Question

QUESTION 1 (21 marks) (25 minutes) Commence this question on a new (separate) page. The following transactions for March 2012 pertain to AA Supermarket The entity applies a penodic inventory system and is not registered as a VAT vendor 2012 March 2 The owner, R Ngcobo, transferred his personal vehicle, with a value of R82 000, to the entity 5 Purchased inventory on credit from F Osman for R1 200 8 A debtor, B Gani who owed R2 000, was declared insolvent by the North Gauteng High Court His account must be written off as irrecoverable 10 The owner, R Ngcobo, drew a cash cheque of R4 000 He gave the R4 000 as a gift to his son for obtaining his LLB-degree 22 An office chair worth R1 200 was purchased on 1 March 2012 The bookkeeper incorrectly posted the amount to the equipment account instead the office furniture account Correct the incorrect entry 28 Received R1 100 from P Heyns in full settlement of his account of R1 250 REQUIRED: Analyse the above transactions of AA Supermarket in tabular format as follows Account to Account to Effect on the basic accounting equation Date be debited be credited Assets Equity Liabilities Example 1 March - Paid the monthly rental by cheque, R2 000 R R R Mar 1 Rent expense Bank - 2 000 - 2 000 NB: 1 The columns in respect of the accounting equation must NOT be totalled 2 Each amount MUST be preceded by a plus sign (+) for an increase or a minus sign (-) for a decrease 3 Show all calculations

Answer 1

Date	Account to be debited	Account to be credited	Assets	Liabilities	Equity
			R	R	R
Mar-02	Vehicle	Capital	+82000		+82000
Mar-05	Inventory	Osman	+1200	+1200
Mar-08	Bad Debt	Debtors	-2000		-2000
Mar-10	Capital	Bank	-4000		-4000
Mar-22	Office Furniture	Office Equipment		0
	(One asset will be reduced and other will be increased by R 1200, So, no impact on assets)
Mar-28	Bank	Debtors	+1100
	Bad debt		-1250		-150