Stuvia 2638335 Fac1502 Assignment 2 Semester 2 2023 (1) (2) (Original)

Fac1502 Assignment 2 Semester 2
2023
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FAC1502-23-S2  Welcome Message  Assessment 2
QUIZ
Started on 1 :
State Finished
Completed on , 0: 1 :
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Grade out of 100.00
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Question 1
Complete
Mark 1.00 out of 1.00
Indicate by choosing the correct option whether the following statement is true or false:
An owner that starts a business can invest equipment as part of his investment to start the
business.
Select one:
True
False
Question 2
Complete
Please choose the correct option for the given scenario.
The settlement discount received account will be … at the end of

the nancial year and will be closed off to the … account. credited : sales
The settlement discount granted account will be … at the end of the

nancial year and will be closed off to the … account. debited : purchases
The drawings account will be … at the end of the nancial year and
will be closed off to the … account.
debited : capital
In the perpetual inventory system, the … account must be … when

the owner donates trading inventory to his son’s school. donations : debited

Question 3
Complete
Gizmo Enterprises provided you with the following information regarding the list of totals and
balances on 28 February 20.8
R
Total of the trade receivables column in the sales journal………………. 317 492
Total of the trade payables column in the purchases journal………….. 247 480
Total of the trade receivables column in the sales returns journal….. 4 600
Total of the trade payables column in the purchases returns journal 9 890
BALANCES OF GENERAL LEDGER ACCOUNTS

Balance of allowance for credit losses (1/03/20.7)…………………………… 2 040
Balance of trade receivables control account (1/03/20.7)………………... 40 800
Additional information
A credit note was issued to Mrs A Steinhoff for R230. Mrs Steinhoff’s account in the trade
receivables ledger was credited with R230 but no entry was made in the general ledger of
Gizmo Enterprises.
Gizmo Enterprises is a registered VAT vendor.
What will the correct general ledger entries be for sales returns for Gizmo Enterprises
on 28 February 20.8?
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
Sales returns 4 200 Trade receivables control 4 830
Trade receivables control/Mrs A Steinhoff

VAT output 630 Sales returns
Trade receivables control Sales
VAT input VAT output
4 600 4 830 4 370 630 570 4 200 3 800 4 000

Question 4
Complete
You are given the following information of Kiyu Traders for 30 September 20.1:
Favourable balance of general ledger bank account 132 500

Favourable balance of bank statement 120 000
Total of the cash receipts journal 300 000
Total of the cash payments journal 167 500
Additional information:
The following information appeared on the bank statement only:
a) Bank charges of R700.

b) Interest on a favourable balance of R1 830.
c) Debit order to ARK Insurers for insurance of R6 250.
d) Incorrect credit of R5 000 made by a client of the bank into the bank account of Kiyu
Traders as the client captured the incorrect beneficiary details.
e) On 29 September the owner of Kuyi Traders, Mr K Naidoo, made an EFT into the
bank account of Kuyi Traders for R50 000 as additional capital contribution.
The following information appeared in the cash journals of Kiyu Traders only:
f) A cash payment of R237 578 was entered in the cash receipts journal on the 29
September of 20.1 but was only deposited 1 October 20.1 by the bookkeeper.
g) The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as R987
instead of R789 which was correctly stated on the bank statement.
What will the correct cash receipts journal entries in the books of Kiyu Traders be for
September 20.1?
Instructions:

If an option has been provided and it is not applicable to the specific question, please put N/A in
the account column and a 0 in the amounts column.
300 000
N/A 0
Interest income 1 830
N/A 0
N/A 0
Capital 50 000
N/A 0
HG Traders/Trade
HG Traders/Trade payables control Interest income
payables control 198
Capital Mr K Naidoo (cash) 352 028
Bank charges Insurance expenses : ARK Insurers
N/A
300 000 198 1 830 50 000 352 028 125 000 700 6 250 174 450


Question 5
Complete
Use the following information to calculate the total comprehensive income/loss for the
year ended 28 February 20.2:
R
Capital 680 000
Services rendered 470 000
Drawings 35 000
Rent income 65 000
Interest expenses 36 000
Stationery 3 300
Wages 13 500
Insurance expenses 15 600
Water and electricity 12 000
Water and electricity: Deposit 2 000
Accrued expenses 2 600
Accrued income 4 200
Prepaid expenses 3 300
Income received in advance 1 200
Furniture 80 000
Vehicles 620 000
Bank overdraft 80 000
Trade payables control 81 300
Loan: SA Bank 70 200
Current portion of long-term borrowings 18 800
Land 400 000
Buildings 70 000
Inventory 75 000
Trade receivables control 210 000
NB: Instructions
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Only show the amount, do not show the R (eg: 12141.72)
3. If the net effect is a loss, please enter the amount as a negative (eg: -12141.72)
Answer: 466600

Question 6
Complete
Thato, the owner of Thato Traders keep incomplete records of the business transactions. The
following information is available.
THATO TRADERS
Balances as at 30 June 20.21 (extract):
20.20 20.21
R R
Vehicles at cost ……………………………………………… 86 400 86 400
Furniture and equipment at cost…………………………..... 79 500 79 500
Inventory……………………………………………................ 65 310 ?
Trade receivables control……..……………………………... 26 610 37 050
Bank (favourable)…………………………………………...... 75 000 60 000
Long-term borrowings……….……………………………...... 90 000 45 000
Trade payables control………..……………………………… 28 500 38 100
Accrued expenses……………………..…………………....... 10 200 6 900
Prepaid expenses……………………………………………… 1 080 1 095
A physical inventory count revealed that the following was on hand on 30 June 20.21:
Inventory R85 000

Stationery R2 875
Packing materials R650
How will the inventory items be disclosed in the statement of nancial position of Thato
Traders as at 30 June 20.21?
Instructions:

If an options has been provided and it is not applicable to the speci c questions please put N/A
in the accounts column and a 0 in the amounts column.
ASSETS
Current assets
Inventories 88 525
N/A 0
N/A 0
ASSETS EQUITY AND LIABILITIES Non-current assets
Current assets Non-current liabilities Current liabilities
Fixed deposit Consumable stores on hand Inventories
Packing materials Stationery N/A
Equity Capital
85 000 2 875 650 65 310 3 525 88 525 0

Question 7
Complete
Indicate whether the following statement is true or false:
Prepaid expenses should be included in the statement of pro t or loss and other comprehensive
income.
Select one:
True
False
Question 8
Complete
Sales is R125 000. Mark-up on cost price is 50%. What is the cost of sales amount?
Round off your answer to the nearest Rand.
Answer: 83333.33
Question 9
Complete
The financial year end for Trusty Traders is 28 February. The rental expenses of Trusty Traders
are R11 000 per month. The financial records of Trusty Traders showed that rent was paid for
thirteen months during the financial year ended 28 February 20.2.
The correct adjustment journal entries in the general journal for 28 February 20.2 will be …
Instructions:
2. Round off to the second decimal after the full stop (eg: 50.56)
3. For embedded questions spelling is very important. If you spell the answer incorrect it will
be marked incorrect. Please make sure that your spelling of the words is correct.
4. Don’t use any special characters (&) and don’t use bold in your answer. It will be
marked incorrect.
5. Do not use any abbreviations.

6. Your answer is case sensitive; therefore, you need to put the very first letter of the answer
in uppercase, but the rest of your answer must be in lowercase (eg: Interest on loan)
TRUSTY TRADERS
Adjustment journal – 28 February 20.2 Debit Credit
R R
RENT INCOME 11000
11000
NCOME RECEIVED IN ADVANCE

Question 10
Complete
Sales is R125 000. Mark-up of 45% on selling price. What is the cost of sales amount?
Answer: 86206.90
Question 11
Complete
Transactions
on the credit
side of the
bank
statement that cash receipts journal
have not been
ticked are
entered in the
...
Transactions
on the debit
side of the
bank
statement that cash payments journal
have not been
ticked are
entered in the
...
The general
ledger bank
account that
has a credit Is a current liability and is referred to as a bank overdraft.
balance of
R10 000 ...
The bank
account in the
general ledger
Is a current asset and will be disclosed under cash and cash equivalents.
that has a
debit balance
of R10 000 ...

Question 12
Complete
Under a periodic inventory system, the cost of sales is not determined at the time of the
recording of the sale.
Select one:
True
False
Question 13
Complete
On 1 May 20.18 Venus Traders entered into a new two-year advertising agreement with Tino
Advertising Agency. The advertising agreement was effective with immediate effect
and stipulated that Venus Traders would pay R2 750 per month to Tino Advertising Agency for
advertising services that would be provided by Tino Advertising Agency on a monthly basis. Tino
Advertising Agency has performed all the necessary advertising services that was required from
them since the effective date of the advertising agreement for the current nancial period (the
current nancial period ends on 28 February 20.19).
The pre-adjustment trial balance for the year ended 28 February 20.19 re ected advertising
expenses for an amount of R22 000 as well as accrued advertising expenses of R4 500 on
1 March 20.18 (the beginning of the current nancial period). On 20 April 20.18 Venus Traders
paid the advertising expenses that was outstanding from the previous nancial period. The
outstanding advertising expenses for the current nancial period must still be provided for.
The advertising expenses amount to be disclosed in the statement of nancial position as at

28 February 20.19 will be:
Instructions:

2. Round off to the nearest Rand (eg: 50.56 is 51)
Answer: 5500

Question 14
Complete
On 1 March 20.21 Sithole’s Restaurant purchased chairs and tables for the restaurant for
R180 000. The chairs and tables were bought on credit.
The correct effect of the given transaction on the basic accounting equation is ...
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on
the place where you want to place the amount - also keep your cell phone horizontal when doing
the question).
2. An option can be used more than once.

3. If an options has been provided and it is not applicable to the speci c questions please put a
0 in the applicable column.
0 +180 000 +180 000

+180 000 -180 000 0
Question 15
Complete
On 28 February 20.1 the cash register roll of Abdoola Spaza showed credit card payments by
clients for services rendered of R15 000.
The correct effect of the transaction on the basic accounting equation in the books of Abdoola
Spaza is ...
Instructions:
3. A decrease in an amount must be indicated by using a negative sign in front of the
amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has been provided and it is not applicable to the speci c question please put N/A
in the column.
6. First do the increase and then the decrease. N/A must be done last.
Equity = Assets - Liabilities
R R R
15000 15000 N/A
N/A

Question 16
Complete
Indicate whether the following statement is true or false.
Drawings and the donation of trading inventory is not recorded at cost price in the general
journal.
Select one:
True
False

Question 17
Complete
Parker Traders provided you with the following information regarding the list of totals and
balances on 30 April 20.8
TOTALS FOR JOURNALS
Balance of allowance for credit losses (1/03/20.7)……………………........ 2 040

Balance of trade receivables control account (1/03/20.7)…………....... 40 800
A sales invoice of R950 was entered twice in the sales journal and posted twice to the personal
account of a debtor, Mr T Maharaj.
What will the general journal entry for the correction of the sales invoice of R950 that was
entered twice in the sales journal and personal account of Mr T Maharaj be?
Instructions:

Sales 950
Trade receivables control/Mr T Maharaj 950
Sales Bank and settlement discount granted
Trade payables control/Mr T Maharaj Trade receivables control/Mr T Maharaj
Allowance for credit losses
274 180 277 030 275 130 1 900

Question 18
Complete
The bookkeeper of GS Electricians provides you with the following information for the month
ended 31 March 20.1.
Bank…………………………………………………………………………………………………………… 27 000
Trade receivables………………………………………………………………………………………. 5 000
Equipment…………………………………………………………………………………………………. 71 000
Capital……………………………………………………………………………………………………….. 48 000
Total income……………………………………………………………………………………………… 15 000
Total expenses…………………………………………………………………………………………… 13 000
Long-term loan: GL Bank…………………………………………………………………………… 30 000
Trade payables…………………………………………………………………………………………… 23 000
The correct disclosure of equity and liabilities in the statement of nancial position of GS
Electricians as at 31 March 20.1 is …
Instructions:
the question).

3. If an options has been provided and it is not applicable to the speci c question please put
N/A in the applicable detail column and a 0 in the applicable amount column.
48 000
Total equity
Capital 48 000
Non-current liabilities 30 000
Long-term loan: GL Bank 30 000
23 000
Current liabilities
23 000
Trade and other payables
N/A Total equity 0

N/A
Capital Total comprehensive income for the month
Total comprehensive loss for the month Equipment

Total equity and liabilities 101 000
Non-current liabilities Long-term loan: GL Bank
Long-term borrowings Total income
Total expenses Bank overdraft
Current liabilities Trade payables

Trade and other payables Trade receivables
Trade and other receivables Total equity and liabilities
27 000 5 000 71 000 48 000 15 000 13 000 2 000 (2 000) 50 000
30 000 23 000 101 000 46 000 53 000 99 000 83 000 80 000 103 000
Question 19
Complete
NM Stores will sublet part of it building to NS Technologies for R7 000 per month from 1 October
20.1. NS Technologies has an agreement with NM Stores in which the rental will be paid with an
annual payment on the first day of each new financial year. On 1 October 20.2 the beginning of
the financial year, NS Technologies made an EFT of R133 000 which included the one month’s
rental as a deposit into the bank account of NM Stores.
The correct general ledger entries in the rental income account of NM Stores on 30
September 20.3 are ...
Instructions:
1. First do the adjustment general ledger entries and then do your closing transfer
general ledger entries.
4. For embedded questions spelling is very important. If you spell the answer incorrect it
will be marked incorrect. Please make sure that your spelling of the words is
correct.
NM STORES
GENERAL LEDGER
Dr Rental income Cr
20.3 R 20.2 R
Sep Accrued income Oct Balance
49000 133000
30 1
Pro t or loss account 84000

Question 20
Complete
The inexperienced accounting clerk of Luna Dealers wrongfully entered the owner's drawings, for
March, of R13 000 into the salaries account.
The correcting double-entry would be …
Instructions:

Drawings 13 000
Salaries 13 000
Drawings Salaries Bank Capital
26 000
Question 21
Complete
Indicate whether the following statement is true or false regarding the statement of nancial
position:
The statement re ects the nancial performance of the business.
Select one:
True
False

Question 22
Complete
CK TRADERS
AN EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 OCTOBER 20.9

R
Capital……………………………………………………………………………....................……......……. 450 000
Drawings………………………………………………………………………………..................….......…. 5 500
Trade receivables control……………………………………………………………..................…… 180 560
Trade payable control………………………………………………………………...........…...........… 129 875
Land 50 000
............................................................................................................................................... 23 722
Building…………………………………………………………………....................................…........….. 1 075 308
Machinery (at cost)……………………………………………………………………....................…… ?
Accumulated depreciation: Machinery (1 November 20.8)……………………………. 125 900
Vehicle (at cost)………………………………………………………………….......................…………. 12 590
Accumulated depreciation: Vehicle (1 November 20.8)………………………...……….. 4 800
Inventory: Trading (1 November 20.8)……………………………………………...........……… 15 909
Bank (Favourable)…………………………………………………………………….......................……. 254
Petty cash……………………………………………………………………………..........................……… 2 542
Cash oat………………………………………………………………………………..........................…… 258 564
Loan from ATM Bank…………………………………………………………………....................……. 120 782
Fixed deposit: TB Bank…………………………………………………………....................………..... 1 530
Allowances for credit losses………………………………………………………….................……. 20 928
Rental income……………………………………………………………………………......................….. 7 247
Interest on xed deposit………………………………………………………………….................… 23 580
Advertising……………………………………………………………………………….........................….. 8 910
Packaging material………………………………………………………………………......................… 3 540
Stationery………………………………………………………………………………….............................. 650
Credit losses…………………………………………………………………………….........................…... 98 000
Salaries and wages……………………………………………………………………......................…… 20 257
Interest on loan from ATM Bank……………………………………………………..............…….. 9 456
Water and electricity…………………………………………………………………....................…….. 1 984
Telephone expenses……………………………………………………………………......................….
Additional information with regards to adjustments that you still need to take into account.
(a) CK Traders sublets part of its building to B Silver. B Silver paid R20 928 on the
1 November 20.8 for 15 months. The rental agreement stipulated that CK Traders will increase
the rental amount to R1 688 from 1 August 20.9.
(b) CK Traders deposited R120 782 into a xed deposit account with TB Bank on
1 February 20.9, at an interest rate of 12% per annum. The interest is receivable twice per annum
in June and December.
(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso
advertising agency for a period of 2 years for a total amount of R23 580. CK Traders paid
R23 580 to Kgomotso advertising agency on 1 November 20.8 to cover the full contracted
period.
(d) A physical inventory count revealed that the following was on hand on 31 October 20.9:
Inventory R7 775
Packaging material R1 990
Stationery R260
(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at
11,5% per annum. The loan repayment schedule indicate that the capital repayment of the loan
would be made in four equal instalments as follows:
Instalments Amount Repayment date
First instalment R64 641 30 April 20.10
Second instalment R64 641 31 October 20.10
Third instalment R64 641 30 April 20.11
Fourth instalment R64 641 31 October 20.11
(f) You may assume that the total comprehensive loss for the year, after all the above
adjustments have been considered, amounted to R229 519.

