FAC 1501 EXAM PACK.

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1 FAC 1501 EXAM PACK

2 INTODUCTOY FINANCIAL ACCOUNTING

3 OCTOBE NOVEMBE 2017

4 SOLUTION 1: MULTIPLE CHOICE QUESTIONS Assets Property, plant & Equipment Trade and other receivables Less Liabilities ( ) Bank overdraft Long term borrowings Equity Land & Buildings Vehicles at carrying amount Equipment at carrying amount Fixed deposit Total Non current assets Creditors Control Accrued expenses Income received in advance Current assets

5 2017 July Assets = Equity + Liabilities Equipment Debtors Bank Capital Income / Creditors Expenses Net Effect SOLUTION 2: ECODING OF TANSACTIONS General ledger Subsidiary Journal Date Account to be debited Account to be credited 2017 August 5 Inventory Creditors` Control Purchases Journal August 7 Debtors Control Cost of Sales Sales Inventory Sales Journal August 14 Packing Materials Inventory General Journal August 23 Bank Debtors` control Cash eceipts Journal August 26 Drawings Inventory General Journal August 31 Insurance Bank Cash Payments Journal

6 SOLUTION 3: BANK ECONCILIATION (a) MAAKELE TADES CASH ECEIPTS JOUNAL NOVEMBE 2017 Details Bank Provisional Total Debtor - Direct deposit ental Income - Direct deposit Interest Income Total eceipts CASH PAYMENTS JOUNAL NOVEMBE 2017 Details Bank Provisional Total Debtor (dishonoured cheque) Insurance - Stop order Security services debit order Bank charges Total Payments (b) MAAKELE TADES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account 2017 November 1 30 Balance Total eceipts b/d CJ November Total Payments Balance CPJ c/d December 1 Balance b/d

7 (c) MAAKELE TADES BANK ECONCILIATION STATEMENT AS AT 30 JUNE 2016 Credit balance as per bank statement Wrong Deposit ( ) Outstanding cheques: Outstanding Deposits ( ) Debit balance as per bank account D C

8 SOLUTION 4: STATEMENT OF POFIT O LOSS & OTHE COMPEHENSIVE INCOME MOKALA TADES STATEMENT OF POFIT O LOSS & OTHE COMPEHENSIVE INCOME FO THE YEA ENDED 30 SEPTEMBE 2017 evenue ( ) Cost of Sales ( ) Opening Inventory Purchases ( ) Closing Inventory ( ) Gross Profit Other Income Interest on Fixed Deposit ( %) Total Income Expenses ( ) Administration, Distribution & Other Expenses ( ) Water & Electricity Salaries & Wages ( ) Telephone expenses Stationery ( ) epairs & Maintenance Insurance Credit Losses [ ( )] Depreciation ) Finance Cost (12 000) Interest on mortgage (10% ) Profit for the year Other Comprehensive Income - Total Comprehensive Income

9 MAY JUNE 2017 (SECOND PAPE)

10 SOLUTION 1: MULTIPLE CHOICE QUESTIONS ( ) =

11 SOLUTION 2: TADING ACCOUNT & POFIT O LOSS ACCOUNT (a) POFIT TADES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Trading Account 2017 July Opening Inventory Purchases ( ) GJ GJ July Sales ( ) Closing Inventory GJ GJ Profit or Loss (Gross Profit) CJ (b) POFIT TADES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Profit or Loss Account 2017 July Water & Electricity Telephone expenses Salaries GJ GJ GJ July Trading Account (Gross Profit) Interest Income ental Income GJ GJ GJ Capital (Profit) GJ SOLUTION 3: ACCOUNTING EQUATION Date Assets = Equity + Liabilities General Ledger Accounts Dr Cr 2017 June Furniture Bank Inventory Trade Creditors Control Telephone Bank

