Practice 25 questions on RV101/R101/RF1X1 - ACCOUNTING 1 at Nelson Mandela Metropolitan University. Free AI-generated quiz on uNotes — track your score, retake anytime.
1Saleem Traders marks up goods by 50% on cost. Given that the Sales account shows a balance of R129,600, what is the Cost of Sales for the period (assuming no other adjustments)?
2Which inventory valuation method is most appropriate for a business like 'Creamy (Pty) Ltd' which sells perishable dairy products with a limited lifespan?
3The owner, M. Saleem, took inventory with a marked price (selling price) of R3,000 for personal use. The markup is 50% on cost. Identify the correct journal entry components to fix the incorrect recording (DR Capital; CR Sales).
4Insurance of R2,400 was paid on 1 July 2018 for the following 12 months. The financial year ends on 28 February 2019. What is the value of the 'Prepaid Insurance' adjustment at year-end?
5According to the trial balance and Info 6, the opening Office Supplies on Hand was R1,300 and the Office Supplies Expense for the year was R1,460. If a physical count on 28 February 2019 showed R920 worth of supplies remaining, what is the final Office Supplies Expense for the Statement of Profit or Loss?
6Which of the following errors would cause a Trial Balance to NOT balance?
7Office space was let at R18,000/year for the first year (starting 1 Dec 2017) and R24,000/year for the second year. Calculate the Rent Income for the financial year ending 28 February 2019.
8In terms of the 'average clause' mentioned in Info 9, if inventory is stolen and the owner is under-insured, how is the claim calculated?
9How should Bon-Bon Furniture Store record the R1,500 transport cost for bringing inventory from a supplier to the retail store?
10A mortgage loan was obtained on 1 October 2017 and is repayable in four equal annual instalments. If the balance on the Trial Balance on 28 February 2019 is R90,000 (after the first payment in Oct 2018), what was the original loan amount?
