FAC1501 May/Jun 2015 exam paper — questions

Free sample
View the paper as writtenscanned pages →

  1. Question 1.1 (Part A) · Bank reconciliation · 10 marks

    Question 1 relates to FAC1501 (May/June 2015) and covers the accounting equation and bank reconciliation. It is divided into Part A and Part B, and candidates must answer both parts, starting the question on a new page. PJ Stores, an entity that is not registered for VAT and applies the perpetual inventory system, entered into the following transactions during the week ended 6 March 2015: on the 2nd, the owner Mrs P Johnson increased her capital contribution from R50 000 to R70 000, and receipt number 228 was issued; on the 3rd, R3 500 was received from Mrs K Khumalo, a debtor of PJ Stores, as part settlement of her account, with receipt number 229 issued; on the 4th, an original credit purchases invoice was received from MG Wholesalers for R5 000 of inventory bought on credit; on the 5th, the account of debtor Mr T Peters, who owed PJ Stores R600, was written off as irrecoverable; and on the 6th, business cheque number 199 for R950 was issued to pay the secretary's wage for the week. You are required to prepare a table (using the format: Date | A = E + L) showing the effect of each of these transactions on the accounting equation, using a '+' sign for an increase and a '-' sign for a decrease, and assuming that where applicable the bank balance is positive.Show the full question

  2. Question 1.2(a) (Part B) · Bank reconciliation · 4 marks

    Question 1 relates to FAC1501 (May/June 2015) and covers the accounting equation and bank reconciliation. It is divided into Part A and Part B, and candidates must answer both parts, starting the question on a new page. The following information was extracted from the accounting records of Household Appliances Services, whose inexperienced bookkeeper could not complete the bank reconciliation for the month ended 30 April 2015. The total of the bank column in the adjusted cash receipts journal, after comparing the bank statement with the cash receipts journal for April 2015, was R35 800, and the total of the bank column in the adjusted cash payments journal, after the same comparison, was R29 300. Additional information: (1) the bank account in the general ledger showed a favourable balance of R10 700 on 1 April 2015; (2) the bank statement showed a favourable closing balance of R21 700 at 30 April 2015; (3) after comparing the bank statement with the cash receipts and cash payments journals, further differences (apart from those already recorded in the cash journals) were found, namely: a direct deposit of R4 200 that did not belong to Household Appliances Services appeared on its bank statement; a deposit of R3 600 did not appear on the bank statement for April 2015; and cheque numbers 135 (for R1 400) and 141 (for R2 500) did not appear on the bank statement for April 2015. You are required to prepare the bank account in the general ledger of Household Appliances Services for April 2015 and balance the account.Show the full question

  3. Question 1.2(b) (Part B) · Bank reconciliation · 6 marks

    Question 1 relates to FAC1501 (May/June 2015) and covers the accounting equation and bank reconciliation. It is divided into Part A and Part B, and candidates must answer both parts, starting the question on a new page. Using the same information about Household Appliances Services as in part (a) above (adjusted cash receipts journal bank total of R35 800 and adjusted cash payments journal bank total of R29 300 for April 2015; opening general ledger bank balance of R10 700 (favourable) on 1 April 2015; bank statement closing balance of R21 700 (favourable) at 30 April 2015; a direct deposit of R4 200 not belonging to the entity appearing on the bank statement; a deposit of R3 600 not yet appearing on the bank statement; and outstanding cheques number 135 for R1 400 and number 141 for R2 500), you are required to prepare the bank reconciliation statement of Household Appliances Services as at 30 April 2015.Show the full question

  4. Question 2.1 · Journals & posting to the ledger · 8.5 marks

    Sanamuva Distributors, a business registered as a VAT vendor, recorded the following transactions during May 2015. VAT is levied at 14% and is already included in all amounts given where applicable, and the entity applies the periodic inventory system. On 1 May, duplicate receipt number 25 for R50 000 was banked, being an increase in the capital contributed by the owner, Mr Samuva; on the same day cheque counterfoil number 110 for R3 990 was issued to Ingwe Properties for the monthly rent. On 7 May, duplicate cash invoice number 304 recorded goods sold to Road Construct for R41 952. On 10 May, internet payment slip IN204 for R45 200 was processed, made up of a R15 000 salary paid to Mrs Chip and R30 200 paid to creditor Mr P Doors. On 15 May, cheque counterfoil number 111 for R1 500 was issued to establish the petty cash float. On 20 May, cash register roll number 126 reflected total cash sales of R39 900. On 28 May, original invoice IP288 was received from Tools Traders for inventory purchased, amounting to R30 267 after a cash discount had already been deducted. Additionally, on 30 May Mr C Carpenter, a debtor, was declared insolvent; his outstanding balance at the end of April 2015 had been R6 179, of which he paid R3 500 (per duplicate receipt number 26) on 30 May, with the remaining balance to be written off as irrecoverable. Using the suggested column headings of Day, Details, Bank, Sales, Debtors control, VAT Output, and Sundry accounts (Amount and Details), prepare the Cash Receipts Journal (CRJ5) of Sanamuva Distributors for May 2015 based on the transactions described. Do not close off the journal at the end of the month.Show the full question

