EACC1614 Test 1 2023-Memo

QUESTION 1

PART A
a) Asset:
a present economic resource
Controlled by the entity
as a result of past events 3

e) Equity:
residual interest
in the assests of the entity
after deducting all its liabilities 3

c) Relevance
Faithful presentation 2

d) The objective is to
Provide financial information
about the reporting entity
that is useful to existing and potential investors, lenders and other creditors
in making decisions about providing resources to the entity 4

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PART B

1. K 1
2. C 1
3. D 1
4. F 1
5. A 1
6. E 1
7. J 1
8. G 1
9. L 1
10. H 1
11. I 1
12. B 1

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 Question 2

a) 1-Jan The owner deposited R100 000 into the bank account of the firm or The
owner made a capital contribution of R100 000

b) 2-Jan The owner contibutes a computer/equipment, worth R25 000, to the firm

c) 10-Jan Services were rendered to the value of R6 500, R2 000 cash was received
and R4500 was on credit.
3

d) 12-Jan A payable was paid, R890.

2

e) 14-Jan The owner contributed a delivery vehicle to the firm, R200 000.

f) 20-Jan Received R2 000 from a receivable.

g) 23-Jan Bought stationery on credit for R2 900.

2

h) 25-Jan The owner withdrew R5 000 for his own use.

2
Question 3
Date Details Dr Cr
1 Dr Bank 50,000
Cr Capital 50,000

2 Dr Furniture 12000
Cr Bank 12000

3 Dr Purchases 24,334
Cr Payables/ Creditors 24,334

7 Dr Freight on purchases 2,333

Cr Bank 2,333

9 Dr Bank 2,500
Cr Sales 2,500

11 Dr Salaries 5,000
Cr Bank 5,000

13 Dr Receivables / Debtors/Mofokeng 3,000

Cr Sales 3,000

15 Dr Drawings 900 or 960

Cr Purchases 900 0r 960

20 Dr Sales Returns 450

Cr Receivables/ Debtors/Mofokeng 450

TOTAL 18

1 Mark for account and amount otherwise half a mark for correct account if the amount is wrong.

less 2 if general ledger and not general journal