lOMoARcPSD|5752962
FINANCIAL ACCOUNTING
ACC1006F
2022
PRIOR
LECTURE EXAMPLES
for weeks 1-7
, lOMoARcPSD|5752962
FINANCIAL ACCOUNTING 2020 (ACC1006F)
LECTURE EXAMPLES
WEEKS 1 & 2: ACCOUNTING BASICS
LECTURE EXAMPLE 1
Lazy Boyz is a business which buys and sells leather couches. The
following transactions took place during the financial year ended
31 December 2019:
1. Owner deposits R100 000 into the business’ bank account.
2. Raised a loan from the bank of R50 000, which was deposited
into the business’ bank account on 1 Jan.
3. Purchased stock for R90 000 on credit. Lazy Boyz: Income statement
4. Sold stock with a cost of R30 000 for R52 000 cash. for the year ended 31 December 2019
5. Paid R5 000 for electricity used.
6. On 31 Dec, paid interest on the loan for the 2019 year at a rate
of 15% p.a.
7. On 31 Dec, repaid R25 000 of the bank loan.
8. The owner withdrew R3 000 cash from the business for
personal use.
1
How do the transactions affect the financial position of the business,
in terms of A = E + L?
ASSETS = EQUITY (NAV) + LIABILITIES
Lazy Boyz: Statement of financial position
as at 31 December 2019
1 2
, lOMoARcPSD|5752962
Transactions for April 2019:
1 Bought inventory for R30 000 on credit
1 To secure a rental contract business pays R7 500 cash. This
amount is made up of a deposit against damages of R 5 000,
and the first month’s rent on a 12-month contract
2 Sold inventory on credit for R80 000 (cost: R15 000)
3 Bought stationery for R2 000 cash
4 Debtors paid the R50 000 owing at 1 April 2016
5 Paid creditors the R70 000 owing on 1 April 2016
8 Owner withdrew R2 000 from the business for personal use
LECTURE EXAMPLE 2 15 Paid wages of R10 000 cash
30 Received rental payments of R8 000 cash for properties rented
Justin Time Trading: Statement of financial position out during April
as at 31 March 2018 30 Interest on the loan for the month of April is due (but unpaid),
R2 000
Non-current assets: 30 Owner contributed a further R10 000 to the business
Land and buildings 150 000 30 The business has R200 stationery on hand
Vehicles 80 000 30 Rent expense of R2 500 used (See 1 April)
230 000
Current assets: How do the transactions affect the financial position of the business,
2
Trade receivables 50 000 in terms of A = E + L?
Inventory 20 000
Bank 60 000 Trans. A = E + L
130 000 1 Apr
Total assets 360 000
1 Apr
Equity:
Capital 120 000
Retained earnings 40 000
2 Apr
160 000
Non-current liabilities:
Loan 130 000
3 Apr
Current liabilities:
4 Apr
Trade payables 70 000
5 Apr
Total equity and liabilities 360 000
3 4
FINANCIAL ACCOUNTING
ACC1006F
2022
PRIOR
LECTURE EXAMPLES
for weeks 1-7
, lOMoARcPSD|5752962
FINANCIAL ACCOUNTING 2020 (ACC1006F)
LECTURE EXAMPLES
WEEKS 1 & 2: ACCOUNTING BASICS
LECTURE EXAMPLE 1
Lazy Boyz is a business which buys and sells leather couches. The
following transactions took place during the financial year ended
31 December 2019:
1. Owner deposits R100 000 into the business’ bank account.
2. Raised a loan from the bank of R50 000, which was deposited
into the business’ bank account on 1 Jan.
3. Purchased stock for R90 000 on credit. Lazy Boyz: Income statement
4. Sold stock with a cost of R30 000 for R52 000 cash. for the year ended 31 December 2019
5. Paid R5 000 for electricity used.
6. On 31 Dec, paid interest on the loan for the 2019 year at a rate
of 15% p.a.
7. On 31 Dec, repaid R25 000 of the bank loan.
8. The owner withdrew R3 000 cash from the business for
personal use.
1
How do the transactions affect the financial position of the business,
in terms of A = E + L?
ASSETS = EQUITY (NAV) + LIABILITIES
Lazy Boyz: Statement of financial position
as at 31 December 2019
1 2
, lOMoARcPSD|5752962
Transactions for April 2019:
1 Bought inventory for R30 000 on credit
1 To secure a rental contract business pays R7 500 cash. This
amount is made up of a deposit against damages of R 5 000,
and the first month’s rent on a 12-month contract
2 Sold inventory on credit for R80 000 (cost: R15 000)
3 Bought stationery for R2 000 cash
4 Debtors paid the R50 000 owing at 1 April 2016
5 Paid creditors the R70 000 owing on 1 April 2016
8 Owner withdrew R2 000 from the business for personal use
LECTURE EXAMPLE 2 15 Paid wages of R10 000 cash
30 Received rental payments of R8 000 cash for properties rented
Justin Time Trading: Statement of financial position out during April
as at 31 March 2018 30 Interest on the loan for the month of April is due (but unpaid),
R2 000
Non-current assets: 30 Owner contributed a further R10 000 to the business
Land and buildings 150 000 30 The business has R200 stationery on hand
Vehicles 80 000 30 Rent expense of R2 500 used (See 1 April)
230 000
Current assets: How do the transactions affect the financial position of the business,
2
Trade receivables 50 000 in terms of A = E + L?
Inventory 20 000
Bank 60 000 Trans. A = E + L
130 000 1 Apr
Total assets 360 000
1 Apr
Equity:
Capital 120 000
Retained earnings 40 000
2 Apr
160 000
Non-current liabilities:
Loan 130 000
3 Apr
Current liabilities:
4 Apr
Trade payables 70 000
5 Apr
Total equity and liabilities 360 000
3 4