12 Debtors Control Cost of Sales Sales Inventory Drawings Bank SOLUTION 4: BANK ECONCILIATION (a) AIES TADES CASH ECEIPTS JOUNAL APIL 2017 Details Bank Provisional Total T. Stephens - Direct deposit M. Khumalo - Direct deposit Interest Income 535 Total eceipts CASH PAYMENTS JOUNAL APIL 2017 Details Bank Provisional Total B. Badu (dishonoured cheque) Your Way Insurers debit order Wealth Investments debit order Bank charges 655 Total Payments

13 (b) AIES TADES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account 2017 April 30 Total eceipts CJ May 1 Balance b/d April Balance Total Payments Balance b/d CPJ c/d (c) AIES TADES BANK ECONCILIATION STATEMENT AS AT 30 APIL 2017 Credit balance as per bank statement Outstanding cheques: Outstanding Deposits ( ) Debit balance as per bank account D C

14 MAY JUNE 2017

15 SOLUTION 1: MULTIPLE CHOICE QUESTIONS ( ) = SOLUTION 2: BANK ECONCILIATIONS GAUTENG TADES (a) CASH ECEIPTS JOUNAL OCTOBE 2016 Details Bank Provisional Total Debtor - Direct deposit Total eceipts

16 CASH PAYMENTS JOUNAL OCTOBE 2016 Details Bank Provisional Total Debtor (dishonoured cheque) 900 Bank charges 600 Total Payments (b) GAUTENG TADES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account 2016 October 31 Total eceipts CJ November 1 Balance b/d October Balance Total Payments Balance b/d CPJ c/d (c) GAUTENG TADES BANK ECONCILIATION STATEMENT AS AT 30 OCTOBE 2016 Credit balance as per bank statement Outstanding cheques: Outstanding Deposits Debit balance as per bank account D C

17 SOLUTION 3: CASH ECEIPTS JOUNAL, CASH PAYMENTS JOUNAL, SALES JOUNAL & PUCHASES JOUNAL LIMPOPO TADES (a) CASH ECEIPTS JOUNAL JULY 2016 CJ07 Doc Day Details Analysis of Bank Sales VAT Debtors No. receipts Output Small Stores (i) Tiny Stores Calculations (i) July 2 Sales Total Sales VAT ( ) (1 400) 114 Net Sales (b) CASH PAYMENTS JOUNAL JULY 2016 CPJ07 Doc Day Details Bank Purchases VAT Input Creditors No Maxi Wholesalers Large Wholesalers (i)

18 (i) July 14 Purchases Total Purchases VAT ( ) (3 360) 114 Net Purchases (c) SALES JOUNAL JULY 2016 SJ07 Doc No Day Details VAT Output Sales Debtors Mini Stores (i) Little Stores (ii) Calculations (i) July 11 Sales Total Sales VAT ( ) (1 540) 114 Net Sales (ii) July 20 Sales Total Sales VAT ( ) (1 960) 114 Net Sales (d) PUCHASES JOUNAL JULY 2016 PJ07 Doc No Day Details VAT Input Purchases Creditors 5 24 Huge Wholesalers (i) Big Wholesalers (ii)

19 Calculations (i) July 5 Purchases Total Purchases VAT ( ) (2 940) 114 Net Purchases (ii) July 24 Purchases Total Purchases VAT ( ) (3 500) 114 Net Purchases SOLUTION 4: CALCULATIONS & STATEMENT OF FINANCIAL POSITION (a) Calculation of Depreciation on Vehicles = ( %) = (b) Calculation of Depreciation of Equipment = ( ) 30% = (c) Calculation of the Capital amount = ( ) = (d) Calculation of property, plant & Equipment Land & Buildings Vehicles ( ) Equipment ( ) Property, plant & Equipment (e) Calculation of trade & other receivables amount = ( ) =

