test 2 222222222222222222

test 2 222222222222222222 - DEPARTMENT OF ACCOUNTING...

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1 DEPARTMENT OF ACCOUNTING FINANCIAL ACCOUNTING (ACC1006/1106F) TEST 2 1.5 HOURS 28 APRIL 2009 75 MARKS 1. Please do not open this paper until instructed to do so. 2. Answer each question on a separate page. Blue or black pen must be used for written answers. Workings may be done in pencil. 3. Show all your workings clearly. Marks are awarded for workings. 4. No student is to leave the test venue during the first 30 minutes or the last 20 minutes of the test. 5. Round off all calculations to the nearest Rand. 6. No questions will be answered by the invigilators during the test. Make whatever assumptions you deem appropriate and clearly state these in your answer. Any reasonable assumption will be considered. 7. Any student who continues to write after the test period is guilty of cheating and will be subject to the relevant university disciplinary procedures . 8. Any student who is found cheating during the test will be awarded a zero mark for the test and be subject to the relevant university disciplinary procedures. Question Marks Suggested time 1 47 56 2 28 34 Total 75 90 THIS TEST CONSISTS OF 4 PAGES, INCLUDING THE COVER SHEET.
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2 QUESTION 1 (47 marks : 56 minutes) Ozzie Olive imports olives grown in the Australian outback and sells them to South African restaurants. The year-end of the business is 30 April. You have been provided with the following information. Pre-Adjustment Trial Balance of Ozzie Olive (extract) as at 30 April 2009 DR CR Equipment 200 000 Accumulated depreciation – equipment ? Loan to staff member 250 000 Inventory 142 000 Trade receivables 145 000 Allowance for doubtful debts 2 400 Accumulated profit 45 500 Drawings 28 000 Sales income 560 000 Cost of sales expense 240 000 Interest income ? Salaries expense 120 000 Rent expense ? Stationery expense 11 850 Additional information 1. All reversals were processed correctly on 1 May 2008. 2. On 1 February 2006, the business made a loan to a staff member. The terms of the loan were that it would be repaid in 8 equal annual instalments, beginning on 1 February 2007, and that interest would be paid to the business every 4 months in arrears, on 31 January, 31 May, and 30 September, at a rate of 10% p.a. All interest amounts have been received on the due date. The bookkeeper records all interest receipts as interest income.
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This note was uploaded on 02/28/2012 for the course ACC !006S taught by Professor Jaquiqueue during the Spring '11 term at University of Cape Town.

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test 2 222222222222222222 - DEPARTMENT OF ACCOUNTING...

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