Financial Accounting Principles Concepts and Procedures (FAC1502)
Exam (elaborations)
FAC1502 ELECTIVE ASSESSMENT 6 SEM 2 EXPECTED QUESTIONS AND ANSWERS SEM 2 OF 2024
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Course
Financial Accounting Principles Concepts and Procedures (FAC1502)
Institution
University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS FAC1502 ELECTIVE ASSESSMENT 6 SEM 2 EXPECTED QUESTIONS AND ANSWERS SEM 2 OF 2024. USE IT CORRECTLY AS A GUIDE AND FOR PREP TO SCORE ABOVE 75%
Financial Accounting Principles Concepts and Procedures (FAC1502)
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Please choose the correct option for the given scenario.
Answer saved
Marked out of
4.00
Flag
question
Consumable stores will be closed off to the … account at the end of the financial year.
Consumable stores on hand
Sales will be closed off to the … account at the end of the financial year.
Trading account
The gross profit or loss will be calculated in the … at the end of the financial year.
Profit or loss account
Commission received will be closed off to the … account at the end of the financial year.
Profit or loss account
Question 2 The accountant for Gizmo Traders provides you with the following information for the financial years ended 31 May 20.2; 31 May 20.3 and 31
Answer saved May 20.4:
Marked out of
1.00 20.4 20.3 20.2
Flag
Revenue 800 000 500 000 400 000
question Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
The gross profit percentage on sales for the year ended 31 May 20.4 is …
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. Don't show the % sign only the numbers (eg: 70.01% is 70.01)
Answer: 50.00
Question 3
K Swa Traders (not a registered VAT vendor) makes use of the periodic inventory system and a mark-up of 45% on cost price. The
Answer saved
following transactions took place during the current financial year:
Marked out of
18.00 (a) Bought inventory for R9 565 on account.
Flag (b) Inventory amounted to R3 105 donated to local schools.
question
(c) Inventory was sold for R6 850 cash.
Required:
Record the above transactions in the table provided.
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has a increase as well as a decrease the net effect will be 0.
6. If an option has been provided that is not applicable to the question, please use N/A in the column to indicate that the option is not
applicable.
Subsidiary journal Account in the general ledger to be Net effect on Net effect on Net ef
No assets = equity + liabi
Debited Credited
(a)
Purchases journal Purchases Inventory 0 -9565.00 9565.0
Question 4
Answer saved You are given the following information for United Tennis Club for the year ended 31 December 20.6:
Marked out of
14.00 a) Membership fees received for the year is R37 440.
Flag
question
b) Membership fees was R200 in 20.5, R240 in 20.6 and will be R280 in 20.7.
c) On 1 January 20.6, the membership fees of five members for 20.5 were still due.
d) On 31 December 20.5, six members prepaid their membership fees for 20.6.
e) On 31 December 20.6 four members paid their membership fees for 20.7.
f) Membership fees received during 20.6 included the membership fees of three members who did not pay in 20.5. The other two members'
membership fees must be written off as irrecoverable.
g) On 31 December 20.6, three member’s membership fees for 20.6 were still outstanding.
Required:
Prepare the membership fees account in the general ledger as at 31 December 20.6.
Instructions:
1. Do not type the amount with any spaces as separators for thousands (eg: 12141)
2. Round off to the nearest Rand (eg: 50.56 is 51)
3. Only show the amount, do not show the "R" for the Rand sign (eg: 12141)
4. Keep the transactions strictly according to date sequence
5. When no amount needs to be entered in a column, then indicate this by entering "0" in the column.
6. If an option has been provided and it is not applicable to the specific question, please put N/A in the account column.
GENERAL LEDGER
UNITED TENNIS CLUB
Dr Membership fees Cr
20.6 20.6
Jan 1 Accrued income 1000.00 Jan 1 Income received in advance 1440.00
Dec 31 Dec 31
Income received in advance 1120.00 Bank 37440.00
Income and expenditure 37880.00 Credit losses 400.00
Accrued income 720.00
40 000 40 000
Question 5
Indicate whether the following statement is true or false:
Answer saved
Debentures cannot be secured by a mortgage.
Marked out of
1.00
, Flag Select one:
question
True
False
Question 6 Peter a qualified electrical engineer was retrenched in January 20.2 and he received a retrenchment package of R1 000 000. He decided to open his own
Answer saved business PG Electricians on 1 February and deposited 50% of his retrenchment package into PG Electricians business bank account. PG Electricians will use
the periodic inventory system.
Marked out of
5.00
The following transactions occurred in the books of PG Electricians during the month of February 20.2:
Flag
question Transaction Details
1 He decided to open his own business PG Electricians on 1 February 20.2 and
deposited 50% of his retrenchment package into PG Electricians business bank
account.
