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Accounting
QUESTION 1
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date it had in issue $2,300,000
10% convertible loan stock. Conversion will be in 2007 Assume a corporation tax rate of 30%.
The earnings for the year were $2,208,000.
This loan stock will be convertible into ordinary $1 shares in 2007 as 90 $1 shares for $100
nominal value loan stock
Required:
Calculate the fully DEPS for the year ended 31st December 2004
QUESTION 2
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date there were outstanding
options to purchase 920,000 ordinary $1 shares at $1.7 per share. The average fair value of
ordinary shares was $1.80. Earnings for the year ended 31st December 2004 were $2,208,000.
Required
Calculate the fully DEPS for the year ended 31st December, 2004
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date it had in issue $2,300,000
10% convertible loan stock. Conversion will be in 2007 Assume a corporation tax rate of 30%.
The earnings for the year were $2,208,000.
This loan stock will be convertible into ordinary $1 shares in 2007 as 90 $1 shares for $100
nominal value loan stock
Required:
Calculate the fully DEPS for the year ended 31st December 2004
QUESTION 2
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date there were outstanding
options to purchase 920,000 ordinary $1 shares at $1.7 per share. The average fair value of
ordinary shares was $1.80. Earnings for the year ended 31st December 2004 were $2,208,000.
Required
Calculate the fully DEPS for the year ended 31st December, 2004
Accounting
The following is the budgeted information of Louw Traders: BUDGET 2020 Total Sales R March 900 000 April 1 050 000 May 1 140 000 June 1 200 000 Collections: 40% of sales are cash sales while 35% is collected one month after the sale and the remaining 25% is collected two months after the sale has taken place. Expenses: The expenses are expected to be maintained at 55% of the same month’s sales. Payments: 75% of expenses are paid in cash and 25% are paid one (1) month after incurring the expense. Opening cash balance: The business opening May cash balance is R30 000 Minimum cash balance requirement: The business requires a minimum cash balance of R15 000. Required: Q.6.1 Prepare the cash budget of Louw Traders for the months of May and June 2020. (25)
Accounting
why is a differentiation made between current liabilities and non-current liabilities.
Accounting
Covid Traders incurred the following transactions in March 2020.
Date Details
3 Entered into a loan agreement with WHO‐Bank to borrow R40 000. The money was
deposited directly into the bank account on the same day.
18 Bought a delivery motorcycle from Lockdown Motors for R25 000 and paid via EFT.
25 Purchased print paper and other stationary and paid from petty cash R250.
26 Paid salaries of R9 000 via EFT.
28 Received R27 000 with regards to cash sales made.
Required:
Analyse the transactions into the accounting equation by completing the table below. Clearly
indicate whether the applicable element of the accounting equation will increase or decrease as
well as whether the accounts will be debited or credited.
For example: Paid the telephone account via cheque for R300.
Day Assets = Owners equity + Liabilities
Ex. ‐R300
Cr Bank
‐R300
Dr Telephone
Date Details
3 Entered into a loan agreement with WHO‐Bank to borrow R40 000. The money was
deposited directly into the bank account on the same day.
18 Bought a delivery motorcycle from Lockdown Motors for R25 000 and paid via EFT.
25 Purchased print paper and other stationary and paid from petty cash R250.
26 Paid salaries of R9 000 via EFT.
28 Received R27 000 with regards to cash sales made.
Required:
Analyse the transactions into the accounting equation by completing the table below. Clearly
indicate whether the applicable element of the accounting equation will increase or decrease as
well as whether the accounts will be debited or credited.
For example: Paid the telephone account via cheque for R300.
Day Assets = Owners equity + Liabilities
Ex. ‐R300
Cr Bank
‐R300
Dr Telephone
Accounting
olisi Traders incurred the following Petty Cash transactions during the month of January 2020:
02 Notebooks and pens to be used for the first half of the year was purchased
from More Stationers for R200 (PC1).
