ACCF 211

2022 1ST OPP - MEMO

MARKERS:
Make sure account names and amounts are related in a specific JE - don't just mark an amount as correct - it must be connected to the correct JE
If dates of journals are incorrect, still award marks for account names and amounts
May give marks for account names if abbreviated
Must say Accumulated Depreciation: name of asset
If journal amount is correct for a specific JE, give full marks - don't have to mark the calc then (don't mark both)
Draw a line through JEs not asked
If no JEs, still give marks for amounts shown in calcs
Remember to deduct 1 mark if FS indicators are incorrect (for 1.1 & 1.2 together)

QUESTION 1.1 & 1.2 - PART A (11 marks)

Marks Marks
Q1.1 Journals: Tractor
DR CR
R R
01/04/2021 Tractor: Cost OR Tractor OR Cost: Tractor OR Vehicles (not Cost for…..) (SFP) 410,000
0.5 0.5
Bank/Creditor OR Bank OR Creditors (SFP) 410,000
Purchase of Tractor

31/12/2021 Depreciation (P/L) 60,000

0.5
Accumulated depreciation: Tractor OR Vehicles (SFP) 60,000
(R410 000 - R10 000(0.5))/5yrs(0.5) x 9/12(0.5) 1.5
Depreciation of the tractor for the year

31/12/2021 Impairment loss (P/L) 0.5 40,000

Accumulated depreciation: Tractor OR Vehicles (SFP) 0.5 40,000
((R310 000(0.5) - (R410 000 - R60 000 = 350 000)(0.5P))) 1
Impairment loss on the tractor for the year

Alternative calculations: Tractor

HCA ACA
01/04/2021 Cost 410,000
31/12/2021 Depreciation (R410 000 - R10 000)(0.5)/5yrs(0.5) x 9/12(0.5)) (60,000)
350,000 350,000
31/12/2021 Impairment loss (R310 000(0.5) - R350 000(0.5P)) (40,000)
Recoverable amount 310,000

Q1.2 Journals: Aircraft

MARKERS:
May give only component name, e.g. Inspection, but if student says PPE: name of asset or Acc Dep: PPE, then incorrect
If date is incorrect, but journal is correct, then award marks
DR CR
R R
01/01/2021 Accumulated depreciation: Aircraft: Inspection Or Acc Dep: Inspection (SFP) 0.5 200,000
0.5
Aircraft: Inspection OR Inspection (SFP) 0.5 200,000
Derecognition of previous major inspection

01/01/2021 Aircraft: Inspection OR Inspection (SFP) 240,000

0.5 0.5
Bank (SFP) 240,000
Payment for new major inspection

31/12/2021 Depreciation (P/L) 120,000

0.5
Accumulated depreciation: Aircraft Body OR Acc Dep: Body (SFP) 120,000
(R1 200 000/10yrs(0.5)) 0.5
Depreciation of the body of the aircraft for the year

31/12/2021 Depreciation (P/L) 95,000

0.5
Accumulated depreciation: Aircraft Engine OR Acc Dep: Engine (SFP) 95,000
((R400 000 - R20 000(0.5))/4yrs(0.5)) 1
Depreciation of the engen of the aircraft for the year

31/12/2021 Depreciation (P/L) 80,000

0.5
Accumulated depreciation: Aircraft Engine OR Acc Dep: Engine (SFP) 80,000
((R400 000 - R20 000(0.5))/4yrs(0.5)) 0.5
Depreciation of the inspection cost of the aircraft for the year

OR in one journal
31/12/2021 Depreciation (P/L) 295,000
0.5
Accumulated depreciation: Aircraft Body OR Acc Dep: Body (SFP) 120,000
(R1 200 000/10yrs
(R1 200 000/10yrs(0.5)) 0.5
Accumulated depreciation: Aircraft Engine OR Acc Dep: Engine (SFP) 0.5 95,000
((R400 000 - R20 000(0.5))/4yrs(0.5)) 1
Accumulated depreciation: Aircraft Engine OR Acc Dep: Engine (SFP) 0.5 80,000
((R400 000 - R20 000(0.5))/4yrs(0.5)) 0.5
Depreciation of the aircraft for the year

Markers: Deduct 1 mark if students did not include the correct statement indications at all the accounts. Available: 11
Max: 11
ACCF 211

