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t Allied Bank on 1 February 2020. The business purchases from iness, the business is expected to pay Thabo's father 1% of the "endor. rsons/entities listed in the first column below are users of the f

t Allied Bank on 1 February 2020. The business purchases from iness, the business is expected to pay Thabo's father 1% of the "endor. rsons/entities listed in the first column below are users of the f

FINANCIAL ACCOUNTING
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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Question 1
Thabo Baloyi is the owner of Thabo's General Dealer business in Orlando East. He started the business on 1 January 2020. He is married to Cynthia, however she has no involvement in the business. Thabo employees only one assistant, Lucas. Thabo is a member of the Infinity Medical Aid. Most of Thabo's sales are for cash, however he does provide credit sales to 2 debtors, namely, Mr Khumalo and Miss Ncube. In order to start his business Thabo took a 3-year loan from First Allied Bank on 1 February 2020. The business purchases from one supplier, AB Wholesalers on credit. Thabo's father invested R50 000 in the business, the business is expected to pay Thabo's father 1% of the profit annually in the form of a dividend. Thabo's General Dealer is a registered VAT Vendor. Q.1.1 If the persons/entities listed in the first column below are users of the financial information of Thabo's General Dealer, then place a cross in the applicable column (i.e. investor, employee, lender, etc.). If not, then place a cross in the "Not a user" column. There is only one correct answer per person/entity. Thabo Cynthia Lucas Infinity Medical Aid Mr Khumalo Miss Ncube First Allied Bank AB Wholesalers Thabo's Father Receiver of Revenue Investor Employee Japua) Supplier Customer Government agency Owner Not a user
Transcribed Image Text:Thabo Baloyi is the owner of Thabo's General Dealer business in Orlando East. He started the business on 1 January 2020. He is married to Cynthia, however she has no involvement in the business. Thabo employees only one assistant, Lucas. Thabo is a member of the Infinity Medical Aid. Most of Thabo's sales are for cash, however he does provide credit sales to 2 debtors, namely, Mr Khumalo and Miss Ncube. In order to start his business Thabo took a 3-year loan from First Allied Bank on 1 February 2020. The business purchases from one supplier, AB Wholesalers on credit. Thabo's father invested R50 000 in the business, the business is expected to pay Thabo's father 1% of the profit annually in the form of a dividend. Thabo's General Dealer is a registered VAT Vendor. Q.1.1 If the persons/entities listed in the first column below are users of the financial information of Thabo's General Dealer, then place a cross in the applicable column (i.e. investor, employee, lender, etc.). If not, then place a cross in the "Not a user" column. There is only one correct answer per person/entity. Thabo Cynthia Lucas Infinity Medical Aid Mr Khumalo Miss Ncube First Allied Bank AB Wholesalers Thabo's Father Receiver of Revenue Investor Employee Japua) Supplier Customer Government agency Owner Not a user
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