  5. Question 2.2 · Journals & posting to the ledger · 11 marks

    Sanamuva Distributors, a business registered as a VAT vendor, recorded the following transactions during May 2015. VAT is levied at 14% and is already included in all amounts given where applicable, and the entity applies the periodic inventory system. On 1 May, duplicate receipt number 25 for R50 000 was banked, being an increase in the capital contributed by the owner, Mr Samuva; on the same day cheque counterfoil number 110 for R3 990 was issued to Ingwe Properties for the monthly rent. On 7 May, duplicate cash invoice number 304 recorded goods sold to Road Construct for R41 952. On 10 May, internet payment slip IN204 for R45 200 was processed, made up of a R15 000 salary paid to Mrs Chip and R30 200 paid to creditor Mr P Doors. On 15 May, cheque counterfoil number 111 for R1 500 was issued to establish the petty cash float. On 20 May, cash register roll number 126 reflected total cash sales of R39 900. On 28 May, original invoice IP288 was received from Tools Traders for inventory purchased, amounting to R30 267 after a cash discount had already been deducted. Additionally, on 30 May Mr C Carpenter, a debtor, was declared insolvent; his outstanding balance at the end of April 2015 had been R6 179, of which he paid R3 500 (per duplicate receipt number 26) on 30 May, with the remaining balance to be written off as irrecoverable. Using the suggested column headings of Day, Details, Bank, Purchases, Creditors control, VAT Input, and Sundry accounts (Amount and Details), prepare the Cash Payments Journal (CPJ5) of Sanamuva Distributors for May 2015 based on the transactions described. Do not close off the journal at the end of the month.Show the full question

  6. Question 2.3 · Journals & posting to the ledger · 4.5 marks

    Sanamuva Distributors, a business registered as a VAT vendor, recorded the following transactions during May 2015. VAT is levied at 14% and is already included in all amounts given where applicable, and the entity applies the periodic inventory system. On 1 May, duplicate receipt number 25 for R50 000 was banked, being an increase in the capital contributed by the owner, Mr Samuva; on the same day cheque counterfoil number 110 for R3 990 was issued to Ingwe Properties for the monthly rent. On 7 May, duplicate cash invoice number 304 recorded goods sold to Road Construct for R41 952. On 10 May, internet payment slip IN204 for R45 200 was processed, made up of a R15 000 salary paid to Mrs Chip and R30 200 paid to creditor Mr P Doors. On 15 May, cheque counterfoil number 111 for R1 500 was issued to establish the petty cash float. On 20 May, cash register roll number 126 reflected total cash sales of R39 900. On 28 May, original invoice IP288 was received from Tools Traders for inventory purchased, amounting to R30 267 after a cash discount had already been deducted. Additionally, on 30 May Mr C Carpenter, a debtor, was declared insolvent; his outstanding balance at the end of April 2015 had been R6 179, of which he paid R3 500 (per duplicate receipt number 26) on 30 May, with the remaining balance to be written off as irrecoverable. Prepare the General Journal of Sanamuva Distributors for May 2015 to record any transactions from the information given that are not processed through the cash receipts or cash payments journals. Narrations are not required.Show the full question

  7. Question 3(a) · Financial statements · 3 marks

    Chocolate Traders extracted the following balances and totals from its accounting records at 31 March 2015, the end of its accounting period, and the entity uses the periodic inventory system: capital R300 000; drawings R150 000; land and buildings R280 000; vehicles R240 000; inventory (1 April 2014) R180 000; debtors control R140 000; bank (debit) R230 000; creditors control R120 000; sales R650 000; sales returns R80 000; purchases R320 000; purchases returns R55 000; water and electricity R78 500; telephone expenses R84 300; salaries R315 400; stationery R36 200; rental income R96 000. Additional information: a physical inventory count showed the value of closing inventory to be R130 000 on 31 March 2015. You are required to prepare certain accounts in the general ledger of Chocolate Traders for the year ended 31 March 2015, drawing columns for the date, details, folio and amount on both the debit and credit sides of each account, without providing headings for the columns you draw, using the format showing 'Dr Name of account Cr' with the column layout as instructed. Commence this question on a new (separate) page. For Chocolate Traders, prepare the account(s) that will be closed off to the sales account for the year ended 31 March 2015, using the prescribed ledger account format (date, details, folio and amount columns on both debit and credit sides, without column headings).Show the full question

