Jordan Rix RXXJOR002

Tut 4 FTX1005F

March 11th

a) General Ledger Accounts with Balances as of December 1, 2023:

1. Share Capital:
• Opening balance: R46,450.90
2. Land and Buildings:
• Opening balance: R85,000.00
3. Equipment:
• Opening balance: R20,144.50
4. Inventory:
• Opening balance: Not provided
5. Bank:
• Opening balance: R898.60
6. Trade Payables (Creditors):
• Opening balance: R19,600.00
7. Sales Income:
• Opening balance: R250,000.00
8. Cost of Sales Expense:
• Opening balance: R200,000.00
9. Service Income:
• Opening balance: R19,506.50
10. Consumable Stores Expense:
• Opening balance: R1,480.70
11. Salaries Expense:
• Opening balance: R8,433.60
12. Water and Electricity Expense:
• Opening balance: R18,500.00
13. Telephone Expense:
• Opening balance: R1,100.00

b) :

General Journal:

Date Account Titles and Explanation Debit (R) Credit (R)

Dec 1 Rent Expense 500.00
Bank 500.00
 Date Account Titles and Explanation Debit (R) Credit (R)
Dec 1 Bank 10,000.00
Share Capital 10,000.00
Dec 4 Equipment 4,720.80
Bank 4,720.80
Dec 6 Bank 4,010.35
Service Income 4,010.35
Dec 7 Consumable Stores 1,210.24
Trade Payables 1,210.24
Dec 12 Bank 5,860.44
Service Income 5,860.44
Dec 14 Bank 7,000.00
Share Capital 7,000.00
Dec 15 Consumable Stores 640.89
Bank 640.89
Dec 18 Bank 3,215.13
Sales Income 3,215.13
Dec 22 Vehicle 18,700.00
Bank 18,700.00
Dec 23 Bank 4,000.00
Service Income 4,000.00
Dec 27 Salaries Expense 7,993.38
Water and Electricity Expense 312.90
Telephone Expense 279.58
Bank 8,585.86
Dec 31 Bank 6,300.23
Service Income 6,300.23

General Ledger:

1. Share Capital:
• Opening balance: R46,450.90
• Dec 1: R10,000.00 (Credit)
• Dec 14: R7,000.00 (Credit)
• Closing balance: R63,450.90 (Credit)
2. Land and Buildings:
• Opening balance: R85,000.00
3. Equipment:
• Opening balance: R20,144.50
• Dec 4: R4,720.80 (Credit)
 • Closing balance: R24,865.30 (Credit)
4. Inventory:
• Opening balance: Not provided
5. Bank:
• Opening balance: R898.60
• Dec 1: R10,500.00 (Credit)
• Dec 4: R4,720.80 (Debit)
• Dec 6: R4,010.35 (Credit)
• Dec 15: R640.89 (Credit)
• Dec 18: R3,215.13 (Debit)
• Dec 22: R18,700.00 (Credit)
• Dec 23: R4,000.00 (Credit)
• Dec 27: R8,585.86 (Debit)
• Dec 31: R6,300.23 (Credit)
• Closing balance: R5,629.08 (Debit)
6. Trade Payables (Creditors):
• Opening balance: R19,600.00
• Dec 7: R1,210.24 (Debit)
• Closing balance: R20,810.24 (Debit)
7. Sales Income:
• Opening balance: R250,000.00
• Dec 18: R3,215.13 (Credit)
• Closing balance: R253,215.13 (Credit)
8. Cost of Sales Expense:
• Opening balance: R200,000.00
9. Service Income:
• Opening balance: R19,506.50
• Dec 6: R4,010.35 (Debit)
• Dec 12: R5,860.44 (Debit)
• Dec 23: R4,000.00 (Debit)
• Dec 31: R6,300.23 (Debit)
• Closing balance: R3,956.48 (Credit)
10. Consumable Stores Expense:
• Opening balance: R1,480.70
11. Salaries Expense:
• Opening balance: R8,433.60
• Dec 27: R7,993.38 (Debit)
• Closing balance: R15,427.98 (Debit)
12. Water and Electricity Expense:
• Opening balance: R18,500.00
• Dec 27: R312.90 (Debit)
• Closing balance: R18,812.90 (Debit)
13. Telephone Expense:
 • Opening balance: R1,100.00
• Dec 27: R279.58 (Debit)
• Closing balance: R1,379.58 (Debit)

c) Trial Balance at 31 December 2023:

Account Debit (R) Credit (R)