The total amount for equity to be shown in the statement of nancial position as at 31 October
20.9 will be …
Instructions:

Answer: 214981

Question 23
Complete
You are given the following extract of the post-adjustment trial balance for Arch Traders for
the financial year ended 30 June 20.2.
ARCH TRADERS
BALANCES AS AT 30 JUNE 20.2
Debit Credit
R R
Sales……………………………………………….. 1 200 000
Cost of sales..…………………………………..... 560 000
Wages and salaries...…………………………..... 112 000
Credit losses………………………………………. 3 000
Water and electricity……………………………… 12 000
Settlement discount granted…………………….. 2 500
Settlement discount received………………….... 3 500
Telephone expenses…………………………….. 15 000
Depreciation………………………………………. 55 000
Bank charges.……………………………………. 2 000
Rental income.…………………………………... 168 000
(a) The bookkeeper of Arch Traders found an invoice for R5 000 which was not entered in the
sales journal.
(b) Received an invoice from Quick Couriers for an amount of R1 700 for carriage on
purchases that needs to be paid. No entries were made in the books of Arch Traders regarding
this transaction.
(c) The rental income was received for 15 months.
The correct disclosure of the income elements in the statement of profit or loss and other
comprehensive income for the year ended 30 June 20.2 will be ...
Instructions:

Revenue 1 202 500
Cost of sales (558 200)
Gross profit 644 300
Other income
Rental income 134 400
N/A 0
Sales Cost of sales Net profit
Other income Rental income Credit losses

Net profit 778 700
Credit losses recovered Gross income Gross profit
Revenue Settlement discount received Settlement discount granted
N/A
1 200 000 (560 000) 3 000 3 500 168 000 1 205 000 1 202 500
1 195 000 1 191 500 (558 800) (555 800) (561 200) (558 200) 1 202 500
134 400 778 700 0 644 300 137 400 137 900 640 000 808 000
1 368 000 645 000

Question 24
Complete
Debits Credits
R R
Vehicles 120 000 Capital 200 000
Plant and equipment 65 000 Sales 500 000
Stationery 1 310 Bank 30 000
Insurance 3 200 Loan: Nice Bank 75 000
Trade receivables control 39 500 Rent income 16 400
Water and electricity 3 800 Trade payables control 24 320
Depreciation (Vehicles) 21 000 Accumulated depreciation
Salaries 210 360 (vehicles) 12 350
Drawings 51 900
Inventory 32 000
Cost of sales 310 000
858 070 858 070
The accounting equation (A = E + L) can be expressed as …

Instructions:
amount (eg: -1000.01)
Please note: Only include the total amount for assets, equity and liabilities in the table
provided.
Assets = Equity + Liabilities
R R R
858070 750000 102000
Question 25
Complete
The nancial manager of Steven Traders hired an inexperienced bookkeeper, on

1 February 20.19, who was immediately required to assist with the creation of an allowance for
credit losses (current nancial year ends on 28 February 20.19). The auditors of Steven Traders
raised an audit nding in the previous nancial period, stating that trade and other receivables
were overstated since no allowances for credit losses has been created although there was
evidence that some of the debtors did not pay their accounts in the previous nancial periods.
The nancial manager wants to avoid this audit nding in the current nancial period.
The nancial manager requested the bookkeeper to write a memo and indicate which accounts
will be affected when the allowance for credit losses is created? The bookkeeper has written the
following statement down and requires you to con rm whether the statement is true or
false when the allowance for credit losses is created.
The balance on the trade receivable control account in the general ledger will be affected by
creating the allowance for credit losses.
Select one:
True
False

Question 26
Complete
The following balances were extracted from the subsidiary journals of General Spaza Shop as
at 28 February 20.2.
R
Cash receipts journal
VAT input 3 516,24
Amounts for sales added in the Bank column 513 371,04
Cash payments journal
Amounts for purchases added in the Bank column 743 098,72
VAT output 4 892,16
Purchases journal
Purchases column 387 296,00
Sales journal
Sales column 738 920,00
Purchases returns journal
Trade payables column 50 399,44
Sales returns journal
On 1 February 20.2, the VAT input account had an opening balance of R123 480 and the VAT
output account had an opening balance of R185 220.
Calculate the closing balance of the VAT output account as at 28 February 20.2.
Instructions:

4. Keep the ledger entries strictly according to the information given.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
Feb 28 Trade receivables control 4267.10 Feb 1 Balance 185265
GJ CRJ
VAT control 359285.72 Feb 28 Bank 77005.66
CPJ
Trade payables control 4892.16
SJ
Trade receivables control 96390
363552.82 363552.82

Question 27
Complete
Use the information provided below to calculate the cost of sales:

R
Opening inventory 160 000
Purchases 240 000
Settlement discount granted 35 000
Carriage on sales 12 000
Settlement discount received 23 000
Closing inventory 330 000
Answer: 47000
Question 28
Complete
Settlement discount received will be closed off to the sales account at the end of a nancial year.
Select one:
True
False
Question 29
Not answered
Marked out of 4.00
Payment made to creditor CS Suppliers of R459 was

incorrectly recorded in the cash payment as R549. This Choose...
error will be corrected in the …
A debit order for R2 500 will be recorded in the ... Choose...
Payment made to creditor NA Suppliers of R321 was

incorrectly recorded in the cash payments journal as R231. Choose...
This error will be corrected in the ...
A deposit meant for another client of the bank was

recorded as a credit in the bank statement. This error will Choose...
be recti ed in the …

Question 30
Complete
Due to
some
debtors
not being
able to pay
their allowance for credit losses
accounts,
an entity
will then
have a/an
… policy.
Allowance
for credit
losses will
be … at the deducted from the trade receivables balance in the note in the statement of nancial position.
end of the
nancial
year.
Credit
losses will
be closed
off to the …
at the end pro t or loss account
of the
nancial
year.
The trade
receivables
control
account actual recoverable debt
must be
credited
with …

Question 31
Complete
R
TOTALS FOR JOURNALS
Cash receipts journal totals for the month
Trade receivables column……………………………………………………………. 228 560
Settlement discount granted column………………………………………….. 10 000
Sales column……………………………………………………………………………..... 409 000
Trade payables column……………………………………………………………….. 8 600
The trade receivable’s column in the cash receipts journal was overcast by R960.
What will the correct general ledger entries for bank and settlement discount granted be?
Instructions:
Bank and settlement discount granted Trade receivables control 227 600
Bank and settlement discount granted Sales
Turnover Bank
Settlement discount granted Settlement discount received
Bank and settlement discount received Trade payables control
Trade receivables control
228 560 229 520 237 600
Question 32
Complete
An entity has the following balances: Capital, R13 000; Drawings, R1 000, Trade payables, R2 200;
Loan, R3 000.
The total assets of the entity according to the basic accounting equation is …
NB: Instructions

Answer: 17200


6/27/23, 2:40 PM Assessment 2: Attempt review
MENU 
Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 2
Started on Wednesday, 3 May 2023, 3:10 PM

State Finished
Completed on Wednesday, 3 May 2023, 4:40 PM
Time taken 1 hour 30 mins
Marks 36.00/50.00
Grade 72.00 out of 100.00
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Question 1
Correct
MENU
Extract of pre-adjustment trial balance of Kumkani Traders as at 30 September 20.20

Debit Credit
R R
Capital (1 October 20.19)…………………………………………….....…… 200 000
Drawings……………………………………………………………….............…… ?
Inventory: Trading (1 October 20.19)…………………………………… 61 725
Allowance for credit losses………………………………………….....……. 4 450
Mortgage: Ginsberg Bank ………………................................................ 195 000
Fixed deposit (at 7.5% per annum)………………………..……………... 80 000
Sales……………………………………………………………………................…... 345 060
Carriage on purchases………………………………………………........…… 9 500
Sales returns…………………………………………………………............……. 6 780
Rental income………………………………………………………..........……... 19 800
Purchases……………………………………………………………............…….. 197 800
Purchases returns………………………………………………….........……… 2 890
Depreciation…………………………………………………………...........……. 38 367
Salaries and wages……………………………………………………........….. 88 500
Insurance expenses……………………………………………………........…. 27 300
Telephone expenses…………………………………………………….......… 14 280
Water and electricity…………………………………………………….....…. 23 450
Credit losses……………………………………………………………..........….. 1 600
After a year-end inventory count, the value of trading inventory on hand was R123 450.
(a) On 1 April 20.20 Kumkani Traders bought a factory building by means of a mortgage, from Ginsberg Bank, that bears interest at a rate of 10.05%
per annum compounded annually. The loan is redeemable in 20 annual instalments of R22 980. The instalments are in arrears. Interest for the current
year must still be provided for.
(b) The fixed deposit investment of R80 000 was made on 1 April 20.20. Interest on this investment is paid annually.
Use the information in the pre-adjustment trial balance and the additional information to calculate the interest on fixed deposit to be disclosed
in the statement of profit or loss and other comprehensive income for the year ended 30 September 20.20.
Instructions:

Answer: 3000.00 
The correct answer is: 3000

Question 2
Incorrect
MENU
Dashboard
The / Courses
pre-adjustment trial /balance
UNISA of/ JAM
2023Traders
/ Semester
as at 128/ February
FAC1502-23-S1 / Welcome
20.19, reflected Message /forAssessment
an allowance 2 that amounts to R990 and credit
credit losses
losses amounting to R345 (credit losses were written off using method 1 although they were not aware of these two methods as explained below). The
financial manager of JAM Traders determined that the allowance for credit losses for the current financial year ended 28 February 20.19 must be
R1 435 and credit losses that must still be written off amounts to R780.
The financial manager, after having a discussion with the bookkeeper of JAM Traders, learned that there are two methods that can be used to write off
the above credit losses of R780. Under method 1, credit losses are written off against the allowance for credit losses account; by debiting the allowance
for credit losses and crediting the trade receivables control account and the debtor's personal account. Under method 2, credit losses are written off by
debiting the credit losses and crediting the trade receivables control account and the debtor's personal account (while the allowance for credit losses
remain unchanged).
Is the following statement true or false regarding the balance on the allowance for credit losses and the amount for credit losses that needs to be
disclosed in the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19, if one of the methods is followed by
JAM Traders.
Irrespective of which method is used, the balance on the allowance for credit losses will be R1 435 , and the amount for credit losses to be disclosed in
the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19 will amount to R1 570.
Select one:
True
False 
Incorrect answer
The correct answer is 'True'.

Question 3
Incorrect
MENU
Extract of pre-adjustment trial balance of Zungu Traders as at 31 August 20.2
Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1Debit / WelcomeCredit

Message / Assessment 2
R R
Capital (1 September 20.1)………………………………………………............... 200 000
Drawings……………………………………………………………….......................…… ?
Inventory: Trading (1 September 20.1)…………………………….........…… 61 725
Allowance for credit losses………………………………………..............………. 5 000
Mortgage: GL Bank ………………..................................................................... 195 000
Fixed deposit (at 7.5% per annum)………………………………..........……... 50 000
Sales…………………………………………………………………….........................…... 345 060
Carriage on purchases……………………………………………….................…… 9 500
Sales returns…………………………………………………………......................……. 6 780
Rental income………………………………………………………....................……... 19 800
Purchases……………………………………………………………….......................….. 197 800
Purchases returns…………………………………………………….......................… 2 890
Depreciation………………………………………………………….....................……. 38 367
Salaries and wages…………………………………………………..................…….. 88 500
Insurance expenses………………………………………………..................………. 27 300
Telephone expenses…………………………………………………..................…... 14 280
Water and electricity……………………………………………………................…. 23 450
Credit losses…………………………………………………………….....................….. 1 600
(a) On 29 August 20.2, Zungu Traders was informed that A Langa, a debtor who owed the entity R660, had been declared insolvent. The amount must
still be written off as irrecoverable.
Prepare the closing transfer journal entry for credit losses for the year ended 31 August 20.2 for Zungu Traders:
Instructions
3. For embedded questions spelling is very important. If you spell the answer incorrect it will be marked incorrect. Please make sure that your spelling
of the words is correct.
4. Don’t use any special characters (&) and don’t use bold in your answer. It will be marked incorrect.
6. Your answer is case sensitive; therefore you need to put the very first letter of the answer in uppercase but the rest of your answer must be in
lowercase (eg: Interest on loan)
ZUNGU TRADERS
Adjustment journal – 31 August 20.2 Debit Credit
R R
Credit losses 660.00
 
660.00
Trade receivables


Closing transfer for credit losses account

Question 4
Correct
MENU
Revenue in the statement of profit or loss and other comprehensive income consists of all the income for example sales and rental income that an entity
earned during a financial year.
Select one:
True
False 
Correct answer
The correct answer is 'False'.
Question 5
Correct
Indicate whether the following statement is true or false regarding the periodic inventory system.
The purchase of inventory is recorded in the purchases account.
Select one:
True 
False
Correct answer

Question 6
Correct
MENU
You are given the following extract of information for Luna Dealers for the financial year ended on 28 February 20.2.
R
Capital…………………………………………………………………………......... 100 000
Drawings………………………………………………………………………......... 5 000
Inventory (1 March 20.1)…………………………………………………………… 40 000
Sales…………………………………………………………………………………. 280 000
Sales returns………………………………………………………………………… 15 000
Purchases………………………………………………………………………….... 60 000
Purchases returns…………………………………………………………….......... 2 400
Carriage on purchases……………………………………………………….......... 1 000
Carriage on sales…………………………………………………………………… 1 500
Settlement discount received……………………………………………………… 700
Settlement discount granted………………………………………………………. 2 100
Commission income………………………………………………………………… 10 000
Rental income……………………………………………………………………….. 15 000
Salaries and wages…………………………………………………………………. 29 000
Telephone expenses………………………………………………………………... 2 000
Water and electricity………………………………………………………………… 1 600
Credit losses…………………………………………………………………………. 400
Depreciation………………………………………………………………………….. 1 500
a) Inventory on hand on 28 February 20.2 is R50 000.
The correct trading account in the general ledger of Luna Dealers on 28 February 20.2 will be:
Instructions:

Keep the transactions in the same sequence as the information given.
Inventory (opening) 40 000 Sales 262 900
Purchases 56 900
Inventory (closing) 50 000
Carriage on purchases 1 000
Profit or loss account (gross profit) 215 000
312 900 312 900
Purchases returns Carriage on sales Purchases Settlement discount received
Inventory Inventory (opening) Inventory (closing) Settlement discount granted
Profit or loss account (gross profit) Capital Sales returns Sales
Carriage on purchases Profit or loss account (net profit)
700 449 600 295 000 10 000 330 000 506 500 296 500 280 000 1 000 60 000 215 000 264 400 220 000 266 500

15 000 56 900 262 900 2 400 312 900 265 000 2 100 50 000 1 500 57 600 40 000

Your answer is correct.
MENU
Question 7
Dashboard
Correct / Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 2
The trade receivables control account must be actual irrecoverable debt.

credited with …

Credit losses will be closed off to the … at the end profit or loss account
of the financial year.

