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FAC1501Assignment 5 Semester 1 2024
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FAC1501Assignment 5 Semester 1 2024
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Opened: Thursday, 9 May 2024, 8:00 AMCloses: Monday, 13 May 2024, 9:00 PM
825320
Kindly note that you will only be able to view your mark obtained for assessment 5 and the overall feedback for
assessment 5 after you have submitted your attempt.
You will be able to view the questions you have received for the attempt, with their answers and general
feedback, after the due date of assessment 5.
Attempts allowed: 1
Time limit: 2 hour
Grade to pass: 50.00 out of 100.00
Summary of your previous attempts
Marks / Grade /
State 50.00 100.00 Review Feedback
Finished 48.67 97.21 You passed this assessment
Submitted Thursday, with a distinction. Keep up the
9 May 2024, 8:50 PM good work.
,Question 1
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The following information relates to Pinetown Traders at 28 February 2022:
Balances:
R
Trade receivables control account (1 March 2021) 16 469
Allowance for credit losses (1 March 2021) 1 490
Credit losses recovered 785
Credit sales 116 967
Settlement discount granted 1 950
Additional information
(1) Debtor, A Zulu, was declared insolvent and his account of R473 has to be written off.
(2) It was determined that the allowance for credit losses account should amount to R3 439 at
28 February 2022. As credit losses occur the credit losses is written off against the allowance for credit
losses account.
What is the total amount with which the credit losses account will be adjusted in the accounting
records of Pinetown Traders, after taking the above information into account?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Use a full stop to indicate any decimals (eg: 1000.01)
3. You must enter cents even if it is 0 (eg .00)
4. Only show the amount, do not show the R (eg: 12141.72)
5. If the total amount with which the credit losses account is adjusted should be credited to the account, please
enter the amount as a negative (eg: -12141.72), if the amount should be debited to the account, please enter the
amount as a positive (eg: 12141.72)
Answer: 2422.00
,Question 2
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SA Traders is a registered VAT vendor. The VAT rate is 15%. The following information was recorded in the
accounting records of SA Traders as at 28 February 2022 (the financial year-end):
R
Vehicles at cost 218 000
Computer equipment at cost 109 000
Accumulated depreciation: Vehicle (1 March 2021) 65 400
Accumulated depreciation: Computer equipment (1 March 16 350
2021)
The vehicles are depreciated at 20% per annum, using the straight-line method. Computer equipment is depreciated
at 15% per annum, using the reducing balance method.
What will be the carrying value of the computer equipment as at 28 February 2022?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Use a full stop to indicate any decimals (eg: 1000.01)
3. Only show the amount, do not show the R (eg: 12141.72)
Answer: 78752.50
,Question 3
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The following information relates to a bank reconciliation of WaMarks Traders:
(1) The balance as per the bank account in the general ledger, before taking the items below into account, was
R12 800 (unfavourable).
(2) A debit order for R3 800, relating to advertising, that appears on the bank statement has not been entered in the
applicable cash journal.
(3) A deposit of R13 500 that appears on the bank statement, regarding a customer who deposited directly into the
bank account, has not been entered in the applicable cash journal.
(4) Payments totalling R4 600 have been correctly entered in the cash payments journal but have not been presented
for payment.
(5) The balance as per the bank statement was R10 370 (unfavourable).
What will the outstanding deposits amount be in the bank reconciliation statement?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Only show the amount, do not show the R (eg: 12141.72)
Answer: 7030.00
,Question 4
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Use the following information to answer the question below:
Giyani Traders is a business that sells electronic equipment. The entity is not registered as a VAT vendor.
The financial year-end of Giyani Traders is 28 February of each year. The following trial balance was
extracted from the financial records of Giyani Traders.
GIYANI TRADERS
PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022
Debit Credit
R R
Financial position section
Capital 450 000
Drawings 27 000
Land and buildings at cost price 780 000
Mortgage 700 000
Vehicles at cost price 320 000
Furniture at cost price 80 000
Accumulated depreciation: Vehicles 80 000
Accumulated depreciation: Furniture 10 400
Inventory 79 500
Trade receivables 49 700
Trade payables 31 850
Allowance for credit losses 1 200
Accrued expenses 2 500
Accrued income 3 000
Bank 45 700
Petty cash 4 500
Total comprehensive income for the year 22 050
1 343 700 1 343 700
Additional information:
The mortgage loan with interest at 9% per annum is repayable over a period of 20 years. The capital that will
be repaid from 1 March 2022 to 28 February 2023 amounts to R14 600. No interest was due at the end of
the financial year.
