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FAC1503 Assignment 5 Semester 2 2024
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10/17/24, 4:36 PM Assessment 5 (page 2 of 2)UNISA 2024 FAC1503-24-S2 FAC1503 - Financial Accounting Principles for Law Practitioners Assessment 5
QUIZ
Time left 1:00:26
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=23227947&cmid=846365&page=1 1/16
,10/17/24, 4:36 PM Assessment 5 (page 2 of 2)
Question 2
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The senior partner in the legal firm, SA Attorneys, instructed A South from West Attorneys to act on his behalf in the matter
between C Natal and E North. C Natal instituted a claim against E North for damages incurred in an accident due to negligent
driving. However, before the case served before the court, the parties settled on an amount of R231 000 payable by E North to C
Natal. E North immediately paid the amount into the trust bank account of West Attorneys.
SA Attorneys received the following statement from West Attorneys at 31 May 2022:
Account statement
WEST ATTORNEYS
SA ATTORNEYS
PO Box 4000 PO Box 253
DURBAN MBOPANE
31 May 2022
R R
Collection of settlement amount – C Natal vs E North 231 000
Fees for receiving instruction 12 900
Correspondence 920
Expert witness fees – Dr East 3 500
Medical records obtained 790
Subtotal 18 110
Collection fees 1 000
Your share of fees (allowance) 4 940
Electronic fund transfer to yourself 216 830
235 940 235 940
Which one of the following represents the correct journal entry in the accounting records of SA Attorneys to record
the expenses incurred and total fees levied by West Attorneys?
Select one:
a. General trust journal for May 2022 GTJ1
Date Details Fol. Debit Credit
R R
31 C Natal (trust creditor) 19 110
Western Attorneys (trust creditor) 19 110
Expenses incurred by Western Attorneys on
behalf of C Natal
b. General business journal for May 2022 GBJ1
Date Details Fol. Debit Credit
R R
31 C Natal (trust creditor) 19 110
Western Attorneys (trust creditor) 19 110
Expenses incurred by Western Attorneys on
behalf of C Natal
c. General trust journal for May 2022 GTJ1
Date Details Fol. Debit Credit
R R
31 Western Attorneys (trust creditor) 19 110
C Natal (trust creditor) 19 110
Expenses incurred by Western Attorneys on
behalf of C Natal
d. General trust journal for May 2022 GTJ1
Date Details Fol. Debit Credit
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=23227947&cmid=846365&page=1 2/16
, 10/17/24, 4:36 PM Assessment 5 (page 2 of 2)
R R
31 C Natal (trust creditor) 18 110
Western Attorney (trust creditor) 18 110
Expenses incurred by Western Attorneys on
behalf of C Natal
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Question 3
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On 2 April 2022, SA Attorneys decided to invest R165 000 of trust money, not immediately needed, in a special savings account at
SA Bank (An approved bank) to earn interest until the end of May 2022. All the investments were made in terms of section 86 of
the Legal Practice Act 28 of 2014.
The accountant recorded the transaction as follows:
Trust cash payments journal for Apr 2022
Trust
creditors
control
Date Details VAT Bank
R R R
2 Sec 86(3) - Trust investment – SA Bank (trust creditor) 165 000 24 750 189 750
165 000 24 750 189 750
Which one of the following statements is correct relating to the recording of the above transaction?
Select one:
a. The transaction is recorded correctly.
b. The transaction is recorded incorrectly because the transaction does not have any VAT effect.
c. The transaction is recorded incorrectly because it should have been recorded in the Business cash receipts journal.
d. The transaction is recorded in the correct journal, but the description is incorrect because it should be indicated as a
Sec 86(4) – Trust investment.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=23227947&cmid=846365&page=1 3/16
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