How often Financial statements of a sole trader is asked

Where it was asked

What costs marks here

The questions

1. May/Jun 2017, Q4.21 mark · multiple choice

   Which of the following is the underlying assumption relevant to all financial statements?

   Drill this topic →

2. May/Jun 2017, Q4.31 mark · multiple choice

   A loan repayable within which period will be classified as a current liability?

   Drill this topic →

3. May/Jun 2017, Q4.41 mark · multiple choice

   Which combination constitutes the elements of financial statements?

   Drill this topic →

4. May/Jun 2017, Q4.51 mark · multiple choice

   Which of the following is NOT a common user of financial information?

   Drill this topic →

5. Oct/Nov 2016, Q5.11 mark · multiple choice

   Which statement represents the net worth of an entity at a specific point in time?

   Drill this topic →

6. Oct/Nov 2016, Q5.21 mark · multiple choice

   When does a long-term liability become a current liability?

   Drill this topic →

7. Oct/Nov 2014, Q3.125 marks

   Mike's Rocking Chairs, pre-adjustment trial balance at 28 February 2014: capital R200 000; drawings R50 000; motor vehicles at cost R250 000; furniture and fittings at cost R30 000; inventory (1 March 2013) R75 000; debtors control R100 000; allowance for credit losses R2 500; accumulated depreciation — motor vehicles R125 000 and furniture R15 000 (both at 1 March 2013); creditors control R45 000; bank overdraft R18 000; long-term loan R159 000; sales R725 000; interest expense R12 500; interest on bank overdraft R2 000; rental expenses R120 000; motor vehicle expenses R65 000; franchise fees R90 500; advertising R5 500; water and electricity R4 000; purchases R485 000. Adjustments: provide for outstanding interest on the long-term loan at 10% p.a.; the first loan repayment of R10 000 falls on 1 March 2014; the count at 28 February 2014 found 28 chairs on hand valued at R3 000 each (lower of cost and NRV); a client's estate is insolvent and only R2 000 of the R5 000 owed was recovered; the allowance for credit losses must be increased by R500; depreciation is on the diminishing balance — motor vehicles 20% p.a. and furniture 10% p.a., and a new vehicle costing R50 000 was bought on 1 January 2014 (no other movements); the owner deposited R40 000 cash into the business bank account; credit sales of R8 000 to Mr Sushi on 26 February 2014 were not yet recorded but the goods were excluded from the count; and the R1 400 water and electricity account for February arrived on 1 March. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2014, in line with IFRS, showing calculations rounded to the nearest rand.

8. Oct/Nov 2014, Q3.213 marks

   Using the Mike's Rocking Chairs information, prepare the property, plant and equipment note for the year ended 28 February 2014 (the total column may be omitted).

9. May/Jun 2014, Q1.120 marks

   YoCo Stores' pre-adjustment trial balance at 31 May 2013: capital (amount not given); drawings R5 000; fixed deposit R30 000; land and buildings at cost R150 000; furniture at cost R45 000; mortgage R30 000; bank R4 700 (favourable); trading inventory (1 June 2012) R12 000; creditors control R7 300; debtors control R5 400; revenue from sales R92 100; purchases R35 000; purchases returns R825; rental income R3 600; bank charges R100; insurance R2 000; credit losses R150; settlement discount granted R250; municipal taxes R600; salaries and wages R12 900; carriage on purchases R720; carriage on sales R450; customs duties on purchases R125; packing material R1 395; interest on mortgage R3 025. Additional information: the owner paid an extra R50 000 into the business bank account on 1 March 2013; furniture bought on 30 June 2012 is depreciated at 20% p.a. straight-line and no depreciation has been provided; the fixed deposit at Dry Bank (invested 1 June 2012, callable 31 May 2018) earns 10% p.a. and the year's interest must still be provided; on 1 January 2013 the owner took inventory costing R2 500 and nothing was recorded; inventory on hand at 31 May 2013 is R14 500 and packing material R95; an allowance for credit losses of R400 must be created; the insurance figure includes an annual premium of R1 800 paid on 1 August 2012; part of the building has been let to an attorney at R400 per month since 1 January 2012; the secretary's May 2013 salary of R6 000 is unpaid; the mortgage from XYZ Bank bears interest at 11% p.a. payable monthly in arrears, May's interest is still outstanding, and R5 000 of the mortgage is repayable on 31 December 2013. Prepare the statement of profit or loss and other comprehensive income for the year ended 31 May 2013 in line with IFRS.

10. May/Jun 2014, Q1.25 marks

    Using the YoCo Stores information, prepare the statement of changes in equity for the year ended 31 May 2013.

11. May/Jun 2014, Q1.310 marks

    Using the YoCo Stores information, prepare the equity and liabilities section of the statement of financial position as at 31 May 2013, in line with IFRS.

12. May/Jun 2013, Q1.129 marks

    Mill Traders' pre-adjustment trial balance at 30 June 2012 shows: capital R202 000; drawings R27 000; debtors control R18 560; vehicles at cost R202 100 with accumulated depreciation R19 100; trading inventory (1 July 2011) R28 300; bank R56 520 (favourable); mortgage loan R105 000; loan from Africa Bank R15 000 at 19,5% p.a.; sales R272 195; sales returns R1 860; purchases R190 800; purchases returns R245; carriage on purchases R750; import duty on purchases R782; insurance on purchases R329; commission income R18 000; rent income R6 500; settlement discount granted R465; settlement discount received R225; depreciation R19 100; insurance R8 575; packaging materials R4 600; telephone R2 420; carriage on sales R1 250; repairs R2 160; petrol R3 479; wages R64 115; water and electricity R5 100. Adjustments: closing inventory is R22 750; rent income for the year should be R6 000; packaging material on hand is R1 200; commission income of R3 600 is still outstanding; water and electricity of R500 is still due; the mortgage loan bears interest at 11,5% p.a. and the Africa Bank loan is unsecured — interest on both for the year must still be provided; a debtor owing R4 640 is insolvent and must be written off; the insurance figure includes the premiums for July and August 2012. Prepare the statement of profit or loss and other comprehensive income for the year ended 30 June 2012, showing all calculations.

13. May/Jun 2013, Q1.24 marks

    Using the same Mill Traders information, prepare the statement of changes in equity for the year ended 30 June 2012.