05 Paid R90 to BigPostage for stamps using document PC2.
15 Purchased machinery from Giga Wholesalers of R300 (PC3).
20 The staff kitchen was low on coffee and R100 was used to purchase coffee
(PC4) from Super Café.
25 Weekly wages of R1 000 was paid and PC5 was completed.
You are required to:
Q.3.1 Record the above transactions in the Petty Cash Journal of Kolisi Traders for
January 2020.
Use the following layout for your answer.
Doc Day Details Petty
cash
Stationery Wages Sundries
Amount Details
(20)
02 Notebooks and pens to be used for the first half of the year was purchased
from More Stationers for R200 (PC1).
05 Paid R90 to BigPostage for stamps using document PC2.
15 Purchased machinery from Giga Wholesalers of R300 (PC3).
20 The staff kitchen was low on coffee and R100 was used to purchase coffee
(PC4) from Super Café.
25 Weekly wages of R1 000 was paid and PC5 was completed.
You are required to:
Q.3.1 Record the above transactions in the Petty Cash Journal of Kolisi Traders for
January 2020.
Use the following layout for your answer.
Doc Day Details Petty
cash
Stationery Wages Sundries
Amount Details
(20)
Accounting
Bank statement from Standup Bank for January 2020
DATE DETAILS DEBIT CREDIT BALANCE
Balance 450 000
06 Cheque B1 8 000 442 000
08 Cheque B2 2 500 439 500
09 Deposit 60 000 499 500
13 Cheque B3 20 000 479 500
15 Deposit 75 000 554 500
16 Cheque B4 4 000 550 500
18 Cheque B5 6 000 544 500
25 Cheque B6 500 544 000
27 Deposit 105 000 649 000
30 Interest earned 2 000 651 000
31 Bedelia Properties
(Stop order)
3 000 648 000
31 Bank charges 400 647 600
Q.6.3 Bank Account in the General Ledger.
Properly balance/close off this account.
(7)
Q.6.4 Bank Reconciliation Statement. (5)
DATE DETAILS DEBIT CREDIT BALANCE
Balance 450 000
06 Cheque B1 8 000 442 000
08 Cheque B2 2 500 439 500
09 Deposit 60 000 499 500
13 Cheque B3 20 000 479 500
15 Deposit 75 000 554 500
16 Cheque B4 4 000 550 500
18 Cheque B5 6 000 544 500
25 Cheque B6 500 544 000
27 Deposit 105 000 649 000
30 Interest earned 2 000 651 000
31 Bedelia Properties
(Stop order)
3 000 648 000
31 Bank charges 400 647 600
Q.6.3 Bank Account in the General Ledger.
Properly balance/close off this account.
(7)
Q.6.4 Bank Reconciliation Statement. (5)
Accounting
Cash Receipts Journal January 2020
DOC DAY ANALYSIS BANK
95 2 10 000
96 9 50 000 60 000
97 10 35 000
98 15 40 000 75 000
100 18 25 000
101 27 80 000 105 000
102 31 95 000 95 000
Cash Payments Journal January 2020
DOC DAY BANK
B1 5 8 000
B2 7 2 500
B3 12 20 000
B4 15 4 000
B5 17 6 000
B6 24 500
B7 25 30 000
B8 30 3 500
Prepare the following as part of the bank reconciliation process for January 2020.
Q.6.1 Cash Receipts Journal.
Start with the total before any amendments.
Only the document nr, date, details and bank columns are required.
(5)
Q.6.2 Cash Payments Journal
Start with the total before any amendments.
Only the document nr, date, details and bank columns are required.
(8)
DOC DAY ANALYSIS BANK
95 2 10 000
96 9 50 000 60 000
97 10 35 000
98 15 40 000 75 000
100 18 25 000
101 27 80 000 105 000
102 31 95 000 95 000
Cash Payments Journal January 2020
DOC DAY BANK
B1 5 8 000
B2 7 2 500
B3 12 20 000
B4 15 4 000
B5 17 6 000
B6 24 500
B7 25 30 000
B8 30 3 500
Prepare the following as part of the bank reconciliation process for January 2020.
