Module 4: Accounting Principles and Definitions Summative Assessment
1. Process the following transactions for June 20.1 of Jainee Snax, using the accounting equation. 1 The owner invested R12 000 in the business as her capital contribution. 5 Bought a compressor machine on account for R2 000 from Hyper. 8 Paid R450 for packaging material to Magra and paid by cheque. 10 Sold goods for cash, R1 250. 12 Bought merchandise, R2 340, and stationery, R580 from Makro and paid by cheque. 15 Bought a delivery motorcycle from ScootaMania for R2 750 and paid by cheque. 21 Sold goods on account for R1 505 to Shana. 25 Paid Hyper R500 for payment of their account. 28 The owner withdrew R75 from petty cash for own personal use. 30 Shana paid Jainee Snax R500 on their account.
2. Calculate the Current Assets. In 2020, Company X had: R1 million in cash R3 million in cash equivalents R5 million in accounts receivable R3million worth of inventory R1.5 million of prepaid expenses
Using the formula, we can find the company’s total current assets for the 2020 financial year: Current assets =