2022 1ST OPP - MEMO

QUESTION 1.3 - PART A (10 marks)

MARKERS:
If separate columns for components and NO total column --> draw a line through note, but give marks for opening Acc. Dep.
If separate columns for components AND total column --> mark total column, then divide marks by 2
For closing balances in note - if calcs are not shown, but it's easy to see how the amounts were obtained,
award marks as per Calcs 4 and 5
Marks
BLUE HILLS (PTY) LTD for "Heading"
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021 company name first on own line 0.5
name of FS must be 100% correct

3. Property, plant and equipment Aircraft for note heading (PPE) & column
2021 heading (asset + year + R) 0.5
R Year & R can be in any order

Net carrying amount 955,000 0.5P 0.5 P

Cost price/Gross carrying amount 1,800,000 0.5 0.5
Accumulated depreciation & impairment loss (845,000) Calc 1

Movements for the year:

Additions 240,000 0.5 0.5
Depreciation (295,000) Calc 2
Derecognitions at carrying amount 0 Calc 3

Net carrying amount 900,000 0.5P 0.5 P

Cost price/Gross carrying amount 1,840,000 Calc 4
Accumulated depreciation & impairment loss (940,000) Calc 5

Calculation 1: Calculation of carrying amount at beginning of year

Body Engine Inspection Total
cost
01/01/2018 Cost 1,200,000 400,000 200,000 1,800,000
01/01/2018
till
31/12/2020 Accumulated depreciation:
(R1 200 000/10yrs x 3yrs)(0.5) (360,000) (360,000) 0.5
((R400 000 - R20 000)(0.5)/4yrs x 3yrs(0.5))) (285,000) (285,000) 1
(R200 000/3yrs x 3yrs)(0.5) (200,000) (200,000) 0.5
31/12/2020 Carrying amount 840,000 115,000 0 955,000

Accumulated depreciation at the beginning of the year:

R360 000 + R285 000 + R200 000 = 845,000

Calculation 2: Depreciation for the year

31/12/2021 Depreciation: Aircraft Body 120,000 0.5P from Jnl OR calc 0.5 P
31/12/2021 Depreciation: Aircraft Engen 95,000 0.5P from Jnl OR calc 0.5 P
31/12/2021 Depreciation: Aircraft inspection cost 80,000 0.5P from Jnl OR calc 0.5 P
295,000

Calculation 3: Derecognition at carrying amount

Old major inspection cost
Cost 200,000 0.5 0.5
Accumulated depreciation (200,000) 0.5 0.5
Carrying amount -

Calculation 4: Cost amount at the end of the year OR

Cost at the beginning of the year 1,800,000 0.5 Body 1,200,000 0.5
Derecognition of old major inspection - Cost (200,000) 0.5 Engine 400,000 0.5
Recognition of new major inspection - Cost 240,000 0.5 Inspection 240,000 0.5
1,840,000 1,840,000

Calculation 5: Accumulated depreciation at the end of the year OR

Accumulated depreciation at the beginning of the year 845,000 0.5P Body 480,000 0.5
Depreciation for the year 295,000 0.5P Engine 380,000 0.5
Derecognition of old major inspection - Accumulated depreciation (200,000) 0.5P Inspection 80,000 0.5
940,000 940,000

Available: 9.5
P&L: 1
Total: 10.5
Max: 10

Total - Q1 Part A: 21
ACCF 211

2022 1ST OPP - MEMO

QUESTION 1 - PART B (16 marks)

