QUESTION 3 Accоunting Equаtiоn (44 mаrks, 26 minutes Anаlyse the transactiоns below under the headings given on your answer sheet. Note the following: · The year end is 31 December 2020. · The bank balance is favourable. · The business uses a mark-up of 50%. EG The owner deposited R100 000 into the business’s bank account on the 1st of December 2020. 1. Depreciation on the Vehicles still needs to be calculated. The total cost price of the vehicles amounts to R200 000, and the depreciation is calculated at 20% on cost. 2. G. McGrath, the owner, took out merchandise with the selling price of R900 to donate to her daughter’s school’s spring fair on behalf of the business. 3. Commission income of R3000 earned in December 2020 will only be received in January 2021. 4. The telephone account for December 2020 amounted to R250. This account was only paid in January 2021. 5. AB de Villiers was late with paying off his December instalment on his account of R700. Charge his account with 10% interest. 6. Included in the insurance account is an annual premium of R480 that was paid on the 1st of September 2020. 7. Your tenant, A. Markram, will be away from December to February. She sent a cheque to you during December for R6000 covering December, January and February’s rent. 8. An inexperienced bookkeeper posted R450 stationery purchased during the month of December to the consumable stores account. 9. After the stock take, it was discovered that there was a Trading Stock Deficit of R600. 10. During the stock take it was discovered that there was R500 unused packing material left over for the year. 11. Make provision for the outstanding interest on the loan. The loan from Africon Bank, obtained on 1 April 2020 at 12% p.a. amounts to R45 000. The interest must be capitalised. [44]