State five objectives of accounting.

 

3. draw up Mogomotsi's statement of financial position from the following information as at 31 December 2012.

capital	9,700
accounts receivable	1,200
van	3,800
accounts payable	1,600
Fixtures	1,800
Inventory	4,200
cash at bank	300

4. A trial balance was extracted from the books of Phax Mohutsiwa. it was found that the debit side exceeded the credit side by P40. the following errors were later discovered.

i) Purchases were overcast by P20.

ii) An amount paid to L. Lesego was debited to the control account as P98 instead of P89.

iii) Sales were undercast by P11.

Required:

Enter the above information in the suspense account and balance it off.

5. Draw up the accounting circles.

6. Consider the following information. The following receipts and issues were recorded.

Date

2 April Purchase 100 units at P55 each.

6 April Issued 400 units

10 April Purchased 600 units at P60 each.

13 April Issued 500 units.

20 April Purchase 500 units at P65 each

25 April Issued 600 units.

10 May Purchased 800 units at P70 each.

12 May Issued 500 units.

13 May Issued 200 units.

15 May Purchase 500 units at P75.

12 June Issued 400 units.

15 June Purchase 300 units at P80 each.

Additional information:

The stock of material on hand on 1 April 2013 was 400 units at P50 per unit.

Required:

Determine the value of closing inventories at 15 June using the LIFO method.

7. State the purpose and source documents of any five books of original entry.

Answer rating: 100% (QA)

Objectives of accounting 1 Recording Financial Transactions The primary objective of accounting is t... View the full answer