MARKERS:
Make sure account names and amounts are related in a specific JE - don't just mark an amount as correct - it must be connected to the correct JE
May give marks for account names if abbreviated
Must say Accumulated Depreciation: name of asset
If journal amount is correct for a specific JE, give full marks - don't have to mark the calc then (don't mark both)
If dates of journals are incorrect, still award marks for account names and amounts
Remember to deduct 1 mark if FS indicators are incorrect
If no JEs, still give marks for amounts shown in calcs
Remember to deduct 1 mark if FS indicators are incorrect
Marks
Alternative calculations:
HCA ACA RS RE Calc.
01/01/2020 Cost 700,000 0.5
31/12/2020 Depreciation (70,000) (R700 000/10)(0.5) 0.5
Carrying amount 630,000 630,000
Reverse dep. (R70 000)(0.5) 0.5
01/01/2021 Revaluation surplus 45,000 (45,000) (R675 000(0.5) - R630 000(0.5P)) 1
675,000 Given (45,000)
31/12/2021 Depreciation (70,000) (75,000) (R675 000(0.5)/9(0.5)) 1
Realise revaluation surplus 5,000 (5,000) (R45 000(0.5P)/9(0.5)) 1
Carrying amount 560,000 600,000 (40,000) ACA: (R675 000 - R75 000)(0.5P) 0.5
HCA: (R630 000 - R70 000)(0.5P) 0.5
Reverse dep. (R75 000)(0.5) 0.5
01/02/2022 Revaluation surplus reversed (40,000) 40,000 (R560 000(0.5P) - R600 000(0.5P)) 1
560,000 0
Revaluation expense (10,000) (R550 000(0.5) - R560 000(0.5P)) 1
560,000 550,000 Given
31/12/2022 Depreciation (70,000) (68,750) (R550 000(0.5)/8(0.5)) 1
Carrying amount 490,000 481,250
9.0
Journals: Marks Marks
DR CR
R R
01/01/2020 Wood planer machine: Cost OR Wood Planer OR Cost: Wood planer OR Cost: Machine/Equip. (SFP) 0.5 700,000 (not Cost for …..)
0.5
Bank/Creditor (SFP) 0.5 700,000
Purchase of Wood planer machine

31/12/2020 Depreciation (P/L) 70,000

0.5
Accumulated depreciation: Wood planer machine OR Machine OR Equip. (SFP) 70,000
(R700 000/10)(0.5) 0.5 Alternative calc - Don't give marks if already given above
Accumulated depreciation: Aircraft: Inspection Or Acc Dep: Inspection (SFP)

01/01/2021 Accumulated depreciation: Wood planer machine OR Machine OR Equip. (SFP) 70,000
0.5 0.5 P
Wood planer machine: Cost (SFP) 70,000
Elimination of accumulated depreciation immediately before revaluation

01/01/2021 Wood planer machine: Cost OR Wood Planer OR Cost: Wood planer OR Cost: Machine/Equip. (SFP) 0.5 45,000
Revaluation surplus (OCI) 0.5 45,000
(R675 000(0.5) - R630 000(0.5P)) 1 Alternative calc - Don't give marks if already given above
Revaluation od asset to fair value

OR in one journal
01/01/2021 Accumulated depreciation: Wood planer machine OR Machine OR Equip. (SFP) 0.5 70,000 0.5 P
Revaluation surplus (OCI) (R675 000(0.5) - R630 000(0.5P)) 0.5 45,000 1 Alternative calc - Don't give marks if already given above
Wood planer machine: Cost (SFP) (70 000 - 45 000) 0.5 25,000
Eliminate Acc. Dep. & Revalue asset to fair value

31/12/2021 Depreciation (P/L) 75,000

0.5
Accumulated depreciation: Wood planer machine OR Acc Dep: Machine (SFP) 75,000
(R675 000(0.5)/9(0.5)) 1 Alternative calc - Don't give marks if already given above
Depreciation for the year

31/12/2021 Revaluation surplus (OCI) 0.5 5,000

Retained earnings (SCE) 0.5 5,000
(R45 000(0.5P)/9(0.5)) 1 Alternative calc - Don't give marks if already given above
Realisation of revaluation surplus

01/01/2022 Accumulated depreciation: Wood planer machine OR Acc Dep: Machine (SFP) 75,000
0.5 0.5 P
Wood planer machine: Cost (SFP) 75,000
Elimination of accumulated depreciation immediately before revaluation

01/01/2022 Revaluation surplus OR Revaluation surplus reversal (OCI) 0.5 40,000

Revaluation expense (P/L) 0.5 10,000
Wood planer machine: Cost OR Wood Planer OR Cost: Wood planer OR Cost: Machine (SFP) 0.5 50,000
HCA = (R630 000 - R70 000)(0.5P) = R560 000 0.5 Alternative calc - Don't give marks if already given above
ACA = (R675 000 - R75 000)(0.5P) = R600 000 0.5 Alternative calc - Don't give marks if already given above
RS = (R560 000(0.5P) - R600 000(0.5P)) 1 Alternative calc - Don't give marks if already given above
Rev. Exp. = (R550 000(0.5) - R560 000(0.5P)) 1 Alternative calc - Don't give marks if already given above

