QUESTION 1 MULTIPLE CHOICE (20) REQUIRED For each of the following questions, wr
ID: 2328400 • Letter: Q
Question
QUESTION 1
MULTIPLE CHOICE
(20)
REQUIRED
For each of the following questions, write down only the letter of the correct answer e.g. 1.6 C. Do not show any calculations.
1.1
The accounting period of Meander Enterprises ends on the last day of February each year. On 28 February 2017, the total of the Rent expense account was R41 100. Rent was paid up to 31 March 2017. Note: Rent expense increased by 10% with effect from 01 September 2016. Which will be the correct journal entry to adjust the Rent expense account on
28 February 2017?
Account debit
Account credit
Amount
a)
Prepaid expenses
Rent expense
R3 161.54
b)
Prepaid expenses
Rent expense
R3 300
c)
Profit and loss
Rent expense
R40 800
d)
None of the above
(4)
1.2
The following information was extracted from the records of NWJ Traders for May 2017:
2017
May
Units of
inventory
Cost price
per unit
01
11
22
23
Inventory on hand
Purchased
Purchased
Returned to supplier
18 000
50 000
33 000
1 000
R10
R11
R12
R12
31
Sales for May 2017
80 000
?
The value of inventory on 31 May 2017, using the weighted average cost method, is _______.
a)
R222 800
b)
R220 000
c)
R240 000
d)
None of the above.
(4)
1.3
The following information was extracted from the records of Vondi’s Traders on 30 June 2017, the end of the financial year:
R
Opening inventory
600 000
Closing inventory
480 000
Purchases
1 476 000
Purchases returns
36 000
Cash sales
3 000 000
Credit sales
960 000
MANCOSA: BCOM (SUPPLY CHAIN MANAGEMENT) YEAR 1
PROGRAMME HANDBOOK: JANUARY 2018 INTAKE
68
68
Sales returns
360 000
Carriage on purchases
60 000
Carriage on sales
120 000
The gross profit for the financial year ended 30 June 2017 was ___________.
a)
R2 016 000
b)
R1 980 000
c)
R2 100 000
d)
None of the above. (4)
1.4
The following information was extracted from the records of Fego Stores on 31 May 2017:
R
Favourable balance according to the bank account (ledger)
Cheques issued but not yet presented to the bank for payment
Deposit made but not yet credited by the bank
88 800
34 000
28 800
The bank balance according to the bank statement received by Fego Stores on 31 May 2017 was ________.
a)
R94 000 (unfavourable)
b)
R83 600 (favourable)
c)
R94 000 (favourable)
d)
None of the above. (4)
1.5
The Statement of Changes in Equity of Ashleigh Stores, a partnership with Ash and Leigh as partners, reflected the following amounts on 28 February 2017, the end of the financial year:
R
Interest on capital: Ash
Interest on capital: Leigh
Salary: Ash
Salary: Leigh
Interest on drawings: Ash
Interest on drawings: Leigh
Remaining profit: Ash
Remaining profit: Leigh
48 000
72 000
288 000
168 000
1 200
800
R96 000
R96 000
The partnership net profit, according to the Profit and loss account, for the year ended
28 February 2017 was ____________.
a)
R766 000
b)
R770 000
c)
R768 000
d)
None of the above. (
Explanation / Answer
1.1) OPTION " B" IS CORRECT 1.2) OPTION "D" IS CORRECT 1.3) OPTION "B" IS CORRECT 1.4) OPTION "C" IS CORRECT EXPLANATIONS ARE AS FOLLOWS: Rent from september 2016 onward will be 1.1x total rent = march 2016 to aug 2016 6x 1.1)form sept to march 1.1x*7 7.7x total rent paid 13.7x x = 41100/13.7 = 3000 rent for march =1.1*3000 = 3300 therefore option "B" i.e. prepaid expenses rent expenses = $3300 1.2) Particulars units cost per unit Value Weighted avg cost/unit inventory on hand 18000 10 180000 purchased 50000 11 550000 purchased 33000 12 396000 average cost 101000 1126000 11.149 less: return -1000 11.149 -11149 net inventory after return 100000 1114851 less: sales -80000 closing inventory 20000 11.149 222980 11.149 as per the above calculation the option is "D" that is NONE OF THE ABOVE 1.3) trading a/c Particulars amount particulars amount opening inventory 600000 cash sale 3000000 purchase 1476000 credit sale 960000 less: purchase return 36000 1440000 less : return -360000 Carriege on purchase 60000 net sale 3600000 gross profit ( sale - cost of goods sold) 1980000 closing inventory/stock 480000 total 4080000 total 4080000 GROSS PROFIT FOR THE YEAR IS 1980000 HENCE OPTION "B" IS CORRECT 1.4) Favourable balance 88800 Add: chq issued but not presented 34000 less: deposit made but not yet credited -28800 Favourable balance received by fego stores 94000 hence opnton " C" is correct that is Favourable 94000 NOTE- AS PER THE RULES CAN NOT ANSWER MORE THAN 4 QUESTIONS AT A TIME PLEASE POST 5TH PART SAPARTLY DO GIVE A THUMBS UP IF IT IS HELPFUL
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