  8. Question 3(b) · Financial statements · 3 marks

    Chocolate Traders extracted the following balances and totals from its accounting records at 31 March 2015, the end of its accounting period, and the entity uses the periodic inventory system: capital R300 000; drawings R150 000; land and buildings R280 000; vehicles R240 000; inventory (1 April 2014) R180 000; debtors control R140 000; bank (debit) R230 000; creditors control R120 000; sales R650 000; sales returns R80 000; purchases R320 000; purchases returns R55 000; water and electricity R78 500; telephone expenses R84 300; salaries R315 400; stationery R36 200; rental income R96 000. Additional information: a physical inventory count showed the value of closing inventory to be R130 000 on 31 March 2015. You are required to prepare certain accounts in the general ledger of Chocolate Traders for the year ended 31 March 2015, drawing columns for the date, details, folio and amount on both the debit and credit sides of each account, without providing headings for the columns you draw, using the format showing 'Dr Name of account Cr' with the column layout as instructed. Commence this question on a new (separate) page. For Chocolate Traders, prepare the account(s) that will be closed off to the purchases account for the year ended 31 March 2015, using the prescribed ledger account format (date, details, folio and amount columns on both debit and credit sides, without column headings).Show the full question

  9. Question 3(c) · Financial statements · 13.5 marks

    Chocolate Traders extracted the following balances and totals from its accounting records at 31 March 2015, the end of its accounting period, and the entity uses the periodic inventory system: capital R300 000; drawings R150 000; land and buildings R280 000; vehicles R240 000; inventory (1 April 2014) R180 000; debtors control R140 000; bank (debit) R230 000; creditors control R120 000; sales R650 000; sales returns R80 000; purchases R320 000; purchases returns R55 000; water and electricity R78 500; telephone expenses R84 300; salaries R315 400; stationery R36 200; rental income R96 000. Additional information: a physical inventory count showed the value of closing inventory to be R130 000 on 31 March 2015. You are required to prepare certain accounts in the general ledger of Chocolate Traders for the year ended 31 March 2015, drawing columns for the date, details, folio and amount on both the debit and credit sides of each account, without providing headings for the columns you draw, using the format showing 'Dr Name of account Cr' with the column layout as instructed. Commence this question on a new (separate) page. For Chocolate Traders, prepare the account(s) that will be closed off to the trading account for the year ended 31 March 2015, using the prescribed ledger account format (date, details, folio and amount columns on both debit and credit sides, without column headings), taking into account that the physical inventory count showed closing inventory of R130 000 at 31 March 2015.Show the full question

  10. Question 3(d) · Financial statements · 7.5 marks

    Chocolate Traders extracted the following balances and totals from its accounting records at 31 March 2015, the end of its accounting period, and the entity uses the periodic inventory system: capital R300 000; drawings R150 000; land and buildings R280 000; vehicles R240 000; inventory (1 April 2014) R180 000; debtors control R140 000; bank (debit) R230 000; creditors control R120 000; sales R650 000; sales returns R80 000; purchases R320 000; purchases returns R55 000; water and electricity R78 500; telephone expenses R84 300; salaries R315 400; stationery R36 200; rental income R96 000. Additional information: a physical inventory count showed the value of closing inventory to be R130 000 on 31 March 2015. You are required to prepare certain accounts in the general ledger of Chocolate Traders for the year ended 31 March 2015, drawing columns for the date, details, folio and amount on both the debit and credit sides of each account, without providing headings for the columns you draw, using the format showing 'Dr Name of account Cr' with the column layout as instructed. Commence this question on a new (separate) page. For Chocolate Traders, prepare the trading account for the year ended 31 March 2015, using the prescribed ledger account format (date, details, folio and amount columns on both debit and credit sides, without column headings), taking into account that the physical inventory count showed closing inventory of R130 000 at 31 March 2015.Show the full question

