Disclaimer
These study notes are meant to aid your academic journey. They are not a substitute for
individual research or professional guidance, and their accuracy, while strived for, is not
guaranteed. You are responsible for verifying the information and maintaining academic
integrity by avoiding plagiarism and adhering to citation rules. The notes may not cover all
variations of a subject, so tailor your assignments to your specific academic environment. The
seller is not liable for any outcomes resulting from the use or misuse of these notes. By using
these notes, you agree to this disclaimer, which may be updated without notice.
Assessment 4
Opened: Tuesday, 14 May 2024, 8:00 AM
Closes: Tuesday, 21 May 2024, 11:00 PM
218909
Attempts allowed: 1
Time limit: 2 hours
Grade to pass: 50.00 out of 100.00
Your final grade for this quiz is 98.75/100.00
Started on Thursday, 16 May 2024, 09:04 AM
State Finished
Completed on Thursday, 16 May 2024, 10:19 AM
Time taken 1 hour 15 mins
Marks 83.79/85.00
Grade 98.75 out of 100.00
Back to the couíse
• Everything necessary to attain an 90%+ in this assignment.
• Easily Search this pdf using CTRL+F to find questions on this document.
• Reach out to us if you have any issues +27 64 074 1961,
email: UnisaGuides@gmail.com
• BONUS!!!
On the last page of this document you will find a Google drive link with the following :
→
,Question 1
Answer saved
Marked out of 9.00
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.
- Interest incurred on the purchase of a CNC machine on credit from Big Traders was R660 for the year; no payments or
entries regarding this interest were made yet in the books of Iron Duke.
- Interest due on the long-term loan was R12 500 for the year ending 31 August 20.19 and was paid in cash on 2 September
20.19.
- On 31 August 20.19, Mr Will Turner, decided to trade-in the old delivery van for a new delivery van. The trade-in value was
R14 500, and the cost of the new delivery van was R60 000, with the difference settled in cash. (You only need to do the entry for
the acquisition of the new delivery van.)
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.
K Swa Traders which uses a perpetual inventory system and a mark-up of 35% on cost price had the following transactions during the
current financial year:
(a) Bought inventory for R9 000 cash and also paid cash for the carriage on purchases of R1 500.
(b) Inventory with a cost price of R4 000 was sold on credit.
NOTE: Ignore any VAT implications
Record the given transactions under the appropriate columns below:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has a increase as well as a decrease the net effect will be 0.
6. If an option has been provided that is not applicable to the question, please use N/A in the column to indicate that the option is not
applicable.
7. First do the sales entry, then the cost of sales entry.
8. Please make sure about the spelling of a term.
Subsidiary journal Account in the general ledger to be Net effect on Net effect on N
No assets = equity +
Debited Credited
(a) Cash Payments Journal Inventory Bank -9000 -9000 0
Cash Payments Journal Inventory Bank -1500 -1500 0
Indicate whether the following statement is true or false regarding the statement of financial position:
Equity is determined by deducting total liabilities from assets.
Select one:
True
False
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller UnisaGuides. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