Due to some debtors not being able to pay their allowance for credit losses
accounts, an entity will then have a/an … policy.

Allowance for credit losses will be … at the end of deducted from the trade receivables balance in the note in the statement of financial position.
the financial year.


The correct answer is:
The trade receivables control account must be credited with … → actual irrecoverable debt.,
Credit losses will be closed off to the … at the end of the financial year. → profit or loss account,
Due to some debtors not being able to pay their accounts, an entity will then have a/an … policy. → allowance for credit losses,
Allowance for credit losses will be … at the end of the financial year. → deducted from the trade receivables balance in the note in the statement of
financial position.

Question 8
Correct
MENU
The marketing manager of Innocent Traders was given a budget for an amount of R17 890 to perform the advertising of Innocent Traders for the
current financial period ended 28 February 20.19. Pearl Advertising Agency was appointed on 30 April 20.18 by the marketing manager to assist with
the advertising of Innocent Traders for the current financial period. On 1 May 20.18, the marketing manager paid R14 630 to the advertising agency
for advertising services to be provided during the current financial period. The payment was based on the quotation that was received from Pearl
Advertising Agency. On 26 February 20.19, the bookkeeper of Innocent Traders reconciled all the invoices that were received from Pearl Advertising
Agency for current financial period and noted that the total of the invoices amounted to R16 789. The payment that was made to Pearl Advertising
Agency was correctly recorded in the accounting books of Innocent Traders, however no adjustment journal entry has been processed yet.
The effect that the adjustment journal entry will have on the basic accounting equation of Innocent Traders for the year ended 28 February 20.19
will be …
Instructions:
2. Round off your final answer to the nearest Rand (eg: 50.56 is 51)
INNOCENT TRADERS
Adjustment journal – 28 February 20.19
Account to be debited Element of Account to be credited Element of
the account the account Amount Assets Equity
to be debited to be credited
R
Advertising expenses Expenses Accrued expenses Liabilities 2159.00 Nothing recorded Decrease
      

Question 9
Correct
MENU
The marketing manager of Innocent Traders was given a budget for an amount of R19 890 to perform the advertising of Innocent Traders for the current
financial period ended 28 February 20.19. Pearl Advertising Agency was appointed on 30 April 20.18 by the marketing manager to assist with the
advertising of Innocent Traders for the current financial period. On 1 May 20.18, the marketing manager paid R15 630 to the advertising agency for
advertising services to be provided during the current financial period. The payment was based on the quotation that was received from Pearl Advertising
Agency. On 26 February 20.19, the bookkeeper of Innocent Traders reconciled all the invoices that were received from Pearl Advertising Agency for
current financial period and noted that the total of the invoices amounted to R18 789. The payment that was made to Pearl Advertising Agency was
correctly recorded in the accounting books of Innocent Traders, however no adjustment journal entry has been processed yet.
The effect that the adjustment journal entry will have on the basic accounting equation of Innocent Traders for the year ended
28 February 20.19 will be?
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the amount - also keep
your cell phone horizontal when doing the question).

3. If an options has been provided and it is not applicable to the specific questions please put a 0 in the amounts column.
-3 159 0 +3 159
-19 890 +3 159 +4 260 0 -15 630 +15 630 +19 890 +18 789 -4 260 +1 101 -3 159 -1 101 -18 789

Question 10
Incorrect
MENU
Extract of pre-adjustment trial balance of Kumkani Traders as at 28 February 20.2

Debit Credit
R R
Capital (1 March 20.1)…………………………………………….......…….... 200 000
Drawings……………………………………………………………….................... ?
Inventory: Trading (1 March 20.1)……………………………….……...... 61 725
Allowance for credit losses…………………………………………….......... 4 450
Mortgage: Ginsberg Bank ........................................……………............ 195 000
Fixed deposit (at 7.5% per annum)………………………………….....… 50 000
Sales………………………………………………………………............................... 345 060
Carriage on purchases………………………………………………................ 9 500
Sales returns…………………………………………………………...................... 6 780
Rental income…………………………………………………………................... 19 800
Purchases……………………………………………………………........................ 197 800
Purchases returns……………………………………………………................... 2 890
Depreciation…………………………………………………………...................... 38 367
Salaries and wages………………………………………………….................... 88 500
Insurance expenses……………………………………………………............... 27 300
Telephone expenses…………………………………………………................. 14 280
Water and electricity………………………………………………….......…...... 23 450
Credit losses……………………………………………………………................... 1 600
(a) On 1 April 20.1 Kumkani Traders bought a factory building by means of a mortgage, from Ginsberg Bank, that bears interest at a rate of 10.05% per
annum compounded annually. The loan is redeemable in 20 annual instalments of R22 980. The instalments are in arrears. Interest for the current year
must still be provided for.
The correct amount that must be disclosed in the statement of profit or loss and other comprehensive income as interest on fixed deposit for
the year ended 28 February 20.2 will be ...
NB: Instructions

3. Round the amount of to the nearest R (eg: 12141.72 will be 12142)
Answer: 3437.50 

Question 11
Correct
MENU
Indicate whether the following statement is true or false regarding the statement of financial position:
Distribution, administrative and other expenses for the year are disclosed in this statement.
Select one:
True
False 
Correct answer
Question 12
Correct

At the end of the financial year after the year-end adjustments are recorded in the general ledger accounts, the accountant will then prepare a pre-
adjustment trial balance.
Select one:
True
False 
Correct answer

Question 13
Correct
MENU

Electronic fund payments to suppliers will be recorded in the … cash payments journal 
Electronic fund payments from clients will be recorded in the … cash receipts journal. 
Interest on a favourable bank statement balance will be recorded in the … cash receipts journal. 
Interest on an unfavourable bank statement balance will be recorded in the … cash payments journal 

Electronic fund payments to suppliers will be recorded in the … → cash payments journal,
Electronic fund payments from clients will be recorded in the … → cash receipts journal.,
Interest on a favourable bank statement balance will be recorded in the … → cash receipts journal.,
Interest on an unfavourable bank statement balance will be recorded in the … → cash payments journal
Question 14
Correct
In a sole proprietorship, usually the owner himself is responsible for the daily activities of the business.
Select one:
True 
False
Correct answer

Question 15
Partially correct
MENU
The following information relates to Sammy Technologies who buys and sells computers and computer accessories. Sammy Dealers is a registered as
aDashboard
VAT vendor/ and
Courses / UNISA
uses the periodic/ inventory
2023 / Semester 1 /at FAC1502-23-S1
system. VAT / Welcome
15% is applicable. Message
The VAT period / Assessment
of the 2 on unequal months.
business ends
Transactions:
20.22
July 6 Purchased 10 laptops from IT Wholesalers on credit for R17 250 each. (credit invoice no: IT657)
Purchases a point-of-sale scanner from Mega Wholesalers on credit for R2 875 to be used by the cashiers. (credit invoice no:
MW 456)
The correct entry in the purchases journal of Sammy Technologies will be:
Instructions:

IT Wholesalers 2 250 15 000 17 250
Trade payables control Sammy Technologies Mega Wholesalers
172 500 17 250 146 625 150 000 2 443.75 25 875 2 250 431.25 2 875 22 500 14 662.50 375
15 000 2 500 2 587.50
Your answer is partially correct.
You have correctly selected 1.

Question 16
Correct
MENU
Under a periodic inventory system, the cost of sales is not determined at the time of the recording of the sale.
Select one:
True 
False
Correct answer
Question 17
Incorrect
On 1 November 20.18 Mars Traders paid rental to the amount of R25 668 for 12 months. The pre-adjustment trial balance for the year ended 28 February
20.19 reflected an amount for rental expenses of R25 668 as well as an amount for prepaid rental expenses at 1 March 20.18 of R12 780. The only
transaction that has been recorded or processed in the accounting books of Mars Traders regarding rental expenses, related to a payment that was made
on 1 November 20.18 and no other transaction or adjustment has been taken into account as yet.
The amount for prepaid rental expenses to be disclosed in the statement of financial position for the year ended 28 February 20.19 will be?
NB: Instructions
Answer: 12780.00 

Question 18
Correct
MENU

Vehicles to be sold by a vehicle trader are included as non-current assets in the statement of financial position.
Select one:
True
False 
Correct answer
Question 19
Partially correct
On 2 March 20.08, a tenant of SLS Dealers, did an electronic funds transfer of R280 000 into SLS Dealers business bank account. The monthly rental is R18
000 per month. The financial year-end is 28 February 20.9.
What will the closing transfer entry for the transaction on 28 February 20.9 be?
Instructions:
Accrued expenses Rental expenses Income received in advance Profit or loss account Prepaid expenses
Rental income Accrued income Bank
280 000 216 000 18 500
You have correctly selected 1. 

◄ Assessment 1
Jump to...
MENU Assessment 3 ►

MENU 
Started on Friday, 28 April 2023, 8:11 PM

State Finished
Completed on Friday, 28 April 2023, 9:12 PM
Time taken 1 hour 1 min
Marks 10.38/50.00
Feedback
You have unfortunately failed this assignment. This assignment covered learning unit 6 to 10. Before utilising the second opportunity,
please revisit these learning units and watch our recorded videos that covered these learning units. You will have to work harder to
pass your assignments. You are welcomed to contact your lecturers or e-tutor if you need further assistance regarding grasping
certain concepts.

Question 1
Partially correct
MENU
On 1 September 20.18 Lloyd Traders received a prepayment for an amount of R82 550 from a client that is currently occupying part of Lloyd’s office
Dashboard
building / aCourses
under / UNISA The
lease agreement. / 2023 / Semester
prepayment is the1rent
/ FAC1502-23-S1 / Welcome
for 13 months. The Message
prepayment / Assessment
transaction 2 been recorded in the accounting
has not yet
books of Lloyd Traders. The current financial period ends on 28 February 20.19.
The correct journal entries (including cash transactions) that need to be processed, to ensure that the rental income amount to be disclosed in
the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19 is correct?
Instructions:
Bank 82 550
Trade payables control Prepaid expenses Accrued expenses Bank Income received in advance
Rental income Accrued income Rental expenses
82 550 25 400 44 450 76 200 38 100 6 350

Question 2
Partially correct
MENU
The bookkeeper of Dumisani Traders did not enter a sales invoice of R1 840 in the sales journal but posted the R1 840 to the personal account of L
Letwaba. Dumisani Traders is a registered VAT vendor and the tax rate applicable is 15%.
What will the correct general ledger entries of Dumisani Traders be to record the sales invoice?
Instructions:
Vat account to be done last.
If an option has been provided and it is not applicable to the specific question, please put N/A in the account column and a 0 in the amounts column.
Sales 1 840 VAT input 1 840
Trade receivables control 0 N/A 0
VAT input Trade receivables control Sales N/A VAT output
240 1 564 1 840 0 276 1 600

Question 3
Incorrect
MENU
Kales Plumbing Services provided with the following information for the financial year ended 28 February 20.1.
R
Services rendered………………………………………………............... 960 000
Salaries…………………………………………………………...................... 320 000
Wages……………………………………………………………................... 50 000
Telephone……………………………………………………….................. 5 000
Water and electricity……………………………………………........... 3 000
Water and electricity deposit…………………………………….... 4 600
Stationery………………………………………………............................ 3 000
Interest income…………………………………………………............. 2 000
Insurance………………………………………………............................. 9 000
The profit/loss for the year of Kales Plumbing Services for the year ended 28 February 20.1 is ...
Instructions:
4. Indicate a profit as 12142 and a loss as -12142
Answer: 1356600 

Question 4
Incorrect
MENU
The financial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who was immediately required to assist with the
Dashboard
creation of an/ allowance
Courses /forUNISA / 2023
credit losses / Semester
(current 1 year
financial / FAC1502-23-S1 / Welcome
ends on 28 February 20.19).Message / Assessment
The auditors 2
of Steven Traders raised an audit finding in the
previous financial period, stating that trade and other receivables were overstated since no allowances for credit losses has been created although there
was evidence that some of the debtors did not pay their accounts in the previous financial periods.
The financial manager wants to avoid this audit finding in the current financial period. The financial manager requested the bookkeeper to write a memo
and indicate which accounts will be affected when the allowance for credit losses is created? The bookkeeper has written the following statement down
and requires you to confirm whether the statement is true or false when the allowance for credit losses is created.
The allowance for credit losses must be deducted from the trade receivables control account to determine the amount at which trade receivables must
be disclosed under trade and other receivables in the statement of financial position.
Select one:
True
False 
Incorrect answer
Question 5
Incorrect
20.19 reflected an amount for rental expenses of R25 740 as well as an amount for prepaid rental expenses on 1 March 20.18 of R12 600. The only
The amount for prepaid rental expenses to be disclosed in the statement of financial position as at 28 February 20.19 will be:
Instructions:
Answer: 38340 

Question 6
Partially correct
MENU
The inexperienced accounting clerk wrongfully entered the manager's salary of R11 000 into the insurance account. Ignore any VAT implications for
this transaction.
The correct journal entry of the correction of the error will be …
NB: Instructions

3. Round the amount of to the nearest Rand (eg: 12141.72 will be 12142)
GENERAL JOURNAL - MAY 20.2 GJ1
Date Details Fol Debit Credit

R R
31 Bank  11000

Bank  11000
Question 7
Incorrect
Stationery on hand at the end of the year will be shown as an expense in the statement of profit or loss and other comprehensive income.
Select one:
True 
False
Incorrect answer

Question 8
Incorrect
MENU

Transactions in the cash payments journal will be ticked off with items in the … of the ... balance column; bank statement 
Direct deposits made by a client will reflect in the … of the ... debit column; bank reconciliation statement 
Transactions in the cash receipts journal will be ticked off with items in the … of the ... debit and credit columns; bank statement 
Interest on an overdrawn bank balance will reflect in the … of the … debit column; bank reconciliation statement 
Your answer is incorrect.

Transactions in the cash payments journal will be ticked off with items in the … of the ... → debit column; bank statement,
Direct deposits made by a client will reflect in the … of the ... → credit column; bank statement,
Transactions in the cash receipts journal will be ticked off with items in the … of the ... → credit column; bank statement,
Interest on an overdrawn bank balance will reflect in the … of the … → debit column; bank statement
Question 9
Correct
Indicate whether the following statement is true or false regarding the statement of profit or loss and other comprehensive income:
Profit reflects expenses that exceed income.
Select one:
True
False 
Correct answer

Question 10
Incorrect
MENU
Indicate whether the following statement is true or false.

Drawings and the donation of trading inventory is not recorded at cost price in the general journal.
Select one:
True 
False
Incorrect answer
Question 11
Correct
Drawings will be closed off to the capital account at the end of a financial year.
Select one:
True 
False
Correct answer

Question 12
Incorrect
MENU

The trade receivables control account must be trading account

credited with …

Due to some debtors not being able to pay their actual recoverable debt

Allowance for credit losses will be … at the end of allowance for credit losses recovered
the financial year.

