Accounting Answers

Equipment at carrying value R75 000
Vehicles at carrying value R 125 000
Trading inventory R180 000
Cash in bank R32 000
Debtors R31 500
Creditors R8 500
Loan: Second Bank (14%) R50 000
 The bank statements show a credit balance of R48 790 as at 30 June 2020.
 All the cash received has been deposited.
 A stock‐take performed on 30 June 2020, showed inventory on hand with a cost price of
R230 000.
 The debtors balance at year‐end is R38 000 and the creditors balance is R16 225.
 Equipment was purchased during the year at a cost price of R5 000.
 Depreciation on vehicles for the year amounted to R20 000 and for the equipment R15 000.
 The owner took R23 000 in cash for personal use during the year ended 30 June 2020.
 R5 000 was repaid on the loan during the year.

Equipment at carrying value R75 000
Vehicles at carrying value R 125 000
Trading inventory R180 000
Cash in bank R32 000
Debtors R31 500
Creditors R8 500
Loan: Second Bank (14%) R50 000
 The bank statements show a credit balance of R48 790 as at 30 June 2020.
 All the cash received has been deposited.
 A stock‐take performed on 30 June 2020, showed inventory on hand with a cost price of
R230 000.
 The debtors balance at year‐end is R38 000 and the creditors balance is R16 225.
 Equipment was purchased during the year at a cost price of R5 000.
 Depreciation on vehicles for the year amounted to R20 000 and for the equipment R15 000.
 The owner took R23 000 in cash for personal use during the year ended 30 June 2020.
 R5 000 was repaid on the loan during the year.

Hybrid dealers bought computer equipment for R 54 000 on 1July 2018. The equipment depreciated at 20% according to the diminishing balance method. Prepare the depreciation and closing entries in the general journal of Hybrid dealers on 31 March 2019 and 31 March 2020

Q.1.1 Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.

Required:
Prepare the depreciation and closing transfer entries in the general journal of
Hybrid Dealers on 31 March 2019 and 31 March 2020. (15)

Suppose we deposit $565 worth of currency into the bank. Banks make as many loans as possible, people hold no additional currency, and the reserve ratio is 15%. As a result of the loan process, what is the value of total deposits in the banking system? Enter a whole number with no dollar sign. Round to the nearest whole number.

What will my investment of R100 500 be worth if my bank pays me simple interest of 9% per annum and I invest my money for 180 days?

Question Three
a) Giving explain the distinction between capital and revenue expenditure. (4mks)
b) Explain how the imprest system functions and state its advantages. (6mks)
c) State and explain FIVE errors associated with trial balance. How are they corrected? (10mks)

Hybird dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20 %according to the diminishing balance method


Prepare the depreciation and closing transfer entries in the general journal of hybird dealers on 31 March 2019 and 31 March 2020

Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.
Required:
Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020.

Illustrate a permanent decrease in government spending
(let’s say infrastructure spending freeze) implemented in 2022. For simplicity,
assume there are no time lags. Now, illustrate that counter-cyclical monetary policy has been
implemented by the central bank. Again, use AE/PC Model (new set of graphs!).
Now your initial point is point B, mark the response as point C. There should be a
points B and C on both the upper graph and the lower graph, even if they are in the
same location. You can stop your analysis when the economy is stabilized (Y=Y*
again).
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