FAC1601
FINANCIAL ACCOUNTING AND
REPORTING
ASSIGNMENT 1 – 2022
QUESTIONS AND ANSWERS
, 1. A credit balance on a ledger account indicates………
a. an asset or expense
b. a liability or income
c. a liability or an expense
d. an amount owing to the business
2. Which one of the following expenses should be included in cost of inventories sold
during the year?
a. Carriage on sales
b. Insurance on deliveries
c. Depreciation on delivery vehicle
d. Carriage on purchases
3. On 30 June 2022, Ndabeni Traders sold R5 100 worth of inventory on credit to
Ndlovu Supermarket, subject to a trade discount of 15%. A cash discount of 15% will
be given if the account is settled within 30 days. Which one of the following amounts
represents the correct amount received by Ndabezitha Wholesalers on 29 July 2022?
a. R3 684.75
b. R1 012.50
c. R4 335.00
d. R3 570.00
4. As of 1 January 2021, Kelly’s Clothing had a capital balance of R100 000. During the
year Kelly’s Clothing had revenues and expenses amounting to R80 000 and R45
000 respectively. On 31 December 2021, the owner conducted a stock take and
realised that an inventory valued at R5 000 was damaged. The salvage value of the
damaged inventory was estimated at R1 500. In addition, the owner (Kelly), withdrew
R20 100 for her personal use. Which one of the following alternatives represents the
correct capital balance in the statement of financial position of Kelly’s Clothing as at
31 December 2021?
FINANCIAL ACCOUNTING AND
REPORTING
ASSIGNMENT 1 – 2022
QUESTIONS AND ANSWERS
, 1. A credit balance on a ledger account indicates………
a. an asset or expense
b. a liability or income
c. a liability or an expense
d. an amount owing to the business
2. Which one of the following expenses should be included in cost of inventories sold
during the year?
a. Carriage on sales
b. Insurance on deliveries
c. Depreciation on delivery vehicle
d. Carriage on purchases
3. On 30 June 2022, Ndabeni Traders sold R5 100 worth of inventory on credit to
Ndlovu Supermarket, subject to a trade discount of 15%. A cash discount of 15% will
be given if the account is settled within 30 days. Which one of the following amounts
represents the correct amount received by Ndabezitha Wholesalers on 29 July 2022?
a. R3 684.75
b. R1 012.50
c. R4 335.00
d. R3 570.00
4. As of 1 January 2021, Kelly’s Clothing had a capital balance of R100 000. During the
year Kelly’s Clothing had revenues and expenses amounting to R80 000 and R45
000 respectively. On 31 December 2021, the owner conducted a stock take and
realised that an inventory valued at R5 000 was damaged. The salvage value of the
damaged inventory was estimated at R1 500. In addition, the owner (Kelly), withdrew
R20 100 for her personal use. Which one of the following alternatives represents the
correct capital balance in the statement of financial position of Kelly’s Clothing as at
31 December 2021?
