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The company close the account on 31 December 2020. Use the following information to prepare the trial balance as at 31 December 2020.
Capital RM100,000
Motor vehicle RM50,000
Office equipment RM20,000
Furniture RM10,000
Cash RM15,000
Debtors RM5,000
a) Create the transactions of:
i. 10 general transactions
ii. 4 transactions in depreciation topic
iii. 2 transactions in bad debts and allowance for doubtful debts topic
iv. 4 transactions accrual and prepayment topic

b. Prepare the journal entries
Prepare journal entries for each transactions above.
Explain the merits and problems of using the return on investment, residual income and the economic value added methods (12 marks)
describe the main characteristics and objectives of profit centres and investment
centres;
(a) to describe the main characteristics and objectives of profit centres and investment centres; (4 marks)
(b) to explain what conditions are necessary for the successful introduction of such centres; (5 marks)
(c) to describe the main behavioural and control consequences that may arise if such centres are introduced; (4 marks)
(d) to compare two performance appraisal measures that might be used if investment centres are introduced

What are two accounts for Returns of goods in a general journal


QUESTION 1
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date it had in issue $2,300,000
10% convertible loan stock. Conversion will be in 2007 Assume a corporation tax rate of 30%.
The earnings for the year were $2,208,000.
This loan stock will be convertible into ordinary $1 shares in 2007 as 90 $1 shares for $100
nominal value loan stock
Required:
Calculate the fully DEPS for the year ended 31st December 2004
QUESTION 2
A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date there were outstanding
options to purchase 920,000 ordinary $1 shares at $1.7 per share. The average fair value of
ordinary shares was $1.80. Earnings for the year ended 31st December 2004 were $2,208,000.
Required
Calculate the fully DEPS for the year ended 31st December, 2004
The following is the budgeted information of Louw Traders: BUDGET 2020 Total Sales R March 900 000 April 1 050 000 May 1 140 000 June 1 200 000 Collections: 40% of sales are cash sales while 35% is collected one month after the sale and the remaining 25% is collected two months after the sale has taken place. Expenses: The expenses are expected to be maintained at 55% of the same month’s sales. Payments: 75% of expenses are paid in cash and 25% are paid one (1) month after incurring the expense. Opening cash balance: The business opening May cash balance is R30 000 Minimum cash balance requirement: The business requires a minimum cash balance of R15 000. Required: Q.6.1 Prepare the cash budget of Louw Traders for the months of May and June 2020. (25)
why is a differentiation made between current liabilities and non-current liabilities.
Covid Traders incurred the following transactions in March 2020.
Date Details
3 Entered into a loan agreement with WHO‐Bank to borrow R40 000. The money was
deposited directly into the bank account on the same day.
18 Bought a delivery motorcycle from Lockdown Motors for R25 000 and paid via EFT.
25 Purchased print paper and other stationary and paid from petty cash R250.
26 Paid salaries of R9 000 via EFT.
28 Received R27 000 with regards to cash sales made.
Required:
Analyse the transactions into the accounting equation by completing the table below. Clearly
indicate whether the applicable element of the accounting equation will increase or decrease as
well as whether the accounts will be debited or credited.
For example: Paid the telephone account via cheque for R300.
Day Assets = Owners equity + Liabilities
Ex. ‐R300
Cr Bank
‐R300
Dr Telephone
olisi Traders incurred the following Petty Cash transactions during the month of January 2020:
02 Notebooks and pens to be used for the first half of the year was purchased
from More Stationers for R200 (PC1).
05 Paid R90 to BigPostage for stamps using document PC2.
15 Purchased machinery from Giga Wholesalers of R300 (PC3).
20 The staff kitchen was low on coffee and R100 was used to purchase coffee
(PC4) from Super Café.
25 Weekly wages of R1 000 was paid and PC5 was completed.
You are required to:
Q.3.1 Record the above transactions in the Petty Cash Journal of Kolisi Traders for
January 2020.
Use the following layout for your answer.
Doc Day Details Petty
cash
Stationery Wages Sundries
Amount Details
(20)
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