(1 X 10) (10) 1.2 Analyse the following transactions of Lowveld Traders. Assume the bank balance is favourable. Example: The owner increases his capital contribution by R5 000 by depositing money into the bank account. No. Source document Account Account credited OE debited Bank e.g. Duplicate recelpt Capital +5 000 +6 000 0. Transactions: 1.2.1 Receive R10 560 from Money Bank, it was for a fixed deposit of R10 000 and (7) Interest. 1.2.2 Credit card sales for the week amounts to R25 000. Mark-up on cost is 25%. (10) 1.2.3 Goods returned by a debtor, R1 000, cost price R700. (9) 1.2.4 Receive R580 from a debtor in settlement of his account of R600, (8) 1.3 The debtor's clerk of Lowveld Traders has limited knowledge and training in Accounting. As a result, he is making errors on the documents being issued and the recording in the books of the business. Give THREE suggestions to try to solve the problem. • Give THREE suitable reasons for your recommendations. (6) 50

(1 X 10) (10) 1.2 Analyse the following transactions of Lowveld Traders. Assume the bank balance is favourable. Example: The owner increases his capital contribution by R5 000 by depositing money into the bank account. No. Source document Account Account credited OE debited Bank e.g. Duplicate recelpt Capital +5 000 +6 000 0. Transactions: 1.2.1 Receive R10 560 from Money Bank, it was for a fixed deposit of R10 000 and (7) Interest. 1.2.2 Credit card sales for the week amounts to R25 000. Mark-up on cost is 25%. (10) 1.2.3 Goods returned by a debtor, R1 000, cost price R700. (9) 1.2.4 Receive R580 from a debtor in settlement of his account of R600, (8) 1.3 The debtor's clerk of Lowveld Traders has limited knowledge and training in Accounting. As a result, he is making errors on the documents being issued and the recording in the books of the business. Give THREE suggestions to try to solve the problem. • Give THREE suitable reasons for your recommendations. (6) 50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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