Credit losses will be closed off to the … at the end allowance for credit losses


financial position.,
Credit losses will be closed off to the … at the end of the financial year. → profit or loss account
Question 13
Incorrect
On 1 April 20.17 Trak Traders took up an insurance contract with Blue Sky Insurers for 24 months. The insurance policy was effective with immediate
effect and stipulated that all premiums for a year (a period of 12 months starts from 1 April each year) are due by 1 April each year.
An extract from the list of balances of Trak Traders at year-end, reflected the following balances:
28 February 20.19 28 February 20.18
Premiums paid during the year ended *R17 520 *R19 020
payments for 12 months*payments for 12 months

The amount for insurance premiums and the short-term adjustment to be disclosed in the statement of financial position of Trak Traders as at
28 February 20.19 will be …
Instructions:

Answer: 36 540 
The correct answer is: 1460 

Question 14
Partially correct
MENU
Bright Traders leased a portion of it's factory to Faith Traders at the beginning of the current financial year for a period of 12 months (the current
financial period ends on 28 February 20.19). Bright Traders received rent to the amount of R30 696 from Faith Traders, which covers the rent
amount for the current financial period. On 1 September 20.18, Bright Traders notified Faith Traders that from 1 October 20.18 to 28 February 20.19,
Bright Traders will be renovating the entire factory building. Therefore, Bright Traders requested Faith Traders to vacate the factory building during
the renovation period. Bright Traders and Faith Traders reached an agreement that the rent already paid for the renovation period will be utilised in
the next financial period when renovations are completed. No adjustment journal entry has been processed by Bright Traders regarding the above
agreement.
The effect that the adjustment journal entry will have on the basic accounting equation of Bright Traders for the year ended
Instructions:
BRIGHT TRADERS
the account the account Amount Assets Equ
R
Income received in advance Income Rent expenses Income 30 696 Decrease Nothing re
      
The correct answer is: Rent income
Question 15
Correct
An owner that starts a business can invest equipment as part of his investment to start the business.
Select one:
True 
False
Correct answer

Question 16
Partially correct
MENU
Luna Dealers incurred delivery costs on merchandise purchased on credit from Gizmo Wholesalers for R550. Luna Dealers uses the periodic inventory
Dashboard
system. Luna/ Dealers
Courses / the
paid UNISA / 2023
delivery costs/ via
Semester
EFT. 1 / FAC1502-23-S1 / Welcome Message / Assessment 2
The correct entries for the delivery costs incurred in the general ledger accounts and the effect on accounting equation will be … (VAT must be ignored in
this question).
Instructions:

3. If an options has been provided and it is not applicable to the specific questions please put N/A in the accounts column and a 0 in the amounts
column.
Gizmo Wholesalers/trade receivables control Bank -550 0
+550
Bank Cost of sales Inventory
Gizmo Wholesalers/trade receivables control Carriage on purchases Gizmo Wholesalers/trade payables control
0 -550 +550


Question 17
Incorrect
MENU
The financial year end for Blessing Traders is 30 June. Blessing Traders is a tenant and rent is R8 500 per month. The financial records of Blessing Traders
Dashboard
showed that /rent
Courses / for
was paid UNISA
nine /months
2023 during
/ Semester 1 / FAC1502-23-S1
the financial year ended 30 /June
Welcome
20.1. Message / Assessment 2
The correct adjustment journal entries in the general journal for 30 June 20.1 will be:
Instructions:
Rental income 8 500
8 500
Bank
Accrued income Rental expenses Accrued expenses Profit or loss account Bank
Rental income Prepaid expenses Income received in advance
25 500 76 500 102 000
Question 18
Incorrect
Prepaid expenses are a permanent asset on the date of the statement of financial position.
Select one:
True 
False
Incorrect answer


Question 19
Correct
MENU
Carriage on purchases will increase the cost price of trading inventory, thereby increasing gross profit.
Select one:
True
False 
Correct answer
◄ Assessment 1
Jump to...
Assessment 3 ►

MENU 
Started on Sunday, 30 April 2023, 12:57 PM

State Finished
Completed on Sunday, 30 April 2023, 1:51 PM
Time taken 54 mins 17 secs
Marks 39.00/50.00
Feedback
Well done you passed this assignment with a distinction.
Question 1
Correct
Interest on a favourable bank statement balance will be recorded in the … cash receipts journal. 
Interest on an unfavourable bank statement balance will be recorded in the … cash payments journal 
Electronic fund payments from clients will be recorded in the … cash receipts journal. 
Electronic fund payments to suppliers will be recorded in the … cash payments journal 

Interest on a favourable bank statement balance will be recorded in the … → cash receipts journal.,
Interest on an unfavourable bank statement balance will be recorded in the … → cash payments journal,
Electronic fund payments from clients will be recorded in the … → cash receipts journal.,
Electronic fund payments to suppliers will be recorded in the … → cash payments journal

Question 2
Correct
MENU
The financial year-end of Parker Traders is 30 April 20.20. At financial year-end the balance of the trade receivables control account was R40 000. On
30 April 20.20 it was determined that an allowance for credit losses to the amount of 15% of the trade receivables should be created, due to the impact
of the COVID pandemic. Parker Traders is a registered VAT vendor.
What will the general journal entry be in the books of Parker Traders for the given transaction on 30 April 20.20?
Instructions:
Credit losses 6 000
Allowance for credit losses 6 000
Trade payables control Allowance for credit losses recovered Allowance for settlement discount granted
Allowance for credit losses Trade receivables control Credit losses
40 000 6 900

Question 3
Correct
MENU
The inexperienced accounting clerk of Luna Dealers wrongfully entered the owner's drawings, for March, of R13 000 into the salaries account.
The correcting double-entry would be …
Instructions:
Drawings 13 000
Salaries 13 000
Drawings Capital Bank Salaries
26 000
The inexperienced accounting clerk of Luna Dealers wrongfully entered the manager's salary, for March, of R13 000 into the insurance account. The
correcting double-entry would be …
Instructions:

Question 4
Correct
MENU
Fatima, the owner of Fatima Traders keeps incomplete records of the business transactions. The following information is available.
FATIMA TRADERS
Balances as at 28 February 20.1:
20.0 20.1
R R
Vehicles at cost………………………………………………… 28 800 28 800
Furniture and equipment at cost…………………………....... 26 500 26 500
Inventory…………………………………………….................. 21 770 ?
Trade receivables control……..……………………………..... 8 870 12 350
Bank (favourable)…………………………………………........ 25 000 20 000
Long-term borrowings……….……………………………........ 30 000 15 000
Trade payables control………..……………………………….. 9 500 12 700
Accrued expenses……………………..…………………......... 3 400 2 300
Prepaid expenses………………………………………………. 360 365
A physical inventory count revealed that the following was on hand on 28 February 20.1:
R
Inventory 28 669
Stationery 625
Packing materials 150
The total amount of trading inventory for Fatima Traders as at 28 February 20.1 will be?
NB: Instructions
Answer: 28669 

Question 5
Incorrect
MENU

Debit Credit
R R
Capital (1 October 20.19)…………………………………………….......…… 200 000
Drawings………………………………………………………………...............…… ?
Inventory: Trading (1 October 20.19)……………………………….…… 61 725
Allowance for credit losses……………………………………………......…. 4 450
Sales……………………………………………………………….................………... 345 060
Carriage on purchases……………………………………………….........…… 9 500
Sales returns…………………………………………………………..............……. 6 780
Rental income…………………………………………………………............…... 19 800
Purchases……………………………………………………………...............…….. 197 800
Purchases returns……………………………………………………...........…… 2 890
Depreciation…………………………………………………………............…….. 38 367
Salaries and wages…………………………………………………..........…….. 88 500
Insurance expenses……………………………………………………..........…. 27 300
Telephone expenses………………………………………………….........…… 14 280
Water and electricity………………………………………………….......……. 23 450
Credit losses……………………………………………………………............….. 1 600
per annum. The loan is redeemable in 20 equal instalments. Interest for the current year must still be provided for.
The correct amount that must be disclosed as interest on mortgage for the year ended 30 September 20.20 is ...
Instructions:
Answer: 9949.50 

Question 6
Partially correct
MENU
You are given the following extract of the post-adjustment trial balance for Arch Traders for the financial year ended 30 June 20.2.
ARCH TRADERS
BALANCES AS AT 30 JUNE 20.2
Debit Credit
R R
Sales……………………………………………….. 1 200 000
Cost of sales..…………………………………..... 560 000
Wages and salaries...…………………………..... 112 000
Credit losses………………………………………. 3 000
Water and electricity……………………………… 12 000
Settlement discount granted…………………….. 2 500
Settlement discount received………………….... 3 500
Telephone expenses…………………………….. 15 000
Depreciation………………………………………. 55 000
Bank charges.……………………………………. 2 000
Rental income.…………………………………... 168 000
(a) The bookkeeper of Arch Traders found an invoice for R5 000 which was not entered in the sales journal.
(b) Received an invoice from Quick Couriers for an amount of R1 700 for carriage on purchases that needs to be paid. No entries were made in the
books of Arch Traders regarding this transaction.
(c) The rental income was received for 15 months.
The correct disclosure of the income elements in the statement of profit or loss and other comprehensive income for the year ended 30 June 20.2
will be ...
Instructions:

If an options has been provided and it is not applicable to the specific questions please put N/A in the accounts column and a 0 in the amounts column.
Revenue 1 202 500
Other income 134 400
N/A 0
Net profit 778 700
Sales Gross income Gross profit Settlement discount granted Credit losses recovered
Rental income Cost of sales Settlement discount received Revenue Net profit
Credit losses Other income N/A
3 500 (558 800) 808 000 0 137 900 (555 800) 1 191 500 137 400 1 368 000 644 300 168 000 645 000
1 195 000 1 202 500 1 200 000 3 000 640 000 134 400 (558 200) (561 200) (560 000) 1 205 000 778 700 1 202 500


MENU

Question 7
Incorrect
MENU
CK TRADERS
R
Capital…………………………………………………………………………………......................……. 350 000
Drawings………………………………………………………………………………....................……. 2 500
Trade receivables control……………………………………………………………............……. 180 560
Trade payable control……………………………………………………………….............……… 129 875
Inventory: Trading (1 November 20.8)…………………………………………….....……… 4 800
Bank (Favourable)…………………………………………………………………................………. 15 909
Petty cash………………………………………………………………………………...................…… 254
Cash float………………………………………………………………………………...................…… 2 542
Loan from ATM Bank………………………………………………………………............………. 258 564
Fixed deposit: TB Bank……………………………………………………….................………… 120 782
Allowances for credit losses………………………………………………………….........……. 1 530
Rental income…………………………………………………………………………….............…… 19 800
Interest on fixed deposit…………………………………………………………….........……… 7 247
Advertising…………………………………………………………………………….................…….. 23 580
Packaging material…………………………………………………………………….............…… 8 910
Stationery……………………………………………………………………………….................…… 3 540
Credit losses……………………………………………………………………………...................... 650
Salaries and wages…………………………………………………………………….............…… 98 000
Interest on loan from ATM Bank……………………………………………………….....….. 20 257
Water and electricity…………………………………………………………………...........…….. 9 456
Telephone expenses…………………………………………………………………….............…. 1 984
(a) CK Traders sublets part of its building to B Silver. B Silver paid R19 800 on the 1 November 20.8 for 15 months. The rental agreement stipulated that
CK Traders will increase the rental amount to R1 500 from 1 August 20.9.
(b) CK Traders deposited R120 782 into a fixed deposit account with TB Bank on 1 February 20.9, at an interest rate of 12% per annum. The interest is
receivable twice per annum in June and December.
(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso advertising agency for a period of 2 years for a total amount of
R23 580. CK Traders paid R23 580 to Kgomotso advertising agency on 1 November 20.8 to cover the full contracted period.
Inventory R7 775
Stationery R260
(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at 11,5% per annum. The loan repayment schedule indicate
that the capital repayment of the loan would be made in four equal instalments as follows:
The amount for rental income to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 October
20.9 will be …
Instructions:


Answer: 15840 

MENU
Question 8
Correct
The cost of sales can only be determined at the end of the financial period after the business entity does a physical inventory count.
Select one:
True 
False
Correct answer

Question 9
Partially correct
MENU
Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Debit

Welcome Message
Credit / Assessment 2
R R
Capital (1 September 20.21)………………………………………….............…. 200 000
Drawings……………………………………………………………….....................…… ?
Inventory: Trading (1 September 20.21)………………………………........ 61 725
Allowance for credit losses……………………………………………...........…. 4 450
Mortgage: GL Bank ……………….................................................................. 195 000
Fixed deposit (at 7.5% per annum)………………………………….........… 50 000
Sales…………………………………………………………………......................…….. 345 060
Carriage on purchases………………………………………….............………… 9 500
Sales returns………………………………………………………….................……. 6 780
Rental income…………………………………………………………................….. 40 500
Purchases……………………………………………………………..................…….. 197 800
Purchases returns…………………………………………………..............……… 2 890
Depreciation…………………………………………………………...............…….. 38 367
Salaries and wages………………………………………………….............…….. 88 500
Insurance expenses………………………………………………….............……. 27 300
Telephone expenses………………………………………………….............…… 14 280
Water and electricity…………………………………………………...........……. 23 450
Credit losses…………………………………………………………................…….. 1 600
(a) On 31 December 20.1, Zungu Traders decided to lease out the office space on the business’ premises for a monthly rental amount of R4 500.
The rental amount is paid in advance on the last day of each month.
Use the information in the pre-adjustment trial balance and the additional information to do the journal entry that correctly accounts for
the closing adjustment of the lease rentals at year-end:
Instructions:
3. For embedded questions spelling is very important. If you spell the answer incorrect it will be marked incorrect. Please make sure that your
spelling of the words is correct.
ZUNGU TRADERS
R R
Rental income 40500
 
40500
income received income


Adjustment of rental income account

Question 10
Correct
MENU
Dashboard
The / Courses
pre-adjustment trial /balance
UNISA of/ JAM
2023Traders
/ Semester
as at 128/ February
20.19, reflected Message /forAssessment
an allowance 2 that amounts to R990 and credit
credit losses
remain unchanged).
JAM Traders.
The balance on the allowance for credit losses account will be R1 435 under method 1 and will remain unchanged at R990 under method 2.
Select one:
True
False 
Correct answer
Question 11
Correct
A closing transfer entry will be done at the end of the financial year in the general journal to transfer sales returns to the sales account.
Select one:
True 
False
Correct answer

Question 12
Correct
MENU

Debit Credit
R R
Capital (1 October 20.19)……………………………………………......…… 200 000
Drawings…………………………………………………………………..............… ?
Allowance for credit losses…………………………………………….....… 3 000
Mortgage: Ginsberg Bank ……………….............................................. 195 000
Fixed deposit (at 7.5% per annum)……………………………………... 50 000
Sales…………………………………………………………………...............……... 345 060
Carriage on purchases……………………………………………….......…… 9 500
Sales returns…………………………………………………………...........……. 6 780
Rental income…………………………………………………………..........…... 19 800
Purchases………………………………………………………………............….. 197 800
Purchases returns……………………………………………………............… 2 890
Depreciation…………………………………………………………..........…….. 38 367
Salaries and wages…………………………………………………........…….. 88 500
Insurance expenses…………………………………………………........……. 27 300
Telephone expenses………………………………………………….......…… 14 280
Water and electricity………………………………………………….....……. 23 450
Credit losses……………………………………………………………..........….. 1 600
(a) Upon reviewing the list of account receivables outstanding at year end, the accountant determined that the allowance for credit losses account
should amount to R5 450 on 30 September 20.20.
Use the information in the pre-adjustment trial balance and the additional information to determine what adjustment is needed to adjust the
allowance for credit losses:
Instructions:
Credit losses 2 450
Profit or loss account Allowance for credit losses Credit losses Trade receivables control
8 450 5 450 3 000