20 (f) Calculation of the cash & cash equivalents amount = ( ) = (g) Calculation of the trade & other payables amount = ( ) = (h) MPUMALANGA TADES STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2016 ASSETS NON CUENT ASSETS Property, Plant & Equipment (d) Financial Assets CUENT ASSETS Inventories Trade & other receivables (e) Cash & cash equivalents (f) TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Capital (c) LIABILITIES NON CUENT LIABILITIES Long term Borrowings CUENT LIABILITIES Trade & Other Payables (g)

21 OCTOBE NOVEMBE 2016

22 SOLUTION 1: MULTIPLE CHOICE QUESTIONS When the perpetual inventory system is in use, the inventory account is always updated whenever there are movements in inventory. In this particular case inventory increases due to the purchase of inventory, as such the inventory account is updated to record the increase in inventory. If the periodic inventory system was in use, this purchase could have been recorded in the purchases account Amount () Purchases Purchases returns (5 000) Settlement discount received (2 000) Donations of inventory (6 000) Drawings of inventory (1 000) Net Purchases Amount () Sales Settlement discount granted (3 000) Sales eturns (8 000) Net Purchases

23 Amount () Opening Inventory Net Purchases ( ) Freight charges on purchases Closing Inventory ( ) Cost of Sales When the owner contributes money into the business, this is called capital. The amount in the bank (an asset) increases and assets increase on the debit side whilst the capital (owner`s contribution into the business) increases and equity increases on the credit side Assets will increase as a result of the increase in furniture whilst liabilities will also increase because the furniture was purchased on credit The bank account is involved as cash was received and as this amount was received with respect of sales, the sales account will also be involved The assets will reduce because the account was paid using a business cheque and water and electricity is an expense, which reduces equity The assets increase because of the increase in the amount in the bank and when bank (an asset) increases we debit the bank account. At the same time this amount was received in settlement of a debtor, which reduces an asset (debtors) and assets decrease on the credit side.

24 SOLUTION 2: BANK ECONCILIATION (a) AK TADES CASH ECEIPTS JOUNAL (BANK COLUMN ONLY) MACH 2016 CJ03 Day Details Bank 2016 March Provisional Total S. Stone (direct deposit) C. Carly (direct deposit) Interest Income Total eceipts AK TADES CASH PAYMENTS JOUNAL (BANK COLUMN ONLY) - MACH 2016 CPJ03 Day Details Bank 2016 March Provisional Total McQueen Insurers insurance (debit order) A. Naidoo - Debtors control (dishonoured cheque) West Investments debit order Bank charges Total Payments (b) AK TADES GENEAL LEDGE Bank Date Details Folio Amount Date Details Folio Amount Bank Account April 1 Balance b/d

25 (c) AK TADES BANK ECONCILIATION STATEMENT AS AT 31 MACH 2016 Credit balance as per bank statement Debit Outstanding cheques: Outstanding Deposits ( ) Debit balance as per bank account D C SOLUTION 3: SALES JOUNAL, SALES ETUNS JOUNAL & GENEAL JOUNAL KIAA TADES (a) SALES JOUNAL MACH 2016 SJ03 Doc no Day Details Fol VAT Sales Debtors output 3 O. McQueen (c1) DL T. Smith (c2) DL D. Francis (c3) DL B. Singh (c4) DL

26 Calculations 1. Sales inclusive of VAT VAT ( * 14 / 114) (2 240) Sales exclusive of VAT Sales inclusive of VAT VAT (5 700 * 14 / 114) (700) Sales exclusive of VAT Sales inclusive of VAT VAT (5 130 * 14 / 114) (630) Sales exclusive of VAT Sales inclusive of VAT VAT (6 840 * 14 / 114) (840) Sales exclusive of VAT (b) KIAA TADES SALES ETUNS JOUNAL MACH 2016 SJ03 Doc no Day Details Fol VAT Sales Debtors output eturns 10 A. Thomas (c1) DL O. McQueen (c2) DL Calculations 1. Sales returns inclusive of VAT 456 VAT (456 * 14 / 114) (56) Sales returns exclusive of VAT 400