2 Peter will be renting a business premises at R3 800 per month.
3 For the month of February 20.2, PG Electricians rendered services for cash of
R10 000.
4 Peter bought a van on credit from WR Cars on 10 February 20.2 for R50
000. Finance was obtained through a loan from ABC Bank and carries interest at
11,5% interest per annum.
5 PG Electricians employed two electricians. The weekly wages per electrician is R3
500. Peter did an EFT on 9 February for the weekly wages of the two electricians.
6 PG Electricians sold 6 solar panels, one battery and 1 inverter on credit for a total
cost of R65 000. The items were delivered to Mr Khumalo's home on 28 February
20.2.
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has been provided and it is not applicable to the specific question, please put N/A in the column.
6. Only show the amount, do not show the "R" (eg: 1000)
The correct ledger and accounting analysis of TRANSACTION 5 in the books of PG Electricians will be ...
General ledger
Assets Equity Liabilities
Account to be debited Account to be credited
R R R
Wages Bank -7000.00 -7000.00 0
Question 7
Membership fees of Gizmo Soccer Club was R1 200 per year for 20.1 and R1 300 per year for 20.2. On 31 December 20.1, it was noted that 4
Answer saved
members did not pay their membership fees for 20.1 and 9 members paid their membership fees for the 20.2 on 31 December. The financial
Marked out of year end of Gizmo Soccer Club is 31 December.
1.00
Flag
question The amount to be disclosed as part of trade and other receivables in statement of financial position as at 31 December is 20.1 …
Instructions:
1. Round off to the nearest Rand (eg: 50.56 is 51)
2. Only show the amount, do not show the R (eg: 12141)
Answer: 4800.00
, Question 8
Joe Traders is not a registered VAT vendor. On 1 July 2023, Joe Traders bought machinery for R84 000 on credit from Malebo Machines. BB
Answer saved Logistics delivered the machinery at an additional cost of R2 500. Malebo Machines send a technician who installed the machinery and
Marked out of tested its operationality for R4 500. Joe Traders paid the delivery cost and installation cost with electronic funds transfers. The interest
2.00 charged on the outstanding amount for the year ended 30 June 2024 was R10 080.
Flag
question
Depreciation is calculated on machinery at 20% per annum, using the straight-line method.
Required:
What will the depreciation on the machinery be that is recorded in the statement of profit or loss and other comprehensive income for the
year ended 30 June 2024?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141)
2. Round off to the nearest Rand (eg: 50.56 is 51)
3. Only show the amount, do not show the R (eg: 12141)
Answer: 18200.00
Question 9
Designer Traders obtained an unsecured loan for an amount of R230 600 at the beginning of the current financial year from ATM Bank at an
Answer saved
interest rate of 14% per annum. 50% of the loan was repaid on 1 March 2024 and the remainder needs to be repaid on 1 March 2025. The
Marked out of interest is not capitalised but paid to the bank on the day the loan is repaid. Designer Traders current financial period ends on 31 May 2024
2.00
and according to the extract from pre-adjustment trial balance as at 31 May 2024, interest on loan amounted to R24 213.
Flag
The amount for interest payable to be shown in the statement of financial position for the year ended 31 May 2024 will be?
question
Instructions:
1. Use a full stop to indicate any decimals (eg: 70.01)
2. Round off to the nearest R (eg: 50.56 is 51)
3. Only show the amount, do not show the R (eg: 12141)
Answer: 4036.50
Question 10 Use the following information to calculate the missing figure by using the principles of the basic accounting equation:
Answer saved
Marked out of
2.00 R
Flag Capital 450 000
question
Furniture 110 000
Buildings 200 000
Vehicles 150 000
Machinery 135 000
Income 80 000
Bank ?
Expenses 45 000
Loan: SA Bank 60 000
NB: Instructions
1. Use a full stop to indicate any decimals (e.g., 1000.01)
2. Only show the amount; do not show the R (e.g., 12141.72)
3. If the net effect on the accounting equation is a decrease, please enter the amount as a negative (e.g.: -12141.72)
Answer: -950000
Question 11
Lunas Art Club provides you with the following information for the 20.2 financial year. Lunas Art Club had 29 members at the end of the
Answer saved
20.2 financial year. Membership fees amounts to R320 per month. On 1 January 20.2, five new members joined the club and paid an
Marked out of entrance fee of R100 each. The entrance fees received was capitalised to the accumulated fund account. Membership fees received in
2.00
advance on 31 December 20.1 was R23 040. The financial year-end of Lunas Art Club is 31 December.
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