Search & Filtering
Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation (Assets, Liabilities and Equities). 1. Purchased Furniture for Rs675000 2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account 3. Goods purchased on credit from Aman Enterprises for Rs105000 4. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000 5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the business's bank account
Financial statements should reflect a true and fair view of the business. Explain in your own words what is meant by this statement by explaining the qualitative characteristics of financial statements.
Financial statements should reflect a true and fair view of the business.
merry transferred birr 168,000 out of a personal saving bank account
The following information has been taken from the books of Lobelia Traders, a general trading shop in Braamfontein, for the month of April 2020: Lobelia Traders is a registered VAT vendor and trades only with registered VAT Vendors. The business charges 15% VAT on all its sales. TRANSACTION JOURNAL AMOUNT EXCLUDING VAT VAT AMOUNT AMOUNT INCLUDING VAT Cash sales CBR 35 000 A B Advertising paid CBP C D 920 Goods purchased for cash CBP E 750 F Drawings of Petty Cash GJ 500 G H Credit sales DJ I 1 200 J Q.3.2.1 Calculate the amounts for A to J (10) Q.3.2.2 Calculate the Input VAT Total (2½) Q.3.2.3 Calculate the Output VAT total (2½) Q.3.2.4 Calculate the Vat payable or refundable. Clearly indicate if it is payable or refundable and if it is an asset or liability (5)
Hoban limited
Govan Limited expects to purchase 40 000 components during 2021 with a purchase price of R20 per unit, an ordering cost of R2 per order and a carrying cost of 20 percent of the unit purchase price.Use this information given below to calculate the number of orders that should be placed during 2021 using the most advantageous quantity to order each time.
Financial statements should reflect a true and fair view of the business. Explain in your own words what is meant by this statement by explaining the qualitative characteristics of financial statements
Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by
arranging gift hampers for the customer's loved ones. The inflows arises from the sale of
gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is
confused on how to record these inflows. She would like to understand from you about
the concepts Revenue from operation and other income, so that she can record the
information so as to prepare the profit and loss statement of the enterprise. Define, share
examples, and elaborate on your understanding towards the terms Revenue from
Operation and Other Income
Ques. The following information is given with respect to the ratio's of two companies:
Current Ratio:
Aman Ltd- 2:01
Roger Ltd - 1.60:1
Quick Ratio:
Aman Ltd- 1.35:1
Roger Ltd - 1:01
Return on investment:
Aman Ltd- 15%
Roger Ltd - 13%
Debt Equity Ratio:
Aman Ltd- 2.5:1
Roger Ltd - 1:01
1) Define the concepts of Current and Quick ratio’s and also, reflect on your understanding
towards the financial performance of the companies by looking to the above information .
2) Define the terms- Return on Investment and Debt equity ratio and also, reflect on
your understanding towards the financial performance of the companies.
