102_2009_0_b - ASK131U/102/0/2009 SCHOOL OF ACCOUNTING...

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ASK131U/102/0/2009 Dear students, Enclosed please find the following: Contents Page 1 Presentation of financial statements 2 2 Self assessment assignment three 3 3 Suggested solution to self assessment three 12 Yours faithfully, L Govender (Mrs) Tel : 012 429 3931 LECTURER: ACCOUNTING SKILLS (ASK131U)
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2 1. PRESENTATION OF FINANCIAL STATEMENTS The International Accounting Standards Board (IASB) issued a revised International Accounting Standard 1 (IAS1). Unfortunately the amendments made to this standard brought about certain changes relating to the format of the financial statements. The first important aspect to note is that the names of some of the components of the financial statements have been amended. The following table lists the existing names of the components of the financial statements, as well as the revised names: Existing names Revised names Balance sheet Statement of financial position Income statement Statement of comprehensive income Statement of changes in equity Statement of changes in equity Another change is the wording in the statement of comprehensive income previously known as the income statement: Existing wording Revised wording Profit for the period Profit / total comprehensive income for the year Another change is the wording in the statement of financial position previously known as the balance sheet: Existing wording Revised wording Mortgage loan Mortgage PLEASE MAKE THE ABOVE CHANGES TO YOUR STUDY GUIDE AS SOON AS POSSIBLE.
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ASK131U/102/0/2009 3 2 SELF ASSESSMENT ASSIGNMENT THREE Question 1 1.1 The Accounting Equation Analyse the transactions below under the following headings: No Account Debit Account Credit A = E + L a) Paid the monthly rental at Midway Rentals with cheque no: 786, R4 500. b) Purchased inventory on credit from Desi Stores for R7 000. c) Sold goods for cash to Mr A Khumalo, for R1 500. (Mark-up on goods is 25% on cost) d) Received interest on a fixed deposit from LR Bank, R600. e) Paid the water and electricity account with cheque no: 787 to the local municipality, R980. f) Ms T Maharaj’s account of R300 must be written off as irrecoverable. g) The owner took cash for his own use, R1 000. N.B. The business uses the perpetual inventory system. 1.2 Standard costing RA Ltd manufactures and sells product X. The company uses a standard costing system. The standard variable cost per unit is: Material 2 metres @ R5,50 per metre Direct Labour 2,5 hours @ R7,50 per hour Variable overheads R3,00 Fixed overheads R2,00 The operating results for January 20.9 are as follows: Purchases 5 000 metres @ R3,00 per metre Units produced and completed 1 000 Material used 2 500 metres @ R5,50 per metre Direct labour 4 000 hours @ R8,75 per hour Indirect labour 3 500 hours @ R7,00 per hour Selling price per unit R25,00 (continued…)
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4 Question 1.2 (continued…) Required: Calculate the following variances: 1.2.1 Material quantity variance 1.2.2 Material price variance 1.2.3 Labour rate variance 1.2.4 Labour efficiency variance 1.3 Time value of money 1.3.1 Roxanne deposits R10 000 in a savings account paying 12,5% interest compounded annually. How much money will she have at the end of five years?
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This note was uploaded on 04/08/2010 for the course ICT ICT2621 taught by Professor Na during the Summer '10 term at University of South Africa.

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102_2009_0_b - ASK131U/102/0/2009 SCHOOL OF ACCOUNTING...

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