FAC1601
ASSIGNMENT 1
SOLUTIONS
PREPARED BY: MTHOMBENI
0767297208
, PART 1
1. A credit balance on a ledger account indicates………
A liability or income.
2. Which one of the following expenses should be included in cost of inventories sold during
the year?
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?
R4 335 > 5 100 x 85%
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?
R111 400
R
Balance 100 000
Profit (80 000 – 45 000) 35 000
Inventory (5 000 – 1 500) (3 500)
Drawings (3 500)
111 400
5. The year-end of Xakwa Mining, a business entity owned by Mr Manenzhe, is 31
December. On 1 January 2021, the statement received from the municipality showed that
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ASSIGNMENT 1
SOLUTIONS
PREPARED BY: MTHOMBENI
0767297208
, PART 1
1. A credit balance on a ledger account indicates………
A liability or income.
2. Which one of the following expenses should be included in cost of inventories sold during
the year?
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?
R4 335 > 5 100 x 85%
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?
R111 400
R
Balance 100 000
Profit (80 000 – 45 000) 35 000
Inventory (5 000 – 1 500) (3 500)
Drawings (3 500)
111 400
5. The year-end of Xakwa Mining, a business entity owned by Mr Manenzhe, is 31
December. On 1 January 2021, the statement received from the municipality showed that
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