FAC1502 Oct/Nov 2014 exam paper — questions

🔒 Scan locked
View the paper as written🔒 with a pass

  1. Question 1.1 · Bank reconciliation · 9 marks

    Masuku Enterprise, March 2014: cash receipts journal total R15 685, cash payments journal total R13 236; the general-ledger bank account had a favourable balance of R750 at 28 February 2014; the bank statement shows a favourable balance of R8 493 at 31 March 2014. On the February reconciliation but not on the March statement: cheque 345 for R1 650 to creditor Dalrius Dealers, issued 8 September 2013 and now stale. In the March journals but not on the statement: cheque 856 (S Madiki) R3 600, cheque 858 (P Planti) R3 000, cheque 863 (Incredilous One Touch, communication expenses) R1 659, and a R4 710 deposit made on 27 March which the bank put into another client's account by mistake. On the statement but not in the journals: bank charges R250; cash handling fee R65; a R4 000 rent deposit from P Kwinana; a cheque from debtor N Madula returned R/D, R910; interest on fixed deposit R200; R1 000 paid directly by debtor G Mapetela; and a R3 780 cheque issued by D Dakula, another client of the bank. A R1 500 cheque for cash purchases was recorded in the cash payments journal as R150. A R1 250 deposit on the statement was made by another client of the bank. Complete only the bank columns of the cash receipts and cash payments journals at 31 March 2014.Show the full question

  2. Question 1.2 · Bank reconciliation · 6 marks

    Using the Masuku Enterprise information, prepare the bank account in the general ledger, properly balanced, at 31 March 2014.Show the full question

  3. Question 1.3 · Bank reconciliation · 11 marks

    Using the Masuku Enterprise information, prepare the bank reconciliation statement as at 31 March 2014, starting with the balance per bank statement.Show the full question

  4. Question 2 · Journal entries · 20 marks

    At 28 February 2014 the new accountant of Betty General Dealers (not a VAT vendor) found the trial balance did not balance and the debtors and creditors control accounts (R180 000 Dr and R166 800 Cr) did not agree with the lists (debtors R180 480; creditors R168 240). The trial balance shows vehicles at carrying value R144 000, sales R960 000, cost of sales R600 000 and inventory R24 000. An investigation found: (1) vehicle repairs of R1 200 on 1 July 2013 were correctly entered in the cash payments journal but debited to the vehicles account; (2) depreciation on vehicles at 20% p.a. diminishing balance was therefore over-provided from 1 July 2013; (3) credit sales of R1 680 to G Odesola were correctly entered in the sales journal but debited to D Akpu's account in the debtors ledger as R960; (4) credit purchases of R2 280 from M Kunene were entered in the purchases returns journal and posted to the purchases returns account; (5) credit sales of R2 400 to Y Mhlambiso were entered in the sales journal as R2 040 and posted to the general ledger as R2 040; (6) a R340 settlement discount granted to D Akpu on paying his account was not recorded. Prepare the journal entries at 28 February 2014 to correct these errors. Narrations may be omitted.Show the full question

  5. Question 3.1 · Financial statements of a sole trader · 25 marks

    Mike's Rocking Chairs, pre-adjustment trial balance at 28 February 2014: capital R200 000; drawings R50 000; motor vehicles at cost R250 000; furniture and fittings at cost R30 000; inventory (1 March 2013) R75 000; debtors control R100 000; allowance for credit losses R2 500; accumulated depreciation — motor vehicles R125 000 and furniture R15 000 (both at 1 March 2013); creditors control R45 000; bank overdraft R18 000; long-term loan R159 000; sales R725 000; interest expense R12 500; interest on bank overdraft R2 000; rental expenses R120 000; motor vehicle expenses R65 000; franchise fees R90 500; advertising R5 500; water and electricity R4 000; purchases R485 000. Adjustments: provide for outstanding interest on the long-term loan at 10% p.a.; the first loan repayment of R10 000 falls on 1 March 2014; the count at 28 February 2014 found 28 chairs on hand valued at R3 000 each (lower of cost and NRV); a client's estate is insolvent and only R2 000 of the R5 000 owed was recovered; the allowance for credit losses must be increased by R500; depreciation is on the diminishing balance — motor vehicles 20% p.a. and furniture 10% p.a., and a new vehicle costing R50 000 was bought on 1 January 2014 (no other movements); the owner deposited R40 000 cash into the business bank account; credit sales of R8 000 to Mr Sushi on 26 February 2014 were not yet recorded but the goods were excluded from the count; and the R1 400 water and electricity account for February arrived on 1 March. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2014, in line with IFRS, showing calculations rounded to the nearest rand.Show the full question

  6. Question 3.2 · Financial statements of a sole trader · 13 marks

    Using the Mike's Rocking Chairs information, prepare the property, plant and equipment note for the year ended 28 February 2014 (the total column may be omitted).Show the full question

  7. Question 4.1 · Property, plant & equipment and depreciation · 12 marks

    Petro Deliveries at 31 July 2013: vehicles at cost R600 000, accumulated depreciation on vehicles R120 000. The fleet is four delivery vehicles of equal value bought on 1 August 2012. On 30 April 2014 one vehicle was traded in at R80 000 against a new delivery vehicle costing R180 000, financed with a 9% p.a. loan from Capt Bank. Vehicles are depreciated at 20% p.a. straight-line. Prepare the accumulated depreciation: vehicles account, properly closed off, at 31 July 2014, naming the contra accounts and showing calculations.Show the full question

  8. Question 4.2 · Property, plant & equipment and depreciation · 4 marks

    Using the Petro Deliveries information, prepare the asset realisation account, properly closed off, at 31 July 2014.Show the full question

FAC1502 Oct/Nov 2014 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

The full Spot Map and the marks by year — and this paper’s scan.