 0 6 800 7 200 0 1 600 0 0 1600 2 800 1 600 37 600 Share capital Dividends payable Trade payable Accumulated depreciation - non-current assets Taxation payable Interest payable Long-term loan Gross profit Interest income Accumulated profit 7 600 800 4 800 8 000 1 200 400 16 000 60 000 800 5 600 105 200 4 000 1 600 2 400 4 000 400 1 600 12 000 7 600 0 4 000 37 600