Question 13
Correct
MENU

Prepaid expenses will not be disclosed as a separate line item under current assets in the statement of financial position.
Select one:
True
False 
Correct answer
Question 14
Partially correct
The trial balance of Ralf Traders for the current financial period ending 28 February 20.19, reflected salaries and wages to the amount of R119 000.
The bookkeeper of Ralf Traders compared the salaries and wages of the previous financial year with the salaries and wages of the current financial
year and noted that the salaries and wages for the current financial year have increased by R9 000. According to the bookkeeper’s knowledge, there
were no new appointment, no resignations, no salaries and wages increases, no leave days’ pay-outs and no bonuses were paid during the current
financial period.
Therefore, salaries and wages for current financial period should be the same as the salaries and wages of the previous financial period. After a
thorough investigation by the human resources manager, it was noted on the 28 February 20.19 payroll, that one employee was paid R10 000
instead of a monthly salary of R1 000 for the month of February 20.19. Instead of requesting the employee to pay back the extra amount, the human
resource manager and employee agreed that the extra salary is the payment for the next nine months. No adjustment journal entry has been
processed by the bookkeeper in the accounting books of Ralf Traders.
The effect that the adjustment journal entry will have on the basic accounting equation of Ralf Traders for the year ended 28 February 20.19
will be ...
Instructions:
RALF TRADERS
R
Prepaid expenses Assets Salaries and wages Expenses 9000 Decrease Decrease Noth
      

Question 15
Correct
MENU
Income represents sales made by the business to its customers.
Select one:
True
False 
Correct answer

Question 16
Partially correct
MENU

Extract of pre-adjustment trial balance of Kay Kay Traders as at 31 October 20.21
Debit Credit
R R

Choose...
Post the closing journal entry for settlement discount granted by showing which account
will be debited and which account will be credited.
Debit Credit
R R
Water and electricity....................................................................................................... 21 340
Liability; Accrued expenses; R21 340.
Additional information 
The water and electricity invoice for October has not yet been received or recorded; the
accountant made provision for the bill by taking the average of the invoices of the past 11 months
and adding 10%. He has done this because the water and electricity bill has remained constant
for the past 11 months and an increase of 10% has been introduced from 1 October 20.2.
What is the element grouping; description and amount of the water and electricity
expenses, not accounted for during the 20.2 financial year, in the statement of financial
position?
Debit Credit
R R
Insurance expenses……………………………………………….................………........... 27 300
Asset; Prepaid expenses; R3 900.


The insurance amount for Kumkani Traders’s factory building for the month of October and
November 20.2 has already been paid by the end of the current financial year. The insurance
premium amount has remained constant for the last 2 years.
What is the element grouping; description and the amount of the October and November
20.2 insurance expenses, that has already been paid for in the current financial year, in the
statement of financial position?

A physical inventory count revealed that the following inventory was on hand for Mashaba Traders
at the financial year end 28 February 20.21:
Inventory R21 220

MENU Current assets: Inventories R29 945

Stationery
DashboardR625
/ Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 2
How will these items be disclosed in the statement of financial position as at 30 June 20.21?


Debit Credit
R R
Post the closing journal entry for settlement discount granted by showing which account will be debited and which account will be credited. →
Debit sales; credit settlement discount granted.,
Debit Credit
R R
Water and electricity....................................................................................................... 21 340
The water and electricity invoice for October has not yet been received or recorded; the accountant made provision for the bill by taking the average of
the invoices of the past 11 months and adding 10%. He has done this because the water and electricity bill has remained constant for the past 11
months and an increase of 10% has been introduced from 1 October 20.2.
What is the element grouping; description and amount of the water and electricity expenses, not accounted for during the 20.2 financial year,
in the statement of financial position?
→ Liability: Trade and other payables: R2 134,

Debit Credit
R R
The insurance amount for Kumkani Traders’s factory building for the month of October and November 20.2 has already been paid by the end of the
current financial year. The insurance premium amount has remained constant for the last 2 years.
What is the element grouping; description and the amount of the October and November 20.2 insurance expenses, that has already been paid
for in the current financial year, in the statement of financial position?
→ Asset; Prepaid expenses; R3 900., A physical inventory count revealed that the following inventory was on hand for Mashaba Traders at the financial
year end 28 February 20.21:
Inventory R21 220


Stationery R625
How will these items be disclosed in the statement of financial position as at 30 June 20.21? → Current assets: Inventories R29 945
MENU

Question 17
Incorrect
The statement reflects the non-current liabilities and current liabilities of the business.
Select one:
True
False 
Incorrect answer
Question 18
Correct
Accrued expenses which relates to the current financial period, but which has not yet been paid at the end of the current financial period must be
credited to the applicable expense account at the end of the current financial year to be able to determine the amount that needs to be posted to the
profit or loss account.
Select one:
True
False 
Correct answer

Question 19
Correct
MENU
The presence of a purchases account indicates that the periodic inventory system is in use.
Select one:
True 
False
Correct answer
◄ Assessment 1
Jump to...
Assessment 3 ►

MENU 
Started on Tuesday, 25 April 2023, 1:49 PM

State Finished
Completed on Tuesday, 25 April 2023, 3:19 PM
Marks 22.86/50.00
Feedback
certain concepts.
Question 1
Incorrect
Donation of trading inventory is recorded at cost price in cash payments journal.
Select one:
True 
False
Incorrect answer

Question 2
Incorrect
MENU

Debit Credit
R R
Capital (1 September 20.1)………………………………………............………. 200 000
Drawings………………………………………………………………....................…… ?
Inventory: Trading (1 September 20.1)………………………………......… 61 725
Allowance for credit losses……………………………………………..........….. 4 450
Mortgage: GL Bank ........................................……………….......................... 200 000
Fixed deposit (at 7.5% per annum)…………………………………............. 60 000
Sales………………………………………………………………………......................... 345 060
Carriage on purchases……………………………………………….............……. 9 500
Sales returns…………………………………………………………….................….. 6 780
Rental income…………………………………………………………...............….... 19 800
Purchases………………………………………………………………..................…… 197 800
Purchases returns……………………………………………………...............……. 2 890
Depreciation……………………………………………………………................…... 38 367
Salaries and wages……………………………………………………..............….. 88 500
Insurance expenses……………………………………………………..............…. 27 300
Telephone expenses…………………………………………………...............….. 14 280
Water and electricity……………………………………………………............…. 23 450
Credit losses…………………………………………………………....................….. 1 600
(a) On 1 April 20.2 Zungu Traders bought a factory building by means of a mortgage, from ABC Bank, that bears interest at a rate of 15% per
annum compounded annually. Interest for the current year must still be provided for.
(b) The fixed deposit investment of R60 000 was made on 1 March 20.2. Interest on this investment is paid annually.
The correct amount that must be disclosed as interest on mortgage for the year ended 31 August 20.2 is …
NB: Instructions
Answer: 12500 

Question 3
Correct
MENU
agreement.
The effect that the adjustment journal entry will have on the basic accounting equation of Bright Traders for the year ended 28 February 20.19 will be
…? (Round off your final answer to the nearest Rand)
Instructions:
3. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
6. If an option has been provided and it is not applicable to the specific question, please put N/A in the account column and 0 in the amount column.
BRIGHT TRADERS
Account to be debited Account to be credited Assets
R
Rent income Income received in advance 0
  
Question 4
Correct
After reconciling the year-end physical trading inventory count amount with the balance of the trading inventory account in the general ledger, it was
determined that there is a trading inventory deficit. The trading inventory deficit will be recorded as income in the statement of profit or loss and other
comprehensive income.
Select one:
True
False 
Correct answer



Question 5
Incorrect
MENU
Instructions:
+15 630 +19 890 +4 260
+18 789 -18 789 -4 260 +1 101 +4 260 +15 630 +19 890 -3 159 -19 890 0 +3 159 -1 101 -15 630

Question 6
Partially correct
MENU
will be …
Instructions:
INNOCENT TRADERS
R
Accrued expenses Liabilities Advertising expenses Expenses 16789 Nothing recorded Decrease
      

Question 7
Incorrect
MENU
Fatima, the owner of Fatima Traders keeps incomplete records of the business transactions. The following information is available.
FATIMA TRADERS
Balances as at 28 February 20.1:
20.0 20.1
R R
Vehicles at cost………………………………………………… 28 800 28 800
Furniture and equipment at cost…………………………....... 26 500 26 500
Inventory…………………………………………….................. 21 770 ?
Trade receivables control……..……………………………..... 8 870 12 350
Bank (favourable)…………………………………………........ 25 000 20 000
Long-term borrowings……….……………………………........ 30 000 15 000
Trade payables control………..……………………………….. 9 500 12 700
Accrued expenses……………………..…………………......... 3 400 2 300
Prepaid expenses………………………………………………. 360 365
A physical inventory count revealed that the following was on hand on 28 February 20.1:
R
Inventory 28 669
Stationery 625
Packing materials 150
The total amount for inventories to be disclosed in the statement of financial position of Fatima Traders as at 28 February 20.1 will be?
NB: Instructions

Answer: 28669 

Question 8
Incorrect
MENU
At the end of the financial year, after the year-end adjustments are recorded in the general ledger accounts, the accountant will then prepare a post-
closing trial balance.
Select one:
True 
False
Incorrect answer

Question 9
Incorrect
MENU
The following information relates to Sammy Technologies who buys and sells computers and computer accessories. Sammy Dealers is a registered as
aDashboard
VAT vendor/ and
Courses / UNISA
uses the periodic/ inventory
2023 / Semester 1 /at FAC1502-23-S1
system. VAT / Welcome
15% is applicable. Message
The VAT period / Assessment
of the 2 on unequal months.
business ends
Transactions:
20.22
MW 456)
Instructions:

Trade payables control 25 875 172 500 146 625
Sammy Technologies IT Wholesalers Mega Wholesalers
431.25 22 500 2 250 2 500 150 000 146 625 2 443.75 2 587.50 172 500 14 662.50 375 15 000
17 250 2 875 25 875

Question 10
Correct
MENU
Prepaid expenses are a temporary asset on the date of the statement of financial position.
Select one:
True 
False
Correct answer
Question 11
Correct
creation of an allowance for credit losses (current financial year ends on 28 February 20.19). The auditors of Steven Traders raised an audit finding in the
was evidence that some of the debtors did not pay their accounts in the previous financial periods. The financial manager wants to avoid this audit
finding in the current financial period.
The financial manager requested the bookkeeper to write a memo and indicate which accounts will be affected when the allowance for credit losses is
created? The bookkeeper has written the following statement down and requires you to confirm whether the statement is true or false when the
allowance for credit losses is created.
When the allowance for credit losses is created, you will debit the credit losses account and credit the allowance for credit losses account.
Select one:
True 
False
Correct answer

Question 12
Correct
MENU
Isolation Traders paid an insurance premium of R10 824 on 1 March 20.19 for 12 months. Upon the inspection of the pre-adjustment trial balance for the
year ended 31 May 20.19, the bookkeeper noticed that insurance premiums amounting to R7 380 for the period starting 1 June 20.18 until
28 February 20.19, were paid in the previous financial period. The bookkeeper also noticed that, the insurance premium paid on 1 March 20.19 has not
yet been recorded in the books, and no adjustment has been processed and no reversal has been processed relating to insurance premium paid in the
previous financial period.
The amount for insurance expense to be shown in the statement of profit or loss and other comprehensive income for the year ended
31 May 20.19 will be:
NB: Instructions

Answer: 10086 

Question 13
Partially correct
MENU
On 2 March 20.08, a tenant of SLS Dealers, did an electronic funds transfer of R280 000 into SLS Dealers business bank account. The monthly rental is R18
Dashboard
000 / Courses
per month. / UNISA
The financial / 2023
year-end / Semester
is 28 February 1 / FAC1502-23-S1 / Welcome Message / Assessment 2
20.9.
What will the closing transfer entry for the transaction on 28 February 20.9 be?
Instructions:
Prepaid expenses Profit or loss account Income received in advance Accrued income Rental expenses
Bank Rental income Accrued expenses
18 500 280 000 64 000 216 000

Question 14
Incorrect
Accrued income will not be added to the trade receivables control account balance to disclose the trade and other receivables amount in the statement
of financial position at the end of the financial year.
Select one:
True 
False
Incorrect answer


Question 15
Partially correct
MENU

A deposit meant for another client of the bank was recorded as a credit in the bank statement. This error will be bank reconciliation statement
rectified in the …

Payment made to creditor CS Suppliers of R459 was incorrectly recorded in the cash payment as R549. This error purchases journal
will be corrected in the …

bank reconciliation statement
A debit order for R2 500 will be recorded in the ...

Payment made to creditor NA Suppliers of R321 was incorrectly recorded in the cash payments journal as R231. purchases journal


A deposit meant for another client of the bank was recorded as a credit in the bank statement. This error will be rectified in the … → bank reconciliation
statement,
Payment made to creditor CS Suppliers of R459 was incorrectly recorded in the cash payment as R549. This error will be corrected in the … → cash
receipts journal, A debit order for R2 500 will be recorded in the ... → cash payments journal,
Payment made to creditor NA Suppliers of R321 was incorrectly recorded in the cash payments journal as R231. This error will be corrected in the ... →
cash payments journal

Question 16
Partially correct
MENU
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000
Purchases returns………………………………………………………. 1 200
Carriage on purchases…………………………………………………. 200
Settlement discount received………………………………………….. 500

Settlement discount granted…………………………………………… 2 000
Commission income……………………………………………………. 10 000
Rental income…………………………………………………………… 15 000
Carriage on sales………………………………………………………............................ 500
Salaries and wages…………………………………………………….. 29 000

Telephone expenses………………………………………………….... 2 000
Water and electricity……………………………………………………. 1 600
Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

b) Luna Dealers still owe the courier service R300 for carriage on sales.
c) The secretary took an advance on her March 20.2 salary of R1 000.
d) The rental income was received for 8 months although the contract is for the full 20.2 financial year.
Assuming that the gross profit calculated in the trading account is R160 000, the correct profit or loss account in the general ledger of Luna
Dealers on 28 February 20.2 will be:
Instructions:
Transactions should be posted to the profit or loss account according to the sequence they appear in the extract of Trial Balance (TB) and in the
correct format. Failure to adhere to this instruction will results into a loss of marks.
Carriage on sales 800 Trading account (gross profit) 160 000
Settlement discount granted 2 000 Rental income 22 500
Salaries and wages 28 000 Commission income 10 000
Telephone expenses 2 000
Depreciation 1 500
Trading account (net profit) 158 200
192 500 192 500

Telephone expenses Capital (Total comprehensive profit for the year) Trading account (gross profit)
Capital (Total comprehensive loss for the year) Trading account (net profit) Salaries and wages
Settlement discount granted Water and electricity Depreciation

MENU
Carriage on purchases Settlement discount received Inventory

Commission income Rental income Drawings
Credit losses Capital Carriage on sales
Sales Purchases
50 000 150 000 800 28 000 235 000 7 500 158 200 22 500 2 000 200 185 000 29 000 400 1 600
30 000 15 000 10 000 30 000 100 000 38 800 192 500 160 000 500 1 500 5 000
Question 17
Correct
Trade receivables are included as current assets in the statement of financial position.
Select one:
True 
False
Correct answer
Question 18
Incorrect
Expenditure accounts will be credited at the end of the financial year with the narration, “Profit or loss account.”
Select one:
True
False 
Incorrect answer



Question 19
Correct
MENU

An entity or an individual who does not pay at the time of a transaction as a result of a Trade debtor
credit sale is known as a ….

create an allowance for settlement discount granted.
Entities that have a settlement discount policy must at the end of the financial year…

Interest charged on an overdue debtors account will …the trade receivables control increase
account.

