Indicate by choosing the correct option whether the following statement is true or false: 

Purchases returns will be closed off to the trading account at the end of a financial year.

Bradley Carstens started a new business after qualifying as a

Biomedical Engineer. The business named Carstens Medical Equipment, is a

registered VAT vendor. The applicable VAT rate is 15%.

On 30 June 2024, the following provisional balances appeared

in the general ledger of Carstens Medical Equipment after all cash transactions

were recorded:

Bradley does have limited accounting knowledge after taking

the subject in high school up to grade 12. He came to you for assistance

relating the recording of the following transactions for June 2024 that do not

adhere to the requirements of the cash journals.

Required:

Record the following in the general journal of Carstens Medical Equipment:

a) Received an account for purchased of desk on 10 June 2024

b) Purchase transaction of the equipment on 19 June 2024

c) The closing transfers for the VAT Input and VAT Output

accounts on 30 June 2024 after taking the above two transactions into account

Instructions:

1. Use a full stop to indicate any decimals (eg: 1000.01)

2. Round off to the 

second decimal after the full

stop

3. Do not type in “R”

 for

Rand in the numeric block

4. If any debit or credit line item is not applicable indicate the account name by choosing N/A from the list and complete the amount as zero "0"

NM Stores will sublet part of its building to NS Technologies for R7 000 per month from 1 October 20.1. NS Technologies has an agreement with NM Stores in which the rental will be paid with an annual payment on the first day of each new financial year. On 1 October 20.2 the beginning of the financial year, NS Technologies made an EFT of R133 000 which included the one month’s rental as a deposit into the bank account of NM Stores.

The correct general ledger entries in the rental income account of NM Stores on 30 September 20.3 are ...

Instructions:

1.         First do the adjustment general ledger entries and then do your closing transfer general ledger entries.

2.         Use a full stop to indicate any decimals (eg: 1000.01)

3.         Round off to the second decimal after the full stop (eg: 50.56)

4.         Only show the amount, do not show the R (eg: 12141)

Moly Traders, a registered VAT vendor, buys and sells hand sanitisers. The VAT rate is 15%. All goods are sold at a constant mark-up of 25% and the entity uses the perpetual inventory system.

On 7 March 2025, Moly Traders purchased inventory of R15 200 (VAT exclusive) on account from XA Dealers. 

Required:

Record the transaction provided above in the applicable subsidiary journal of Moly Traders.

Instructions for numeric responses:

1.  Use a full stop to indicate any decimals (eg: 1000.01)

MolyTraders

Nono Traders purchased cleaning materials of R2 150 from Ntini Wholesalers and paid with the business debit card. At the time of the purchase, NonoTraders had an unfavourable bank balance.

Instructions for numeric responses:

1. Use a full stop to indicate any decimals (eg: 1000.01)

2.  Round off to the second decimal after the full stop (eg: 50.56)

3.  When an element decreases, use a negative sign in front of the amount (eg: -1000.01) 

4.  When an element increases, the amount will be without any sign (eg: 1000.01)

5. Only show the amount, do not show the "R" (eg: 1000)

6. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")

On 18 February 20.2 Langa Spaza had a bank overdraft balance of R2 150. On 19 February 20.2 Mr. L Mmekwa,

a debtor, made a direct payment of R3 950 into the bank account of Langa Spaza.

The correct NET effect of the

transaction on each element of the basic accounting equation in the books of Langa Spaza is

...

Instructions:

1.  Use a full stop to indicate any

decimals (eg: 1000.01)

2.  Round off to the second decimal after

the full stop (eg: 50.56)

3.  A decrease

 in

an amount must be 

4.  An increase must be 

indicated

by the amount without any sign

Dr. Papadi General Practice received R10 500 cash for services rendered for a client. Dr. Papadi General Practice maintained a favourable bank balance.

Instructions for numeric responses:

1. Use a full stop to indicate any decimals (eg: 1000.01)

2.  Round off to the second decimal after the full stop (eg: 50.56)

3.  When an element decreases, use a negative sign in front of the amount (eg: -1000.01) 

4.  When an element increases, the amount will be without any sign (eg: 1000.01)

5. Only show the amount, do not show the "R" (eg: 1000)

6. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")

Indicate by choosing the correct option whether the following statement is true or false: 

Bank overdraft is an example of a current asset

element of the statement of financial position.

Liverpool Traders purchased new office furniture worth R14 500 from Joe's Furniture on account. Liverpool Traders maintained a favourable bank balance.

Instructions for numeric responses:

1. Use a full stop to indicate any decimals (eg: 1000.01)

2.  Round off to the second decimal after the full stop (eg: 50.56)

3.  When an element decreases, use a negative sign in front of the amount (eg: -1000.01) 

4.  When an element increases, the amount will be without any sign (eg: 1000.01)

5. Only show the amount, do not show the "R" (eg: 1000)

6. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")

The

owner, Mr. J Maart, withdrew R1 850 cash from the business bank account for private use. The business maintained a favourable bank balance.

Instructions for numeric responses:

1. Use a full stop to indicate any decimals (eg: 1000.01)

2.  Round off to the second decimal after the full stop (eg: 50.56)

3.  When an element decreases, use a negative sign in front of the amount (eg: -1000.01) 

4.  When an element increases, the amount will be without any sign (eg: 1000.01)

5. Only show the amount, do not show the "R" (eg: 1000)

6. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")