Accounting Answers

 1.On January 1st 2013 Patels financial position was as follows Kshs 150,000 Motor Vehicle, Kshs 50,000 furniture, Kshs 30,000 Stock, Kshs 35,000 Bank, Kshs 30, 000 debtors includes Ann 30, 000, John ksh 4500

Creditors include: Robber Kshs 9,000 David Kshs 3500.

Required

From the above information determine Patels total assets, his liabilities and capital as at 1st January 2013.

Post adjusting entries, using the following information:

1. Ryce paid cash for the following utility bills for the month: Light Company $13,000. The actual light bill received from Light Company is $10,000.
2. Ryce stated business with a G Wagon valued at $1,200,000. Depreciation for the G Wagon has not been taken into account for the month. The business uses the reducing balance method to depreciate motor vehicles at a rate of 12 percent (12%) per annum.
3. Ryce purchased store furniture from Royal Cabinets Limited using a cheque amounting to $120,000. Also, Ryce paid Telesales Electronics $15,000 with a cheque to set up her point-of-sale machine at the store. The furniture and point-of-sale machine in the business are to be depreciated using the straight-line method at a rate of 8%. Depreciation for furniture and point-of-sale the machine has not been taken into account.

Which one of the following methods apportion the costs of service departments on a one- by- one basis to production department and other service departments?

•  A. Step method
•  B. Direct method
•  C. High-low method
•  D. Least squares method

Nomzi Traders sold furniture to a customer for R1 610 cash, the mark up on cost is 20%. Assuming Nomzi Traders uses a perpetual inventory system, is a registered VAT vendor and the VAT rate is 15%. (Round your answer off to the nearest Rand.) 

What will the cost of sales be for this transaction?

Discuss briefly the common and differences of audit substantives test objectives of the accounts in the financial statements.

Give an example of a qualified audit report.

Write an example of audit engagement letter to new audit client.

What are some places you can get a credit card?

How does a credit card work?

What happens if there is no money left in your credit card?

How do add more money in my credit card?

Can you provide me how the mechanics on how a credit card works? Thank you.