Accounting bookkeeping 511 assignment

Faculty of Business, Economics & Management Sciences 
Bookkeeping 511 Assignment 
Richfield Graduate Field of Technology

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)