… to offered to trade debtors to encourage a faster settlement of debts within the credit Settlement discount granted
term.


An entity or an individual who does not pay at the time of a transaction as a result of a credit sale is known as a …. → Trade debtor,
Entities that have a settlement discount policy must at the end of the financial year… → create an allowance for settlement discount granted.,
Interest charged on an overdue debtors account will …the trade receivables control account. → increase,
… to offered to trade debtors to encourage a faster settlement of debts within the credit term. → Settlement discount granted
◄ Assessment 1
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Assessment 3 ►

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Started on Wednesday, 3 May 2023, 3:20 PM

State Finished
Completed on Wednesday, 3 May 2023, 3:47 PM
Marks 38.67/50.00
Feedback
Question 1
Partially correct
will be …
Instructions:
INNOCENT TRADERS
R
Advertising expenses Expenses Accrued expenses Liabilities 2159 Increase Nothing recorded I
      

Question 2
Correct
MENU
Parker Traders
Dashboard / provided
Courses you with the
/ UNISA / following information
2023 / Semester 1 /regarding the list of/ totals
FAC1502-23-S1 and balances
Welcome Messageon/ 30 April 20.8 2
Assessment
R
TOTALS FOR JOURNALS

A sales invoice of R950 was entered twice in the sales journal and posted twice to the personal account of a debtor, Mr T Maharaj.
What will the general journal entry for the correction of the sales invoice of R950 that was entered twice in the sales journal and personal
account of Mr T Maharaj be?
Instructions:

Sales 950
Allowance for credit losses Trade payables control/Mr T Maharaj Sales Trade receivables control/Mr T Maharaj
Bank and settlement discount granted
274 180 275 130 277 030 1 900

Question 3
Correct
MENU

Drawings of trading inventory is recorded at selling price in general journal.
Select one:
True
False 
Correct answer
Question 4
Correct
On comparison of the journals with the bank statement it was

noted that bank charges for R350 reflected in the debit column of bank charges in the cash payments journal.
the bank statement only. The bookkeeper will record the R350 as

…
the debit side of the bank reconciliation statement.

A favourable general ledger bank balance will be recorded on …

a credit entry as deposits not yet credited in the bank reconciliation statement.
noted that cash sales for 30th of June 20.22 was banked but it did
not reflect on the bank statement. The bookkeeper will record … 
decrease the bank account.

Cash withdrawn to restore the petty cash float will …


On comparison of the journals with the bank statement it was noted that bank charges for R350 reflected in the debit column of the bank statement
only. The bookkeeper will record the R350 as … → bank charges in the cash payments journal.,
A favourable general ledger bank balance will be recorded on … → the debit side of the bank reconciliation statement.,
On comparison of the journals with the bank statement it was noted that cash sales for 30th of June 20.22 was banked but it did not reflect on the bank
statement. The bookkeeper will record … → a credit entry as deposits not yet credited in the bank reconciliation statement.,
Cash withdrawn to restore the petty cash float will … → decrease the bank account.

Question 5
Correct
MENU
Instructions:
-3 159 0 +3 159
+4 260 +1 101 -15 630 +3 159 -18 789 -3 159 -1 101 -19 890 +15 630 0 +18 789 -4 260 +19 890

Question 6
Incorrect
MENU

Debit Credit
R R
Drawings………………………………………………………………....................…… ?
Mortgage: GL Bank ........................................……………….......................... 200 000
Sales………………………………………………………………………......................... 345 060
Sales returns…………………………………………………………….................….. 6 780
Rental income…………………………………………………………...............….... 19 800
Purchases………………………………………………………………..................…… 197 800
Depreciation……………………………………………………………................…... 38 367
Credit losses…………………………………………………………....................….. 1 600
NB: Instructions
Answer: 12500 

Question 7
Correct
MENU

Under a periodic inventory system, the cost of sales is determined at the time of the recording of the sale.
Select one:
True
False 
Correct answer
Question 8
Incorrect
On 1 May 20.18 Venus Traders entered into a new two-year advertising agreement with Tino Advertising Agency. The advertising agreement was
effective with immediate effect and stipulated that Venus Traders would pay R2 750 per month to Tino Advertising Agency for advertising services that
would be provided by Tino Advertising Agency on a monthly basis. Tino Advertising Agency has performed all the necessary advertising services that was
required from them since the effective date of the advertising agreement for the current financial period (the current financial period ends on
28 February 20.19).
The pre-adjustment trial balance for the year ended 28 February 20.19 reflected advertising expenses for an amount of R18 720 as well as accrued
advertising expenses of R4 170 on 1 March 20.18 (the beginning of the current financial period). On 20 April 20.18 Venus Traders paid the advertising
expenses that was outstanding from the previous financial period. The outstanding advertising expenses for the current financial period must still be
provided for.
The advertising expenses amount to be disclosed in the statement of profit or loss and other comprehensive income for the year ended
Instructions:

Answer: 18720 

Question 9
Correct
MENU


credited with …


the financial year.


financial position.
Question 10
Correct

Trade receivables are included as current assets in the statement of financial position.
Select one:
True 
False
Correct answer

Question 11
Partially correct
MENU
On 2 March 20.1, a tenant of ABC Traders, did an electronic funds transfer of R156 000 into ABC Traders’ business bank account. The monthly rental is
R12 000 per month. The financial year-end is 28 February 20.2.
What will the closing transfer journal entry for the transaction on 28 February 20.2 be?
Instructions:
6. Your answer is case sensitive; therefore, you need to put the very first letter of the answer in uppercase, but the rest of your answer must be in
ABC TRADERS
Closing transfer journal – 28 February 20.2 Debit Credit
R R
rental income 12000
 
12000
Income Received in advance


Question 12
Correct
The balance of equity at the beginning of the financial year in the statement of changes in equity is disclosed in the statement of financial position.
Select one:
True
False 
Correct answer

Question 13
Correct
MENU
At the end of the financial year, the gross profit calculated in the profit or loss account is transferred to the trading account.
Select one:
True
False 
Correct answer
Question 14
Correct
The balance of equity at the beginning of the financial year in the statement of changes in equity is not disclosed in the statement of financial position.
Select one:
True 
False
Correct answer
Question 15
Correct
The cost of sales is determined via entries in the trading account of the business entity.
Select one:
True 
False
Correct answer

Question 16
Partially correct
MENU
The financial year end for Blessing Traders is 30 June. Blessing Traders is a tenant and rent is R8 500 per month. The financial records of Blessing Traders
Dashboard
showed that /rent
Courses / for
was paid UNISA
nine /months
2023 during
/ Semester 1 / FAC1502-23-S1
the financial year ended 30 /June
Welcome
20.1. Message / Assessment 2
The correct adjustment journal entries in the general journal for 30 June 20.1 will be:
Instructions:

25 500
Accrued expenses
Rental income Bank Rental expenses Accrued income Prepaid expenses
Income received in advance Accrued expenses Profit or loss account
102 000 8 500 76 500

Question 17
Incorrect
MENU
The amount for rental expenses to be disclosed in the statement of profit or loss and other comprehensive income for the year ended
Instructions:

Answer: 8580 
Question 18
Correct
The pre-adjustment trial balance of JAM Traders as at 28 February 20.19, reflected an allowance for credit losses that amounts to R990 and credit
remain unchanged).
JAM Traders.
The balance on the allowance for credit losses account will be R1 435 under both methods. However, credit losses to be disclosed in the statement of
profit or loss and other comprehensive income for the year ended 28 February 20.19, will be R1 225 under method 1 and R1 125 under method 2.
Select one:
True
False 
Correct answer

Question 19
Partially correct
MENU
The pre-adjustment trial balance of Platform Traders for the year ended 28 February 20.19 reflected the following balances:
Trading inventory R16 502
Cleaning materials R550
Packaging materials R2 980
Stationery R740
During the physical inventory count, which was held on the 27 and 28 February 20.19 the following inventory was on hand: trading inventory to the
amount of R14 184, cleaning materials to the amount of R420, packaging materials to the amount of R332 and stationery to the amount of R248.
The business makes use of the perpetual inventory system.
The correct adjustment journal entries that need to be processed, to ensure that the inventory amounts to be disclosed in the statement of
profit or loss and other comprehensive income and in the statement of financial position as at 28 February 20.19 is correct?
Instructions:

Keep the sequence according to the transactions given in the additional information.
Trading inventory deficit 2 318
Inventory 2 318
Consumable stores on hand 1 000
248
Stationery
332
Packing materials
420
Cleaning materials
Packing materials Trading account Stationery Trading inventory deficit Profit or loss account
Consumable stores on hand Trading inventory surplus Cleaning materials Inventory
550 492 740 14 184 2 790 3 270 2 980 332 130 248 420 2 318 16 502 1 000 2 648
◄ Assessment 1
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Assessment 3 ►

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Dashboard / My courses / FAC1502-23-S1 / Welcome Message / Assessment 2
Started on Friday, 28 April 2023, 1:37 PM

State Finished
Completed on Friday, 28 April 2023, 2:55 PM
Marks 36.77/50.00
Feedback
Question 1
Incorrect

When the perpetual inventory system is used, carriage on purchases, is credited to the asset account, inventory, since the cost of sales must be brought
into account with each sales transaction and carriage on purchases constitutes an integral part of the cost per unit.
Select one:
True 
False
Incorrect answer

Question 2
Incorrect
MENU
CK TRADERS
R
Capital…………………………………………………………………………………......................……. 350 000
Drawings………………………………………………………………………………....................……. 2 500
Bank (Favourable)…………………………………………………………………................………. 15 909
Petty cash………………………………………………………………………………...................…… 254
Cash float………………………………………………………………………………...................…… 2 542
Rental income…………………………………………………………………………….............…… 19 800
Interest on fixed deposit…………………………………………………………….........……… 7 247
Advertising…………………………………………………………………………….................…….. 23 580
Stationery……………………………………………………………………………….................…… 3 540
Credit losses……………………………………………………………………………...................... 650
(a) CK Traders sublets part of its building to B Silver. B Silver paid R19 800 on the 1 November 20.8 for 15 months. The rental agreement stipulated that
CK Traders will increase the rental amount to R1 500 from 1 August 20.9.
(b) CK Traders deposited R120 782 into a fixed deposit account with TB Bank on 1 February 20.9, at an interest rate of 12% per annum. The interest is
receivable twice per annum in June and December.
(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso advertising agency for a period of 2 years for a total amount of
R23 580. CK Traders paid R23 580 to Kgomotso advertising agency on 1 November 20.8 to cover the full contracted period.
Inventory R7 775
Stationery R260
(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at 11,5% per annum. The loan repayment schedule indicate
that the capital repayment of the loan would be made in four equal instalments as follows:
The amount for rental income to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 October
20.9 will be …
Instructions:

Answer: 15840 

MENU

Question 3
Incorrect
MENU
Dashboard / My courses / FAC1502-23-S1 / Welcome Message / Assessment Debit 2 Credit

R R
Capital (1 September 20.1)………………………………………………............... 200 000
Drawings……………………………………………………………….......................…… ?
Inventory: Trading (1 September 20.1)…………………………….........…… 61 725
Mortgage: GL Bank ………………..................................................................... 195 000
Sales…………………………………………………………………….........................…... 345 060
Sales returns…………………………………………………………......................……. 6 780
Rental income………………………………………………………....................……... 19 800
Purchases……………………………………………………………….......................….. 197 800
Depreciation………………………………………………………….....................……. 38 367
Credit losses…………………………………………………………….....................….. 1 600
(a) On 29 August 20.2, Zungu Traders was informed that A Langa, a debtor who owed the entity R660, had been declared insolvent. The amount must
still be written off as irrecoverable.
Prepare the closing transfer journal entry for credit losses for the year ended 31 August 20.2 for Zungu Traders:
Instructions
ZUNGU TRADERS
R R
Credit losses 2740
 
2740
Allowance for credit losses


Closing transfer for credit losses account

Question 4
Partially correct
MENU
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000

Rental income…………………………………………………………… 15 000

Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

Assuming that the gross profit calculated in the trading account is R160 000, the correct profit or loss account in the general ledger of Luna
Dealers on 28 February 20.2 will be:
Instructions:
Transactions should be posted to the profit or loss account according to the sequence they appear in the extract of Trial Balance (TB) and in the
correct format. Failure to adhere to this instruction will results into a loss of marks.
Salaries and wages 30 000 Rental income 22 500
Telephone expenses 2 000 Settlement discount granted 10 000
Credit losses 400
Depreciation 1 500
Capital 158 200
10 000 192 500

Credit losses Carriage on sales Capital (Total comprehensive loss for the year)
Sales Rental income Carriage on purchases
Capital (Total comprehensive profit for the year) Salaries and wages Drawings
MENU
Capital Water and electricity Telephone expenses

Settlement discount received Trading account (net profit) Depreciation
Inventory Purchases Trading account (gross profit)
Settlement discount granted Commission income
50 000 2 000 28 000 22 500 158 200 30 000 185 000 30 000 800 38 800 500 1 600 100 000 200
5 000 10 000 15 000 1 500 400 192 500 150 000 7 500 160 000 235 000 29 000
Question 5
Correct
The amount for insurance expenses to be shown in the statement of financial position as at 31 May 20.19 will be …
Instructions:

Answer: 8145 

Question 6
Correct
MENU

cash payments journal

A debit order for R2 500 will be recorded in the ...

Payment made to creditor NA Suppliers of R321 was incorrectly recorded in the cash payments journal as R231. cash payments journal

Payment made to creditor CS Suppliers of R459 was incorrectly recorded in the cash payment as R549. This error cash receipts journal
will be corrected in the …

A deposit meant for another client of the bank was recorded as a credit in the bank statement. This error will be bank reconciliation statement
rectified in the …

The correct answer is: A debit order for R2 500 will be recorded in the ... → cash payments journal,
Payment made to creditor NA Suppliers of R321 was incorrectly recorded in the cash payments journal as R231. This error will be corrected in the ... →
cash payments journal,
Payment made to creditor CS Suppliers of R459 was incorrectly recorded in the cash payment as R549. This error will be corrected in the … → cash
receipts journal,
A deposit meant for another client of the bank was recorded as a credit in the bank statement. This error will be rectified in the … → bank reconciliation
statement

Question 7
Correct
MENU
Bright Traders leased a portion of it's factory to Faith Traders at the beginning of the current financial year for a period of 12 months (the current financial
Dashboard
period ends /onMy28courses / 20.19).
February FAC1502-23-S1 / Welcome
Bright Traders Message
received rent to /theAssessment
amount of 2R30 720 from Faith Traders, which covers the rent amount for the
current financial period. On 1 September 20.18, Bright Traders notified Faith Traders that from 1 October 20.18 to 28 February 20.19, Bright Traders will
be renovating the entire factory building. Therefore, Bright Traders requested Faith Traders to vacate the factory building during the renovation period.
Bright Traders and Faith Traders reached an agreement that the rent already paid for the renovation period will be utilised in the next financial period
when renovations are completed. No adjustment journal entry has been processed by Bright Traders regarding the above agreement.
The effect that the adjustment journal entry will have on the basic accounting equation of Bright Traders for the year ended 28 February 20.19
will be …?
Instructions:
4. Round off your final answer to the nearest Rand
-12 800 0 +12 800
- 15 360 +30 720 +12 800 -30 720 +2 560 -2 560 -12 800 0 +15 360

Question 8
Correct
MENU
The trial balance of Ralf Traders for the current financial period ending 28 February 20.19, reflected salaries and wages to the amount of R119 000.
The bookkeeper of Ralf Traders compared the salaries and wages of the previous financial year with the salaries and wages of the current financial
Dashboard
year / My
and noted courses
that / FAC1502-23-S1
the salaries and wages for/ the
Welcome
currentMessage
financial /year
Assessment 2
have increased by R9 000. According to the bookkeeper’s knowledge, there
were no new appointment, no resignations, no salaries and wages increases, no leave days’ pay-outs and no bonuses were paid during the current
financial period.
Therefore, salaries and wages for current financial period should be the same as the salaries and wages of the previous financial period. After a
thorough investigation by the human resources manager, it was noted on the 28 February 20.19 payroll, that one employee was paid R10 000
instead of a monthly salary of R1 000 for the month of February 20.19. Instead of requesting the employee to pay back the extra amount, the human
resource manager and employee agreed that the extra salary is the payment for the next nine months. No adjustment journal entry has been
processed by the bookkeeper in the accounting books of Ralf Traders.
will be ...
Instructions:
RALF TRADERS
R
Prepaid expenses Assets Salaries and wages Expenses 9000 Increase Increase Noth
      
Question 9
Correct
The statement reflects the financial performance of the business.
Select one:
True
False 
Correct answer

Question 10
Correct
MENU
Select one:
True 
False
Correct answer
Question 11
Partially correct
Please choose the correct option for each of the questions provided.
The difference between sales and cost of sales is referred to as … gross profit.