If only revaluation surplus shown: If only revaluation expense shown:

0.5P for HCA (if Dep was deducted)
0.5P for ACA (if Dep was deducted)
0.5P for R600 000 (ACA)
0.5 for R550 000
Revaluation of asset to fair value
0.5P for HCA (if Dep was deducted)
0.5P for ACA (if Dep was deducted)
0.5P for R600 000 (ACA) OR 0.5P for R560 000 (HCA)
0.5 for R550 000

31/12/2022 Depreciation (P/L) 68,750

0.5
Accumulated depreciation: Wood planer machine OR Acc Dep: Machine (SFP) 68,750
(R550 000(0.5)/8(0.5)) 1 Alternative calc - Don't give marks if already given above
Depreciation for the year

Markers: Deduct 1 mark if students did not include the correct statement indications at all the accounts. Available: 16
Max: 16
ACCF 211

2022 1ST OPP - MEMO

QUESTION 2 (13 marks)

MARKERS - NOTE to FS:

If separate columns for L&B or for properties and NO total column --> draw a line through note, but give marks for fair value adjustments for each property (as shown in calcs)
If separate columns for L&B or for properties AND total column --> mark total column, then divide marks by 2
R70 000 can be included under Additions
If additional amounts for the Additions & FV adjustments line items are given (i.e. more than 3 amounts) - give 0.5 for each amount as indicated, but then deduct 0.5
FV adjustments - don't have to indicate Income or Expense
If dates of journals are incorrect, still award marks for account names and amounts
Remember to deduct 1 mark if FS indicators are incorrect
Marks
MOTEL LTD for "Heading"
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2021 company name first on own line 0.5
name of FS must be 100% correct
2. Investment property
2021 2020 for Note heading + year + R 0.5
R R Year & R can be in any order
Opening at the beginning of the year 1,370,000 0
((R1 450 000(0.5) - R1 120 000(0.5)) + 2.5
Additions 1,830,000 1,370,000 (R250 000(0.5) + R1 120 000(0.5))
R1 500 000(0.5))
Capitalised susbsequent expenditure 70,000 0.5 0 0.5
(R50 000(0.5P) + R20 000(0.5P) +
Fair value adjustments (270,000) 1.5
R200 000(0.5P) 0
Transferred to PPE (1,300,000) 0.5 0.5

Closing balance at the end of year 1,700,000 0.5 1,370,000 0.5 1

Calculations:
Prop 1 - Land (Braamfontein)

01/01/2020 Cost 250,000

30/06/2020 Fair value adjustment 0
30/06/2020 250,000
30/06/2021 Fair value adjustment: Expense (50,000) (R200 000(0.5) - R250 000(0.5)) 1
30/06/2021 Fair value 200,000 Can say "fair value adjustment" only; if other description, then no marks

Prop 1 - Building (Braamfontein)

30/06/2020 Cost 1,120,000
30/11/2020 Additions due to construction 330,000 (R1 450 000 - R1 120 000)
1,450,000
01/05/2021 Capitalised susbsequent expenditure 70,000
1,520,000
30/06/2021 Fair value adjustment: Expense (20,000) (R1 500 000(0.5) - R1 520 000(0.5P)) 1
30/06/2021 Fair value 1,500,000

Prop 3 - Building (Itsoseng)

01/07/2020 Cost 1,500,000
01/03/2021 Fair value adjustment: Expense (200,000) (R1 300 000(0.5) - R1 500 000(0.5)) 1
01/03/2021 Fair value 1,300,000

01/03/2021 Transferred to PPE 1,300,000

30/06/2021 Depreciation (21,667) (R1 300 000/20 x 4/12)
30/06/2021 Carrying amount 1,278,333
Available: 9
P&L: 1
Total: 10
Max: 8.5
2. Journal Entries

MARKERS - Journal entries:

MUST say Investment property or IP and Property, plant and equipment or PPE
FV adjustments - don't have to indicate Income or Expense
Remember to deduct 1 mark if FS indicators are incorrect
Marks Marks Tot.

