Week+2 - FINANCIAL ACCOUNTING (ACC1006S) SUGGESTED...

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FINANCIAL ACCOUNTING (ACC1006S) SUGGESTED SOLUTIONS TUTORIALS HANDED IN ON 10 AUGUST 2009 TUTORIAL 4 (solution): FINPOS001 1. The financial position of a business shows the types ( ) of assets that a business has and how ( ) the assets have been funded. 2. The equity section shows the claim that the owner has on the assets of the business as a result of either contributions ( ) or profits through business operations less withdrawals by the owner (accumulated profit) ( ) . 3. The liabilities section represents the claim that outside lenders have on the assets of the business ( ) . 4. Generally Accepted Accounting Practice ( ) . 5a) Assets have increased by R70 000 [R677 000 (2001) – R607 000 (2000)] ( ) . 5b) Assets have increased: due to an additional capital contribution ( ) of R60 000 by the owner and through an increase in accumulated profit due to business operations ( ) of R10 000 (assuming that there are no withdrawals by the owner) there is no change in outside funding 6. E = A - L a + 60 000 (capital) ( ) + 60 000 (furniture) ( ) b + 18 000 (inventory) ( ) + 18 000 (accounts payable) ( ) 7. The net asset value of the business would decrease by R3 400
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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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Week+2 - FINANCIAL ACCOUNTING (ACC1006S) SUGGESTED...

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