Accounting bookkeeping 511 assignment

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Faculty of Business, Economics & Management Sciences 
Bookkeeping 511 Assignment 
Richfield Graduate Field of Technology
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The purpose of an assignment is to ensure that the Learner is able to:

• Demonstrate an understanding of accounting principles.
• Systematically record the financial aspects of business transactions.
• Prepare financial statements to know the result of business operations for a particular period of time.
• To meet the financial information needs of the decision-makers and help them in rational decision-making.
• Report the results and position of business to “Users” of financial statements.
• Presenting ‘true and fair’ view of financial transactions.
• Show accurate calculations for all transactions.

QUESTION ONE (60 MARKS)

The following transactions during January 20.1 relate to F Fox, an attorney.

Date Transactions Amount

20.1 R

Jan 3 F Fox deposited as opening capital 20 000 Paid rent for January 20.1 2 300

• Bought law library on credit from Books Property Limited 24 000
• Bought a typewriter for cash from Leo Limited 1 700
• Provided services for cash 7 200
• Debited D Dunn with fees for services rendered 8 318
• Leo Limited repaired equipment on credit 100

13 F Fox drew a cheque for private use 1 234

18 F Fox received commission on a property transaction 1 350

• Paid the following by cheque
  • Salaries 8 350
  • Settled the amount owed to Leo Limited 100
• Received payment from D Dunn on his account 1 500

REQUIRED:

• For each of the transactions, state the most likely source document which will be generated and used to record the necessary entries. (15)

• Analyse the above transactions in tabular form as follows: (indicate the decrease by minus sign (–) and the increase by plus sign (+)) (45)

QUESTION TWO (40 MARKS)

Using the information in question one, process the following adjusting entries into account at monthend.

Adjusting entries:

• Deprecate equipment (typewriter) R850
• Depreciation on library must be provided at 8% on cost per annum.
• Salaries still outstanding at the end of January 2001, R4 200.

REQUIRED:

• Draft the adjusted summary statements of the financial position and financial performance at the end of January after taking additional information into account. (30)

• Presuming that F Fox can continue this performance, calculate the return on his investment which she may achieve after a year in business. Comment this return on investment. (10)