{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# economics - 2009 Test 2 Question 1 Suggested solution a(11...

This preview shows pages 1–2. Sign up to view the full content.

1 2009 Test 2 Question 1 Suggested solution a. (11 marks) Interest Income 01/5/08 Accrued interest income 7 500 31/5/08 Bank 10 000 (R300k x 10% x 3/12) (R300k x 10% x 4/12) 30/4/09 Profit & loss 28 750 30/9/08 Bank 10 000 (R300k x 10% x 4/12) 31/1/09 Bank 10 000 (R300k x 10% x 4/12) 30/4/09 Accrued interest income 6 250 (R250k x 10% x 3/12) 36 250 36 250 Workings: Repayment dates so far: 01/2/07, 01/2/08, 01/2/09 Therefore 5 instalments remain Each instalment: R250 000 ÷ 5 = R50 000 Balance outstanding at beginning of year = R250 000 + R50 000 = R300 000 b. (3 marks) Dr Accrued salaries expense (L) 5 000 Cr Salaries expense 5 000 Reversal of prior year adjustment for unpaid salaries c. (2 marks) Rent paid = R36 600 R6 100 + R3 050 = R33 550 d. (5 marks) Accumulated depreciation - equipment 30/4/09 Balance c/d 76 500 01/5/08 Balance b/d 58 500 30/4/09 Depreciation expense 18 000 76 500 76 500 Workings: Depreciable amount = R200k R20k = R180 000 Depreciation expense per year = R180k ÷ 10 yrs = R18 000 No of months from 01/2/05 to 01/5/08 = 3 yrs x 12 mnths per yr + 3 months = 39 months Accumulated depreciation as at 01/5/08 = R18k x 39 /12 = R58 500 e. (4 marks) Dr Cost of sales expense 11 000 Cr Inventory (A) 11 000 Workings: NRV = R20k R5k = R15 000 Write-down of damaged inventory = R18k R15k = R3 000 Correct carrying value of inventory = R134k R3k = R131 000 Total write-down = R145k R131k = R11 000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 4

economics - 2009 Test 2 Question 1 Suggested solution a(11...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online