Question 1 Majola Traders is a registered VAT vendor and the financial year end is 28 February 2023. The bookkeeper
Answer saved of Majola Traders requested your assistance after noting the following:
Marked out of a) On 1 March 2022, Majola Traders entered into a rental agreement with Gani Ltd for rental of a new
8.00 office building up to 31 December 2023. Gani Ltd must pay R10 580 (VAT inclusive) per month. The total
Flag amount recorded on the trial balance on 28 February 2023 is R92 000.
question
b) The total insurance paid for the year as per the trial balance on 28 February 2023 is R19 500. The
monthly insurance premium is R1 495 (VAT inclusive).
Required:
Prepare the general journal with regard to the adjustments of Majola Traders at 28 February 2023
MAJOLA TRADERS
GENERAL JOURNAL - FEBRUARY 2023
Debit Credit
R R
Accrued income 18400.00
Rent income 18400.00
Adjustment entry for rent
Prepaid expense 3900.00
Insurance 3900.00
Adjustment entry for insurance
Question 2
SA Traders, a registered VAT vendor, manufactures and sells gardening equipment. On 28 March 2023, SA
Incomplete Traders paid R2 702.50 (VAT inclusive) cash to Pens & Pencils (registered VAT vendor) for office
answer
stationery. The VAT rate is 15% and the periodic inventory system is in use.
Marked out of
6.00
Flag Required:
question
Record the above transaction in the applicable subsidiary journal of SA Traders.
Instructions for numeric responses:
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. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero
("0")
SA Traders
Cash payments journal – March 2023
Doc
Not applicable Bank Stationery VAT Input
no Day Details Fol
Pens & Pencils 2702.50 2350.00 352.50
28
Please answer all parts of the question.
Question 3 Shabangu Suppliers (not a registered VAT vendor) is a retail entity situated in the Limpopo province. The
Answer saved perpetual inventory system is in use and merchandise are sold at a 20% mark-up on cost. The following
Marked out of transactions took place during May 2023:
15.00
Date Transaction R
Flag 6 Purchased merchandise from Matsene Traders and paid 8 080
question
cash
15 Sold merchandise to Mr Hall for cash 2 616
29 Purchased merchandise from Zittace Traders on account 11 560
, 31 Returned merchandise purchased on credit to Zittace 2 890
Traders
The opening balance of the inventory account on 1 May 2023 was R5 790
Required:
Post the above transactions to the general ledger account provided below.
Instructions for numeric responses:
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. When no amount needs to be entered in a column, then indicate this by entering "0" in the column.
Dr Inventory
2023 R 2023
May 1 Balance b/d May 1 Balance b/d
5790.00
31 31
Bank CPJ 8080.00 Bank CRJ 26
Trade payables PJ 11560.00 Trade receivables PRJ
Balance c/d Balance c/d
0 1992
25430.00 2543
Jun 1 Balance b/d Jun 1 Balance b/d
19924.00
Question 4 Raphulu Spaza is situated in the Limpopo province. The Spaza shop is not a registered VAT vendor and
Answer saved applies the principles of the periodic inventory system. After a recent robbery, the owner
Marked out of of Raphulu Spaza decided to run his business cashless and opened a bank account with Savers Bank. On
6.00 28 January 2024, Raphulu Spaza had an unfavourable bank balance.
Flag
question
On 28 January 2024, an entry of R318 for interest paid, appears on the bank statement of Raphulu Spaza.
REQUIRED:
Analyse the transaction of Raphulu Spaza that took place on 28 January 2024 in tabular format as
follows:
Date Account to be debited Amount Element debited Account to be
Example: May 2 Raphulu Spaza purchased inventory for the amount of R5 000 and paid cash. Raphulu Spaza makes
R
May 2 Purchases 5 000 Expense Bank
Complete the table below by selecting the account to be debited, the account to be credited and the
element affected on the financial statements (income, expense, assets, equity and liabilities) from the
dropdown menu and filling in the applicable amounts in the correct spaces.