Q.6.1 Cash Receipts Journal.
Start with the total before any amendments.
Only the document nr, date, details and bank columns are required.
(5)
Q.6.2 Cash Payments Journal
Start with the total before any amendments.
Only the document nr, date, details and bank columns are required.
(8)
Accounting
Steyn Traders has an opening debit bank balance of R450 000 per the accounting records in the
General Ledger.
Cash Receipts Journal January 2020
DOC DAY ANALYSIS BANK
95 2 10 000
96 9 50 000 60 000
97 10 35 000
98 15 40 000 75 000
100 18 25 000
101 27 80 000 105 000
102 31 95 000 95 000
Q.6.1 Cash Receipts Journal.
Start with the total before any amendments.
Only the document nr, date, details and bank columns are required.
General Ledger.
Cash Receipts Journal January 2020
DOC DAY ANALYSIS BANK
95 2 10 000
96 9 50 000 60 000
97 10 35 000
98 15 40 000 75 000
100 18 25 000
101 27 80 000 105 000
102 31 95 000 95 000
Q.6.1 Cash Receipts Journal.
Start with the total before any amendments.
Only the document nr, date, details and bank columns are required.
Accounting
The following is the budgeted information of Louw Traders:
BUDGET
2020
Total Sales R
March 900 000
April 1 050 000
May 1 140 000
June 1 200 000
Collections:
40% of sales are cash sales while 35% is collected one month after the sale and the remaining 25%
is collected two months after the sale has taken place.
Expenses:
The expenses are expected to be maintained at 55% of the same month’s sales.
Payments:
75% of expenses are paid in cash and 25% are paid one (1) month after incurring the expense.
Opening cash balance:
The business opening May cash balance is R30 000
Minimum cash balance requirement:
The business requires a minimum cash balance of R15 000.
Required:
Q.6.1 Prepare the cash budget of Louw Tradersfor the months of May and June 2020. (25)
BUDGET
2020
Total Sales R
March 900 000
April 1 050 000
May 1 140 000
June 1 200 000
Collections:
40% of sales are cash sales while 35% is collected one month after the sale and the remaining 25%
is collected two months after the sale has taken place.
Expenses:
The expenses are expected to be maintained at 55% of the same month’s sales.
Payments:
75% of expenses are paid in cash and 25% are paid one (1) month after incurring the expense.
Opening cash balance:
The business opening May cash balance is R30 000
Minimum cash balance requirement:
The business requires a minimum cash balance of R15 000.
Required:
Q.6.1 Prepare the cash budget of Louw Tradersfor the months of May and June 2020. (25)
Accounting
You are provided with the following trial balance of Kolbe traders for
February 2020.
Trial balance of Kolbe Traders at 29 February 2020
Fol Debit Credit
Statement of Financial Position Section
Capital B1 500 000
Equipment B2 200 000
Vehicles 40 000
Bank B3 5 000
Rent expense B4 20 000
Nominal Accounts section
Sales N1 65 000
Telephone N2 2 000
Repairs and maintenance N3 3 000
Interest expense N4 1 000
Salaries N5 24 000
? ?
Required:
Identify any errors/omissions on this trial balance and suggest how it should be corrected
February 2020.
Trial balance of Kolbe Traders at 29 February 2020
Fol Debit Credit
Statement of Financial Position Section
Capital B1 500 000
Equipment B2 200 000
Vehicles 40 000
Bank B3 5 000
Rent expense B4 20 000
Nominal Accounts section
Sales N1 65 000
Telephone N2 2 000
Repairs and maintenance N3 3 000
Interest expense N4 1 000
Salaries N5 24 000
? ?
Required:
Identify any errors/omissions on this trial balance and suggest how it should be corrected
