Which of the following represents a cash inflow from operating activities?
a. Cash paid for equipment purchases.
b. Cash received from sales.
c. Increase in accounts receivable.
d. Decrease in trade payables. OSCAR THE TUTOR
oscardiura@gmail.com
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials
,In which situation would a branch need to record an entry in the branch adjustment account?
a. When inventory is invoiced at selling price
b. When inventory is invoiced at cost price
c. When the branch makes a local purchase
d. When inventory is returned to the head office
Clear my choice
,Butha Buthe Enterprises is an entity in the supply of protective equipment and clothing based in
Thaba-Tseka with a branch in Maseru. The following information pertains to this branch.
Branch inventory on hand at selling price:
Thursday, 1 July 2021 R22,200
Thursday, 30 June 2022 R28,100
Transactions of the branch for the year ended 30 June 2022:
Inventory transferred to the branch at cost price R250,900
Returns to head office at selling price R12,500
Sales by the branch: R0
Cash (deposited into head office bank account) R164,400
Credit R81,600
Cash receipts from branch debtors R70,800
Discount allowed to branch debtors R1,800
Branch administrative expenses paid by head
R12,100
office
Additional information:
1. Inventory is purchased by the head office and supplied to the Maseru branch at selling price,
that is cost price plus 15%.
2. When final reconciliations were completed for the month of June 2022, it was discovered
that R2 100 was stolen from cash sales. No entries have been made to record this theft.
3. The branch held a summer sale during January 2022 to clear the festive season stock.
Inventory was sold at the selling price less 14%. The proceeds of the sale amounted to R42 330
and was included in the cash sales above.
4. Inventory invoiced to the branch at a selling price of R21 400, included in the amount above,
was still in transit at 30 June 2022.
Which one of the following alternatives represents the correct amount that must be recorded
as branch adjustment (mark-up on deliveries) in the branch inventory account?
a. R213,265
b. R213,260
c. R37,635
d. R250,900
Clear my choice
, What entry is made when inventory sent to a branch is invoiced at selling price?
a. Debit branch inventory at cost, credit inventory to branch at selling price
b. Debit branch inventory at selling price, credit inventory to branch at cost
c. Debit inventory to branch at selling price, credit branch inventory at cost
d. Debit branch inventory at selling price, credit branch adjustment at profit mark-up
Clear my choice
