FAC1502 Oct/Nov 2013 exam paper — questions

Every question, by topic

1. Question 1.1 · Bank reconciliation · 9 marks

   Basadi Traders' bookkeeper was away on leave, and you have been asked to reconcile the business's bank account for April 2013. The bank reconciliation statement as at 31 March 2013 showed a credit balance per the bank statement of R3 071, and an outstanding (not yet credited) deposit of R3 100 on the credit side. On the debit side were cheques not yet presented for payment: cheque No 41 dated 01/10/2012 for KK Sams, R900; cheque No 91 dated 05/03/2013 for A Gideon, R140; and cheque No 94 dated 28/03/2013 for AB Wholesalers, R200; together with a debit balance per the bank account of R4 931, both sides totalling R6 171. The sub-totals of the bank columns in the cash receipts journal and cash payments journal for April 2013 were R8 849 and R5 520 respectively. Comparing the above March reconciliation with the April bank statement revealed: (a) cheque No 41 is still outstanding and has become stale; (b) cheque No 91 was lost in the post, with no entry made for the loss, and cheque No 98 (dated 5 April 2013) was issued to replace the missing cheque; (c) cheque No 94 had still not been presented for payment by 30 April 2013, while the R3 100 outstanding deposit did appear on the bank statement for the month ending 30 April 2013. Comparing the cash journals for April 2013 with the bank statement for the same period further revealed: (a) the bookkeeper omitted to record an electronic funds transfer of R800 paid to creditor S Sekhukhune during April 2013; (b) a cheque for R700 received from debtor M Medupe was dishonoured by the bank due to the debtor's insolvency; (c) a deposit of R5 340, representing sales on 29 April 2013, is not reflected in the April 2013 bank statement; (d) the following items appeared only on the April 2013 bank statement: a service fee of R244, a cash deposit fee of R79, and interest on favourable bank balance of R158; (e) cheques not yet presented to the bank for payment were No 105 for R670 dated 22 April 2013 (A Kalaka) and No 112 for R790 dated 28 April 2013 (S Maloka); (f) cheque No 102, dated 26 April 2013, issued to NAC Stationers for stationery of R282, was incorrectly recorded as R228 in the cash payments journal; and (g) the bank statement showed a favourable balance of R3 901 on 30 April 2013. Using the information about Basadi Traders' March 2013 bank reconciliation and the discrepancies noted for April 2013 (including the lost and replaced cheque, the omitted EFT payment to S Sekhukhune, the dishonoured cheque from M Medupe, the unrecorded sales deposit of R5 340, the bank charges and interest appearing only on the statement, and the stationery cheque recorded as R228 instead of R282), complete the cash receipts journal and the cash payments journal of Basadi Traders for the month ending 30 April 2013. Only the details and bank columns need to be shown.Show the full questionShow less