01/07/2020 IP: Itsoseng (SFP) 1,500,000 1

0.5 0.5
Bank/Creditor (SFP) 1,500,000
Purchase of Itsoseng property

01/03/2021 Fair value adjustment: Expense (P/L) 200,000 1

0.5 0.5
IP: Itsoseng (SFP) 200,000
(R1 500 000 - R1 300 000)
Investment property revalued to fair value at date of change

01/03/2021 PPE: Property Itsoseng (SFP) 1,300,000 1

0.5 0.5
IP: Itsoseng (SFP) 1,300,000
Transfer of Itsoseng property from IP to PPE

30/06/2021 Depreciation (P/L) 21,667 1.5

0.5
Accumulated depreciation: Property Itsoseng (SFP) 21,667
(R1 300 000/20(0.5) x 4/12(0.5)) 1
Depreciation up to the end of the year

Markers: Deduct 1 mark if students did not include the correct statement indications at all the accounts. Total: 4.5
Max: 4.5

Total - Q2: 13
ACCF 211

2022 1ST OPP - MEMO

QUESTION 3.1 (11.5 marks)

MARKERS - NOTE to FS:

If any sign is incorrect, deduct 0.5

Marks
Lightning Electrical (Pty) Ltd for "Heading"
Notes to the financial statements for the year ended 30 September 2021 0.5 company name first on own line
name of FS must be 100% correct

12. Reconciliation of profit before tax with cash from operations 2021 for Note heading + year + R
0.5
R Year & R can be in any order

Profit before tax 1,119,900 0.5 Given

Add back non-cash flow:

Depreciation: vehicles 139,500 0.5 Given OR Total dep. = 240 750
Depreciation: buildings 56,250 0.5 Given (2 marks)
Depreciation: equipment 45,000 1 (R240 000(0.5) - R195 000(0.5))
Loss on sale of vehicle 25,500 1 (R139 500(0.5) - R114 000(0.5))
Credit losses 14,980 1 (R21 400(0.5) x 0.70(0.5)) OR Total C/L = 26 230
Movement in allowance for credit losses 11,250 1 (R33 750(0.5) - R22 500(0.5)) 14 980 + 11 250 (2 marks)
Inventory write-down 46,390 1 (R244 500(0.5) - R198 110(0.5))

Add back separately disclosable items:

Finance costs 102,000 0.5 Given (if amount incorrect - no mark)

Working capital changes:

Increase in inventory (149,965) 1.5 [(R307 500(0.5) - R411 075(0.5)) - R46 390(0.5P))]
(R46 390 --> inventory write-down - see non-cash flow items)
Increase in creditors 85,200 1 (R411 450(0.5) - R326 250(0.5))
Decrease in debtors 246,020 1.5 (R486 000(0.5) - R225 000(0.5) - R14 980(0.5P))
(R14 980 --> credit losses - see non-cash flow items)
Cash generated from operations 1,742,025

Available: 11
P&L: 1
Total: 12
ACCF 211

2022 1ST OPP - MEMO

QUESTION 3.2 (8.5 marks)

1. Debtors collection period: Marks Marks

Formula: (Debtors / Credit sales) x 365 0.5 For formula (must show x 365)
OR 365 / (Sales / Debtors)
(may say average debtors)

2021 2020

= 225 000 OR 191 250 x 365 0.5 (must show x 365) = 486 000 OR 463 500 x 365 0.5 (must show x 365)
3,030,000 0.5 4,500,000 0.5

= 27.1 OR 23.0 days 0.5 if rounded off to 1 = 39.4 OR 37.6 days 0.5 if rounded off to 1
decimal point + decimal point +
don't have to say days don't have to say days
Interpretation:
Indicates the average period an entity must wait to receive payment from its debtors. 0.5
Decreased from 2020 to 2021 (with 12.3 OR 14.6 days). 0.5P 1 NB: Maximum of 1 mark
Entity is thus receiving payment sooner from its debtors, which is better for cash flow. 0.5P
(Or any other relevant answers)

2. Creditors payment period:

Formula: (Creditors / Cost of sales) x 365 0.5 For formula (must show x 365)
OR 365 / (COS / Creditors)
(may say average creditors)
(MUST say cost of sales, not purchases)

2021 2020

= 411,450 x 365 0.5 (must show x 365) = 326,250 x 365 0.5 (must show x 365)
1,155,600 0.5 1,710,000 0.5

