FAC1502 EXAM PACK 2022.
This is an all-inclusive and a complete guide to FAC1502 - Financial Accounting Principles, Concepts And Procedures.
Disposals should be recorded @ carrying amount that is cast minus accumulated
depreciation.
b) Any assets bought during the year are recorded as additions...
, FAC1502 EXAM PACK
Accounting Concepts, Principles and Procedures
Worked and compiled by Levison Kamanga
For And on behalf of
Only for UNISA students doing the module FAC1502
, 3
www.lucianotutorials.com
, 4
QUESTION 1 SOLUTION
DR P HEAL
CASH RECEIPTS JOURNAL (CRJ)
Doc Date Details BANK Debtors Fees VAT VAT SUNDRIES
Number MARETT Control earned Output Input
Amount Details
450 1 K. Kelly 275 275
451 1 J. Jail 1710 1500 210
452 9 Y. Old 383 440 (7) (50) Settlement
Discount
allowed
453&491 12 Deposit 9120 8000 1120
11488 715 9500 1330 (7) (50)
HINTS
a) Whenever you sell a good or offer a service, you are required to levy output VAT.
Any VAT paid out is recoverable from SARS if you are a registered vendor and any
VAT received is payable to SARS.
b) If goods are sold on credit, the transactions regarding VAT output would have been
recorded in the Sales journal. VAT is charged at the point of sale and not at the point
of payment. In the CRJ, the VAT is accounted for on cash sales.
c) When goods are sold at a discount, the VAT is debited to the VAT Input Account to
reduce the amount owing to SARS since the part that is relating to the discount will
no longer be received.
100 100
d) To remove VAT from a figure you multiply that figure by 114 e.g. 1710 x 114 =
1500.
e) Calculation of the discount and the VAT element in discount:
Discount= Amount Paid-Amount owed
= 440-383
= 57
VAT element= 14/114*57
=7
We use 14/114 because the discount is at selling price inclusive of VAT. If it was
exclusive of VAT, we could have used 14/100.
f) The transaction on 15 March is not entered in the CRJ as information is not given on
the payment of the consultation fees and unlike on other similar transactions
involving receipt of funds, the receipt number is not quoted.
CASH PAYMENTS JOURNAL (CPJ)
DOC DATE DETAILS BANK CREDITORS VAT SUNDRIES
NUMBER CONTROL INPUT
AMOUNT DETAILS
C114 1 Spacious 1254 154 1100 Rental
Properties paid
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