ACCOUNTING 1 BACHELOR OF COMMERCE

Transcription

1 JULY 2013 SUPPLEMENTARY/AEGROTAT EXAMINATION MODULE: ACCOUNTING 1 PROGRAMME: BACHELOR OF COMMERCE DATE: 31 July 2013 TIME: 09h00 12h00 DURATION: 3 hours MARKS: 100 EXAMINER: P. Salikram MODERATOR: N. Naidoo INSTRUCTIONS TO CANDIDATES: 1. Candidates are required to answer ALL FOUR questions. 2. This is a closed book examination. 3. No written material may be brought into the examination room. 4. Write legibly and neatly. 5. Do not turn over this page until permitted by the Invigilator. This question paper consists of six (6) typed pages excluding the cover page

2 QUESTION ONE [25] 1.1 The Times Limited sold equipment for R3 000 on credit. At the date of the sale the carrying value of the equipment was R Which of the following alternative is correct? (2) A/C.DEBIT A/C.CREDIT A = E + L a) Bank Equipment, Profit on sale of asset b) Creditors Equipment c) Debtors Equipment, Profit on sale of asset d) Debtors Equipment Net Asset Value is: (2) a) Assets minus Liabilities b) Non Current Assets c) Equity d) Both a and c 1.3 The following information relates to AB Trading: Debtors R Equipment R Bank Overdraft R Inventory R Vehicles R Creditors R Long term Loan R

3 The owner did not make any capital contributions or cash withdrawals for the year. Which of the following represents the NET PROFIT? (2) a) R b) R c) R d) R The following transactions were incurred by AC Traders, operating with a positive bank balance: (i) Cheque received in payment of services rendered on credit R5 000 (ii) Cheque issued for payment of Electricity bill R2 500 (iii)cheque issued to a creditor in payment of an outstanding account R3 000 (iv) Cheque for R6 000 issued for payment of non-current assets purchased for cash. Which one of the following alternatives represents the effect of the above transactions on the equity of the business? (2) a) +R2 500 b) R c) R6 500 d) +R J Spears purchased a motor vehicle on 1/7/2012 for R The motor vehicle is depreciated at 15% per annum on the straight line method. Which alternative represents the depreciation at 31/12/2012? (2) a) R7 500 b) R3 333 c) R3 750 d) R List 3 requirements of the Founding Statement. (6) 1.7 Explain the difference between Authorised Share Capital and Issued Share Capital. (4) 1.8 Name the three activity-based sections found in the Cash Flow Statement. (3) 1.9 List an advantage of the Cash Flow Statement. (2) 2

4 QUESTION TWO [35] S Peterson opened a consulting agency on the 01 March The following transactions took place for the year ended 28 February Date Transactions Amount 2012/13 R Mar 02 S Peterson deposited capital into the business bank account Mar 05 Paid rent by cheque Mar 06 S Peterson transferred her personal vehicle into the business as capital Apr 01 S Peterson purchased the following for cash: Photocopier Furniture Scanner Apr 05 Rendered services for cash May 01 Bought stationery on credit from XY Stationers 200 May 02 Paid telephone bill by cheque 500 May 05 Equipment purchased on credit from AB Dealers Jun 06 Services were rendered to J Joy on credit Aug 01 Equipment was sold for cash The carrying value of the equipment on date of the sale Sep 03 J Joy paid towards her account Nov 30 Cheque issued to AB Dealers Dec 01 S Peterson employed an assistant and paid wages by cheque Jan 25 S Peterson drew money for personal use Feb 28 Paid electricity bill by cheque Required: 2.1 Post the above transactions/accounts to the General Ledger. (25) 2.2 Prepare the Trial Balance at 28 February (10) 3

5 QUESTION THREE [30] The following information was extracted from the books of HONEYBEE STORES, a partnership business with partners H. Honey and B. Bee, on 28 February 2013, the last day of the financial year. PRE ADJUSTED TRAIL BALANCE OF HONEY BEE STORES AT 28 FEBRAURY DR Capital: H Honey (01/03/2012) Capital: B Bee (01/03/2012) Current Account: H Honey (01/03/2012) Current Account: B Bee (01/03/2012) Drawings: H Honey Drawings: B Bee Loan: ABSA (18% p.a.) Land and Buildings at cost Equipment at cost Vehicles at cost Accumulated Depreciation-Equipment (01/03/2012) Accumulated Depreciation-Vehicles (01/03/2012) Inventory Trade Debtors Provision for bad debts Trade Creditors Bank 570 Petty cash 250 Cash Float Sales Sales Returns Cost of Sales Salaries Rates Municipal Services R CR R 4

6 Advertising Discount received Bad debts 585 Packing material Insurance Rent Income Bank charges Interest on overdraft Interest on loan Stationery Other expenses Additional Information: 1) Goods to the value of R4 200 were delivered to the premises of a customer on 28 February The cost price of the goods was R No entry has been for this transaction. 2) The physical inventory taken on 28 February 2013 reflected the following items on hand: Trading inventory R Packing materials R 940 3) Provide for outstanding interest on loan. 4) Insurance included a premium of R3 600 for the period 1 November 2012 to 31 October ) On 25 February 2013, H. Honey took stationery with a value of R90, for personal use. No entry had been made for this transaction. 6) The monthly rent for February 2013 had not yet been received. 7) The account of a debtor, D. Daniel, who owed R270, must be written off. 8) The provision for bad debts must be adjusted to 5% of debtors. 9) Provide for depreciation as follows: Equipment R Vehicles - R ) The partnership agreement stipulated the following: a. Each partner is entitled to a monthly salary of R

7 b. The partners are to receive interest at the rate of 10% p.a. on the capital invested. NOTE: H. Honey had increased his capital by depositing an additional amount of R into the business bank account on 31 August c. The remaining profit/loss is to be shared in proportion of the capital balances of the partners at the end of the financial year. Required: Prepare the Statement of Comprehensive Income (Income Statement) for the year ended 28 February (30) QUESTION FOUR [10] The following information represents the fixed asset register of AB Trading for the year ended 31 December All assets are depreciated using the straight line method. ITEM DATE PURCHASED DATE SOLD COST R DEPRECIATION Furniture 01 February % Photocopier 01 January % Scanner 01 January % Required: Prepare the Property, Plant and Equipment Note to be presented on the Financial Statements for the year ended 31 December (10) END OF QUESTION PAPER 6