2. Question 1.2 · Bank reconciliation · 6 marks

   Basadi Traders' bookkeeper was away on leave, and you have been asked to reconcile the business's bank account for April 2013. The bank reconciliation statement as at 31 March 2013 showed a credit balance per the bank statement of R3 071, and an outstanding (not yet credited) deposit of R3 100 on the credit side. On the debit side were cheques not yet presented for payment: cheque No 41 dated 01/10/2012 for KK Sams, R900; cheque No 91 dated 05/03/2013 for A Gideon, R140; and cheque No 94 dated 28/03/2013 for AB Wholesalers, R200; together with a debit balance per the bank account of R4 931, both sides totalling R6 171. The sub-totals of the bank columns in the cash receipts journal and cash payments journal for April 2013 were R8 849 and R5 520 respectively. Comparing the above March reconciliation with the April bank statement revealed: (a) cheque No 41 is still outstanding and has become stale; (b) cheque No 91 was lost in the post, with no entry made for the loss, and cheque No 98 (dated 5 April 2013) was issued to replace the missing cheque; (c) cheque No 94 had still not been presented for payment by 30 April 2013, while the R3 100 outstanding deposit did appear on the bank statement for the month ending 30 April 2013. Comparing the cash journals for April 2013 with the bank statement for the same period further revealed: (a) the bookkeeper omitted to record an electronic funds transfer of R800 paid to creditor S Sekhukhune during April 2013; (b) a cheque for R700 received from debtor M Medupe was dishonoured by the bank due to the debtor's insolvency; (c) a deposit of R5 340, representing sales on 29 April 2013, is not reflected in the April 2013 bank statement; (d) the following items appeared only on the April 2013 bank statement: a service fee of R244, a cash deposit fee of R79, and interest on favourable bank balance of R158; (e) cheques not yet presented to the bank for payment were No 105 for R670 dated 22 April 2013 (A Kalaka) and No 112 for R790 dated 28 April 2013 (S Maloka); (f) cheque No 102, dated 26 April 2013, issued to NAC Stationers for stationery of R282, was incorrectly recorded as R228 in the cash payments journal; and (g) the bank statement showed a favourable balance of R3 901 on 30 April 2013. Based on the same information relating to Basadi Traders' bank transactions and reconciling items for April 2013, prepare the properly balanced and closed-off bank account for the month ending 30 April 2013 as it would appear in the general ledger of Basadi Traders.Show the full questionShow less

3. Question 1.3 · Bank reconciliation · 8 marks

   Basadi Traders' bookkeeper was away on leave, and you have been asked to reconcile the business's bank account for April 2013. The bank reconciliation statement as at 31 March 2013 showed a credit balance per the bank statement of R3 071, and an outstanding (not yet credited) deposit of R3 100 on the credit side. On the debit side were cheques not yet presented for payment: cheque No 41 dated 01/10/2012 for KK Sams, R900; cheque No 91 dated 05/03/2013 for A Gideon, R140; and cheque No 94 dated 28/03/2013 for AB Wholesalers, R200; together with a debit balance per the bank account of R4 931, both sides totalling R6 171. The sub-totals of the bank columns in the cash receipts journal and cash payments journal for April 2013 were R8 849 and R5 520 respectively. Comparing the above March reconciliation with the April bank statement revealed: (a) cheque No 41 is still outstanding and has become stale; (b) cheque No 91 was lost in the post, with no entry made for the loss, and cheque No 98 (dated 5 April 2013) was issued to replace the missing cheque; (c) cheque No 94 had still not been presented for payment by 30 April 2013, while the R3 100 outstanding deposit did appear on the bank statement for the month ending 30 April 2013. Comparing the cash journals for April 2013 with the bank statement for the same period further revealed: (a) the bookkeeper omitted to record an electronic funds transfer of R800 paid to creditor S Sekhukhune during April 2013; (b) a cheque for R700 received from debtor M Medupe was dishonoured by the bank due to the debtor's insolvency; (c) a deposit of R5 340, representing sales on 29 April 2013, is not reflected in the April 2013 bank statement; (d) the following items appeared only on the April 2013 bank statement: a service fee of R244, a cash deposit fee of R79, and interest on favourable bank balance of R158; (e) cheques not yet presented to the bank for payment were No 105 for R670 dated 22 April 2013 (A Kalaka) and No 112 for R790 dated 28 April 2013 (S Maloka); (f) cheque No 102, dated 26 April 2013, issued to NAC Stationers for stationery of R282, was incorrectly recorded as R228 in the cash payments journal; and (g) the bank statement showed a favourable balance of R3 901 on 30 April 2013. Using all the reconciling items given for Basadi Traders — including the still-outstanding cheques No 105 (R670, A Kalaka, dated 22 April 2013) and No 112 (R790, S Maloka, dated 28 April 2013), the stale cheque No 41, the replaced cheque No 91/No 98, cheque No 94, and the bank statement's favourable balance of R3 901 on 30 April 2013 — prepare the bank reconciliation statement of Basadi Traders as at 30 April 2013.Show the full questionShow less

