Accounting Homework: Financial Statement Preparation and Analysis

This accounting homework assignment provides detailed solutions to various accounting problems. The solutions cover the accounting equation, debtor control accounts, bank reconciliations, VAT calculations, partnership accounting including appropriation accounts and statement of financial position, and the preparation of a statement of financial position for a sole trader. The assignment includes working notes for interest calculations, partner salaries, and VAT analysis. The solutions demonstrate a clear understanding of accounting principles and practices, offering a comprehensive guide for students studying financial accounting.

Contents
Solution 2........................................................................................................................... 1
Solution 2.1..................................................................................................................... 1
Solution 2.2..................................................................................................................... 1
Solution 3........................................................................................................................... 1
Solution 3.1..................................................................................................................... 1
Solution 3.2..................................................................................................................... 1
Solution 4........................................................................................................................... 1
Solution 4.1..................................................................................................................... 1
Solution 4.2..................................................................................................................... 1
Solution 5........................................................................................................................... 1
Solution 2
Solution 2.1
2.1 ACCOUNTING EQUATION:
Transaction
No.
ASSET
=
LIABILITIES
+
EQUITY
Bank Debtors Stationery Loan Drawings
Bad
debt
Interest on
fixed deposit
2.1.1 500 (500) = - + - - -
2.1.2 - - (50) = - + (50) - -
2.1.3 - (400) - = - + - (400) -
2.1.4 100 - - = - + - - 100
2.1.5 (2,000) - - = (2,000) + - - -
Total (1,400) (900) (50) (2,000) (50) (400) 100
Solution 2.2
2.2 REDRAFTING THE DEBTOR CONTROL ACCOUNT
Date Particulars
Amou
nt Date Particulars
Amou
nt
01-
May-16 Balance b/d
b/
d
100,0
00
31-
May-16 Bad debts J 1,000
Bank
C
PJ 2,000 31-
May-16 Bank and Discount
C
RJ
90,00
0

Interest income J 200 Sales returns
S
RJ 3,800
Sales SJ
80,00
0
R. Smith's Balance
trnsfd (No.4) 1,000
Undercasted Sales
(No.2) SJ 2,000 Bad debts (No.7) 1,200
Error rectified (No.3) 1,000
Error in credit note
amount (No.5) 450 31-
May-16 Balance c/d
91,67
4
Cheque dishonoured
(No.6) 3,000
Interest income (No.8) 24
188,6
74
188,6
74
Solution 3
Solution 3.1
IN THE BOOKS OF WALNUT STORES
Bank A/c
Date Particulars Amount Date Particulars Amount
31-Jan-
16 Fixed deposit 12,000
31-Jan-
16 Balance b/d 10,000
31-Jan-
16
Interest income on fixed
deposit 180
31-Jan-
16
Debtor (cheque
dishonoured) 900
31-Jan-
16 Donation (Soccer club) 2,000
31-Jan-
16 Bank charges 550
31-Jan-
16
Stationery (error in
posting) 3,600
31-Jan-
16 Balance c/d 6,330
17,780 17,780
Contra Accounts
Debtor A/c
Date Particulars Amount Date Particulars Amount
31-Jan-16 Bank 900 31-Jan-16 Balance c/d 950
31-Jan-16
Discount
allowed 50
950 950
Discount Allowed A/c
Date Particulars Amount Date Particulars Amount

31-Jan-16 Balance c/d 50 31-Jan-16 Debtor 50
50 50
Bank Charges A/c
Date Particulars Amount Date Particulars Amount
31-Jan-16 Bank 550 31-Jan-16 Balance c/d 550
550 550
Fixed Deposit A/c
Date Particulars Amount Date Particulars Amount
31-Jan-16 Balance c/d 12,000 31-Jan-16 Bank 12,000
12,000 12,000
Interest income on Fixed Deposit A/c
Date Particulars Amount Date Particulars Amount
31-Jan-16 Balance c/d 180 31-Jan-16 Bank 180
180 180
Donation A/c
Date Particulars Amount Date Particulars Amount
31-Jan-16 Balance c/d 2,000 31-Jan-16 Bank 2,000
2,000 2,000
Stationery A/c
Date Particulars Amount Date Particulars Amount
31-Jan-16 Balance c/d 3,600 31-Jan-16 Bank 3,600
3,600 3,600
Solution 3.2
ZINHLE TRADERS
VAT INPUT
Dat
e Particulars Amount
Dat
e Particulars Amount
Purchased inventory on credit from
suppliers 700
returned inventory to
creditors 112
Inventory purchased by cheque 560
settlement discounts
received 42

equipment purchased on credit 210 SARS: VAT account 1,316
1,470 1,470
VAT OUTPUT
Dat
e Particulars Amount
Dat
e Particulars Amount
Goods returned by debtors 70 Cash sales 420
Discount allowed to debtors in
settlement 28 Goods sold on credit 840
SARS: VAT account 1,162
1,260 1,260
WORKING:
Particulars
Amount
excluding
VAT
Amount
including
VAT
Amount of VAT
Purchased inventory on credit from
suppliers 5,000 5,700 700
returned inventory to creditors 800 912 112
Cash sales 3,000 3,420 420
Goods sold on credit 6,000 6,840 840
Inventory purchased by cheque 4,000 4,560 560
Goods returned by debtors 500 570 70
Discount allowed to debtors in
settltment 200 228 28
settlement discounts received 300 342 42
equipment purchased on credit 1,500 1,710 210
Solution 4
Solution 4.1
Current a/c: Blue

Date Particulars Amount Date Particulars Amount
01-Mar-
15 Balance b/d 24,000 29-Feb-16
Interest on
capital 37,500
29-Feb-16 Drawings 160,000 29-Feb-16 Partners Salary 152,400
29-Feb-16 Balance c/d 84,680 29-Feb-16 Special Bonus 13,200
29-Feb-16
Appropriation of
Profit 65,580
268,680 268,680
Appropriation a/c
Date Particulars Amount Date Particulars Amount
29-Feb-16 Interest on capital 29-Feb-16
Profit for the
year 500,000
- Blue 37,500
- Berry 22,500
29-Feb-16 Partners Salary
- Blue 152,400
- Berry 165,100
29-Feb-16 Bonus to Blue 13,200
29-Feb-16 Appropriation of Profit
- Blue 65,580
- Berry 43,720
500,000 500,000
WORKING NOTES:
1
Calculation of Interest on
capital
Particulars Blue Berry Total
Opening balance 200,000 100,000 300,000
Addition in capital 100,000 100,000 200,000
Total Capital 300,000 200,000 500,000
Interest on capital on
opening bal 30,000 15,000 45,000
Interest on capital in
addition 7,500 7,500 15,000
Total Interest

37,500 22,500 60,000
2
Calculation of Partner's
Salaries
Particulars Blue Berry Total
From 01 March 2015 to 31
July 2015 60,000 65,000 125,000
From 01 August 2015 to 29
Feb 2016 92,400 100,100 192,500
Total Salary 152,400 165,100 317,500
Current a/c: Berry
Date Particulars Amount Date Particulars Amount
29-Feb-16 Drawings 180,000 01-Mar-15 Balance b/d 20,000
29-Feb-16 Balance c/d 71,320 29-Feb-16
Interest on
capital 22,500
29-Feb-16 Partners Salary 165,100
29-Feb-16
Appropriation of
Profit 43,720
71,320 251,320
Solution 4.2
STATEMENT OF FINANCIAL POSITION
For the year ended on 29th February, 2016
Particulars Amount
Equity Section
Capital A/c
- Blue 300,000
- Berry 200,000 500,000
Current A/c
- Blue 84,680
- Berry 71,320 156,000
Total Equity 656,000