27 2. Sales inclusive of VAT VAT (1 710 * 14 / 114) (210) Sales exclusive of VAT (c) KIAA TADES GENEAL JOUNAL MACH 2016 GJ03 Day Details Fol Debit Credit 4 Y. Moloi / Debtors` Control DL2 24 Interest Income 24 (1 200 * 8% * 3 / 12) Interest charged on a debtor`s account which had been three months 8% p.a. 15 Credit losses (741-91) 650 VAT Input (741 * 14 / 114) J. Pillay / Debtors` Control Account of a debtor written off as irrecoverable SOLUTION 5: STATEMENT OF CHANGES IN EQUITY & STATEMENT OF FINANCIAL POSITION (a) ZEUS TADES STATEMENT OF CHANGES IN EQUITY FO THE YEA ENDED 29 FEBUAY 2016 Capital Balance at 1 March Total Comprehensive Income ( ) Drawings (20 000) Balance at 29 February

28 (b) ZEUS TADES STATEMENT OF FINANCIAL POSITION AS AT 29 FEBUAY 2016 ASSETS NON CUENT ASSETS Property, Plant & Equipment ( ) CUENT ASSETS Inventories Prepaid expenses Trade & other receivables Cash & cash equivalents ( ) TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Capital LIABILITIES NON CUENT LIABILITIES Long term borrowings ( ) CUENT LIABILITIES Trade & other payables ( ) TOTAL EQUITY AND LIABILITIES

29 MAY JUNE 2016

30 SOLUTION 1: MULTIPLE CHOICE QUESTIONS

31 SOLUTION 2: POSTING FOM SUBSIDIAY JOUNALS TO THE GENEAL LEDGE (a) PT STOES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account 2015 August Total eceipts Balance CJ c/d August 1 31 Balance Total Payments b/d CPJ September 1 Balance b/d (b) Date Details Folio Amount Date Details Folio Amount Debtors Control Account 2015 August 1 31 b/d August CJ Balance Sales and VAT Output September 1 Balance b/d SJ Bank Sales eturns and VAT Output SJ 31 Balance c/d (c) Date Details Folio Amount Date Details Folio Amount Creditors Control Account 2015 August CPJ August 1 31 b/d 31 Bank Purchases eturns and VAT Input Balance PJ c/d Balance Purchases and VAT Input PJ September 1 Balance b/d

32 SOLUTION 3: BANK ECONCILIATION (d) DG STOES CASH ECEIPTS JOUNAL- APIL 2015 Details Bank Provisional Total Interest Income 150 Total eceipts CASH PAYMENTS JOUNAL- APIL 2015 Details Provisional Total ABC Insurers insurance (debit order) N. Enough - Debtors control (dishonoured cheque) Bank charges Bank Total Payments (e) DG STOES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account May 1 Balance b/d

33 (f) DG STOES BANK ECONCILIATION STATEMENT AS AT 30 APIL 2015 Credit balance as per bank statement Outstanding cheques: Outstanding Deposits ( ) Debit balance as per bank account D C

34 SOLUTION 4: STATEMENT OF POFIT O LOSS AND OTHE COMPEHENSIVE INCOME AND STATEMENT OF CHANGES IN EQUITY (a) HS STOES STATEMENT OF POFIT O LOSS AND OTHE COMPEHENSIVE INCOME FO THE YEA ENDED 30 JUNE 2015 evenue ( ) Cost of Sales ( ) Gross Profit Less Expenses Inventory shortfall ( ) Consumable stores ( ) Insurance ( ) Telephone expenses Water and Electricity ental Expense Stationery Wages Depreciation [10% * ( ) ( ) Net Profit

35 (b) HS STOES STATEMENT OF CHANGES IN EQUITY FO THE YEA ENDED 30 JUNE 2015 Balance as at 1 July 2014 Total Comprehensive Income Drawings ( )

