1.1 In column (1), indicate inwhich statement income statement (IS) or balance sheet (BS) the accountbelongs. 1.2 In column (2), indicatewhether the account is a current asset (CA), current liability (CL), expense(E), non-current asset (NCA), non-current liability (NCL), revenue (R) orsharehold equity (SE). The type of account must be in terms of IS and BSentries and not the basic accounting equation (BAE). (1) (2) Account name Statement Type of account Trade and other payables(Creditors) Trade receivables (Debtors) Accumulated depreciation Administrative expense Buildings Cash Ordinary share capital (atpar) Cost of goods sold Depreciation Equipment General expense Finance cost Inventories Land Long-term debt Machinery Short-term borrowings Operating expense Preference share capital Redeemable preference sharedividends Retained earnings Sales revenue Selling expense Taxation on profits Vehicle QUESTION 2 The following pre-adjusted balances have been extracted fromthe general ledger ofTrendline Traders for the year ended 31 December 2012.RCapital 2 000 000Cash at bank 90 000Buildings 600 000Vehicles 300 000Furniture 210 000Salaries 215 000Lights and Water 15 500Carriage on sales 22 000Commission received 19 300Rent received 14 000Insurance 4 800Packing Material 10 200Drawings 13 500Bad Debts 15 200Debtors 313 800Creditors 287 700Accumulated Depreciation: Vehicles 150 000Accumulated Depreciation: Furniture 95 000ADDITIONAL INFORMATIONa. The following transactions took place in respect of theparticular product that Trendline Traders sold during 2012.b. Depreciation must be provided for the current year asfollows:i. Vehicles 20% per annum on the cost priceii. Furniture 10% per annum on the reducing balance method(No vehicles or items of furniture were bought or soldduring the year)c. Trendline Traders requires a 30% mark-up on cost price.d. Trendline Traders uses a periodic inventory system.
1.1 In column (1), indicate in
which statement income statement (IS) or
belongs.
1.2 In column (2), indicate
whether the account is a current asset (CA), current liability (CL), expense
(E), non-current asset (NCA), non-current liability (NCL), revenue (R) or
sharehold equity (SE). The type of account must be in terms of IS and BS
entries and not the basic
(1)
(2)
Account name
Statement
Type of account
Trade and other payables
(Creditors)
Trade receivables (Debtors)
Administrative expense
Buildings
Cash
Ordinary share capital (at
par)
Cost of goods sold
Depreciation
Equipment
General expense
Finance cost
Inventories
Land
Long-term debt
Machinery
Short-term borrowings
Operating expense
Redeemable preference share
dividends
Sales revenue
Selling expense
Vehicle
QUESTION 2
The following pre-adjusted balances have been extracted from
the general ledger of
Trendline Traders for the year ended 31 December 2012.
R
Capital 2 000 000
Cash at bank 90 000
Buildings 600 000
Vehicles 300 000
Furniture 210 000
Salaries 215 000
Lights and Water 15 500
Carriage on sales 22 000
Commission received 19 300
Rent received 14 000
Insurance 4 800
Packing Material 10 200
Drawings 13 500
Bad Debts 15 200
Debtors 313 800
Creditors 287 700
Accumulated Depreciation: Vehicles 150 000
Accumulated Depreciation: Furniture 95 000
ADDITIONAL INFORMATION
a. The following transactions took place in respect of the
particular product that Trendline Traders sold during 2012.
b. Depreciation must be provided for the current year as
follows:
i. Vehicles 20% per annum on the cost price
ii. Furniture 10% per annum on the
(No vehicles or items of furniture were bought or sold
during the year)
c. Trendline Traders requires a 30% mark-up on cost price.
d. Trendline Traders uses a periodic inventory system.
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