  11. Question 4(a) · Property, plant & equipment · 14 marks

    ARK Stores is the entity where the student is employed while studying through UNISA, and the employer has asked for help finishing the statement of financial position. The accountant has already drawn up the statement of changes in equity for the year ended 28 February 2015, showing capital of R700 000 at 1 March 2014, total comprehensive income for the year of R66 950 (already taking the 2015 depreciation into account), drawings of R27 000, giving a closing capital balance of R739 950 at 28 February 2015. The accountant also prepared the following supporting notes. Trade and other payables comprise creditors control of R30 000 and accrued expenses for wages and salaries of R6 500, totalling R36 500. Inventories consist of trading inventory of R43 500 (being R45 000 less R1 500), plus consumable stores on hand made up of stationery of R200 and packing material of R300, giving a total of R44 000. Trade and other receivables comprise debtors control of R35 100 (being R36 000 less R900) less an allowance for credit losses of R650, giving a net amount of R34 450, plus accrued income for interest income of R500, giving a total of R34 950. Cash and cash equivalents consist of a bank balance of R27 000, petty cash of R500 and a cash float of R1 000, totalling R28 500. Prepayments consist of prepaid insurance expenses of R2 500. Long-term borrowings consist of a long-term loan from RG Bank, bearing interest at 15% per annum, of R780 000. Income received in advance consists of rental income of R3 500. Financial assets consist of a non-current financial asset being loans and receivables in the form of a fixed deposit at RG Bank at 6% per annum, of R100 000. Additional information taken from the pre-adjustment trial balance of ARK Stores at 28 February 2015 shows vehicles at cost of R350 000, equipment at cost of R200 000, land and buildings at cost of R950 000, accumulated depreciation on vehicles at 1 March 2014 of R50 000, and accumulated depreciation on equipment at 1 March 2014 of R20 000. Depreciation for the year must be provided on vehicles at 20% per annum using the reducing-balance method, and on equipment at 10% per annum using the straight-line method. No property, plant or equipment was purchased or sold during the year ended 28 February 2015. Using the financial information of ARK Stores given above, prepare the property, plant and equipment note for the year ended 28 February 2015. Use the format provided, which requires, for each of land and buildings, equipment, vehicles and a total column, the carrying amount at 1 March 2014 (split into cost price and accumulated depreciation), additions, disposals, depreciation for the year, and the carrying amount at 28 February 2015 (again split into cost price and accumulated depreciation).Show the full question

  12. Question 4(b) · Property, plant & equipment · 15 marks

    ARK Stores is the entity where the student is employed while studying through UNISA, and the employer has asked for help finishing the statement of financial position. The accountant has already drawn up the statement of changes in equity for the year ended 28 February 2015, showing capital of R700 000 at 1 March 2014, total comprehensive income for the year of R66 950 (already taking the 2015 depreciation into account), drawings of R27 000, giving a closing capital balance of R739 950 at 28 February 2015. The accountant also prepared the following supporting notes. Trade and other payables comprise creditors control of R30 000 and accrued expenses for wages and salaries of R6 500, totalling R36 500. Inventories consist of trading inventory of R43 500 (being R45 000 less R1 500), plus consumable stores on hand made up of stationery of R200 and packing material of R300, giving a total of R44 000. Trade and other receivables comprise debtors control of R35 100 (being R36 000 less R900) less an allowance for credit losses of R650, giving a net amount of R34 450, plus accrued income for interest income of R500, giving a total of R34 950. Cash and cash equivalents consist of a bank balance of R27 000, petty cash of R500 and a cash float of R1 000, totalling R28 500. Prepayments consist of prepaid insurance expenses of R2 500. Long-term borrowings consist of a long-term loan from RG Bank, bearing interest at 15% per annum, of R780 000. Income received in advance consists of rental income of R3 500. Financial assets consist of a non-current financial asset being loans and receivables in the form of a fixed deposit at RG Bank at 6% per annum, of R100 000. Additional information taken from the pre-adjustment trial balance of ARK Stores at 28 February 2015 shows vehicles at cost of R350 000, equipment at cost of R200 000, land and buildings at cost of R950 000, accumulated depreciation on vehicles at 1 March 2014 of R50 000, and accumulated depreciation on equipment at 1 March 2014 of R20 000. Depreciation for the year must be provided on vehicles at 20% per annum using the reducing-balance method, and on equipment at 10% per annum using the straight-line method. No property, plant or equipment was purchased or sold during the year ended 28 February 2015. Using the financial information of ARK Stores given above, including the completed property, plant and equipment figures, prepare the statement of financial position of ARK Stores as at 28 February 2015.Show the full question

FAC1501 May/Jun 2015 thread

Stuck on a question, or worked one out? This thread is for this paper only. Anyone can read; sign in to post.

Nobody has posted on this paper yet. Be the first — say which question and what you got.

0/2000