FAC1502 May/Jun 2014 exam paper — questions

Every question, by topic

1. Question 1.1 · Financial statements of a sole trader · 20 marks

   YoCo Stores' pre-adjustment trial balance at 31 May 2013: capital (amount not given); drawings R5 000; fixed deposit R30 000; land and buildings at cost R150 000; furniture at cost R45 000; mortgage R30 000; bank R4 700 (favourable); trading inventory (1 June 2012) R12 000; creditors control R7 300; debtors control R5 400; revenue from sales R92 100; purchases R35 000; purchases returns R825; rental income R3 600; bank charges R100; insurance R2 000; credit losses R150; settlement discount granted R250; municipal taxes R600; salaries and wages R12 900; carriage on purchases R720; carriage on sales R450; customs duties on purchases R125; packing material R1 395; interest on mortgage R3 025. Additional information: the owner paid an extra R50 000 into the business bank account on 1 March 2013; furniture bought on 30 June 2012 is depreciated at 20% p.a. straight-line and no depreciation has been provided; the fixed deposit at Dry Bank (invested 1 June 2012, callable 31 May 2018) earns 10% p.a. and the year's interest must still be provided; on 1 January 2013 the owner took inventory costing R2 500 and nothing was recorded; inventory on hand at 31 May 2013 is R14 500 and packing material R95; an allowance for credit losses of R400 must be created; the insurance figure includes an annual premium of R1 800 paid on 1 August 2012; part of the building has been let to an attorney at R400 per month since 1 January 2012; the secretary's May 2013 salary of R6 000 is unpaid; the mortgage from XYZ Bank bears interest at 11% p.a. payable monthly in arrears, May's interest is still outstanding, and R5 000 of the mortgage is repayable on 31 December 2013. Prepare the statement of profit or loss and other comprehensive income for the year ended 31 May 2013 in line with IFRS.Show the full questionShow less

2. Question 1.2 · Financial statements of a sole trader · 5 marks

   Using the YoCo Stores information, prepare the statement of changes in equity for the year ended 31 May 2013.Show the full questionShow less

3. Question 1.3 · Financial statements of a sole trader · 10 marks

   Using the YoCo Stores information, prepare the equity and liabilities section of the statement of financial position as at 31 May 2013, in line with IFRS.Show the full questionShow less

4. Question 2 · Non-profit entities: membership fees and income & expenditure · 8 marks

   Far Hill Tennis Club's statement of financial position shows membership fees received in advance of R1 680 at 30 June 2013 (R720 at 30 June 2012). Cash received in the year to 30 June 2013 included membership fees of R40 560 and entrance fees of R3 000. Membership fees are R240 per member per year. At 30 June 2013 two members who still owed fees for the year ended 30 June 2012 were suspended retrospectively and their arrears written off. Thirty new members joined during the year, and management capitalises 50% of their entrance fees. Accrued membership fees were R2 400 at 30 June 2012 and R1 200 at 30 June 2013. Prepare the membership fees account for the year ended 30 June 2013.Show the full questionShow less

5. Question 3.1 · Property, plant & equipment and depreciation · 9.5 marks

   On 31 March 2013 Laura Mapetla traded in an old machine (purchase price R12 000, accumulated depreciation R8 000 at 31 December 2012) for a new machine costing R20 000, receiving a trade-in value of R5 000. Machinery is depreciated at 20% p.a. on the diminishing balance. Ignore VAT. Disclose the profit or loss on disposal and the depreciation in the statement of profit or loss and other comprehensive income for the year ended 31 December 2013, per IFRS, showing calculations.Show the full questionShow less