FAC1503 Oct/Nov 2017 exam paper — questions

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  1. Question 1(a) · Subsidiary journals and ledger · 5.5 marks

    Express Services and Suppliers is a business that applies the periodic inventory system and is registered as a VAT vendor, with VAT included at 14% in all amounts where applicable. The entity's transactions for the month ended 30 April 2017 were as follows: on the 5th, inventory was sold on credit to R Phiri for R2 394; on the 13th, cash sales of inventory amounted to R1 482; on the 15th, a cheque for R700 was issued to Copu Traders, a trade creditor, as a part payment of the account; on the 17th, inventory was purchased on credit from Model Traders for R2 337; on the 21st, an invoice was received from JT Wholesalers for inventory purchased on credit amounting to R3 420; on the 24th, inventory was sold on credit to G Wright for R2 736; on the 26th, cash purchases of inventory amounted to R1 539; on the 28th, a receipt was issued to S Smith for payment of his account of R400; on the 30th, monthly wages of R3 600 were paid; and also on the 30th, total repair services rendered for the month, according to the cash register roll, amounted to R5 700. You are required to open the relevant subsidiary journals for the month ended 30 April 2017 in the accounting records of Express Services and Suppliers and record the above transactions in them, as detailed in the sub-questions below. For Express Services and Suppliers, open the cash receipts journal for the month ended 30 April 2017 and record the relevant transactions in it. Make provision for the following columns: date, details, bank, sales, trade receivables control, services rendered, VAT output, and sundry accounts. Do not total the columns.Show the full question

  2. Question 1(b) · Subsidiary journals and ledger · 5.5 marks

    Express Services and Suppliers is a business that applies the periodic inventory system and is registered as a VAT vendor, with VAT included at 14% in all amounts where applicable. The entity's transactions for the month ended 30 April 2017 were as follows: on the 5th, inventory was sold on credit to R Phiri for R2 394; on the 13th, cash sales of inventory amounted to R1 482; on the 15th, a cheque for R700 was issued to Copu Traders, a trade creditor, as a part payment of the account; on the 17th, inventory was purchased on credit from Model Traders for R2 337; on the 21st, an invoice was received from JT Wholesalers for inventory purchased on credit amounting to R3 420; on the 24th, inventory was sold on credit to G Wright for R2 736; on the 26th, cash purchases of inventory amounted to R1 539; on the 28th, a receipt was issued to S Smith for payment of his account of R400; on the 30th, monthly wages of R3 600 were paid; and also on the 30th, total repair services rendered for the month, according to the cash register roll, amounted to R5 700. You are required to open the relevant subsidiary journals for the month ended 30 April 2017 in the accounting records of Express Services and Suppliers and record the above transactions in them, as detailed in the sub-questions below. For Express Services and Suppliers, open the cash payments journal for the month ended 30 April 2017 and record the relevant transactions in it. Make provision for the following columns: date, details, bank, purchases, trade payables control, VAT input, and sundry accounts. Do not total the columns.Show the full question

  3. Question 1(c) · Subsidiary journals and ledger · 4 marks

    Express Services and Suppliers is a business that applies the periodic inventory system and is registered as a VAT vendor, with VAT included at 14% in all amounts where applicable. The entity's transactions for the month ended 30 April 2017 were as follows: on the 5th, inventory was sold on credit to R Phiri for R2 394; on the 13th, cash sales of inventory amounted to R1 482; on the 15th, a cheque for R700 was issued to Copu Traders, a trade creditor, as a part payment of the account; on the 17th, inventory was purchased on credit from Model Traders for R2 337; on the 21st, an invoice was received from JT Wholesalers for inventory purchased on credit amounting to R3 420; on the 24th, inventory was sold on credit to G Wright for R2 736; on the 26th, cash purchases of inventory amounted to R1 539; on the 28th, a receipt was issued to S Smith for payment of his account of R400; on the 30th, monthly wages of R3 600 were paid; and also on the 30th, total repair services rendered for the month, according to the cash register roll, amounted to R5 700. You are required to open the relevant subsidiary journals for the month ended 30 April 2017 in the accounting records of Express Services and Suppliers and record the above transactions in them, as detailed in the sub-questions below. For Express Services and Suppliers, open the sales journal for the month ended 30 April 2017 and record the relevant transactions in it. Make provision for the following columns: date, details, sales, VAT output, and trade receivables control. Do not total the columns.Show the full question

  4. Question 1(d) · Subsidiary journals and ledger · 4 marks

    Express Services and Suppliers is a business that applies the periodic inventory system and is registered as a VAT vendor, with VAT included at 14% in all amounts where applicable. The entity's transactions for the month ended 30 April 2017 were as follows: on the 5th, inventory was sold on credit to R Phiri for R2 394; on the 13th, cash sales of inventory amounted to R1 482; on the 15th, a cheque for R700 was issued to Copu Traders, a trade creditor, as a part payment of the account; on the 17th, inventory was purchased on credit from Model Traders for R2 337; on the 21st, an invoice was received from JT Wholesalers for inventory purchased on credit amounting to R3 420; on the 24th, inventory was sold on credit to G Wright for R2 736; on the 26th, cash purchases of inventory amounted to R1 539; on the 28th, a receipt was issued to S Smith for payment of his account of R400; on the 30th, monthly wages of R3 600 were paid; and also on the 30th, total repair services rendered for the month, according to the cash register roll, amounted to R5 700. You are required to open the relevant subsidiary journals for the month ended 30 April 2017 in the accounting records of Express Services and Suppliers and record the above transactions in them, as detailed in the sub-questions below. For Express Services and Suppliers, open the purchases journal for the month ended 30 April 2017 and record the relevant transactions in it. Make provision for the following columns: date, details, purchases, VAT input, and trade payables control. Do not total the columns.Show the full question

  5. Question 2 · Accounting equation · 19 marks

    Bell Attorneys is a law firm owned solely by Mr W Bell, and the firm is not registered as a VAT vendor. During February 2017 the firm entered into the following transactions: on 3 February Mr W Bell deposited R25 000 into the business bank account as additional capital; on 4 February stationery was purchased on credit from E Fay for R1 600, with a 10% discount received; on 7 February R3 100 was paid to Top Properties for office rent; on 12 February Mr W Bell took one of the firm's surplus laptops, with a book value of R4 700, for use by his children; on 21 February Bell Attorneys paid R5 000 to Advocate N Ntuli on behalf of client S Vermaak; and on 28 February Bell Attorneys issued a debit note of R9 800 to J Khoza for bond registration fees. You are required to analyse each of these transactions in tabular format, showing for each the date, the account to be debited, the account to be credited, and the effect on the basic accounting equation (split into the effect on Assets in Rand, the effect on Equity in Rand, and the effect on Liabilities in Rand). An example has been provided: on 4 February, payment of the monthly telephone account of R4 200 by cheque would be shown as Telephone (debited) and Bank (credited), with Assets affected by -4 200, Equity by -4 200, and Liabilities by 0. Note that the accounting-equation columns must not be totalled, and every amount must be preceded by a plus sign (+) for an increase or a minus sign (-) for a decrease to indicate the effect on that element of the accounting equation. All calculations must be shown.Show the full question

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