FAC
exam pack from 2015 to 2017.pdf

Balance means that the double entry has already been

Info icon This preview shows pages 98–105. Sign up to view the full content.

balance means that the double entry has already been completed, that is, it is already included in accumulated depreciation unless information is given to the contrary. 4.2 W. S DEALERS STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2010 R Balance as at 01 April 2009 207 300 Total comprehensive income for the year 43 560 Drawings (23 000) Balance as at 31 March 2010 227 860 NOTES ¾ The profit for the year belongs to the owner, therefore, it should be added to the equity/ capital and the drawings reduce the owner`s equity, as such, these are deducted from capital. 77 | P a g e
Image of page 98

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

FAC1502 2014 ¾ The closing balance is the one that will be disclosed as Capital under the Equity Section in the Statement of Financial position. 4.3 W. S DEALERS STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2010 Assets R Non-current assets 95 600 Property plant & equipment (NOTE 1) 15 600 Fixed deposit 80 000 Current assets 151 260 Inventories (R22 000+R1 500) 23 500 Trade & other receivables (R21 300 – R1 200) 20 100 Accrued income (12% x 80000 = 9600 – 8800) 800 Prepaid expenses: Insurance (R2 880x9/12) 2 160 Cash and cash equivalents (R102 700 + 2000) 104 700 Total assets 246 860 EQUITY & LIABILITIES EQUITY 227 860 Capital (Balance per S.C.E) 227 860 LIABILITIES Current liabilities 19 000 Trade & other payables (R12 100+4 500) Rent Income Prepaid (R3 600 x 8/12) 16 600 2 400 Total equity and liabilities 246 860 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010 NOTE 1: PROPERTY, PLANT AND EQUIPMENT R Carrying amount at end of year Cost Accumulated Depreciation 15 600 24 000 8 400 Calculation 1 Trade and Other Receivables R Debtors` Control Allowance for credit losses 21 300 (1 200) 20 100 Accrued income (12% x R80 000 = R9 600 – R8 800) 800 Trade and Other Receivables 20 900 78 | P a g e
Image of page 99
FAC1502 2014 MAY – JUNE 2011 79 | P a g e
Image of page 100

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

FAC1502 2014 80 | P a g e
Image of page 101
FAC1502 2014 81 | P a g e
Image of page 102

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

FAC1502 2014 SOLUTION 1: BANK RECONCILIATION OSSO TRADERS GENERAL LEDGER Bank Account Bank b/d 540 Total cash payments 49260 Total receipts 74700 Bank charges (305+137) 442 Stale cheques: 401 1683 J. Bronko (erroneously recorded) (15850 - 15170) 680 405 137 Balance c/d 34787 407 B. Crux (cheque undercast) A. Randwell (cancelled cheque) 5367 900 1842 85169 85169 Balance b/d 34787 1.2 Bank reconciliation statement as at 31 January 2011 DEBIT CREDIT Balance as per bank statement 10170 Outstanding cheques 405 1571 480 2700 491 1072 Outstanding deposits 28920 Incorrect deposit 1980 Incorrect cheques drawn ROSSO T cheque wrongly debited in the OSSO account Debit balance as per bank account 34787 3020 42110 42110 82 | P a g e
Image of page 103
FAC1502 2014 NOTES (a) Bank charges should be debited in the bank account as the business usually verifies these from the bank statement. They will not have been captured during the month. (b) Stale cheques are cheques that will have exceeded their acceptance date, usually six months. When the business paid out these cheques, they included them in the cash payments journal. Since they are no longer payable by the bank, they have to be reversed by increasing our bank account.
Image of page 104

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

Image of page 105
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern