ST10028294

ASSIGNMENT

Nthabi Sithole 9/6/22 ACCOUNTING 1B

QUESTION 1
1.1. GENERAL JOURNAL OF HIGHKEY TRADERS

DOC
DATE ACCOUNT FOL DEBIT CREDIT
NO
DP3690 Nov- Bank
R38 000
21
Rent income R38 000
Cash deposit by a tenant, Shoemaker.
Nov- Service fees
R230
21
Interest expense R200
Electricity (7500 – 5700) R1 800

Nov- Bank
R3 880
21
Insurance R3 880
Deposit into the owner’s personal account

1.2. GENERAL LEDGER OF HIGHKEY TRADERS

BANK

Date Details FOL Amount Date Details FOL Amount

20.1 20.1 Total
1 Balance b/d 42 350 00 30 CBP 977 700 00
Nov Nov payments
Total
30 CBR 952 280 00 Balance c/d 16 930
receipts

994 630 00 994 630 00

Balance (workings): -12 100 - 12 500 - 2 950 + 72 200 – 2 300 = 42 350

1.3. Bank Reconciliation Statement of Highkey Traders as of 30 November 20.1

Details Amount
Balance as per bank statement (11 540 00)
Less outstanding EFTs:
EFT no. 5701 1 290 00
EFT no. 5703 14 300 00
Add outstanding deposits:
DP2017 65 000 00
Add correction of incorrect deposit to bank (25 000 00)
Add correction of cheque no. 5695 debited twice 1 960 00
 Add correction of cheque no. 1551 2 100 00
Balance as per bank account (16 930 00)

1.4. What Is an Overdraft?

An overdraft occurs when there is insufficient money in an account to cover a transaction or

withdrawal, but the bank still allows the transaction. It is essentially a financial institution's extension
of credit granted when an account reaches zero. The overdraft allows the account holder to continue
withdrawing money even if the account is empty or has insufficient funds to cover the withdrawal
amount.

An overdraft simply means that the bank allows customers to borrow a certain amount of money.
The loan has interest, and there is usually a fee for each overdraft.

How does a Bank Overdraft work?

 An overdraft is linked to your current account and allows you to borrow money using your
daily banking transaction account, making it easier to keep track of your spending.
 This eliminates the need to track or manage a separate credit account, as well as the need to
transfer available funds between accounts.
 An overdraft is a great solution for any temporary cash flow problems, unexpected
expenses, or emergency costs because it is designed as a revolving facility (your credit is
automatically renewed as it is paid off).
 Because you choose your 'borrow limit' (the amount you can spend more than your
available funds), you have complete control over how much you can borrow each month,
allowing you to keep track of your finances and stay within a manageable amount.
QUESTION 2

2.1. Creditors List of TeamOne Traders on 31 May 2021

CREDITOR FOL AMOUNT

DW Wholesalers C01 134 643 60
Bright Supplies C02 34 163 16
Transport Experts C03 0 00
Total 168 806 76

2.2. Creditors List of TeamOne Traders on 30 June 2021

CREDITOR FOL AMOUNT

DW Wholesalers C01 0 00
Bright Supplies C02 0 00
Transport Experts C03 96 047 30
Total 96 047 30

2.3. Creditors Control of TeamOne Traders for June 2021

CREDITORS CONTROL

Date Details FOL Amount Date Details FO Amount

L
20.1 24 Trading GJ 20.1 31 Balance b/d
Jun Inventory 1 236 90 May 168 806 76
and VAT
30 Debtors GJ 20.1 1 Total CJ
85 700 72 212 312 84
Control Jun Purchases
Total CAJ Interest GJ
purchases 35 117 96 paid 141 28
returns
Bank CBP 163 158 00
Balance c/d 96 047 30
381 260 88 381 260 88
20.1 30 Balance b/d
96 047 30
Jun
QUESTION 3

3.1. Computer Equipment Account

Date Details FOL Amount Date Details FOL Amount

20.1 20.1 Asset
1 Balance b/d 129 000 00 31 55 000 00
Mar May disposal
20.2 20.2
30 Bank 120 000 00 28 Balance b/d 120 000 00
Jun Feb
249 000 00 249 000 00
20.2
1 Balance c/d 120 000 00
Mar

Accumulated depreciation: Computer Equipment

Date Details FOL Amount Date Details FOL Amount

20.1 Asset 20.1
31 8 062 50 1 Balance b/d 32 250 00
May disposal Mar
20.2 20.2
28 Balance 22 500 00 31 Depreciation 8 062 50
Feb Jan
20.2
28 Depreciation 22 500 00
Feb
62 812 50 62 812 50
20.2
1 Balance c/d 22 500 00
Mar

Accumulated depreciation: Office Equipment

Date Details FOL Amount Date Details FOL Amount

20.1 20.1
28 Balance 151 096 00 1 Balance b/d 37 774 00
Feb Mar
20.2
28 Depreciation 113 322 00
Feb

151 096 00 151 096 00

20.2
1 Balance c/d 151 096 00
Mar

Depreciation

Date Details FOL Amount Date Details FOL Amount

20.1 Computer
28 32 250 00
Feb Equipment
20.1 31 Accumulated 8 062 50
Ma depreciation:
y Computer
 Equipment
Accumulated
20.2
depreciation:
Ma 31 22 500 00
Computer
y
Equipment
Accumulated
20.1 depreciation:
28 37 774 00
Feb Office
Equipment
Accumulated
20.1 depreciation:
28 113 322 00
Feb Office
Equipment

Asset Disposal

Date Details FOL Amount Date Details FOL Amount

20.2 Computer 20.1 Accumulated
28 129 000 00 31 40 312 50
Feb Equipment May depreciation
Debtors
55 000 00
Control
Asset disposal 33 687 50

129 000 00 129 000 00

Q.3.2. Property, Plant and Equipment (PPE)

Computer Office Vehicles

Equipment Equipment
Carrying value as of 1 March 2021 96 750 302 226 344 000
Cost 129 000 380 000 540 000
Accumulated depreciation (32 250) (37 774) (196 000)
Residual value (0) (40 000) (0)

Movements during the year (8 812,50) (113 322) (37 973,33)

Additions at cost 120 000 0 73 600
Disposals at carrying value (88 687,50) (0) (0)
Depreciation for the year (22 500) (113 322) (35 626,67)

Carrying value as of 28 February 226 500 228 904 381 973,33

2022
Cost 249 000 380 000 613 600
Accumulated depreciation (22 500) (151 096) (231 626,67)

Workings: 34 400+1 226,67= 35 626,67

WORKINGS:

Straight Line Method: Computer Equipment

Date Cost Price Depreciation Accumulated depreciation Carrying value

28/02/21 129 000 32 250 32 250 96 750
31/05/21 8 062,50 40 312,50 88 687,50
Selling price 55 000
Carrying value 88 687,50
Loss on Asset Disposal 33 687,50

31/05/21 120 000 22 500 22 500 97 500

28/02/22
Calculations: 32 250+8 062,50= 40 312,50

129 000-40 312,50= 88 687,50

88 687,50-55 000=33 687,50

Office Equipment

Date Cost Price Depreciation Accumulated depreciation Carrying value

01/11/20 340 000
28/02/21 37 774 37 774 302 226
28/02/22 113 322 151 096 188 904
Selling Price
Carrying value 188 904
Loss on Asset Disposal
340 000*33,33*4=37 774