Exam (elaborations)
FAC1502 - Financial Accounting Principles, Concepts And Procedures
- Institution
- University Of South Africa
FAC1502_ASSIGNMENT_2_SEMESTER_1_2023 FAC1502 - Financial Accounting Principles, Concepts And Procedures
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FAC1502 ASSIGNMENT 2 OF SEMESTER 12023
UNIQUE CODE: 897389
,1
, Dashboard Calendar
Dashboard / My courses / FAC1502-23-S1 / Welcome Message / Assessment 2
Question 1
Not yet
answered The financial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who was immediately required to assist with the creation of an allowance for credit
losses (current financial year ends on 28 February 20.19). The auditors of Steven Traders raised an audit finding in the previous financial period, stating that trade and other receivables
Marked out of
2.00 were overstated since no allowances for credit losses has been created although there was evidence that some of the debtors did not pay their accounts in the previous financial
periods.
The financial manager wants to avoid this audit finding in the current financial period. The financial manager requested the bookkeeper to write a memo and indicate which accounts
will be affected when the allowance for credit losses is created? The bookkeeper has written the following statement down and requires you to confirm whether the statement is true
or false when the allowance for credit losses is created.
Trade receivables control account balance in the general ledger will only be reduced when the actual credit losses are verified, by either;
(i) debiting the allowance for credit losses and crediting trade receivable/control account, or by
(ii) debiting the credit losses and crediting trade receivable/control account (while the allowance for credit losses remain unchanged).
Select one:
True
False
Question 2
Not yet
answered Ms. T Tlale a debtor of JJ Stores owed R5 004 to JJ Stores which has been overdue for the past 7 months. Interest at 15% per annum must be charged on overdue accounts. The
Marked out of interest has not been recorded in the books of JJ Stores.
4.00
What will the correct ledger entries of JJ Stores to record the interest on the overdue account of Ms. T Tlale be?
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
Ms. T Tlale/trade receivables control 437.85 Interest income 437.85
Interest expenses Ms. T Tlale/trade receivables control Interest income
62.55 750.60 417
Question 3
Not yet
answered Indicate whether the following statement is true or false:
Marked out of At the end of the financial year after the year-end adjustments are recorded in the general ledger accounts, the accountant will then prepare a pre-adjustment trial balance.
1.00
Select one:
True
False
, Question 4
Not yet
answered On 1 April 20.17 Trak Traders took up an insurance contract with Blue Sky Insurers for 24 months. The insurance policy was effective with immediate effect and stipulated that all
Marked out of premiums for a year (a period of 12 months starts from 1 April each year) are due by 1 April each year.
1.00 Dashboard An Calendar
extract from the list of balances of Trak Traders at year-end, reflected the following balances:
28 February 20.19 28 February 20.18
Dashboard / My courses / FAC1502-23-S1 / Welcome Message / Assessment 2
Premiums paid during the year ended *R17 520 *R19 020
payments for 12 months*payments for 12 months
The amount for insurance premiums and the short-term adjustment to be disclosed in the statement of financial position of Trak Traders as at 28 February 20.19 will be …
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the nearest Rand (eg: 50.56 is 51)
3. Only show the amount, do not show the R (eg: 12141.72)
Answer: 19105.00
Question 5
Not yet
answered Please choose the correct option for the given scenario.
Marked out of
4.00
On comparison of the journals with the bank statement it was noted that cash sales for 30th of
June 20.22 was banked but it did not reflect on the bank statement. The bookkeeper will record a credit entry as deposits not yet credited in the bank reconciliation statement.
…
On comparison of the journals with the bank statement it was noted that bank charges for R350
reflected in the debit column of the bank statement only. The bookkeeper will record the R350 bank charges in the cash payments journal.
as …
Cash withdrawn to restore the petty cash float will … decrease the bank account.
A favourable general ledger bank balance will be recorded on … the debit side of the bank reconciliation statement.
Question 6
Not yet
answered Fatima, the owner of Fatima Traders keeps incomplete records of the business transactions. The following information is available.
Marked out of
1.00
FATIMA TRADERS
Balances as at 28 February 20.1:
20.0 20.1
R R
Vehicles at cost………………………………………………… 28 800 28 800
Furniture and equipment at cost…………………………....... 26 500 26 500
Inventory…………………………………………….................. 21 770 ?
Trade receivables control……..……………………………..... 8 870 12 350
Bank (favourable)…………………………………………........ 25 000 20 000
Long-term borrowings……….……………………………........ 30 000 15 000
Trade payables control………..……………………………….. 9 500 12 700
Accrued expenses……………………..…………………......... 3 400 2 300
Prepaid expenses………………………………………………. 360 365
Additional information:
A physical inventory count revealed that the following was on hand on 28 February 20.1:
R
Inventory 28 669
Stationery 625
Packing materials 150
The total amount of trading inventory for Fatima Traders as at 28 February 20.1 will be?
NB: Instructions
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Only show the amount, do not show the R (eg: 12141.72)
Answer: 28669.00
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