Vanessa M.

asked • 04/06/15

i need help answering this question

Question 1 (30 marks)

Hangula TV Services entered into the following transactions during November 2009:
1 H Hangula, the owner, opened a bank account in the name of the undertaking and deposited N$5 000.
7 Services were rendered on account, N$12 000.
15 He paid wages, N$1 600.
19 Clients invoiced on 7 November paid N$6 000 on account.
25 Rendered services for cash, N$2 500.
27 Office equipment was purchased for cash, N$1 800.
28 Purchased land for N$40 000 for the erection of a building for the undertaking for cash.
29 Received the following accounts for the month and paid cash:
Telephone N$550
Municipal services N$700.

Required
1 Enter the above transactions in the suitable general ledger accounts in the ledger of Hangula TV Services and determine the balances of the accounts. 23
2 Compile a trial balance at 30 November 2009. 7






Question 2 (50 marks)

On 28 February 2009 the following information was extracted from the books of Capricorn Sweets, a trader in sweets:
Dr Cr
N$ N$
Accounts payable 5 000
Accounts receivable 26 000
Bank (favourable) 34 000
Capital 130 200
Delivery vehicle 45 000
Discount received 600
Drawings 25 300
Freight on purchases 7 000
Freight on sales 4 000
Insurance 900
Inventory 40 000
Loan Bank Windhoek 25 000
Municipal expenses 2 400
Provision for doubtful debts 900
Purchases 60 000
Rent expense 4 200
Salaries 24 000
Sales (net) 112 600
Stationery (expense) 1 500
274 300
274 300

Additional information
1 Stationery amounting to N$1 000 was still on hand on 28 February 2009.
2 Capricorn Sweets donated N$60 cash to a local orphanage.
3 Doubtful debts of N$200 should be written off.
4 Provision for doubtful debts should be adjusted to 10% of outstanding debtors.
5 Rent was paid for 14 months.
6 The loan from Bank Windhoek was taken out on 1 July 2008 at an interest rate of 21% per annum.
7 Capricorn Sweets purchased the delivery vehicle on 1 August 2008. Depreciation should be provided for at 20% per annum on the fixed percentage on diminishing balance method.
8 Items that could not be ticked off on the bank statement: Bank charges, N$35.

Required
a. Journalise the adjustments. Give proper narrations. 24
b. Prepare a post-adjustment trial balance. 26

Question 3 (20 marks)
The following information appeared in the records of Wilhelm Day and Night at 31 December 2009:
Wilhelm Day and Night, Pre-Adjustment Trial Balance at 31 December 2009
N$ N$
Accounts payable control 13 000
Accounts receivable control 27 000
Accumulated depreciation: Vehicles 5 000
Furniture 500
Bank 1 000
Capital 80 000
Cost of sales 100 000
Doubtful debts 1 200
Drawings 4 000
Furniture (at cost) 5 000
Inventory 20 000
Land and buildings 60 000
Rent income 11 000
Salaries 37 800
Sales 170 000
Stationery 500
Vehicles (at cost) 25 000
280 500
280 500

Additional information
1 Depreciation should be provided as follows:
Vehicles at 20% per annum on the fixed percentage on the reducing balance method.
Furniture at 10% per annum on straight-line method.
2 The rent for one month is outstanding.

Required
1 Prepare the Statement of Comprehensive Income of Wilhelm Day and Night for the year ended 31 December 2009. (7)
1 Prepare the Statement of changes in equity of Wilhelm Day and Night for the year ended 31 December 2009. (3)
2 Prepare the Statement of Financial Position of Wilhelm Day and Night at 31 December 2009. (10)


END OF ASSIGNMENT



1 Expert Answer

By:

Serge M. answered • 12/14/16

PhD and CPE with 40 years of experience teaching accounting

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