Exam (elaborations)
FAC1503 ALL ONLIN ASSIGNMENTS ANSWERS 2021 TO 2022
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- LLB (FAC1503)
- Institution
- University Of South Africa (Unisa)
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ASSIGNMENT 01 – FIRST SEMESTERDUE DATE: 04 MARCH 2019
UNIQUE NUMBER: 805288
Before you answer the questions of this assignment, you must study learning units 1 to 6
of your study guide. Do this assignment on a mark-reading sheet or submit it via the Unisa
Mobile MCQ Application or via myUnisa. Please note: Each question has only one correct
answer. Where applicable, round all answers off to two decimal places after the comma.
1. Internal control in an attorney’s practice are implemented to ensure compliance with the rules
and to ensure that trust funds are safeguarded.
Internal control is a measure that is included in the accounting system of an entity to ensure
the following:
(a) That all parts of the accounting system function properly.
(b) That no management policy is implemented.
(c) That the financial information provided by such system is complete, accurate and reliable.
(d) That in all circumstances, strict uniformity or a set of rigid rules is created.
(e) That the assets of the practice are protected against loss or fraud.
Which option reflects the correct statements?
1. (a), (c) and (e)
2. (b), (d) and (e)
3. (a), (c) and (d)
4. (b) and (c)
5. (a), (b), (c), (d) and (e)
2. Which one of the following elements pertains to the statement of financial position?
1. Income and expenses.
2. Assets, equity and liabilities.
3. Equity and liabilities.
4. Assets, income and equity.
5. Expenses and liabilities.
3. Equity is the remaining interest in the assets of the entity after deducting all its liabilities. The
elements of financial statements will therefore have a direct effect on the owner’s equity, for
example:
(a) An increase in expenses leads to a decrease in equity.
(b) Both drawings and income increase on the credit side.
(c) An increase in liabilities leads to an increase in equity.
(d) A profit increases equity and a loss decrease equity.
(e) An increase in capital leads to an increase in equity.
Which one of the following combinations correctly indicates the effect the elements of financial
statements will have on the owner’s equity?
1. (a) and (b)
2. (a), (b) and (e)
3. (c) and (d)
4. (a), (d) and (e)
5. (a), (b), (c), (d) and (e)
26
, FAC1503/101/3/2019
ASSIGNMENT 01, SEMESTER 1 (continued)
4. The following transactions relate to Dino Attorneys for April 2018.
Account Account
Transaction
debited credited
(a) Levied fees for legal services rendered to a client, Trust bank Clients control
Mr B Baloi and received the full amount due.
(b) Purchased a printer for the office, on credit from Comupter Trade creditors
IT Electronics. equipment control
(c) The owner, Mr B Dino, took office stationery for Stationery Drawings
private use.
(d) Issued a cash cheque to restore the imprest Petty cash Business bank
amount in the petty cash journal.
(e) Paid the monthly office rent with an electronic fund Office rent Business bank
transfer.
Which options indicate the correct accounting treatment of the above transactions in the
relevant accounts in the general ledger of Dino Attorneys for April 2018?
1. (a), (b) and (e)
2. (a), (b), (c), (d) and (e)
3. (c), (d) and (e)
4. (a), (b), (c) and (d)
5. (b), (d) and (e)
5. The following transactions relate to Burnett Attorneys for the month of August 2018.
Burnett Attorneys are not registered as a Value Added Tax (VAT) vendor.
Date Transactions
2018
Aug 7 Obtained a loan from JK Bank and received cash - R4 200.
Aug 22 Paid the monthly insurance in advance per cheque - R3 300.
Which option reflects the correct net influence of the above transactions on the accounting
equation of Burnett Attorneys for August 2018
Assets = Equity + Liabilities
R R R
1. + 900 + 3 300 + 4 200
2. – 3 300 + 900 + 4 200
3. + 900 – 3 300 + 4 200
4. – 3 300 + 7 500 + 4 200
5. + 900 – 3 300 – 4 200
6. Which one of the following statements regarding zero-rated and exempt supplies are
incorrect?
1. Suppliers of zero-rated goods and services may be registered for VAT.
2. No input VAT may be claimed on the inputs to exempt supplies.
27
,ASSIGNMENT 01, SEMESTER 1 (continued)
Question 6 (continued)
3. Suppliers of zero-rated items may claim input VAT on the input made to render the
particular zero-rated supplies.
