Exam (elaborations)
Fac1503 Assignment 4 semester 2 2022
- Institution
- University Of South Africa (Unisa)
Fac1503 Assignment 4 semester 2 2022
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FAC 1503ASSIGNMENT 4 SEMESTER 2 2022
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Although it is the auditor’s responsibility to issue and submit the report, the legal practice is
obliged to ensure that the report is issued and submitted to the Law Society of South Africa
in time.
Select one:
True
False
Question 3
On 25 April 2022, a client, Mr S Africa, authorised SA Attorneys in writing, to invest R50 000 from
his trust account in a special 31-day money market account at SA Bank. All the investments are
made in terms of section 86 of the Legal Practice Act 28 of 2014.
Which one of the following presents the correct entry in the subsidiary journals of SA Attorneys?
Select one:
a.
Business cash payments journal for April 2022
Date Details
25 S Africa sec 86(4) - Investment – SA Bank (trust creditor)
b.
Trust cash receipts journal for April 2022
Date Details
25 S Africa sec 86(4) - Investment – SA Bank (trust creditor)
c.
Trust cash payments journal for April 2022
, Date Details
25 S Africa sec 86(4) - Investment – SA Bank (trust creditor)
d.
Business cash receipts journal for April 2022
Date Details
25 S Africa sec 86(4) - Investment – SA Bank (trust creditor)
Question 4
The exact amount owing on the business account of the client should be transferred. The
practice of transferring rounded amounts is not acceptable.
Select one:
True
False
Question 5
SA Attorneys invested trust funds on instruction from their client, A South in SA Bank (An
approved bank). Interest of R3 000 was earned on the investment. What subsidiary journal
will be used to account for the interest received from SA Bank on the section 86(4)
investment of A South on 31 May 2020?
Select one:
a.
General journal
b.
Business cash receipts journal
c.
Trust cash receipts journal
, d.
Trust journal
Question 6
A South from SA Attorneys in Tshwane instructed S Africa from Africa Attorneys in Tzaneen
to collect an amount of R6 000 from D Mara on behalf of his client, C West. The amount was
for maintenance as per the Court’s instruction in their divorce case. Africa Attorneys made
the collection and paid the Sheriff an amount of R250.
Africa Attorneys issued an invoice for the following fees:
receiving of instruction – R200
issuing summons – R800
collection commission – R700
What will be the allowance that A South is entitled to? (Ignore any VAT implications)
Select one:
a.
R650
b.
R2 000
c.
R1 700
d.
R567 ( 200+800+700)* 1/3
Question 7
Which of the following statements regarding the rules of the trust bank account
are incorrect when funds are transferred from the trust account to the business account?
Select one:
a.
Surplus clients’ trust funds may be transferred from the trust bank account to a separate
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