Suppose the following international transactions took place between South Africa and the rest of the world...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose the following international transactions took place between South Africa and the rest of the world in 2021. a) A South African company received goods worth of R10,000 from an European-based company. In return, the South Africa company made the payment for the goods by depositing R10,000 in company's bank account in South Africa. b) The South African Airways (SAA) received R5000 as flight ticket from British tourists to South Africa. The payment was made by depositing the same amount to SAA's bank account in London. c) VW South Africa which is a branch of VW International paid a dividend of R7000 to its parent company in Germany. The payment of the dividend was made by the VW South Africa transferring the same amount into VW International's bank account with Standard Bank of South Africa. d) South Africa family spent R2000 during holiday visit in London. The payment was made through the transfer of the same amount to an account in a South African bank. Code: BCE412 NOVEMBER 2021 Page 3 of 2 e) A citizen of South Africa working in Paris transferred a part of his earnings worth R10 000 to South African relatives as a gift. As a consequence, her deposits in a French bank decreased. f) An English investor bought shares in MTN and Vodacom worth R15000. The payment was made by the investor transferring this amount from his bank account in the UK to MTN and Vodacom bank account in the UK. g) South African firms sold goods worth R20 000 to the rest of the world and received the payment via electronic fund transfer. Enter the above transactions in South African balance of payment accounts. When answering this question, you are required to do the following: a) Show how individual transactions should be record using the double-entry method. (7) b) Draw up the balance of payment statement with a clear indication of all major balances (such as the current account balance and capital account balance) (13) Suppose the following international transactions took place between South Africa and the rest of the world in 2021. a) A South African company received goods worth of R10,000 from an European-based company. In return, the South Africa company made the payment for the goods by depositing R10,000 in company's bank account in South Africa. b) The South African Airways (SAA) received R5000 as flight ticket from British tourists to South Africa. The payment was made by depositing the same amount to SAA's bank account in London. c) VW South Africa which is a branch of VW International paid a dividend of R7000 to its parent company in Germany. The payment of the dividend was made by the VW South Africa transferring the same amount into VW International's bank account with Standard Bank of South Africa. d) South Africa family spent R2000 during holiday visit in London. The payment was made through the transfer of the same amount to an account in a South African bank. Code: BCE412 NOVEMBER 2021 Page 3 of 2 e) A citizen of South Africa working in Paris transferred a part of his earnings worth R10 000 to South African relatives as a gift. As a consequence, her deposits in a French bank decreased. f) An English investor bought shares in MTN and Vodacom worth R15000. The payment was made by the investor transferring this amount from his bank account in the UK to MTN and Vodacom bank account in the UK. g) South African firms sold goods worth R20 000 to the rest of the world and received the payment via electronic fund transfer. Enter the above transactions in South African balance of payment accounts. When answering this question, you are required to do the following: a) Show how individual transactions should be record using the double-entry method. (7) b) Draw up the balance of payment statement with a clear indication of all major balances (such as the current account balance and capital account balance) (13)
Expert Answer:
Answer rating: 100% (QA)
a A South African company received goods worth of R 10 000 from an European based company In return the South Africa company made the payment for the ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The US sneezes and the rest of the world catches a cold, is an old saying that seemed to be anachronistic; however, the current US Economic problem grew into a global financial crisis of incredible...
-
Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2013 by Sysco Corporation, the largest foodservice distributor in North America: 1....
-
A study examining bomb hits in South London during World War II is documented in the following table from the book A Handbook of Small Data Sets (Hand et al., 1993, p. 232). The bomb hits were...
-
Guidance Residential in Reston, Virginia, offers a Shari'ah-compliant housing finance product for Muslims and others who do not believe in collecting or paying interest. Under their Declining Balance...
-
Standing 2.3 m in front of a small vertical mirror, you see the reflection of your belt buckle, which is 0.72 m below your eyes. (a) What is the vertical location of the mirror relative to the level...
-
Suppose that after forecasting sales and deducting expenses, you are left with 3 percent operating profit before interest charges and taxes. What would you do? LO.3
-
How do joint products, by-products, and scrap differ
-
Chris Gayle, a lawyer, received $72,000 on October 1 to represent a client in real estate negotiations over the next 12 months. 1. Prepare the journal entries required in Gayles records on October 1...
-
Prepare journal entries for May 2014 to record the following transactions for Gulf Corp. Assume a perpetual inventory system. Enter the transaction letter as the description when preparing a journal...
-
Is classroom management something you worry about? If so, you are in good company. Many teachers worry about this topic. The teacher in this video shows many great classroom management strategies....
-
1. CompU has a target capital structure of 30 percent debt and 70 percent equity. It has $280,000 in retained earnings. CompUs investment banking firm has advised them that they can issue $300,000 of...
-
Implement the nearest neighbor algorithm in the programming language of your choice. The algorithm should work with vectors of up to 10 integer values and allow up to 10 integer classifications. By...
-
Use the operators described in Section 16.2.4 and the STRIPS method to solve the block world planning problem shown in Figure 16.11. The first state shown is the start state and the second state is...
-
Implement a Bayesian belief network in the programming language of your choice to represent a subject in which you are interested (for example, you might use it to diagnose medical conditions from...
-
Researchers have measured the acceleration of racing greyhounds as a function of their speed; a simplified version of their results is shown in Figure P4.67. The acceleration at low speeds is...
-
If the rate at which energy is dissipated by resistor 1 in Figure P31.86 is \(2.5 \mathrm{~W}\), and \(R_{1}=10 \Omega, \mathscr{E}_{1}=12 \mathrm{~V}\), and \(\mathscr{E}_{2}=6 \mathrm{~V},\) (a)...
-
37 is something valuable belonging to an organization which can be used for payments or debts Select one: t of a. Interest rate Jestion ON b. Asset D C. Turn over d. Profit
-
The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by...
-
Consider the cost function c(y) = 4y2 + 16. (a) The average cost function is ______________. (b) The marginal cost function is ______________. (c) The level of output that yields the minimum average...
-
The demand curve for salted codfish is D (P) = 200 5P and the supply curve S (P) = 5P. (a) On the graph below, use blue ink to draw the demand curve and the supply curve. The equilibrium market...
-
A university cafeteria produces square meals, using only one input and a rather remarkable production process. We are not allowed to say what that ingredient is, but an authoritative kitchen source...
-
17-1. Cules son los seis elementos que se requieren para que la comunicacin ocurra?
-
17-3. Una errata de impresin en un anuncio publicado en un peridico es un ejemplo de ___________.
-
17-5. El costo por contacto es elevado con el elemento de _________ la mezcla promocional .
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App