36 OCTOBE NOVEMBE 2015

37 SOLUTION 1: SUBSIDIAY JOUNALS (a) TILE TADES PUCHASES JOUNAL OCTOBE 2015 Doc no Day Details Luxury Tiles (1) Cheap Tiles (2) Exclusive Tiles (3) Expensive Tiles (4) Folio VAT Purchases Creditors Input CL CL CL CL Calculations (1) Total Purchases VAT (14 / 114 * ) Purchases (2) Total Purchases VAT (14 / 114 * 3 420) Purchases (3) Total Purchases VAT (14 / 114 * 5 472) Purchases eturns (4) Total Purchases VAT (14 / 114 * ) Purchases

38 (b) TILE TADES PUCHASES ETUNS JOUNAL OCTOBE 2015 Doc no Day Details Luxury Tiles (5) Bathroom Tiles (6) Cheap Tiles (7) Expensive Tiles (8) Folio VAT Purchases Creditors Input eturns CL CL CL Calculations (5) Total Purchases eturns VAT (14 / 114 * ) Purchases eturns (6) Total Purchases eturns VAT (14 / 114 * ) Purchases eturns (7) Total Purchases eturns VAT (14 / 114 * ) Purchases eturns (8) Total Purchases eturns VAT (14 / 114 * ) Purchases eturns

39 SOLUTION 2: ACCOUNTING EQUATION TOTO ELECTICAL SEPTEMBE 2015 Date Assets = Equity + Liabilities General ledger accounts Dr Cr Debtors Control / L. Logo September Advertising Tools Equipment Bank & Services endered Bank Bank Debtors Control / L. Logo Bank Drawings Inventory Wages Services endered Inventory Creditors Control / Wires Inc Bank

40 SOLUTION 3: BANK ECONCILIATION STATEMENT (d) BG STOES CASH ECEIPTS JOUNAL- FEBUAY 2015 Details Bank Provisional Total T. Ngcobo debtor (direct deposit) Y. Tyrone rent income (direct deposit) Total eceipts CASH PAYMENTS JOUNAL- FEBUAY 2015 Details Provisional Total A Singh - Debtors control (dishonoured cheque) Tellycom telephone (debit order) K. B Electricity electricity (debit order) Ourway Insurance insurance (debit order) Bank charges Interest on overdraft Bank Total Payments

41 (e) BG STOES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account 2015 February Total eceipts Balance CJ b/d February 1 28 Balance Total Payments b/d CPJ March 1 Balance b/d (f) BG STOES BANK ECONCILIATION STATEMENT AS AT 28 FEBUAY 2015 Debit balance as per bank statement Outstanding cheques: Outstanding Deposits Credit balance as per bank account D C

42 SOLUTION 4: STATEMENT OF FINANCIAL POSITION POP TADES STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2015 ASSETS NON CUENT ASSETS Property, Plant & Equipment ( ) Financial assets CUENT ASSETS Inventories ( ) Prepaid expenses Trade & other receivables ( ) Cash & cash equivalents ( ) TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Capital LIABILITIES NON CUENT LIABILITIES Long term borrowings ( ) CUENT LIABILITIES Trade & other payables ( ) Income received in advance TOTAL EQUITY AND LIABILITIES

43 MAY JUNE 2015

44 SOLUTION 1: ACCOUNTING EQUATION AND BANK ECONCILIATION PAT A PJ STOES WEEK ENDED 6 MACH 2015 Date A = E + L March ( ) PAT B (a) HOUSEHOLD APPLIANCES SEVICES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account 2015 April 1 30 Balance Total eceipts b/d CJ April Total Payments Balance CPJ c/d May 1 Balance b/d

45 (b) HOUSEHOLD APPLIANCES BANK ECONCILIATION STATEMENT AS AT 30 APIL 2015 Credit balance as per bank statement Error wrong deposit Outstanding cheques: Outstanding Deposits Debit balance as per bank account D C SOLUTION 2: CASH ECEIPTS JOUNAL, CASH PAYMENTS JOUNAL AND GENEAL JOUNAL (a) SANAMUVA DISTIBUTOS CASH ECEIPTS JOUNAL (CJ) MAY 2015 Date Details Bank Sales Debtors Control VAT Output SUNDIES Amount Details 1 Mr Samuva Capital 7 oad Construct (c2) Cash Sales (c3) C.Carpenter

46 CASH PAYMENTS JOUNAL (CPJ) MAY 2015 Date Details Bank Purchases Creditors Control VAT Input Sundry Accounts Amount Details 1 Ingwe ental Properties (C1) Expense 10 Internet payment Salaries 15 Petty Cash Petty Cash 28 Purchases (c4) Calculations (1) Total ent VAT (14 / 114 * 3 990) (490) ent Expense (2) Total Sales VAT (14 / 114 * ) (5 152) Sales (3) Total Sales VAT (14 / 114 * ) (4 900) Sales (4) Total Purchases VAT (14 / 114 * ) (3 717) Purchases

47 (b) SANAMUVA DISTIBUTOS GENEAL JOUNAL Date Details D C 2015 May 30 Credit Losses ( ) C.Carpenter / Debtors Control SOLUTION 3: FINAL ACCOUNTS TADING ACCOUNT CHOCOLATE TADES GENEAL LEDGE (a) Date Details Folio Amount Date Details Folio Amount Sales eturns Account 2015 March 31 Balance b/d March 31 Sales GJ (b) Date Details Folio Amount Date Details Folio Amount Purchases eturns Account 2015 March 31 Purchases GJ March 31 Balance b/d

48 (c) Date Details Folio Amount Date Details Folio Amount Sales Account 2015 March Sales eturns Trading Account GJ GJ March 31 Balance b/d (d) Date Details Folio Amount Date Details Folio Amount Purchases Account 2015 March 31 Balance b/d March 31 Purchases GJ eturns GJ Trading account (e) Date Details Folio Amount Date Details Folio Amount Inventory Account 2014 April 1 Balance b/d March 31 Trading Account GJ March 31 Trading Account G/J (f) Date Details Folio Amount Date Details Folio Amount Trading Account 2015 March GJ March 31 Sales Inventory (closing) GJ GJ 31 Purchases Inventory (opening) Profit or Loss (gross profit) GJ GJ

49 SOLUTION 4: POPETY, PLANT & EQUIPMENT NOTE AND STATEMENT OF FINANCIAL POSITION AK STOES (a) NOTES TO THE FINANCIAL STATEMENTS FO THE YEA ENDED 28 FEBUAY 2015 POPETY, PLANT & EQUIPMENT Carrying amount at beginning of year Land and Equipment Vehicles Total Buildings Cost Accumulated Depreciation Additions Disposals Depreciation for the year (c1) (20 000) - - (20 000) (50 000) - - (60 000) (70 000) - - (80 000) Carrying amount at end of year Cost Accumulated Depreciation (40 000) ( ) ( ) Calculations 1 Depreciation for the year on Equipment = 10% * = Depreciation for the year on vehicles = 20% * =

50 (b) AK STOES STATEMENT OF FINANCIAL POSITION AS AT 28 FEBUAY 2015 ASSETS NON CUENT ASSETS Property, Plant & Equipment Financial assets CUENT ASSETS Inventories Prepaid expenses Trade & other receivables Cash & cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Capital LIABILITIES NON CUENT LIABILITIES Long term borrowings CUENT LIABILITIES Trade & other payables Income received in advance TOTAL EQUITY AND LIABILITIES

