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4.1 Choose an explanation in COLUMN B that matches the term in COLUMN A - NSC Accounting - Question 4 - 2019 - Paper 1
Question 4
4.1 Choose an explanation in COLUMN B that matches the term in COLUMN A. Write only the letters (A–E) next to the question numbers (4.1.1 to 4.1.5) in the ANSWER BOO... show full transcript
Worked Solution & Example Answer:4.1 Choose an explanation in COLUMN B that matches the term in COLUMN A - NSC Accounting - Question 4 - 2019 - Paper 1
Step 1
Calculate: - Amounts for (ii) and (iii) in the Fixed Assets Register
Answer
To calculate the amounts for the Fixed Assets Register, list all relevant fixed asset transactions, including additions and disposals. You would start with the initial balance, then account for each transaction accordingly, ensuring to adjust for the depreciation where necessary.
Step 2
Calculate: - Profit/Loss on sale of asset
Answer
The Profit/Loss on sale of an asset is calculated as the sale price minus the carrying amount of the asset at the time of sale. For example, if an asset was sold for R7,500 and had a carrying amount of R5,000, the profit would be calculated as follows:
Step 3
Calculate: - Fixed assets carrying value on 28 February 2019
Answer
The carrying value of fixed assets can be determined by taking the initial acquisition cost, subtracting any accumulated depreciation, and accounting for any disposals. This gives the net book value of fixed assets as of the specified date, February 28, 2019.
Step 4
Calculate the correct net profit after tax for the year ended 28 February 2019. Indicate (+) for increase and (−) for decrease.
Answer
To calculate the net profit after tax, start with the incorrect net profit before tax and adjust for non-cash items, provisions, and any other relevant income or expenses. Utilize the formula for net profit after tax, ensuring to subtract the applicable taxes:
Step 5
Refer to Information A–H. Prepare the following on 28 February 2019: - Retained Income Note
Answer
The Retained Income Note should summarize the beginning retained earnings, add the net profit after tax for the period, and subtract any dividends declared. This series of steps will give the ending retained earnings, leading the retained income note to display these calculations in clear format.
Step 6
Refer to Information A–H. Prepare the following on 28 February 2019: - Statement of Financial Position (Balance Sheet)
Answer
The Statement of Financial Position or Balance Sheet should categorize the company’s assets, liabilities, and equity as of 28 February 2019. You would start with total assets calculated from previous sections, and then subtract total liabilities to determine equity, ensuring clarity between current and non-current sections.