= 130.0 days 0.5 if rounded off to 1 = 69.6 days 0.5 if rounded off to 1
decimal point + decimal point +
don't have to say days don't have to say days
Interpretation:
Indicates the average period an entity takes to pay its creditors. 0.5
Increased from 2020 to 2021 (with 60.4 days). 0.5P
NB: Maximum of 1 mark
Entity is taking almost twice as long to pay its creditors in 2021 as in 2020. 0.5P 1
This could affect the entity's relationship with its suppliers negatively - lose possible discounts & even lose suppliers
(Or any other relevant answers) 0.5P

Available: 9
Max: 8.5

Available - Q3: 20
P&L: 1
Total - Q3: 21
Max - Q3: 20
ACCF 211

2022 1ST OPP - MEMO

QUESTION 4 (8 marks)

DR CR Marks
R R
31/12/2021 Service fees (P/L) 150,000 for account name + FS indicator 0.5
Income received in advance (SFP) 150,000 for account name + FS indicator 0.5
R200 000(0.5) x 3/4(0.5) OR R200 000(0.5)/4 x 3(0.5) 1
Adjusting journal entry
Available: 2
Max: 2
MARKERS:
Credit journal entry must be discussed --> liability
The part of the contract that has not yet been completed (income received in advance) - to be discussed as a liability
No principle marks if any other element is discussed

Definition and discussion of a liability:

1. Present obligation 0.5
- duty or responsibility that the entity has no practical ability to avoid 0.5
The company has the duty to carry out the maintenance; it has no practical ability of avoiding this since the duty is legally enforceable 1
through a contract and the customer's payment in advance,
Or have a liability to refund the client if the service is not delivered. 1

2. To transfer an economic resource 0.5

The obligation requires that Profex carries out the renovation work (the economic resource) from Jan to Mar 2022. 1
Or must repay back the money to the client if the service is not delivered. 1

3. As a result of a past event 0.5

The company signed a contract and has already obtained an economic benefit in the form of cash. 0.5

Conclusion:
The income received in advance must be recorded as a liability. 0.5 P

Available: 7
(Presentation of answering the question - definition & application) P&L: 0.5
Total: 7.5
Max: 6

Total - Q4: 9.5

Max - Q4: 8

31/12/2021 Diensgeld (W/V) 150,000 vir rekeningnaam + FS aanwyser 0.5

Inkomste vooruitontvang (SFP) 150,000 vir rekeningnaam + FS aanwyser 0.5
Aircraft: Inspection OR Inspection (SFP) 1
Aansuiweringsjoernaalinskrywing
Beskikbaar: 2
Maks: 2
MERKERS:
Kredietjoernaalinskrywing moet bespreek word --> las
Die deel van die kontrak wat nog nie voltooi is nie (inkomste vooruitontvang) - moet as 'n las bespreek word
Geen beginselpunte nie as ander element bespreek word

Definisie en bespreking van 'n las:

1. Huidige verpligting 0.5
- plig of verantwoordelikheid wat die entiteit geen praktiese vermoë het om te vermy nie 0.5
Die maatskappy het die plig om die instandhouding uit te voer; dit het geen praktiese vermoë om dit te vermy nie aangesien die plig 1
regtens afdwingbaar is deur 'n kontrak en die kliënt se vooruitbetaling,
Of het 'n verpligting om die kliënt terug te betaal as die diens nie gelewer word nie. 1

2. Om 'n ekonomiese hulpbron oor te dra 0.5

Die verpligting vereis dat Profex die opknappingswerk (die ekonomiese hulpbron) van Jan tot Mrt 2022 uitvoer. 1
Of moet die geld terugbetaal aan die kliënt as die diens nie gelewer word nie. 1

3. As gevolg van 'n vorige gebeurtenis 0.5

Die maatskappy het 'n kontrak geteken en het reeds 'n ekonomiese voordeel in die vorm van kontant verkry. 0.5

Gevolgtrekking:
Die inkomste wat vooruitontvang word, moet as 'n las aangeteken word. 0.5 P

Beskikbaar: 7
(Aanbieding van die beantwoording van die vraag - definisie en toepassing) P&L: 0.5
Totaal: 7.5
Maks: 6

Totaal - V4: 9.5

Maks - V4: 8
ACCF 211

2022 1ST OPP - MEMO

QUESTION 5 (22 marks)

CALCULATION FOR SPL

1. Total sales (reconstruction of debtors):
Balance 31 December 2021 330,000 0.5
Settlement discount (10%) 125,000 0.5
1,250,000
Cash payments 1,125,000 1 (R125 000(0.5)/10 x 90(0.5))
1,580,000
Balance 1 January 2021 (225,000) 0.5
Credit sales 1,355,000
Cash sales 600,000 0.5
Total sales 1,955,000