Solution 5
MARBURG TRADERS
STATEMENT OF FINANCIAL POSITION
For the year ended on 29 February, 2016
Particulars As at
29 February, 2016
Current assets
Cash and cash equivalents
Bank 57,600
Cash Float 4,000 61,600
Trade and other receivables
Debtors 84,000
Less: Allowance for dountful debts (4,400) 79,600
Inventories
Trading Inventory 73,000
Stationery 500 73,500
Other current assets
Prepaid 900 900
Total current assets 215,600
Non-current assets
Property, plant and equipment
Land and Buildings 627,000 627,000
Vehicle 462,000
Less: Accumulated depreciation - Vehicle (303,600) 158,400
Office Equipment 330,000
Less: Accumulated depreciation - Office
Equipment
(217,000) 113,000
Financial assets
Fixed deposit 99,000
Interest receivable on fixed deposit 4,455 103,455
Total non-current assets 1,001,855
Total assets - (a) 1,217,455
Current liabilities
Trade and other payables
Creditors 96,000
Current Maturities of Long term borrowings 35,000 131,000
Other liabilities

Interest on loan payable 2,750
Telephone expense payable 2,100
Rent received in advance 6,600 11,450
Total current liabilities 142,450
Non-current liabilities
Financial liabilities
Mortagage Loan 130,000 130,000
Total non-current liabilities 130,000
Total liabilities - (b) 272,450
Net assets (a-b) 945,005
Equity
Capital 826,769
Less: Drawings (54,744)
Add: Profit for the year 172,980 945,005
Total equity 945,005
WORKING NOTES
TRIAL BALANCE
Particulars Unadjusted Adjustments Adjusted
Balance sheet accounts
section Dr. Cr. Dr. Cr. Dr. Cr.
Capital 826,769 826,769
Drawings 54,744 54,744
Land and buildings 627,000 627,000
Vehicles at cost 462,000 462,000
Equipment at cost 330,000 330,000
Accumulated depreciation
on vehicles 264,000 39600 303,600
Accumulated depreciation
on equipment 184,000 33000 217,000
Fixed deposit: Max Bank
(12% p.a.) 99,000 99,000
Interest receivable 4455 4,455
Trading inventory 77,000 4000 73,000
Stationery 500 500
Debtors control 88,000 4000 84,000
Provision for bad debts 5,000 4000 3400 4,400
Telephone expense payable 2100 2,100

Rent received in advance 6600 6,600
Bank 58,000 400 57,600
Cash float 4,000 4,000
Prepaid insurance 900 900
Creditors control 91,000 5000 96,000
Mortgage loan: Max Bank
(20% p.a.) 165,000 165,000
Interest on loan payable 2750 2,750
Nominal accounts section
Sales 1,038,000 1,038,000
Cost of sales 393,000 393,000
Sales returns 6,000 6,000
Salaries and wages 293,000 293,000
Bad debts 9,000 3400 12,400
Stationery 15,000 500 14,500
Rates and taxes 29,000 29,000
Motor expenses 16,000 5000 21,000
Advertising 11,000 3000 14,000
Telephone 22,000 2100 24,100
Electricity and water 33,000 33,000
Bank charges 4,000 400 4,400
Depreciation exp - vehicles 39600 39,600
Depreciation exp -
equipment 33000 33,000
Insurance 6,000 900 5,100
Stock loss 1000 1,000
Interest on mortgage loan 30,250 2750 33,000
Interest on fixed deposit 7,425 4,455 11,880
Rent income 85,800 6600 79,200
2,666,994 2,666,994 106,705
106,70
5 2,753,299 2,753,299

Calculation of Net Profit
Income
Sales 1,038,000
Interest on fixed deposit 11,880
Rent income 79,200
Total Income 1,129,080
Expenses
Cost of sales 393,000
Sales returns 6,000
Salaries and wages 293,000
Bad debts 12,400
Stationery 14,500
Rates and taxes 29,000
Motor expenses 21,000
Advertising 14,000
Telephone 24,100
Electricity and water 33,000
Bank charges 4,400
Depreciation exp - vehicles 39,600
Depreciation exp - equipment 33,000
Insurance 5,100
Stock loss 1,000
Interest on mortgage loan 33,000
Total Expense 956,100
Net Profit 172,980