51 OCTOBE NOVEMBE 2014

52 SOLUTION 1: ACCOUNTING EQUATION AND CLASSIFICATION OF ACCOUNTS LUFANO TADES PAT A PAT B No. Equity = Assets - Liabilities ( ) No. Assets Equity Liabilities Income Expenses 1 Telephone expenses 2 Bank (favourable) 3 Equipment 4 Services rendered 5 Cash float 6 Accrued expenses 7 Long term loan: BA Bank 8 Consumables 9 Machinery 10 Credit losses recovered 11 Prepaid expenses 12 Short term loan: JP Bank

53 SOLUTION 2: POFIT O LOSS ACCOUNT & BANK ECONCILIATION PAT A POFIT O LOSS ACCOUNT FO THE YEA ENDED 30 APIL 2014 evenue Cost of Sales ( ) Gross Profit Other Income ental Income Profit on sale of non current assets Total Income Less Expenses Bank charges Interest expenses Advertising Telephone expenses Water and Electricity Stationery Wages & Salaries ( ) Net Profit

54 PAT B (a) SPEECH LINGO GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account 2014 March 1 Balance b/d March Total Payments CPJ Total eceipts Balance CJ c/d April 1 Balance b/d 245 (b) SPEECH LINGO BANK ECONCILIATION STATEMENT AS AT 30 MACH 2014 Credit balance as per bank statement Error wrong deposit Outstanding cheques: Outstanding Deposits Credit balance as per bank account D C

55 SOLUTION 3: CASH PAYMENTS JOUNAL AND PUCHASES JOUNAL APPLIANCES STOES (a) CASH PAYMENTS JOUNAL (CPJ) august 2014 Doc no. Day Details Bank Purchas es VAT Input Credito rs Settleme nt Discoun t eceive d (Cr) Vat Output (Cr) Sundry Accounts Amount Details Folio Stationers (1) Stationery Telkom (2) Telephone City Council (3) Water & Electricity Smart Appliances (4) Big Appliances Salaries Salaries Big Appliances (5) (62 000) (8 680) (62 000) (8 680) Calculations (1) Total Stationery VAT (14 / 114 * 1 026) (126) ent Expense 900 (2) Total Telephone VAT (14 / 114 * 5 700) (700) Telephone Expense (3) Total Water and Electricity VAT (14 / 114 * 5 928) (728) Water & Electricity expense (4) Total Purchases VAT (14 / 114 * ) (28 000)

56 Purchases (5) Amount paid = ( * 80% ) = Total amount settled Amount paid ( ) Total Settlement Discount VAT (14 / 114 * ) (8 680) Net Settlement Discount (b) APPLIANCE STOES PUCHASES JOUNAL AUGUST 2014 Doc no Day Details VAT Input Purchases Creditors 2 20 Big Appliances (6) ABC Appliances (7) Calculations (6) Total Purchases VAT (14 / 114 * ) Purchases (7) Total Purchases VAT (14 / 114 * ) (7 000) Purchases

57 SOLUTION 4: STATEMENT OF FINANCIAL POSITION (c) DINO`S DEALES STATEMENT OF FINANCIAL POSITION AS AT 28 FEBUAY 2014 ASSETS NON CUENT ASSETS Property, Plant & Equipment ( ) CUENT ASSETS Inventories Prepaid expenses Trade & other receivables Cash & cash equivalents ( ) TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Capital ( ) LIABILITIES NON CUENT LIABILITIES Long term borrowings ( ) CUENT LIABILITIES Trade & other payables ( ) Income received in advance TOTAL EQUITY AND LIABILITIES

58 MAY JUNE 2014

59 SOLUTION 1: ACCOUNTING EQUATION SCOE TADES APIL 2014 No. General ledger A = E + L Account debited Account Credited 1 Printing & Stationery 2 epairs & Maintenance 3 Inventory Bank Creditors Control Bank (250 * 7) 5 Bank Cost of Sales Bank Sales Inventory Services endered

