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1.1 Refer to information A - NSC Accounting - Question 1 - 2024 - Paper 1
Question 1
1.1 Refer to information A. The bookkeeper has recorded all the entries regarding fixed assets in the books. Complete the amounts denoted by (i) to (iii) on the Fixe... show full transcript
Worked Solution & Example Answer:1.1 Refer to information A - NSC Accounting - Question 1 - 2024 - Paper 1
Step 1
Calculate: Cost price of buildings at the beginning of the year
Answer
To calculate the cost price of buildings at the beginning of the year, we can use the provided carrying value and accumulated depreciation:
Cost Price = Carrying Value + Accumulated Depreciation
Cost Price = R9 421 300 + R420 000
Cost Price = R9 841 300
Step 2
Calculate: Depreciation on vehicles
Answer
To calculate the depreciation on vehicles, we will apply the rate of 15% on the vehicles carried value:
Depreciation = Cost Price × Depreciation Rate
Depreciation = R786 000 × 15
depreciation = R117 900
Therefore, the depreciation on vehicles is R78 900 (old vehicles) and R15 150 (new vehicle).
Step 3
Step 4
Correct net profit after tax for year
Answer
To find the correct net profit after tax, adjustments must be made to the incorrect net profit:
Net Profit Before Tax = R1 150 000
- Audit Fees = R45 600
- Donations = R11 300
- Rent Income = R26 000 + R1 300
Net Profit Before Tax = R1 195 600
- Income Tax = R351 100
Net Profit After Tax = R844 500
Step 5
Complete the Statement of Financial Position on 29 February 2024
Answer
In the Statement of Financial Position, we list all assets and liabilities, ensuring the totals match:
ASSETS
- Non-Current Assets: R10 377 480
- Current Assets: R4 225 500
LIABILITIES
- Current Liabilities: R518 950
EQUITY AND LIABILITIES
- Total Equity: R14 225 500
This should balance with Total Assets equal to Total Equity and Liabilities.