Started on Friday, 16 June 2023, 2:52 PM
State Finished
Completed on Friday, 16 June 2023, 4:52 PM
Time taken 2 hours
Marks 40.61/65.00
Grade 62.48 out of 100.00
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Question 1
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Que...
Started on Friday, 16 June 2023, 2:52 PM
State Finished
Completed on Friday, 16 June 2023, 4:52 PM
Time taken 2 hours
Marks 40.61/65.00
Grade 62.48 out of 100.00
Feedback Congratulations you have passed this assignment.
Question 1
Correct
Mark 9.00 out of 9.00
Flag question
Question text
On 1 September 20.18 Mr Will Turner started a new blacksmith business
called Iron Duke. Iron Duke manufactures and sells domestic cast iron
furniture. The following transactions took place during the first financial year
of the entity ending 31 August 20.19.
On 1 September 20.18 the owner, Mr Will Turner, made the
following capital contributions:
• Firstly, he invested a cash amount of R100 000 from his personal
savings account into the business bank account.
• He then made his new personal machine, the Belt Grinder,
available to the business. The cost of the Belt Grinder was R15 000.
• He also contributed his personal delivery van which had cost R45 000
when new. The vehicle was bought on 1 September 20.16 by Mr
Will Turner and had a
carrying value of R27 000 on 1 September 20.18 with only 3 years
useful life remaining.
Show the effect of each transaction on the basic accounting equation with a plus sign
(+) for an increase and a minus sign (-) for a decrease next to each amount under
each element. Also indicate the account(s) that will be affected by each transaction
next to the affected elements for the financial year ended 31 August 20.19. (The
business makes use of the perpetual inventory system.)
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
If an options has been provided and it is not applicable to the specific
questions please put N/A in the accounts column and a 0 in the amounts
column.
,Keep the transactions strictly in the order they were given.
Feedback
Your answer is correct.
Question 2
Correct
Mark 1.00 out of 1.00
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Question text
Indicate whether the following statement is true or false:
A disadvantage of using a single-entry bookkeeping system is that a single-
entry system leads to incomplete records, since the double-entry principle,
which requires that for each debit there must be a corresponding credit entry,
cannot be applied where only personal accounts are accounted for.
Select one:
True
False
, Feedback
Correct answer
The correct answer is 'True'.
Question 3
Partially correct
Mark 4.00 out of 5.00
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Question text
The following information was extracted from the accounting records of Lele Plastics:
Balances at 1 April 20.19 R
Equipment: Cost 80 000
Accumulated depreciation: Equipment (36 000)
Additional information
At the beginning of the financial year, 1 April 20.19, Lele Plastics replaced its
plastic shredding equipment with new glass recycling equipment that had a
purchase price of R56 000. The replaced plastic shredding machine was sold
on credit for R39 800, it was the only piece of equipment in the books of Lele
Plastics prior to the purchase of the new glass recycling equipment.
Depreciation is provided at 10% p.a. on the straight-line method.
Assuming the plastic shredding equipment was sold at a loss of R4 200, the effect of
the transaction on the accounting equation will be:
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
If an options has been provided and it is not applicable to the specific
questions please put N/A in the accounts column and a 0 in the amounts
column.
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