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MIDLANDS STATE UNIVERSITY

FACULTY OF COMMERCE

DEPARTMENT OF ACCOUNTING

• FINANCIAL ACCOUNTING FOR BUSINESS 1A: ACC105

SESSIONAL EXAMINATIONS

MAY 2012

DURATION: 3 HOURS

INSTRUCTIONS

I. Answer all questions.

tr. 2. Begin an answer to a new question on a new page.
3. In order to earn marks, show all your workings.

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Question 1
(25 marks)
Takwana Gondo started Tags Removal Services on 1 July 2011 in Beit Bridge. The following is a
list of transactions entered into by the business during July 2003.

Date Details
1-Jul T Gondo deposited R50 000.00 into the bank account of the business as capital.

He bought a second hand removal van on credit from C Chingaira for R80
3-Jul 000.00

Filled the removal van with fuel and paid cash, R700.00

4-Jul Placed an advertisement in the Chronicle for R250.00 on credit.

Paid his personal telephone account of R460.00 for June 2011 with a business
cheque.
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7-Jul Obtained a loan from ZB Bank for R25 000.00 payable over two years.

10-Jul Transported furniture for K Tsunami on credit for R2 000.00.

14-Jul He transferred personal equipment to the value of R10 000.00 to the business.

17-Jul Paid R15 000.00 to C Chingaira as first payment on the removal van.

18-Jul Bought a computer for R6000.00 from Gweru Ltd and paid by cheque.

22-Jul Received R800.00 from D Farai for the transport of equipment.

25-Jul Received a payment from debtor, K Tsunami, RI 000.00

'
Required:

A summary of transactions on the BAE.

Question 2 (40 marks)

The following balances appeared in the books of Baxstar Traders at 31 July 2011, the end of the
financial year, before any adjustments were made. Baxstar Traders operate in Gwanda area.

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 iv) An additional amount of $150.00 must be written off as irrecoverable.
v) Provision must be made for depreciation of $30 000.00 on machinery.
vi) June 2011's water and electricity account of $160.00 has not yet been paid.
b) List two users of financial information. (2 marks)

END OF QUESTION PAPER!!