Description
Boston City Campus
Academic Year 2024: July-December
Formative Assessment 2: Accounting Principles (HACP130-1)
NQF Level, Credits: 5, 14
Weighting: 20%
Assessment Type: Essay Questions
Educator: A. Mbendeni
Examiner: Sandile Mahlanze
Due Date: 25 October 2024
Total: 100 Marks
Instructions:
- This assignment consists of four (4) questions.
- It is based on Units 5 – 8 of your textbook.
- All questions are compulsory.
- SHOW ALL CALCULATIONS
- Your assessment must be typed using:
o Font: Arial
o Font size: 12
o Line spacing:
Question 1 [21 Marks]
- Opening balances from the general ledger accounts of DTI in May 2024.
Trade Receivables R 30000
Trade payables R 20000
Inventory R 25000
| Day | Details | Debit (R) | Credit (R) |
| 1 | Trade Receivable | 1050 | |
| Sales | 1050 | ||
| Cost of goods sold | 800 | ||
| Inventory | 800 | ||
| 2 | Inventory | 2000 | |
| Trade Payable | 2000 |
Required:
Post the above transactions from the general journal to the general ledger. (7 marks)
- Carole Stoke receives her April 6 2024, bank statement showing a balance of R910.55, her cash book balance is R1 002.85.
The bank statement shows an ATM charge of R29.20, Overdraft fee of R33.50, earned interest of R2.55, and Carol’s R656.50 refund check which was processed by the SARS and deposited in her account. Carol has two checks that have not cleared-Number 115 for R672.95 and Number 116 for R230.60. There is also a deposit in transit for R1 952.65.
Required: Prepare Carol’s bank reconciliation for the month of April 2024. (14 marks)
Question 2 [36 Marks]
You are provided with an excerpt of Roger’s company balance sheet as shown below?
| Roger Company Balance Sheet December 31, 2022 and 2023 | ||
| 2023 | 2022 | |
| Assets, Equity, Liabilities | Amount ( R) | Amount (R) |
| Trade Payable | 14 000 | 8 000 |
| Cash | 22 000 | 18 000 |
| Common shares | 20 000 | 20 000 |
| Mortgage note Payable | 12 000 | 20 000 |
| Building | 18 000 | 18 000 |
| Merchandise inventory | 9 000 | 7 000 |
| Salaries payable | 18 000 | 17 000 |
| Retained Earnings | 21 000 | 16 000 |
| Land | 24 000 | 24 000 |
| Prepaid rent | 4 000 | 5 000 |
| Trade receivable | 8 000 | 9 000 |
Required:
Draft Roger’s company statement of financial position for years 2022 and 2023.
Question 3 [21 Marks]
Statement of financial position as at 31 December 2024.
| 2024 (R ) | |
| Assets | |
| Non-current assets | |
| Property, Plant and equipment | 106, 835 |
| Financial assets | 14, 525 |
| 121,360 | |
| Current assets | |
| Inventories | 21 780 |
| Trade receivables | 32 350 |
| 54 150 | |
| Total Assets | 175 490 |
| Equity and Liabilities | |
| Equity | |
| Share Capital | 69, 150 |
| Other reserves | 8,775 |
| Retained Earnings | 21, 657 |
| Total Equity | 99, 582 |
| Non- current liabilities | |
| Long term borrowings | 23 450 |
| Deferred tax | 3, 313 |
| 26, 763 | |
| Current liabilities | |
| Current portion of long- term borrowings | 10 500 |
| Trade payables | 23 855 |
| Bank overdraft | 4 290 |
| Current tax payable | 10 500 |
| Total current liabilities | 49 145 |
| Total Liabilities | 75,908 |
| Total equity and Liabilities | 175 490 |
Required:
Prepare a statement of financial position for common size analysis.
[Leave your answers to two decimal places]
Question 4 [22 Marks]
Use this information to calculate the following ratios:
| R | |
| Current assets | 40,000 |
| Accounts Receivable | 44,000 |
| Total Current liabilities | 160,000 |
| Inventory | 2,000 |
| Prepaid expenses | 3,000 |
| Total Sales | 60,000 |
| Total assets | 70,000 |
| Net profit | 16,000 |
| Total Liabilities | 180,000 |
Required;
Calculate the following ratios using the above information.
- a) Current ratio
- b) Quick ratio
- c) Debt ratio
- d) Return to equity
- e) Asset turnover
- f) Net profit percentage
[Leave your answers to two decimal places]
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