Current assets on the statement of financial position of Giyani Traders as at 28 February 2022 will
amount to …
, NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Use a full stop to indicate any decimals (eg: 1000.01)
3. You must enter cents even if it is 0 (eg .00)
4. Only show the amount, do not show the R (eg: 12141.72)
Answer: 136700.00
Question 5
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On 15 March 2021, Mr DJ Chunchun won the national lottery. After consultation with his newly appointed financial
advisor, he decided to start a solar power business. The business will build a solar power station that would sell
electricity to the local municipality during load shedding, sell and install solar power systems in the local community
and rent out generators. The business, Power-2people, will open on 1 July 2021 and will be registered as a VAT
vendor (the applicable VAT rate is 15%). The periodic inventory system and control accounts are in use. Analyse the
following documents according to what is required and choose the correct option from the options that are given.
The amounts in the transactions are VAT inclusive, where applicable.
On 4 July 2021, Mr DJ Chunchun, returned 25 faulty Cinco 100W 72 cell poly solar panels to Voltage Suppliers.
Voltage Suppliers gave Power-2-people a refund to the amount of R23 750,09 and paid the amount via an electronic
funds transfer.
The amount that should be recorded in the book of first entry for VAT is…
Select one:
a. R0 since it is a zero-rated item
b. R3 097,84
c. R0 since the transaction did not take place between VAT vendors
d. R3 562,51
Clear my choice
,Question 6
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This question relates to bank reconciliations:
The bank statement had a favourable balance of R60 000 on 31 March 2022.
In which one of the following will you enter the above balance?
Select one:
a. In the bank account in the general ledger on the debit side.
b. In the bank reconciliation statement in the credit column.
c. In the bank reconciliation statement in the debit column.
d. In the bank account in the general ledger on the credit side.
Clear my choice
,Question 7
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On 1 February 2022, Mr Mbiti was granted funding from the government to start a small business in a rural area.
After consultation with his newly appointed financial advisor, he decided to open a grocery store. The store, Local
Produce, opened on 1 April 2022 and is registered as a VAT vendor (the applicable VAT rate is 15%). The periodic
inventory system and control accounts are in use. The transaction amounts are VAT inclusive, where applicable.
On 2 April 2022, Local Produce, purchased inventory with a cost price of R100 000 from ABC Wholesalers (not a
VAT vendor) on credit.
What will be the effect of the transaction on the accounting equation?
Select one:
a. Assets Equity Liabilities
R R R
+ 100 000
0 0
- 100 000
b. Assets Equity Liabilities
R R R
0 - 100 000 + 100 000
c. Assets Equity Liabilities
R R R
- 100 000 - 100 000 0
d. Assets Equity Liabilities
R R R
+ 100 000 0 + 100 000
Clear my choice
,Question 8
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At 30 September 2021, the financial year-end of Emalahleni Traders, the following information was obtained from
the entity’s accounting records:
Capital (1 October 2020) 251 292
Drawings 57 765
Sales 876 922
Cost of sales 554 498
Bank charges 5 314
Water and electricity 31 888
Salaries and wages 106 293
Telephone expenses 30 116
Stationery 19 487
Commission received 8 857
Interest income 24 801
Calculate the balance of the capital account of Emalahleni Traders as at 30 September 2021?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Only show the amount, do not show the R (eg: 12141.72)
Answer: 356511.00
, Question 9
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Stokvel Traders (a registered VAT vendor) manufactures and sells luxury goods. Stokvel Traders further provides
certain marketing and advertising services to clients in the tourism industry. The periodic inventory system and
control accounts are in use.
The following balances and totals were extracted from the financial records of Stokvel Traders for the year ended
31 March 2022:
R
Sales 1 230 045
Services rendered 230 000
Rent received 95 000
Insurance 67 500
Advertising 43 700
Water and electricity 36 800
Telephone expenses 35 190
Additional information:
1. Stokvel Traders sublets a portion of its office space to Tourists International for a monthly fee of R10 925
(VAT inclusive).
2. SA Destinations, made a direct deposit to the amount of R3 335 in to the bank account of Stokvel Traders for
marketing consultation services to be delivered during April 2022. The transaction was recorded as income in
the accounting records.
3. The insurance was paid on 1 April 2021 for a period of 15 months.
4. On 1 October 2020, Stokvel Traders’ entered into a two-year contract with TelePhon Inc whereby they pay a
fixed monthly fee of R3 910 (VAT exclusive) for line rental, unlimited phone calls and unlimited data.
What is the amount that will be reported as accrued expenses in the statement of Financial position as at
31 March 2022?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Only show the amount, do not show the R (eg: 12141.72)
Answer: 11730.00
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