VoWiFi ← 3 K/s ACC 512 ASSIGN 2024 (1... a 90% 6:27 QUESTION THREE (20 MARKS) The following information was obtained from the accounting records of T Super and B Man, Trading as Superman Traders: Balances as at 28 February 2011: Profit for the year (before depreciation).. Asset replacement reserve (1 March 2010).... Capital: T Super... Capital: B Man Current account: T Super (Dr - 1 March 2010).. Current account: B Man (Cr-1 March 2010).. Drawings: T Super..... Drawings: B Man....... R 574 420 30 000 775 000 775 000 9750 4340 10 000 7630 Long-term loan: US Bank. Inventories. Debtors control.. Creditors control. Land and buildings... Equipment at cost... Accumulated depreciation: Equipment (30 November 2010) Vehicles at cost. Accumulated depreciation: Vehicles(1 March 2010) Bank (Cr). Allowance for credit losses Allowance for settlement discount Depreciation (Equipment as at 30 November 2010) Prepaid expenses (Insurance) Additional information: a. Land and buildings consists of: Land - Erf 529 Midrand, bought on 1 March 2008 for R900 000. 660 000 835 600 288 850 159 650 1 500 000 280 000 80 000 170 000 24 000 15 130 3 600 5250 1860 2 700 Building - The building was erected during the year at a total cost of R600 000 and was only occupied on 1 January 2011. b. On 30 November 2010 equipment with a cost price of R35 000 was sold at a loss of R3 000. At that date, the accumulated depreciation on the equipment sold amounted to R12 060. All the transactions regarding the sale were recorded correctly. c. Depreciation must still be provided for as follows: Buildings: 2% per annum on the straight line method. Equipment: 10% per annum on the diminished balance method. Vehicles: 20% per annum according to the straight line method. d. Inventories consist of: Merchandise, R830 000 Stationery, RS 600 ngtot REQUIRED: Prepare ONLY the note in respect of property, plant and equipment. The total column can be omitted. NB: Show all calculations QUESTION FOUR The following information relates to Richfield Distributors: Pre-adjustment trial balance of Richfield Distributors as at 31 December 20.1 Capital (1/01/20.1) (20 MARKS) यु Debit R Credit R 141 700 Land and Building (at cost) Vehicle (at cost) Equipment (at cost) 263 240 40 000 9 000 Accumulated deprec' tior: Vehicle (1/02/20.1)-ın Accumulated depreciatio: Equipment (1/01/20.1) 11 200 1710 Fixed deposit: Spot Bank Ltd..... 11 11 12 13 14 15 1 50 000

VoWiFi ← 3 K/s ACC 512 ASSIGN 2024 (1... a 90% 6:27 QUESTION THREE (20 MARKS) The following information was obtained from the accounting records of T Super and B Man, Trading as Superman Traders: Balances as at 28 February 2011: Profit for the year (before depreciation).. Asset replacement reserve (1 March 2010).... Capital: T Super... Capital: B Man Current account: T Super (Dr - 1 March 2010).. Current account: B Man (Cr-1 March 2010).. Drawings: T Super..... Drawings: B Man....... R 574 420 30 000 775 000 775 000 9750 4340 10 000 7630 Long-term loan: US Bank. Inventories. Debtors control.. Creditors control. Land and buildings... Equipment at cost... Accumulated depreciation: Equipment (30 November 2010) Vehicles at cost. Accumulated depreciation: Vehicles(1 March 2010) Bank (Cr). Allowance for credit losses Allowance for settlement discount Depreciation (Equipment as at 30 November 2010) Prepaid expenses (Insurance) Additional information: a. Land and buildings consists of: Land - Erf 529 Midrand, bought on 1 March 2008 for R900 000. 660 000 835 600 288 850 159 650 1 500 000 280 000 80 000 170 000 24 000 15 130 3 600 5250 1860 2 700 Building - The building was erected during the year at a total cost of R600 000 and was only occupied on 1 January 2011. b. On 30 November 2010 equipment with a cost price of R35 000 was sold at a loss of R3 000. At that date, the accumulated depreciation on the equipment sold amounted to R12 060. All the transactions regarding the sale were recorded correctly. c. Depreciation must still be provided for as follows: Buildings: 2% per annum on the straight line method. Equipment: 10% per annum on the diminished balance method. Vehicles: 20% per annum according to the straight line method. d. Inventories consist of: Merchandise, R830 000 Stationery, RS 600 ngtot REQUIRED: Prepare ONLY the note in respect of property, plant and equipment. The total column can be omitted. NB: Show all calculations QUESTION FOUR The following information relates to Richfield Distributors: Pre-adjustment trial balance of Richfield Distributors as at 31 December 20.1 Capital (1/01/20.1) (20 MARKS) यु Debit R Credit R 141 700 Land and Building (at cost) Vehicle (at cost) Equipment (at cost) 263 240 40 000 9 000 Accumulated deprec' tior: Vehicle (1/02/20.1)-ın Accumulated depreciatio: Equipment (1/01/20.1) 11 200 1710 Fixed deposit: Spot Bank Ltd..... 11 11 12 13 14 15 1 50 000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 21PC

See similar textbooks