4. Suppliers of exempt goods and services may be registered for VAT.
5. No output tax will be payable to SARS in respect of zero-rated supplies.
7. Right Attorneys received a valid tax invoice from Eagle Security, a business creditor, for
security equipment installed to the amount of R7 000 (excluding VAT at 15%).
Which option represents the amount that must be debited to the VAT control account in the
general ledger of Right Attorneys?
1. R1 050,00
2. R7 000,00
3. R913,04
4. R8 050,00
5. R6 086,96
The following information is applicable to questions 8 and 9:
Bono Attorneys charged Mr Schmidt a fee of R1 357 (including VAT of R177) for services rendered.
Bono Attorneys also paid occupational rent of R5 290 (including VAT of R690) on behalf of
Mr Schmidt.
Assume that the above transactions were accompanied by valid tax invoices. The VAT rate is 15%.
8. Which option represents the correct accounting entry in the clients control account in the
general ledger of Bono Attorneys?
1. Credit the clients control account with R5 290,00
2. Debit the clients control account with R6 647,00
3. Debit the clients control account with R1 357,00
4. Credit the clients control account with R6 647,00
5. Credit the clients control account with R1 357,00
9. Assume further, that Bono Attorneys paid the following from the business bank account (VAT
of 15% is included where applicable):
Sheriff fees paid for the delivery of a summons in the matter Sparkle Traders vs A Booi -
R69,00
Stationery - R207,00
Tracing fees paid to Top Tracers in the matter B Keys vs F Keys - R184,00
What will the amount of input VAT be that Bono Attorneys can claim back from the South
African Revenue Service (SARS)?
1. R31,05
2. R60,00
3. R27,00
4. R51,00
5. R69,00
28
, FAC1503/101/3/2019
ASSIGNMENT 01, SEMESTER 1 (continued)
The following information is applicable to questions 10 and 11:
On comparing the business bank statement with the business cash journals of Indigo Attorneys for
the month ended July 2018 and the bank reconciliation statement as at 30 June 2018, the following
were noted:
10. Cheque no 221 dated 19 January 2018 issued to A Murdock, a business creditor, for R2 110,
was shown as outstanding on the bank reconciliation statement as at 30 June 2018. The
cheque has not yet been presented to the bank for payment.
Choose the correct accounting procedure to follow for cheque no 221 in the accounting
records of Indigo Attorneys for 31 July 2018.
1. Record an entry in the business cash payments journal for - R2 110.
2. Debit the bank reconciliation statement with cheque no 221 - stale cheque - R2 110.
3. Record an entry in the trust cash receipts journal for R2 110.
4. Credit the bank reconciliation statement with cheque no 221 - not yet presented for
payment - R2 110.
5. Record an entry in the business cash receipts journal for R2 110.
11. An electronic fund transfer for R430 for government gazettes payable to Government Printers,
a business creditor, appeared on the business bank statement at 31 July 2018, but not in the
relevant business cash journal for the month ended 31 July 2018.
What will the correct entry in the accounting records of Indigo Attorneys for 31 July 2018 be,
to account for the electronic fund transfer?
1. Record an entry in the business cash receipts journal for R430.
2. Record an entry in the business cash payments journal for R430.
3. Debit the bank reconciliation statement with an outstanding debit order of R430.
4. Record an entry in the trust cash payments journal for R430.
5. Credit the bank reconciliation statement with an outstanding debit order of R430.
12. Fees for legal services rendered of R2 410, which were entered in the business cash receipts
journal on 31 July 2018, did not appear on the business bank statement as at 31 July 2018.
The fees were only deposited in the business bank account on 2 August 2018.
The correct accounting procedure to follow in the accounting records of Indigo Attorneys for
31 July 2018, when preparing the bank reconciliation statement, is as follows:
1. Credit the bank reconciliation statement with an outstanding deposit of R2 410.
2. Record an entry in the trust cash receipts journal for R2 410.
3. Record an entry in the business cash receipts journal for R2 410.
4. Debit the bank reconciliation statement with an outstanding deposit of R2 410.
5. Record an entry in the business cash payments journal for R2 410.
The following information is applicable to questions 13 and 14:
The following transactions took place during the month of August 2018 in the practice of
Amulal Attorneys.
29
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