Debtors control
Opening balance 225,000 0.5 Bank 1,125,000 1 (R125 000(0.5)/10 x 90(0.5))
1,250,000
Sales (credit) (balancing) 1,355,000 Sales (disc) 125,000 0.5
Closing balance 330,000 0.5

1,580,000 1,580,000

Credit sales 1,355,000

Cash sales 600,000 0.5
1,955,000

LETTIE TRADERS for "Heading"

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 0.5 company name first on own line
FOR THE YEAR ENDED 31 DECEMBER 2021 name of FS must be 100% correct

2021 for Year + R

0.5
R Year & R can be in any order

Sales 1,830,000 1 (Calc 1: R1 955 000(0.5P) - Disc: R125 000(0.5))

Cost of sales (1,564,000) 1 (Calc 1: R1 955 000(0.5P) x 100/125(0.5))
Gross profit 266,000 (R1 830 000 - R1 564 000)
Expenses: (121,500)
Credit losses 16,500 0.5 (Debtors closing: R330 000 x 5%)
Sundry expenses 105,000 0.5

Profit for the year 144,500

Available: 6
P&L: 1
Total: 7
Max: 7
CALCULATIONS FOR SFP
2. Inventory
Opening inventory 450,000 0.5
Purchases 1,485,000 1 (Purch: R1 500 000(0.5) - Disc: R15 000(0.5))
1,935,000
Cost of sales (1,564,000) 0.5 P (from SPL)
Closing inventory (balancing) 371,000

3. Bank balance
Balance on 1 January 2021 15,100 0.5
Received from debtors 1,125,000 0.5 P (from Calc 1)
Cash sales 600,000 0.5
Total receipts 1,740,100
Cash purchases (1,050,000) 0.5 (Purch: R1 500 000 x 70%)
Paid to creditors (85,000) 0.5 P (from Calc 2)
Expenses paid (105,000) 0.5
Balance on 31 December 2021 500,100

4. Capital Dr Cr
Land and buildings 408,000 0.5
Inventory 450,000 0.5
Trade debtors 225,000 0.5
Bank (favourable) 15,100 0.5
1,098,100
Loan (740,000) 0.5
Trade creditors (240,100) 0.5
(980,100)
Capital (balancing figure) 118,000

5. Creditors
Balance on 1 January 2021 240,100 0.5
Purchases 450,000 0.5 (R1 500 000 x 30%)
Settlement discount (15,000) 0.5
Payment to creditors (85,000) 1 (R15 000(0.5)/15 x 85(0.5))
Balance on 31 December 2021 590,100

Creditors control
Bank 85,000 1 Opening balance 240,100 0.5 (R15 000(0.5)/15 x 85(0.5))
100,000
Purchases (disc) 15,000 0.5 Purchases (credit) 450,000 0.5 R1 500 000 x 30%
Closing balance 590,100

690,100 690,100

MARKERS:
Items MUST be under correct section in SFP
If no split between non-current and current, deduct 1 mark for assets & 1 mark for liabilities

LETTIE TRADERS for "Heading"

STATEMENT OF FINANCIAL POSITION 0.5 company name first on own line
AS AT 31 DECEMBER 2021 name of FS must be 100% correct

2021 for Year + R

R 0.5 Year & R can be in any order
ASSETS
Non-current assets 408,000
Land and buildings at cost 408,000 0.5

Current assets 1,184,600

Inventory 371,000 0.5 P (from Calc 5)
Debtors 313,500 1 (Closing: R330 000(0.5) - Allow for CL: R16 500(0.5P))
Bank 500,100 0.5 P (from Calc 3)

Total assets 1,592,600

EQUITY AND LIABILITIES

Equity 262,500
Capital 118,000 0.5 P (from Calc 4)
Profit for the year 144,500 0.5 P (from SPL)

Non-current liabilities 740,000

Interest-free loan 740,000 0.5

Current liabilities 590,100

Creditors 590,100 0.5 P (from Calc 2)

Total equity and liabilities 1,592,600

Available: 15
P&L: 1
Total: 16
Max: 15

Available - Q5: 21
P&L: 2
Total - Q5: 23
Max - Q5: 22