What is disclosed in the statement of financial position of business? Equity, assets and liabilities.

An account that will be closed off to the profit or loss account at the end of the
financial year is ... loss for the year.

What will not be classified as a current asset for a furniture retailer? Shop fittings


The difference between sales and cost of sales is referred to as … → gross profit.,
What is disclosed in the statement of financial position of business? → Equity, assets and liabilities.,
An account that will be closed off to the profit or loss account at the end of the financial year is ... → Rental income,
What will not be classified as a current asset for a furniture retailer? → Shop fittings

Question 12
Partially correct
MENU
The total of trade receivables column in the sales return journal of Dineo Stores is R80 000. In the process of reconciling the balance on the trade
receivables control account with the list of balances as per trade receivables ledger, it was noted that the sales return journal was overcast by R1 080.
What will the correct general ledger entries in the books of Dineo Stores to rectify the sales returns journal total be?
Instructions:

Sales Trade receivables control N/A Sales returns
540 2 060 0

Question 13
Incorrect
MENU

Debit Credit
R R
Capital (1 March 20.1)…………………………………………….......……..... 200 000
Drawings………………………………………………………………..................... ?
Fixed deposit (at 7.5% per annum)………………………………….....…. 50 000
Sales………………………………………………………………............................... 345 060
Sales returns…………………………………………………………...................... 6 780
Rental income…………………………………………………………................... 19 800
Purchases……………………………………………………………........................ 197 800
Depreciation…………………………………………………………...................... 38 367
Credit losses…………………………………………………………….................. 1 600
(a) On 1 April 20.1 Kumkani Traders bought a factory building by means of a mortgage, from Ginsberg Bank, that bears interest at a rate of 10.05% per
annum compounded annually. The loan is redeemable in 20 annual instalments of R22 980. The instalments are in arrears. Interest for the current year
must still be provided for.
The correct amount that must be disclosed in the statement of profit or loss and other comprehensive income as interest on mortgage for the
year ended 28 February 20.2 will be ...
NB: Instructions
Answer: 9949.50 

Question 14
Correct
MENU

Select one:
True
False 
Correct answer
Question 15
Correct
creation of an allowance for credit losses (current financial year ends on 28 February 20.19). The auditors of Steven Traders raised an audit finding in the
Select one:
True 
False
Correct answer

Question 16
Incorrect
MENU
The statement reflects the non-current and current assets of the business.
Select one:
True
False 
Incorrect answer

Question 17
Correct
MENU
A physical inventory count revealed that the following inventory was on hand for Mashaba Traders at the financial year end 28 February 20.21:
Inventory R21 220
Stationery R625
How will these items be disclosed in the statement of financial position as at 28 February 20.21?
Instructions:
ASSETS
Current assets
Inventories 29 945
N/A 0
N/A 0
Current assets Non-current assets ASSETS Non-current liabilities Current liabilities
Inventories Equity Capital Consumable stores on hand Stationery on hand
Stationery EQUITY AND LIABILITIES Packing materials N/A
625 21 220 8 100 0 8 725 29 945

Question 18
Correct
MENU
Profit reflects expenses that are less than income.
Select one:
True 
False
Correct answer
Question 19
Correct
Settlement discount received will be closed off to the sales account at the end of a financial year.
Select one:
True
False 
Correct answer
◄ Assessment 1
Jump to...
Assessment 3 ►

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Started on Monday, 1 May 2023, 11:46 PM

State Finished
Completed on Tuesday, 2 May 2023, 1:16 AM
Marks 35.00/50.00
Feedback
Question 1
Correct
The trial balance of Ralf Traders for the current financial period ending 28 February 20.19, reflected salaries and wages to the amount of R130 000. The
bookkeeper of Ralf Traders compared the salaries and wages of the previous financial year with the salaries and wages of the current financial year and
noted that the salaries and wages for the current financial year have increased by R20 000. According to the bookkeeper’s knowledge, there were no new
appointment, no resignations, no salaries and wages increases, no leave days’ pay-outs and no bonuses were paid during the current financial period.
Therefore, salaries and wages for current financial period should be the same as the salaries and wages of the previous financial period. After a thorough
investigation by the human resources manager, it was noted on the 28 February 20.19 payroll, that one employee was paid R22 500 instead of a monthly
salary of R2 500 for the month of February 20.19. Instead of requesting the employee to pay back the extra amount of R20 000, the human resource
manager and employee agreed that the extra salary is the payment for the next eight months. No adjustment journal entry has been processed by the
bookkeeper in the accounting books of Ralf Traders.
will be?
Instructions:
+20 000 +20 000 0
-2 500 +20 000 +130 000 -20 000 -130 000 0 +2 500

Question 2
Incorrect
MENU
Kales Plumbing Services provided with the following information for the financial year ended 28 February 20.1.
R
Salaries…………………………………………………………...................... 320 000

Wages……………………………………………………………................... 50 000
Telephone……………………………………………………….................. 5 000
Stationery………………………………………………............................ 3 000
Interest income…………………………………………………............. 2 000
Insurance………………………………………………............................. 9 000
The profit/loss for the year of Kales Plumbing Services for the year ended 28 February 20.1 is ...
Instructions:

4. Indicate a profit as 12142 and a loss as -12142
Answer: 527 000 
Question 3
Correct
At the end of the financial year after the year-end adjustments are recorded in the general ledger accounts, the accountant will then prepare a pre-
adjustment trial balance.
Select one:
True
False 
Correct answer

Question 4
Partially correct
MENU
A physical inventory count revealed that the following inventory was on hand for Candise Traders at the financial year end 31 March 20.2:

Inventory R21 220
Stationery R625
How will these items be disclosed in the statement of financial position as at 31 March 20.2?
NB: Instructions
3. If an option has been provided and it is not applicable to the specific question please put N/A in the column.
CANDISE TRADERS
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20.2
R
ASSETS 
Current assets 
Inventories  21 220

Consumable stores on hand
 

Question 5
Partially correct
MENU


the debit side of the bank reconciliation statement.

A favourable general ledger bank balance will be recorded on …

noted that bank charges for R350 reflected in the debit column of decrease the bank account.

…
Cash withdrawn to restore the petty cash float will … bank charges in the cash payments journal.



Question 6
Incorrect
MENU
The amount for insurance expense to be shown in the statement of profit or loss and other comprehensive income for the year ended
31 May 20.19 will be:
NB: Instructions
Answer: 10530 
Question 7
Incorrect
With the periodic inventory system an entity will keep continuous track of inventory levels for the different inventory items it sells.
Select one:
True 
False
Incorrect answer

Question 8
Correct
MENU

An owner that starts a business cannot invest equipment as part of his investment to start the business.
Select one:
True
False 
Correct answer

Question 9
Partially correct
MENU
Dashboard
effective with/ immediate
Courses /effect
UNISAand/stipulated
2023 / that
Semester
Venus1Traders
/ FAC1502-23-S1
would pay R2/ 430
Welcome Message
per month / Advertising
to Tino AssessmentAgency
2 for advertising services that
28 February 20.19).
expenses that was outstanding from the previous financial period, but the bookkeeper completely forgot to record this transaction in the accounting
books of Venus Traders. The advertising expenses not applicable to the current financial period must still be provided for.
The correct journal entries (including cash transactions) needed to be processed, to ensure that the advertising expenses amount to be
disclosed in the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19 is correct?
Instructions:

Advertising expenses 5 170
Bank 5 170
Tino Advertising Agency/trade payables control Profit or loss account Accrued expenses
Advertising expenses Bank Prepaid expenses
2 420 26 720 29 160 2 430 24 300 5 170

Question 10
Partially correct
MENU
will be …
Instructions:
INNOCENT TRADERS
R
Advertising expenses Expenses Accrued expenses Liabilities 16789 Nothing recorded Decrease
      
Question 11
Correct

If the VAT output amount in the VAT control account is bigger than the VAT input account in the VAT control account, the amount of the difference will be
disclosed as a current asset in the statement of financial position.
Select one:
True
False 
Correct answer

Question 12
Correct
MENU
Dashboard
(current 1 year
The auditors 2
Select one:
True 
False
Correct answer

Question 13
Incorrect
MENU

Debit Credit
R R
Capital (1 October 20.19)…………………………………………….......…… 200 000
Drawings………………………………………………………………...............…… ?
Inventory: Trading (1 October 20.19)……………………………….…… 61 725
Allowance for credit losses……………………………………………......…. 4 450
Sales……………………………………………………………….................………... 345 060
Carriage on purchases……………………………………………….........…… 9 500
Sales returns…………………………………………………………..............……. 6 780
Rental income…………………………………………………………............…... 19 800
Purchases……………………………………………………………...............…….. 197 800
Purchases returns……………………………………………………...........…… 2 890
Depreciation…………………………………………………………............…….. 38 367
Salaries and wages…………………………………………………..........…….. 88 500
Insurance expenses……………………………………………………..........…. 27 300
Telephone expenses………………………………………………….........…… 14 280
Water and electricity………………………………………………….......……. 23 450
Credit losses……………………………………………………………............….. 1 600
per annum. The loan is redeemable in 20 equal instalments. Interest for the current year must still be provided for.
The correct amount that must be disclosed as interest on mortgage for the year ended 30 September 20.20 is ...
Instructions:

Answer: 9949.50 

Question 14
Correct
MENU
In the periodic inventory method, the business entity will keep continuous track of inventory levels for the different inventory items it sells.
Select one:
True
False 
Correct answer
Question 15
Partially correct
The difference between sales and cost of sales is referred to as … gross profit.

An account that will be closed off to the profit or loss account at the end of the
financial year is ... Shop fittings

What is disclosed in the statement of financial position of business? Equity, assets and liabilities.

What will not be classified as a current asset for a furniture retailer? Rental income


The difference between sales and cost of sales is referred to as … → gross profit.,
An account that will be closed off to the profit or loss account at the end of the financial year is ... → Rental income,
What is disclosed in the statement of financial position of business? → Equity, assets and liabilities.,
What will not be classified as a current asset for a furniture retailer? → Shop fittings

Question 16
Correct
MENU
The total of trade receivables column in the sales return journal of Dineo Stores is R80 000. In the process of reconciling the balance on the trade
receivables control account with the list of balances as per trade receivables ledger, it was noted that the sales return journal was overcast by R1 080.
What will the correct general ledger entries in the books of Dineo Stores to rectify the sales returns journal total be?
Instructions:
Trade receivables control 1 080 Sales returns 1 080
Sales Trade receivables control Sales returns N/A
540 2 060 0

Question 17
Partially correct
MENU
A physical inventory count revealed that the following was on hand on the premises of NJM Traders at the financial year-end 30 April 20.20:
Inventory R9 500
Stationery R800
How will these items be disclosed in the statement of financial position as at 30 April 20.20?
Instructions:
ASSETS
Current assets
Inventories 9 500
N/A 0
Capital Consumable stores on hand Non-current liabilities Current liabilities Stationery
Packing materials Inventories Non-current assets N/A EQUITY AND LIABILITIES
Fixed deposit ASSETS Equity Current assets
11 800 1 500 0 2 300 9 500 800

Question 18
Correct
MENU
Prepaid expenses will be disclosed as a current liability in the statement of financial position at the end of a financial period.
Select one:
True
False 
Correct answer
Question 19
Correct
Expenses for the year are disclosed in this statement.
Select one:
True
False 
Correct answer
◄ Assessment 1
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Started on Saturday, 6 May 2023, 1:49 PM

State Finished
Completed on Saturday, 6 May 2023, 2:31 PM
Time taken 42 mins
Marks 35.03/50.00
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Question 1
Correct
The pre-adjustment trial balance of JAM Traders as at 28 February 20.19, reflected an allowance for credit losses that amounts to R990 and credit
remain unchanged).
JAM Traders.
The amount for credit losses to be disclosed in the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19,
will be R1 225 under method 1 and R1 570 under method 2 since the allowance for credit losses has remained unchanged.
Select one:
True
False 
Correct answer

Question 2
Correct
MENU
Profit reflects expenses that exceed income.
Select one:
True
False 
Correct answer
Question 3
Incorrect
Distribution, administrative and other expenses for the year are disclosed in this statement.
Select one:
True 
False
Incorrect answer

Question 4
Correct
MENU

the financial year.



credited with …


financial position.,
The trade receivables control account must be credited with … → actual irrecoverable debt.
Question 5
Correct
The gross profit calculated in this statement is transferred to the capital account.
Select one:
True
False 
Correct answer

Question 6
Correct
MENU
The presence of a purchases account indicates that the periodic inventory system is in use.
Select one:
True 
False
Correct answer
Question 7
Correct
The inexperienced accounting clerk wrongfully entered the manager's salary of R11 000 into the insurance account. Ignore any VAT implications for
this transaction.
The correct journal entry of the correction of the error will be …
NB: Instructions

3. Round the amount of to the nearest Rand (eg: 12141.72 will be 12142)
GENERAL JOURNAL - MAY 20.2 GJ1

R R
31 Salaries  11000

Insurance  11000

Question 8
Correct
MENU
All the amounts in the profit or loss account excludes VAT amounts.
Select one:
True 
False
Correct answer
Question 9
Incorrect
effective with immediate effect and stipulated that Venus Traders would pay R2 750 per month to Tino Advertising Agency for advertising services that
28 February 20.19).
expenses that was outstanding from the previous financial period. The outstanding advertising expenses for the current financial period must still be
provided for.
The advertising expenses amount to be disclosed in the statement of financial position as at 28 February 20.19 will be:
Instructions:
Answer: 4500 

Question 10
Partially correct
MENU
The following balances appeared in the general ledger of Vice Traders on 30 June 20.2:
R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Purchases returns………………………………………………….. 4 000
Settlement discount received……………………………………… 1 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500
Carriage on purchases……………………………………………... 2 000
Carriage on sales…………………………………………………… 500
Settlement discount granted………………………………………. 3 000
Inventory on hand on 30 June 20.2 is R20 000.
Which of the following represents the correct amount for the cost of purchases?
Instructions:

Please keep the sequence of transactions strictly according the information given but also in the correct format.
Purchases 76 500
Inventory (1 July 20.1) 60 000
Customs duties (1 500)
Inventory (30 June 20.2) (20 000)
118 500
Inventory (30 June 20.2) Purchases Customs duties Settlement discount granted Carriage on purchases
Inventory (1 July 20.1) Purchases returns Carriage on sales Settlement discount received Sales
(20 000) 88 500 76 500 77 000 118 500 270 000 (80 000) 60 000 2 000 (1 500) 4 000 1 000 (2 000) 1 500
(3 000) (60 000) 20 000 (500) 78 500 500 80 000 3 000 (4 000) 71 500 (1 000)


Question 11
Correct
MENU



noted that bank charges for R350 reflected in the debit column of bank charges in the cash payments journal.

