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)
|
ASSETS |
= = |
EQUITY |
+ + |
LIABILITIES | ||||
|
Date |
Library and Equipment |
Debtors |
Bank |
Capital |
Income/ Expenditure |
Creditors | ||
|
Total | ||||||||
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)