60 SOLUTION 2: COST OF SALES & BANK ECONCILIATION PAT A 2.1 COMPUTE TADES CALCULATION OF COST OF SALES FO THE YEA ENDED 31 JANUAY 2014 Opening Inventory Purchases ( ) Carriage on Purchases Customs & excise duties on purchases Closing inventory ( ) Cost of sales PAT B 2.2 CAMEA TADES CASH ECEIPTS JOUNAL- APIL 2014 Details Bank Provisional Total Interest Income 600 Debtor (direct deposit) adio Dealers rent income (direct deposit) Total eceipts

61 CASH PAYMENTS JOUNAL - APIL 2014 Details Bank Provisional Total Debtors control - (dishonoured cheque) Bank charges 500 Total Payments CAMEA TADES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account May 1 Balance b/d CAMEA TADES BANK ECONCILIATION STATEMENT AS AT 30 APIL 2014 Credit balance as per bank statement Outstanding cheques: Wrong debit (withdrawal) Outstanding Deposits Debit balance as per bank account D C

62 SOLUTION 3: CASH JOUNALS AND POSTING TO THE BANK ACCOUNT 3.1 P HOME DEALES CASH ECEIPTS JOUNAL (CJ) - MACH 2014 Day Details Bank Sales Debtors Control VAT Output Sundry Accounts Amount Details 1 P Home Capital 7 A Mali Cash Sales (1) A Mali Cash Sales (2) Calculations (1) Total Sales VAT (14 / 114 * 3 990) (490) ent Expense (2) Total Sales VAT (14 / 114 * ) (1 526) Sales

63 CASH PAYMENTS JOUNAL (CPJ) MACH 2014 Day Details Bank Purchas es Creditors Control VAT Input Amount 1 ent Me Properties (3) Purchases (4) Teldigit (5) ( ) 171 Sundry Accounts Details ent expense Equipment Telephone expenses 15 Wages Wages 22 Equip Supplies Calculations (3) Total ent VAT (14 / 114 * 1 482) (182) ent Expense 1300 (4) Total Purchases VAT (14 / 114 * ) (3 010) Purchases (5) Telephone installation 798 VAT (14 / 114 * 798) (98) Equipment 700 Total payment = = 969

64 3.2 P HOME DEALES GENEAL LEDGE Date Details Folio Amount Date Details Folio Amount Bank Account April 1 Balance b/d

65 SOLUTION 4: STATEMENT OF POFIT O LOSS & OTHE COMPEHENSIVE INCOME & THE STATEMENT OF CHANGES IN EQUITY 4.1 G STOES STATEMENT OF POFIT O LOSS & OTHE COMPEHENSIVE INCOME FO THE YEA ENDED 28 FEBUAY 2014 evenue ( ) Cost of Sales ( ) Gross Profit Other Income ental Income (6 500 * 3) ( ) Total Income Less Expenses Bank charges Inventory Shortfall ( ) Depreciation [10% * % * ( ) Insurance ( ) Credit losses ( ) Advertising Telephone expenses Water and Electricity ( ) Stationery ( ) Wages & Salaries ( ) Net Profit G STOES

66 STATEMENT OF CHANGES IN EQUITY FO THE YEA ENDED 28 FEBUAY 2014 Balance at beginning of year Total Comprehensive income Drawings (50 000) Balance at end of year

67 OCTOBE NOVEMBE 2013

68 SOLUTION 1: TIAL BALANCE

69 SOLUTION 2: JOUNALS

70 SOLUTION 3: BANK ECONCILIATION STATEMENT

71 SOLUTION 4: FINANCIAL STATEMENT

72 MAY JUNE

73 SOLUTION 1: ACCOUNTING EQUATION SOLUTION 2: JOUNALS & GENEAL LEDGE

75 SOLUTION 3: BANK ECONCILIATION STATEMENTS

77 SOLUTION 4: STATEMENT OF POFIT O LOSS & OTHE COMPEHENSIVE INCOME

This question paper consists of 5 pages. PLEASE NOTE:

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