Share Capital 63,450.90
Land and Buildings 85,000.00
Equipment 24,865.30
Inventory
Bank 5,629.08
Trade Payables (Creditors) 20,810.24
Sales Income 253,215.13
Cost of Sales Expense 200,000.00
Service Income 3,956.48
Consumable Stores Expense 1,480.70
Salaries Expense 15,427.98
Water and Electricity Expense 18,812.90
Telephone Expense 1,379.58
Vehicle 18,700.00
Total 365,416.98 365,416.98

MCQ

3.1) b

3.2) b

3.3) b

3.4) b

3.5) b

3.6) b

3.7) c

3.8) d

3.9) a
3.10) b

(a) General Journal Entries for Adjustments:

1. Interest on Debentures:
• Dr Interest on Debentures (Finance Costs) 47,000 Cr 12% Debentures
(Long Term Loan) 47,000
2. Bad Debts Write-off:
• Dr Bad Debts Expense 900 Cr Trade Receivables (Debtors) 900
3. Adjustment for Stationery on Hand:
• Dr Administrative Expenses 1,750 Cr Inventory 1,750
4. Accrual for Outstanding Salaries:
• Dr Salaries Expense 1,800 Cr Salaries Payable 1,800
5. Depreciation on Vehicles:
• Dr Depreciation Expense - Vehicles 47,200 Cr Accumulated
Depreciation on Vehicles 47,200
6. Provision for Taxation:
• Dr Taxation Expense 98,600 Cr Taxation Payable 98,600

(b) Post-adjustment Trial Balance at 31 March 2023:

Account Debit (R) Credit (R)

Ordinary Shares 1,150,000
Retained Income (Earnings) 429,230
12% Debentures (Long Term Loan) 97,000
Vehicles 236,000
Accumulated Depreciation - Vehicles 101,800
Bank 35,770
Trade Payables (Creditors) 267,830
Trade Receivables (Debtors) 548,000
Investment in Associate Company 165,000
Inventory 541,150
Sales Income 1,674,340
Cost of Sales Expense 674,200
Salaries Expense 239,620
Administrative Expenses 100,400
Operating Expenses 34,500
Bad Debts Expense 3,460
Interest on Debentures (Finance Costs) 47,000
Taxation Expense 98,600
 Account Debit (R) Credit (R)
Taxation Payable 98,600
Salaries Payable 1,800
Depreciation Expense - Vehicles 47,200
Total 3,589,660 3,589,660

(c) Statement of Comprehensive Income (Income Statement) for the year ended 31
March 2023:

Description Amount (R)

Sales Income 1,674,340
Cost of Sales Expense (674,200)
Gross Profit 1,000,140
Operating Expenses (100,400)
Bad Debts Expense (3,460)
Salaries Expense (239,620)
Administrative Expenses (100,400)
Depreciation Expense - Vehicles (47,200)
Finance Costs - Interest on Debentures (47,000)
Taxation Expense (98,600)
Net Income Before Tax 363,860
Taxation Expense (98,600)
Net Income After Tax 265,260

Statement of Financial Position as at 31 March 2023:

Assets Amount (R) Liabilities and Equity Amount (R)

Vehicles 236,000 12% Debentures 97,000
Accumulated Depreciation - Vehicles (101,800) Taxation Payable 98,600
Trade Receivables (Debtors) 548,000 Salaries Payable 1,800
Investment in Associate Company 165,000
Inventory 541,150
Bank 35,770

Total Assets 1,424,120 Total Liabilities and Equity 1,424,120

Statement of Financial Position (Balance Sheet) for Kiki Ltd at 30 June 2023:

Assets Amount (R) Liabilities and Equity Amount (R)

Current Assets
Land and Buildings (Cost) 352,500 Current Liabilities
Inventory 37,000 Bank Overdraft (32,000)
Vehicles 87,600 Accumulated Depreciation:
Equipment (52,000)
Total Current Assets 477,100 Accrued Income 12,400
South African Income Services:
Non-Current Assets Income Tax (Dr Balance) 20,800
Trade Receivables (Debtors) 38,000 Trade Payables (Creditors) 109,300
Equipment (Cost) 154,000 Non-Current Liabilities
Mortgage Loan 36,000
Total Non-Current Assets 192,000 Total Liabilities 134,500

Total Assets 669,100 Equity

Share Capital (200,000 Class A
Ordinary Shares at R1 each) 200,000
Retained Earnings 40,000
Net Profit After Tax for the Year 185,000
Final Dividend (80,000)
Total Equity 345,000

Total Liabilities and Equity 669,100 Total Liabilities and Equity 669,100