4. Question 2.1 · Debtors & creditors control · 13 marks

   The figures below were taken from the accounting records of Zizobenza Traders as at 31 March 2013. The totals of the subsidiary journals for the period were as follows: the sales journal (sales plus VAT) amounted to R16 840; the purchases journal (purchases plus VAT) amounted to R12 480; the sales returns journal (sales returns plus VAT) amounted to R1 200; the purchases returns journal (purchases returns plus VAT) amounted to R820; the sales column in the cash receipts journal totalled R24 560; the purchases column in the cash payments journal totalled R34 670; the debtors control column in the cash receipts journal totalled R22 750; the debtors control column in the cash payments journal totalled R3 200; the settlement discount granted column in the cash receipts journal totalled R3 500; the creditors control column in the cash payments journal totalled R32 980; and the settlement discount received column in the cash payments journal totalled R2 890. In addition, sundry journal entries showed debtors control debited with R2 760 and credited with R430; the general ledger debited with R4 570 and credited with R560; and creditors control credited with R840 (no debit entry). The opening balances on 1 March 2013 were: debtors control R32 780 debit and R1 780 credit; creditors control R2 020 debit and R24 720 credit; and the allowance for credit losses stood at R1 538. The following matters still need to be taken into account, as they were not included in the figures above: (1) a further R1 450 owing by a debtor who has disappeared must be written off as irrecoverable; (2) the credit balances on debtors' accounts and the debit balances on creditors' accounts as at 1 March 2013 must be transferred to the creditors control and debtors control accounts respectively, authorisation having been obtained from the relevant parties; (3) the allowance for credit losses must be increased to R2 432; and (4) merchandise worth R2 736 purchased on credit during March 2013 was mistakenly recorded in the sales journal instead of the purchases journal. You are required to prepare the following accounts in the books of Zizobenza Traders, properly balanced as at 31 March 2013. Using the journal totals, sundry journal entries, opening balances and additional adjustments described for Zizobenza Traders, prepare the debtors control account in the general ledger, properly balanced as at 31 March 2013.Show the full questionShow less

5. Question 2.2 · Debtors & creditors control · 10 marks

   The figures below were taken from the accounting records of Zizobenza Traders as at 31 March 2013. The totals of the subsidiary journals for the period were as follows: the sales journal (sales plus VAT) amounted to R16 840; the purchases journal (purchases plus VAT) amounted to R12 480; the sales returns journal (sales returns plus VAT) amounted to R1 200; the purchases returns journal (purchases returns plus VAT) amounted to R820; the sales column in the cash receipts journal totalled R24 560; the purchases column in the cash payments journal totalled R34 670; the debtors control column in the cash receipts journal totalled R22 750; the debtors control column in the cash payments journal totalled R3 200; the settlement discount granted column in the cash receipts journal totalled R3 500; the creditors control column in the cash payments journal totalled R32 980; and the settlement discount received column in the cash payments journal totalled R2 890. In addition, sundry journal entries showed debtors control debited with R2 760 and credited with R430; the general ledger debited with R4 570 and credited with R560; and creditors control credited with R840 (no debit entry). The opening balances on 1 March 2013 were: debtors control R32 780 debit and R1 780 credit; creditors control R2 020 debit and R24 720 credit; and the allowance for credit losses stood at R1 538. The following matters still need to be taken into account, as they were not included in the figures above: (1) a further R1 450 owing by a debtor who has disappeared must be written off as irrecoverable; (2) the credit balances on debtors' accounts and the debit balances on creditors' accounts as at 1 March 2013 must be transferred to the creditors control and debtors control accounts respectively, authorisation having been obtained from the relevant parties; (3) the allowance for credit losses must be increased to R2 432; and (4) merchandise worth R2 736 purchased on credit during March 2013 was mistakenly recorded in the sales journal instead of the purchases journal. You are required to prepare the following accounts in the books of Zizobenza Traders, properly balanced as at 31 March 2013. Using the journal totals, sundry journal entries, opening balances and additional adjustments described for Zizobenza Traders, prepare the creditors control account in the general ledger, properly balanced as at 31 March 2013.Show the full questionShow less