The following transactions entered into by XYZ Ltd for the year ended 31 December 2017: 1....
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The following transactions entered into by XYZ Ltd for the year ended 31 December 2017: 1. R18 000 was paid for rent expense for the period of 1 March 2017 to 28 February 2018. The monthly payments were constant throughout this period. 2. Wages and salaries for 2 months are outstanding, R2 000 is paid monthly for wages and salaries. 3. XYZ LTD received a 6-month cleaning service fee of R600 up-front (for 1 January 2018 till 30 June 2018) from Ceasers Ltd. 4. Interest received from BBC Bank for the year amounted to R8 000. The fixed deposit for XYZ LTD at BBC Bank at the beginning of the year was R100 000 and remained unchanged throughout the year. Its maturity date is 31 December 2025. The interest rate is 10% per annum. 5. Skywalk Distributors bought vehicle to the value of R100 000 on 31 March 2017. An amount of R8000 for the current financial year has to be written off as depreciation on vehicle. Additional information The financial year end for XYZ Ltd is 31 December. REQUIRED: Identify and explain the type of adjustment raised in each transaction entered into by XYZ Ltd. Show how each adjustment will be reflected in the general journal for XYZ Ltd for the year ended 31 December 2017. NB: All workings must be shown. QUESTION TWO The following transactions during January 2017 relate to F Freddy, an attorney. Date Transactions Amount 2017 Jan 3 4 5 6 9 10 13 18 29 30 F Freddy deposited as opening capital Paid rent for January 2017 Bought law library on credit from Book Limited Bought a typewriter for cash from Leo Limited Provided services for cash Debited D Dunn with fees for services rendered Leo Limited repaired equipment on credit F Freddy drew a cheque for private use F Freddy received commission on a property transaction Paid the following by cheque (0) Salaries Leo Limited (on account) Received payment from D Dunn on his account REQUIRED: R 20 000 2300 24 000 1700 7 200 8 318 100 1234 8 350 100 1500 1350 (30 MARKS) Record the transactions for F Freddy in the Accounting Equation. Structure your answer as the table provided below (indicate the decrease by minus sign (-) and the increase by plus sign (+)): ASSETS = EQUITY LIABILITIES Date Total Library and Equipment Debtors Bank 11 Capital Income/ Expenditure Creditors The following transactions entered into by XYZ Ltd for the year ended 31 December 2017: 1. R18 000 was paid for rent expense for the period of 1 March 2017 to 28 February 2018. The monthly payments were constant throughout this period. 2. Wages and salaries for 2 months are outstanding, R2 000 is paid monthly for wages and salaries. 3. XYZ LTD received a 6-month cleaning service fee of R600 up-front (for 1 January 2018 till 30 June 2018) from Ceasers Ltd. 4. Interest received from BBC Bank for the year amounted to R8 000. The fixed deposit for XYZ LTD at BBC Bank at the beginning of the year was R100 000 and remained unchanged throughout the year. Its maturity date is 31 December 2025. The interest rate is 10% per annum. 5. Skywalk Distributors bought vehicle to the value of R100 000 on 31 March 2017. An amount of R8000 for the current financial year has to be written off as depreciation on vehicle. Additional information The financial year end for XYZ Ltd is 31 December. REQUIRED: Identify and explain the type of adjustment raised in each transaction entered into by XYZ Ltd. Show how each adjustment will be reflected in the general journal for XYZ Ltd for the year ended 31 December 2017. NB: All workings must be shown. QUESTION TWO The following transactions during January 2017 relate to F Freddy, an attorney. Date Transactions Amount 2017 Jan 3 4 5 6 9 10 13 18 29 30 F Freddy deposited as opening capital Paid rent for January 2017 Bought law library on credit from Book Limited Bought a typewriter for cash from Leo Limited Provided services for cash Debited D Dunn with fees for services rendered Leo Limited repaired equipment on credit F Freddy drew a cheque for private use F Freddy received commission on a property transaction Paid the following by cheque (0) Salaries Leo Limited (on account) Received payment from D Dunn on his account REQUIRED: R 20 000 2300 24 000 1700 7 200 8 318 100 1234 8 350 100 1500 1350 (30 MARKS) Record the transactions for F Freddy in the Accounting Equation. Structure your answer as the table provided below (indicate the decrease by minus sign (-) and the increase by plus sign (+)): ASSETS = EQUITY LIABILITIES Date Total Library and Equipment Debtors Bank 11 Capital Income/ Expenditure Creditors
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XYZ Ltd Transaction 1 Rent Expense Rent ExpenseTotal Rent Paid Number of Months Paid Rent Expense18000 12 10 Rent Expense15000 Date Account Debit R Credit R Dec 31 2017 Rent Expense PL 15000 Prepaid R... View the full answer
Related Book For
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
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