FAC1502 - Financial Accounting Principles, Concepts And Procedures
Exam (elaborations)
FAC1502 EXAM PACK
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Course
FAC1502 - Financial Accounting Principles, Concepts And Procedures
Institution
University Of South Africa
FAC1502 EXAM PACK
FAC1502 OCT/NOV 2008
(WITH SOLUTION)
_________________________________________________________________________
This paper consists of 6 pages. The duration is 2 hours.
PLEASE NOTE:
1. Ensure that you are writing the correct examination paper.
2. Ensure that you are handed t...
FAC1502 - Financial Accounting Principles, Concepts And Procedures
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FAC1502 EXAM PACK
, Page 2 of 125
lOMoARcPSD|10937002
FAC1502 OCT/NOV 2008
(WITH SOLUTION)
_________________________________________________________________________
This paper consists of 6 pages. The duration is 2 hours.
PLEASE NOTE:
1. Ensure that you are writing the correct examination paper.
2. Ensure that you are handed the correct examination answer book (BLUE) by the invigilator.
3. All questions must be answered.
4. Basic calculations, where applicable, must be shown.
5. The answer to each question must be commenced on a new (separate) page.
6. Please do not answer the paper in pencil.
7. PROPOSED TIMETABLE (try not to deviate from this):
Time in
Question Subject Marks
minutes
1 Cash transactions and bank reconciliation 25 30
2 Debtors control account 18 22
3 Incomplete records 25 30
4 Closing entries 32 38
TOTAL 100 120
, Page 3 of 125
lOMoARcPSD|10937002
3 OCT/NOV 2008
QUESTION 1 (25 marks) (30 minutes)
The following bank reconciliation statement was prepared at 31 March 2008 in the books of
Lungile Services:
Bank reconciliation statement as at 31 March 2008
Debit Credit
R R
Credit balance as per bank statement ...................................... 1 649
Credit outstanding deposit......................................................... 960
Credit incorrect entry on bank statement ................................. 204
Debit outstanding cheques:
No. 558 .................................................................................. 360
No. 813 .................................................................................. 102
No. 821 .................................................................................. 199
Debit balance as per bank account ........................................... 2 152
2 813 2 813
The following is a summary of the deposits and cheque payments recorded in the cash
receipts journal and the cash payments journal for April 2008:
Cash receipts journal Cash payments journal
Bank Bank
Doc Date Details (Amount Doc. Date Details (Amount
. deposited) No. paid)
No.
R R
7 Deposit 932 823 3 Telephone 360
16 Deposit 1 992 824 6 Purchases 4 530
20 L. Good 420 825 11 Insurance 244
27 Deposit 2 152 826 16 Wages 252
30 Deposit 1 152 827 20 F Andy 376
SO 25 Salaries 1 950
828 27 Water and electricity 84
CU K Dandy 142
829 30 G Bush 685
Abbreviations:
SO = Stop order
CU = Cheque previously deposited, unpaid (R/D)
, Page 4 of 125
lOMoARcPSD|10937002
4 OCT/NOV 2008
The bank statement received on 30 April was as follows:
Bank statement: Lungile Services - April 2008
Date Details of Debit Credit Balance
April R R R
1 Balance ............................................................ 1 649 Cr
Error corrected ................................................. 204 1 853 Cr
2 Deposit ............................................................ 960 2 813 Cr
Cash deposit fee .............................................. 19 2 794 Cr
7 Cheque No. 821 .............................................. 199 2 595 Cr
Deposit ............................................................ 932 3 527 Cr
Cash deposit fee .............................................. 18 3 509 Cr
12 Deposit (rent) ................................................... 240 3 749 Cr
Cash deposit fee .............................................. 5 3 744 Cr
16 Cheque No. 823 .............................................. 360 3 384 Cr
20 Cheque No. 824 .............................................. 4 350 966 Dr
Deposit ............................................................ 1 992 1 026 Cr
Cash deposit fee .............................................. 40 986 Cr
Deposit ............................................................ 420 1 406 Cr
Cash deposit fee .............................................. 8 1 398 Cr
za
MF .................................................................... 90 1 308 Cr
25 ria LS
Cheque No. 825 .............................................. 244 1 064 Cr
o.
27 Cheque No. 826 .............................................. 252 812 Cr
.c
Stop order ........................................................ 1 950 1 138 Dr
to IA
Deposit ............................................................ 2 152 1 014 Cr
ls
Cash deposit fee .............................................. 43 971 Cr
rtu R
Unpaid cheque (K Dandy) ............................... 142 829 Cr
.g O
Cheque fees .................................................... 16 813 Cr
IN ..................................................................... 10 803 Cr
w UT
Additional information:
w RT
1. Abbreviations:
MF= Management Fee
IN = interest on overdraft.
G
2. Cheque No. 558 was drawn on 16 October 2007 in favour of K Kara for repairs to the
w
building. The cheque is stale and must be cancelled.
3. The correct amount of cheque 824 is R4 350 and not R4 530.
4. Cheque No.828 was mislaid by the Municipality and the bank was notified to stop
payment. No entries were made to record this.
Required:
1.1 Finalise the cash receipts journal and the cash payments journal and post the totals of
the cash receipts journal and cash payments journal to the bank account. (12)
1.2 Open and complete the bank account for April 2008 in the general ledger of Lungile
Services. (5)
1.3 Prepare a bank reconciliation statement as at 30 April 2008. (8)
Downloaded by Tebatso Kgari (tebatso.kgari@gmail.com)
www.grtutorials.co.za email: info@grtutorials.co.za Tel: 0127704239
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