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FAC1503
Assignment 5 QUIZ Semester 2 2024
Detailed Solutions, References & Explanations
Unique number: 521289
Due Date: 17 October 2024
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, FAC1503-24-S2 FAC1503 - Financial Accounting Principles for Law Practitioners Assessment 5
QUIZ
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Question 2
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Calculate the amount payable if equipment to the amount of R7 400 (VAT exclusive) was purchased by a business registered
as a VAT vendor:
Instructions for numeric response:
1. Please round your answer to the nearest rand (eg: 1000)
2. Only show the amount, do not show the "R" (eg: 1000)
Answer: 8510.00
Question 3
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A favourable bank balance will be classified as a liability.
Select one:
True
False
,Question 4
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Mr A South requested SA Attorneys to draw up his will. On 30 March 2022, after completion of the task, SA Attorneys levied
fees to the amount of R2 000 and issued the necessary supporting documents for the recording of the transaction. On 6 April
2022, Mr A South directly deposited the amount of R2 000 into the bank account of SA Attorneys. The transaction on 6 April
2022 will be entered in the .... book of first entry.
Select one:
a. Trust cash receipts journal
b. Fees journal
c. General journal
d. Business cash receipts journal
Clear my choice
Question 5
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Which one of the following statements is incorrect?
Select one:
a. No legal practitioner referred to in section 84(1) of the Legal Practice Act, 28 of 2014 or person employed or
supervised by that legal practitioner may receive or hold funds or property belonging to any person unless the legal
practitioner concerned is in possession of a Legal Practitioners Fidelity Fund (LPFF) certificate.
b. The provisions of section 84(1) and section 84(2) of the Legal Practice Act, 28 of 2014 apply to a deposit taken on
account of fees or disbursements in respect of legal services to be rendered.
c. Every legal practitioner referred to in section 84(1) of the Legal Practice Act, 28 of 2014 may choose to operate a
trust account or not.
d. Every attorney or any advocate referred to in section 34(2)(b) of the LPA, who practices or is deemed to practice for
his or her own account either alone or in partnership; or as a director of a practice which is a juristic entity, must be in
possession of a Legal Practitioners Fidelity Fund certificate.
Clear my choice
, Question 6
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The senior partner in the legal firm, SA Attorneys, instructed A South from West Attorneys to act on his behalf in the matter
between C Natal and E North. C Natal instituted a claim against E North for damages incurred in an accident due to negligent
driving. However, before the case served before the court, the parties settled on an amount of R231 000 payable by E North to
C Natal. E North immediately paid the amount into the trust bank account of West Attorneys.
SA Attorneys received the following statement from West Attorneys at 31 May 2022:
Account statement
WEST ATTORNEYS
SA ATTORNEYS
PO Box 4000 PO Box 253
DURBAN MBOPANE
31 May 2022
R R
Collection of settlement amount – C Natal vs E North 231 000
Fees for receiving instruction 12 900
Correspondence 920
Expert witness fees – Dr East 3 500
Medical records obtained 790
Subtotal 18 110
Collection fees 1 000
Your share of fees (allowance) 4 940
Electronic fund transfer to yourself 216 830
235 940 235 940
Which one of the following represents the correct recording of the above information in the general ledger of SA
Attorneys for the Clients control account?
Select one:
a. Clients control account
2022 R 2022 R
31/05 Trust bank TCRJ 216 830 31/05 Trust bank TCRJ 231 000
C Natal (client) GJ1 19 110 West Attorneys TJ1 4 940
(Trust creditor)
235 940 235 940
b. Clients control account
2022 R 2022 R
31/05 C Natal (trust GJ1 231 000 31/05 Trust bank TCRJ 216 830
creditor)
West Attorneys C Natal (client) GJ1 19 110
(Trust creditor) TJ1 4 940
