Exam (elaborations)
MANCOSA INTRO TO FIN ACC UNIT 1-3 EXERCISES
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this contains exercises for unit 1 to 3 of introduction to financial accounting each unit has its own exercise check out my FIN ACC package as well
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Page 1 of 3INTRODUCTION TO FINANCIAL ACCOUNTING
PROBLEM SOLVING EXERCISES 1
1. REQUIRED
■ Show the effect of the following transactions of Stella Traders on the Accounting equation:
Assets = Equity + Liabilities
■ Assume that the Bank balance is favourable at all times and that the perpetual inventory system
is in operation.
■ State increase by, decrease by or no change.
TRANSACTIONS
1.1 Obtained cash from the bank to increase the cash float, R800.
1.2 Received a credit invoice for stationery purchased, R400.
1.3 The owner used the funds of the business to pay her personal cell phone account, R500.
1.4 The owner increased her capital contribution from R100 000 to R150 000 by depositing cash
into the banking account of the business.
1.5 Purchased equipment on credit. The invoice amount of R10 000 was subject to a 10% trade
discount.
2. REQUIRED
■ Show the effect of the following transactions of Stella Traders on the Accounting equation:
Assets = Equity + Liabilities
■ Assume that the Bank balance is favourable at all times and that the perpetual inventory system
is in operation.
■ State increase by, decrease by or no change.
TRANSACTIONS
2.1 Received R900 from H. Hubert whose account was previously written off as irrecoverable.
2.2 Purchased equipment on credit from KM Wholesalers, R5 000.
2.3 An EFT was made to eThekwini Municipality for rates, R1 600.
2.4 Purchased a delivery vehicle for cash, R250 000.
2.5 An EFT for R800 was made to a creditor, LW Wholesalers, in full settlement of an account of
R825.
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