Other Economics Answers

1. How can we cope with the issues on poverty and unemployment to improve the lives of the people? What would you tell him/her?
2. In what way is applied economics important in tackling economic issues or problems of the country?

A. Answer the following questions.

1. The world today is experiencing different problems including the COVID 19 pandemic. What do you think will happen to the economy of every country if the problems will not be solved? Why? 2. How can applied economics help solve economic problems?

3. What is scarcity?

4. How does scarcity affects a community?

5. How does basic economic problems affect socioeconomic development of the Philippines in the 21st century?

what is the impact of immigration and refugees on the populations

1.      Given the following cost function: C(x) = 3x+2/x+4 ,

a)     Find the MC function                                                                                                        

b) What is the marginal cost when  x=20

1.4 The account of a debtor who is experiencing financial difficulty is written off. This is an example

of the application of the ___________. (1)

A matching principle

B principle of consistency

C prudence principle

D principle of materiality

1.5 Which one of the following errors will be revealed by a trial balance? (1)

A. A balance from the general ledger was not entered in the trial balance.

B. A balance of a debtors account in the Debtors Ledger was incorrectly calculated.

C. A purchase of stationery was debited to the equipment account in error.

D. Rent received from a tenant was posted to the credit side of interest income account in the

ledger.

1.1 When expense and asset accounts are increased, the __________: (1)

A. expense account is debited and the asset account is credited.

B expense account is debited and the asset account is debited.

C expense account is credited and the asset account is debited.

D expense account is debited and the asset account is credited.

1.2 Which one of the following is not an example of a source document? (1)

A. Original credit sales invoice

B Original credit purchases invoice

C Duplicate receipt

D Bank statement

1.3 An unfavorable bank balance is an example of a/an ___________. (1)

A. expense

B current asset

C non-current liability

D current liability

Define the following terms briefly: Production Possibility Frontier; Scarcity and Shortage; Elasticity of Demand; Inferior good and normal good; laissez faire

REQUIRED

Study the information given below and answer the following questions:

5.1 Calculate the profit or loss on the disposal of the equipment. (5)

5.2 Prepare the following note to the financial statements as at 28 February 2020:

* Property, plant and equipment (15)

INFORMATION

The following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the

beginning of the financial year:

R

Vehicles 300 000

Accumulated depreciation on vehicles 140 000

Equipment 130 000

Accumulated depreciation on equipment 75 000

Additional information

1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019.

2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The

accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019.

3) Depreciation is calculated on equipment at 10% per annum on cost.

4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.

2.2 REQUIRED

Prepare the correct Creditors Control account for May 2020 after taking into account the additional

information, errors and omissions. Balance the account. (10)

INFORMATION

The Creditors control account given below was extracted from the records of Oyster Traders for May

2020 before the additional information, errors and omissions provided were considered:

Additional information, errors and omissions

1. The debit balance in the account of a creditor, R300, must be transferred to the Debtors ledger.

2. An invoice for goods purchased from Super Suppliers was entered in the Purchases journal as R6

400 instead of R4 600.

3. A credit purchase of equipment from Minto Enterprises was not recorded, R5 000.

4. A credit note received from HD Wholesalers for trading goods returned was not recorded in the

Purchases Returns Journal, R1 000.

5. Stardom Traders, a creditor, charged Oyster Traders interest on overdue account, R50

■ Show the effect of the following transactions of Montagu Stores on the Accounting equation. Use

“+” to denote an increase, “–” to denote a decrease and “0” to denote no change to the elements of

the equation. Copy the table in your answer book and follow the example given.

■ Assume that the bank balance is favorable at all times. (10)

Transactions

2.1.1 Received rent from the tenant, R3 000.

2.1.2 Received an account from Telstar Motors for motor vehicle repairs, R2 000.

2.1.3 Issued a cheque to Makro Suppliers for equipment purchased, R10 000.

2.1.4 Issued a receipt to the proprietor who increased her capital contribution by R200 000.

2.1.5 Received R1 000 from a debtor who settled his account.