Please indicate whether the transaction increases or decreases the affected element (income, expense,
assets, equity and liabilities) in the amount column (see instruction 3 and 4 for examples)
Instructions for numeric responses:
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. When an element decreases, use a negative sign in front of the amount (eg: -1000.01)
4. When an element increases, the amount will be without any sign (eg: 1000.01)
, 5. Only show the amount, do not show the "R" (eg: 1000)
Date Account to be debited Amount Element debited Account t
R
Jan 28 Interest paid 318.00 Expense Bank
Question 5 The following information relates to Pinetown Traders at 28 February 2022:
Answer saved Balances:
Marked out of
3.00 R
Flag Trade receivables control account (1 March 2021) 15 074
question
Allowance for credit losses (1 March 2021) 3 076
Credit losses recovered 613
Credit sales 112 000
Settlement discount granted 1 846
Additional information
(1) Debtor, A Zulu, was declared insolvent and his account of R330 has to be written off.
(2) It was determined that the allowance for credit losses account should amount to R1 183 at 28 February
2022. As credit losses occur the credit losses is written off against the allowance for credit losses account.
What is the total amount with which the credit losses account will be adjusted in the accounting
records of Pinetown Traders, after taking the above information into account?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Use a full stop to indicate any decimals (eg: 1000.01)
3. You must enter cents even if it is 0 (eg .00)
4. Only show the amount, do not show the R (eg: 12141.72)
5. If the total amount with which the credit losses account is adjusted should be credited to the account,
please enter the amount as a negative (eg: -12141.72), if the amount should be debited to the account,
please enter the amount as a positive (eg: 12141.72)
Answer: 2193.34
Question 6
The following information relates to a bank reconciliation of WaMarks Traders:
Answer saved
(1) The balance as per the bank account in the general ledger, before taking the items below into account,
Marked out of
3.00 was R7 182 overdrawn.
Flag (2) A debit order to the amount of R1 275 for insurance on the bank statement have not been entered in
question the cash payments journal.
(3) The bank has credited the bank statement in error with R1 075 which belongs to another customer.
(4) Payments totalling R3 446 have been correctly entered in the cash payments journal but do not appear
on the bank statement.
(5) Deposits received, totalling R1 392, have been correctly entered in the cash receipts journal but have
not been deposited at the bank.
What will the balance as per the bank statement as at 31 March 2022 be?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Only show the amount, do not show the R (eg: 12141.72)
3. If the total amount calculated is a favourable bank balance, please enter the amount as a positive (eg:
12141.72), if the total amount calculated is an unfavourable bank balance, please enter the amount as a
negative (eg: -12141.72)
, Answer: -9223.00
Question 7 The following information was obtained from the records of Zondi Mining (registered VAT vendor) on the
Answer saved last day of the financial year, 31 March 2023:
Marked out of R
25.00
Land and buildings at cost (opening balance) 1 780 000
Flag Vehicles at cost (opening balance) 1 200 000
question
Equipment at cost (opening balance) 640 000
Accumulated depreciation: Vehicles (opening 550 000
balance)
Accumulated depreciation: Equipment (opening 177 600
balance)
Additional information:
1. Vehicles have a residual value of R100 000 and is depreciated over the estimated economic life of 4
years using the straight-line method.
2. Equipment is depreciated at 15% using the reducing balance method.
3. No assets were sold during the financial period.
4. On 1 July 2022, Zondi Mining purchased new drilling equipment for R138 000 (VAT inclusive). The VAT
rate is 15%.
Instructions for numeric responses:
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. All amounts that will decrease the closing balance of assets must be recorded with a negative sign in
front of the amount (eg: -1000.01)
4. When no amount needs to be entered in a column, then indicate this by entering "0" in the column.
Required:
Compile the Property, plant and equipment note for Zondi Mining for the year ended 31 March 2023.
ZONDI MINING
NOTES FOR THE YEAR ENDED 31 MARCH 2023
Property plant and equipment
Land and Vehicles Equipment Total
buildings
R R R R
Carrying
1780000.00 650000.00 462400.00 2892400.00
amount at 1
April 2022
Cost price 1780000.00 1200000.00 640000.00 3620000.00
Accumulated 0 -550000.00 -177600.00 -727600.00
depreciation
Additions
0 0 120000.00 120000.00
Disposals 0 0 0 0
Depreciation 0 -275000.00 -56705.00 -331705.00
for the year
Carrying
1780000.00 375000.00 525695.00 2680695.00
amount at 31
March 2023
Cost price 1780000.00 1200000.00 760000.00 3740000.00
Accumulated 0 -825000.00 -234305.00 -1059305.00
depreciation
Question 8 Sibasa Traders sells different product streams. Not all product streams were profitable during the 2021
Answer saved financial year. At 31 August 2021, the financial year-end of Sibasa Traders, the following information was
Marked out of obtained from the entity’s accounting records:
3.00
R
