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2.2 ACCOUNTING EQUATION     Trevor and Mandy are p…

2.2 ACCOUNTING EQUATION     Trevor and Mandy are partners of Trendy Clothes.     REQUIRED     Use the example below to analyse the transactions that follow.  Indicate an increase with +, a decrease with – and no change with 0.  Assume that the bank account balance is favourable at all times. (16)   Example: Paid the telephone account per cheque, R500.   No. Assets Equity Liabilities e.g. – 500 – 500 0             Transactions     2.2.1 Partner Mandy withdrew R4 800 trading stock from the business for her personal use.     2.2.2 Cash sales of R12 000. The mark-up is 60% on cost.     2.2.3 Paid his monthly salary per cheque to Trevor, R17 000.     2.2.4 Buy equipment on credit from ABC Wholesalers, R75 000.     2.2.5 A bonus of R10 000 is due to partner Trevor.         61

QUESTION 1:  INCOME STATEMENT  AND GAAP PRINCIPLES          …

QUESTION 1:  INCOME STATEMENT  AND GAAP PRINCIPLES              (52 marks; 42 minutes)   1.1 MM TRADERS     Information from the records of MM Traders (with partners M. Malan and M. Mofokeng) for the financial year ended 28 February 2019 is provided.     REQUIRED:     1.1.1  Prepare the Income Statement (Statement of Comprehensive Income) for the financial year ended 28 February 2019. (47)   INFORMATION:     Optional:  RIGHT CLICK ON THE BUTTON AND OPEN IN A NEW TAB TO DOWNLOAD THE PRE-ADJUSTMENT TRIAL BALANCE           Extract from the Pre-Adjustment Trial Balance on 28 February 2019     BALANCE SHEET SECTION Debit Credit     Trading stock 81 500       Debtors control  892 450       Provision for bad debts (1 March 2018)   2 750  

QUESTION 2: BALANCE SHEET EXTRACT AND NOTES     (61 marks; 4…

QUESTION 2: BALANCE SHEET EXTRACT AND NOTES     (61 marks; 48 minutes)       2.1 PJ TRADERS     The information was extracted from the books of PJ Traders, with partners H. Pollard and E. Jantjies.  The financial year ended on 28 February 2019.     REQUIRED:     2.1.1 Prepare the following notes to the Balance Sheet for the financial year ended 28 February 2019:       ●       Capital (8)     ●       Current Accounts (12)     ●       Trade and other payables Note: Show all short-term liabilities except Bank Overdraft and current portion of loan in this note.   (11)   2.1.2 Complete the Equity and Liabilities section of the Balance Sheet on 28 February 2019. (14)   INFORMATION:       A. Balances from the ledger on 28 February 2019.             R Capital:  H. Pollard                     (1/2/2019) 600 000   Capital:  E. Jantjies                  (28/2/2019) 300 000   Current Account:  H. Pollard     (1/3/2018)      22 500 Cr Current Account:  E. Jantjies     (1/3/2018)     57 600 Dr Drawings:  H. Pollard 72 000   Drawings:  E. Jantjies 96 000   Loan:  FR Finkom 450 000   Creditors control  62 750   SARS: PAYE 13 500   Bank                                                           16 600 Cr Accrued expenses / Expenses payable 12 700   Income receive in advance 4 600   Accrued income / Income receivable 17 000   Prepaid expenses 16 300