Exam (elaborations)
FAC1502 ASSESSMENT 4 SEMESTER 2 2023 EXPECTED QUESTIONS AND ANSWERS
- Institution
- University Of South Africa (Unisa)
FAC1502 ASSESSMENT 4 EXPECTED QUESTIONS AND ANSWERS SEMESTER 2 2023
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10/14/23, 5:41 PM Assessment 4UNISA 2023 FAC1502-23-S2 Welcome Message Assessment 4
QUIZ
Time left 1:40:40
Question 1
Not yet answered
Marked out of 9.00
On 1 September 20.18 Mr Will Turner started a new blacksmith business called Iron Duke. Iron Duke manufactures and sells
domestic cast iron furniture. The following transactions took place during the first financial year of the entity ending 31 August
20.19.
-. On 31 August 20.19, Mr Will Turner, decided to trade-in the old delivery van for a new delivery van. The trade-in value was
R14 500, and the cost of the new delivery van was R60 000, with the difference settled in cash. On the 1 September 20.18 the
owner, Mr Will Turner, contributed this delivery van which had cost R45 000 when new. The vehicle was bought on 1 September
20.16 by Mr Will Turner and had a carrying value of R27 000 on 1 September 20.18 with only 3 years useful life remaining.
Depreciation needs to be written off on the straight-line basis. (You only need to do the entries for the asset realisation.)
Show the effect of the asset realisation transaction on the basic accounting equation with a plus sign (+) for an increase
and a minus sign (-) for a decrease next to each amount under each element. Also indicate the account(s) that will be
affected by each transaction next to the affected elements for the financial year ended 31 August 20.19. (The business
makes use of the perpetual inventory system.)
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
If an options has been provided and it is not applicable to the specific questions please put N/A in the accounts column and a 0 in
the amounts column.
Keep the transactions strictly in the order they were given.
-27 000 Vehicles -27 000 Asset realisation
+9 000 Accumulated depreciation +9 000 Accumulated depreciation
0 N/A +14 500 Asset realisation -14 500 Trade payables contro
-3 500 Loss on sale of asset
0 N/A
Loss on sale of asset Trade receivables control N/A Vehicles
Profit on sale of asset Accumulated depreciation Bank Depreciation
Asset realisation Trade payables control
+9 000 -18 000 +14 500 -27 000 +15 000 +27 000 -9 000 +3 500 +45 000 +18 000 +33 000 -15 000
0 -14 500 -33 000 -3 500 -45 000
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=14173391&cmid=623193 1/13
,10/14/23, 5:41 PM Assessment 4
Question 2
Not yet answered
Marked out of 6.00
You are provided with the following information for Lesidi Stores for the year ended 31 October 20.5:
R
Vehicles………………………………………………………………....................................... 550 000
Accumulated depreciation: Vehicles………………………………........................ 338 381
Equipment……………………………………………………………..................................... 600 000
Accumulated depreciation: Equipment……………………………...................... 240 000
Additional information:
Equipment X was purchased on 1 June 20.3 for R230 000(excluding VAT). Delivery costs were R1 800 and installation costs
was R3 000. Equipment X was sold for R132 000 cash on 1 March 20.5.
Depreciation on vehicles is calculated at 25% using the diminishing balance method.
Depreciation on equipment is calculated at 20% using the diminishing balance method.
The financial year-end of Lesidi Stores is 31 October.
The correct general ledger entries in the books of Lesedi Stores on 1 March 20.5 will be ...
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
If an options has been provided and it is not applicable to the specific questions please put N/A in the account column and a 0 in
the amount column.
Keep general ledger entries strictly according to the steps for the disposal of an asset.
Equipment(at cost) 234 800 Accumulated depreciation: Equipment
N/A 0 Bank
Loss on sale of equipment
234 800
Accumulated depreciation: Equipment Bank Equipment(at cost)
Profit on sale of equipment Loss on sale of equipment N/A
Trade payables control Trade receivables control Depreciation
0 6 270 234 800 96 530 140 880 132 000 5 749 38 080 97 051 74 093 28 707
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=14173391&cmid=623193 2/13
,10/14/23, 5:41 PM Assessment 4
Question 3
Not yet answered
Marked out of 4.00
On 9 June 20.23 KKY Traders purchased inventory at a cost of R5 000 cash. KKY Traders uses the perpetual inventory system.
The bank account of KKY Traders had a favourable balance.
The correct analysis of the given transaction on the general ledger and the accounting equation is ...
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has been provided that is not applicable to the specific transaction, please use N/A for the option.
6. First do the positive entry, then the negative entry and lastly the N/A entries.
General ledger
Liabilities Assets Equity
Account debited Account credited
R R R
-5000
Inventory Bank 0 -5000
0
Question 4
Not yet answered
Marked out of 1.00
Indicate by choosing the correct option whether the following statement is true or false:
The one advantage of using a single-entry system is that financial statement results can be compared on a yearly basis.
Select one:
True
False
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=14173391&cmid=623193 3/13
, 10/14/23, 5:41 PM Assessment 4
Question 5
Not yet answered
Marked out of 8.00
Mandla Traders financial year ends annually on 31 December. The business uses the perpetual inventory system. During the
current financial year of 20.22, Mandla Traders had credit sales of R819 000. The company applies a 30% mark-up on selling
price.
The correct recording of the transaction in the general ledger of Mandla Traders will be:
Dr Cost of sales Cr
20.22 20.22
Dec 31 Inventory SJ 630000 Dec 31 Trading Account GJ 630000
630000 630000
Dr Sales
20.22 20.22
Dec Trading Account GJ 819000 Dec Trade Receivables SJ
31 31
819000
.
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=14173391&cmid=623193 4/13
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