…
A favourable general ledger bank balance will be recorded on … the debit side of the bank reconciliation statement.

Cash withdrawn to restore the petty cash float will … decrease the bank account.


Question 12
Incorrect

At the end of the financial year, the loss calculated in the profit or loss account in the general ledger is to transferred to the capital account by crediting
the profit or loss account and debiting the capital account.
Select one:
True
False 
Incorrect answer

Question 13
Incorrect
MENU
The amount for prepaid rental expenses to be disclosed in the statement of financial position as at 28 February 20.19 will be:
Instructions:

Answer: 8145 

Question 14
Correct
MENU
On 1 April 20.21 Ms T. Tlale, a debtor of Lulu Traders, owed the business R4 485. Ms T. Tlale was declared insolvent on 21 April 20.21. The amount of
Dashboard
R690 must be/ written
My courses
off as/irrecoverable.
The allowance forMessage / Assessment
credit losses 2 remain unchanged during the year. Lulu Traders is a registered
account must
VAT vendor and the VAT rate applicable is 15%.
What will the correct journal entry for the irrecoverable debt to get written off be?
Instructions:

When debiting or crediting income and expense account, ensure that it that particular account that is debit or credited first, before debiting or crediting
Vat account.
Credit losses 600
VAT input 90
Ms T. Tlale/trade receivables control 690
Ms T. Tlale/trade receivables control Allowance for credit losses Credit losses VAT output
N/A Ms T. Tlale/Trade payables control VAT input
3 609 585 690 4 485 0 600 3 795 3 900 90 105

Question 15
Correct
MENU
Drawings and donation of trading inventory is recorded at cost price in the general journal.
Select one:
True 
False
Correct answer

Question 16
Partially correct
MENU
The pre-adjustment trial balance of Platform Traders for the year ended 28 February 20.19 reflected the following balances:
Cleaning materials R550
Packaging materials R2 980
Stationery R740
During the physical inventory count, which was held on the 27 and 28 February 20.19 the following inventory was on hand: trading inventory to the
amount of R14 184, cleaning materials to the amount of R420, packaging materials to the amount of R332 and stationery to the amount of R248.
The correct adjustment journal entries that need to be processed, to ensure that the inventory amounts to be disclosed in the statement of
profit or loss and other comprehensive income and in the statement of financial position as at 28 February 20.19 is correct?
Instructions:

Keep the sequence according to the transactions given in the additional information.
Trading inventory deficit 2 318
Inventory 2 318
248
Stationery
332
Packing materials
420
Cleaning materials
Consumable stores on hand Cleaning materials Stationery Trading inventory deficit Packing materials
Inventory Trading inventory surplus Trading account Profit or loss account
332 248 740 3 270 130 492 2 980 2 648 2 318 14 184 2 790 16 502 1 000 550 420

Question 17
Incorrect
MENU

Debit Credit
R R
Drawings………………………………………………………………....................…… ?
Mortgage: GL Bank ........................................……………….......................... 200 000
Sales………………………………………………………………………......................... 345 060
Sales returns…………………………………………………………….................….. 6 780
Rental income…………………………………………………………...............….... 19 800
Purchases………………………………………………………………..................…… 197 800
Depreciation……………………………………………………………................…... 38 367
Credit losses…………………………………………………………....................….. 1 600
NB: Instructions
Answer: 12500 

Question 18
Partially correct
MENU
Instructions:
+3 159 0 +3 159
-18 789 +19 890 +18 789 -1 101 +3 159 -19 890 -4 260 +1 101 +4 260 -3 159 -15 630 +15 630 0

Question 19
Partially correct
MENU
agreement.
Instructions:
BRIGHT TRADERS
R
Rent income Income Income received in advance Liabilities 25580 Increase Nothing reco
      
◄ Assessment 1
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Started on Saturday, 6 May 2023, 12:03 PM

State Finished
Completed on Saturday, 6 May 2023, 12:38 PM
Marks 35.00/50.00
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Question 1
Partially correct
On 2 March 20.1, a tenant of ABC Traders, did an electronic funds transfer of R160 000 into ABC Traders’ business bank account. The monthly rental is
R16 000 per month. The financial year-end is 28 February 20.2.
Use the information to do the journal entry that correctly accounts for the closing adjustment of the rentals at year-end:
Instructions:

6. Your answer is case sensitive; therefore, you need to put the very first letter of the answer in uppercase, but the rest of your answer must be in
ABC TRADERS

R R
Accrued income 32000
 
32000
trade receivable control



Question 2
Correct
MENU
Select one:
True 
False
Correct answer
Question 3
Correct
The pre-adjustment trial balance of PMT Traders as at 28 February 20.19, reflected the following balances:
Office supplies R1 221
Cleaning material R940
A physical inventory count conducted at year-end, revealed that the following inventory were on hand:
Trading inventory, R9 860
Office supplies, R280
Cleaning material, R151
Packaging material, R836.
No adjustment journal entries have been processed as yet in the accounting books of PMT Traders regarding the inventory count.
The effect that the adjustment journal entries for consumables stores on hand will have on the basic accounting equation of PMT Traders for
the year ended 28 February 20.19 will be …
Instructions:
+1 267 +1 267 0
+941 -1 267 -789 +1 267 -2 034 -3 764 -941 0 +11 127 -11 127 +2 034 +789 +3 764

Question 4
Incorrect
MENU
At the end of the financial year, the loss calculated in the profit or loss account in the general ledger is to transferred to the capital account by debiting
the profit or loss account and crediting the capital account.
Select one:
True 
False
Incorrect answer
Question 5
Correct
… to offered to trade debtors to encourage a faster settlement of debts within the credit Settlement discount granted
term.

Interest charged on an overdue debtors account will …the trade receivables control increase
account.

An entity or an individual who does not pay at the time of a transaction as a result of a Trade debtor
credit sale is known as a ….

create an allowance for settlement discount granted.
Entities that have a settlement discount policy must at the end of the financial year…


… to offered to trade debtors to encourage a faster settlement of debts within the credit term. → Settlement discount granted,
Interest charged on an overdue debtors account will …the trade receivables control account. → increase,
An entity or an individual who does not pay at the time of a transaction as a result of a credit sale is known as a …. → Trade debtor,
Entities that have a settlement discount policy must at the end of the financial year… → create an allowance for settlement discount granted.

Question 6
Correct
MENU
Kumkani Traders provided with the following information for the financial year ended 30 September 20.20:
Debit Credit
R R
Capital (1 October 20.19)…………………………………………………............ 200 000
Drawings…………………………………………………………………...............…….. ?
Inventory: Trading (1 October 20.19)……………………………….……….. 61 725
Allowance for credit losses…………………………………………....….………. 4 450
Mortgage: Ginsberg Bank………………....................................................... 195 000
Fixed deposit (at 7.5% per annum)…………………………………………… 50 000
Sales……………………………………………………………………….......................... 345 060
Carriage on purchases………………………………………………….................. 9 500
Sales returns……………………………………………………………...........………… 6 780
Rental income………………………………………………………….........…............ 19 800
Purchases…………………………………………………………….....…….................. 197 800
Purchases returns……………………………………………………........…………… 2 890
Depreciation……………………………………………………………........…………… 38 367
Custom duties on sales……………………………………………………………… 850
Salaries and wages……………………………………………………......……………. 88 500
Insurance expenses……………………………………………….......……………….. 27 300
Telephone expenses………………………………………………….....…………….. 14 280
Water and electricity………………………………………………………................ 23 450
Settlement discount granted……………………………………………………… 1 350
Settlement discount received ……………………………………………………. 1 050
Credit losses……………………………………………………………........…………… 1 600
a. Upon reviewing the list of account receivables outstanding at year end, the accountant determined that the allowance for credit losses account
should amount to R3 000 on 30 September 20.20.
b. It was determined that the purchases column in the purchases journal was over cast with R950.
c. An amount for sales were entered in the sales column of the sales journal as R6 700 instead of the correct amount of R7 600.
Use the information in the pre-adjustment trial balance and the additional information to calculate the gross profit of Kumkani Traders for
the financial year ended 30 September 20.20.
Instructions:

MENU
Revenue 337 830

Inventory (opening) 61 725
Purchases 192 910
Inventory (closing) (123 650)
Revenue Gross profit Gross loss Cost of sales Purchases returns
Purchases Inventory Settlement discount received Settlement discount granted Sales returns
Gross income Inventory (opening) Carriage on purchases Sales Inventory (closing)
Custom duties on sales
197 345 123 650 (2 890) 345 060 (61 725) 338 680 1 050 850 (850) (61 925) 6 780 73 495 73 495
9 500 (264 335) (123 650) (345 060) 197 800 (6 780) (7 600) 336 980 (197 800) 950 192 910 (52 435) (950)
(140 485) 343 680 1 350 2 890 194 810 (9 500) 61 925 337 830 61 725 7 600
Question 7
Incorrect
The cost of sales can only be determined at the end of the financial period after the business entity does a physical inventory count.
Select one:
True
False 
Incorrect answer

Question 8
Incorrect
MENU
On 1 September 20.18 Lloyd Traders received a prepayment for an amount of R82 550 from a client that is currently occupying part of Lloyd’s office
building under a lease agreement. The prepayment is the rent for 13 months. The prepayment transaction has not yet been recorded in the accounting
books of Lloyd Traders. The current financial period ends on 28 February 20.19.
The pre-adjustment trial balance for the year ended 28 February 20.19 reflected rental income to the amount of R25 400. No adjusting journal entry has
been processed in the accounting records of Lloyd Traders.
The rental income amount to be disclosed in the statement of profit or loss and other comprehensive income for the year ended
Instructions:

Answer: 63500 
Question 9
Partially correct
agreement.
Instructions:
BRIGHT TRADERS
R
Rent income Expenses Income received in advance Liabilities 25580 Increase Nothing reco
      


Question 10
Incorrect
MENU

At the end of the financial year, the loss calculated in the profit or loss account in the general ledger is to transferred to the capital account by crediting
the profit or loss account and debiting the capital account.
Select one:
True
False 
Incorrect answer
Question 11
Incorrect
Revenue in the statement of profit or loss and other comprehensive income consists of all the income for example sales and rental income that an entity
earned during a financial year.
Select one:
True 
False
Incorrect answer

Question 12
Correct
MENU
Extract of pre-adjustment trial balance of Rocky Traders as at 30 September 20.22

Debit Credit
R R
Capital (1 October 20.21)………………………………………….............……… 200 000
Drawings……………………………………………………………….....................…… ?
Inventory: Trading (1 October 20.21)……………………………….......…… 61 725
Allowance for credit losses……………………………………………...........…. 4 450
Mortgage: GL Bank ……………….................................................................. 195 000
Fixed deposit (at 7.5% per annum)………………………………….........… 50 000
Sales…………………………………………………………………......................…….. 345 060
Carriage on purchases………………………………………….............………… 9 500
Sales returns………………………………………………………….................……. 6 780
Rental income…………………………………………………………................….. 39 600
Purchases……………………………………………………………..................…….. 197 800
Purchases returns…………………………………………………..............……… 2 890
Depreciation…………………………………………………………...............…….. 38 367
Salaries and wages………………………………………………….............…….. 88 500
Insurance expenses………………………………………………….............……. 27 300
Telephone expenses………………………………………………….............…… 14 280
Water and electricity…………………………………………………...........……. 23 450
Credit losses…………………………………………………………................…….. 1 600
(a) On 30 January 20.22, Rocky Traders decided to lease out the office space on the business’ premises for a monthly rental amount of R5 500. The
rental amount is paid in advance on the last day of each month.
Use the information in the pre-adjustment trial balance and the additional information to determine the correct journal entries for the closing
adjustment of the lease rentals at year-end:
Instructions:
4 400
Rental income
Rental income Profit or loss account Accrued income Income received in advance
66 000 44 000 39 600 26 400 5 500



Question 13
Correct
MENU
Parker Traders
Dashboard / provided
Courses you with the
/ UNISA / following information
2023 / Semester 1 /regarding the list of/ totals
FAC1502-23-S1 and balances
Welcome Messageon/ 30 April 20.8 2
Assessment
R
TOTALS FOR JOURNALS

A sales invoice of R950 was entered twice in the sales journal and posted twice to the personal account of a debtor, Mr T Maharaj.
What will the general journal entry for the correction of the sales invoice of R950 that was entered twice in the sales journal and personal
account of Mr T Maharaj be?
Instructions:

Sales 950
Allowance for credit losses Trade receivables control/Mr T Maharaj Trade payables control/Mr T Maharaj Sales
Bank and settlement discount granted
1 900 275 130 274 180 277 030

Question 14
Incorrect
MENU
An extract from the list of balances of Green Traders at year-end, reflected the following balances:
Total rent received during the year ended R48 600 R38 600
Rent received in advance at year-end R7 510 R6 520

Rent in arrears at year-end ** R2 604 R1 840
** All the rent that was in arrears has subsequently been received.
The amount for rental income to be disclosed in the statement of profit or loss and other comprehensive income for the year ended
Instructions:

Answer: 43694 
Question 15
Correct

Inventory on hand at the end of the year should be included in the statement of financial position.
Select one:
True 
False
Correct answer

Question 16
Correct
MENU
Profit reflects expenses that are less than income.
Select one:
True 
False
Correct answer
Question 17
Partially correct
Luna Electricians received a bank statement that reflects a debit balance of R2 000 Luna Electricians has a favourable bank balance of R2 000.
in Luna Electricians business bank account. This means …

A client paid R3 000 Luna Electricians with debit card. The debit card transaction
will automatically reflect during the course of the business day on Luna cash receipts journal
Electricians … 
The correction of errors and deposits not yet credited reflected on the previous
months … must be compared with current months bank statement to determine if bank statement
the bank has attended to this items or not. 
The bank statement of Luna Electricians must be compared with the … in the bank cash receipts and cash payments journal of Luna Electricians
reconciliation process.


Luna Electricians received a bank statement that reflects a debit balance of R2 000 in Luna Electricians business bank account. This means … → Luna
Electricians has an unfavourable bank balance of R2 000.,
A client paid R3 000 Luna Electricians with debit card. The debit card transaction will automatically reflect during the course of the business day on Luna
Electricians … → bank statement,
The correction of errors and deposits not yet credited reflected on the previous months … must be compared with current months bank statement to
determine if the bank has attended to this items or not. → bank reconciliation statement,
The bank statement of Luna Electricians must be compared with the … in the bank reconciliation process. → cash receipts and cash payments journal of
Luna Electricians

Question 18
Correct
MENU
Dashboard
(current 1 year
The auditors 2
Trade receivables control account balance in the general ledger will only be reduced when the actual credit losses are verified, by either;
(i) debiting the allowance for credit losses and crediting trade receivable/control account, or by
(ii) debiting the credit losses and crediting trade receivable/control account (while the allowance for credit losses remain unchanged).
Select one:
True 
False
Correct answer

Question 19
Incorrect
MENU

Debit Credit
R R
Drawings………………………………………………………………....................…… ?
Mortgage: GL Bank ........................................……………….......................... 200 000
Sales………………………………………………………………………......................... 345 060
Sales returns…………………………………………………………….................….. 6 780
Rental income…………………………………………………………...............….... 19 800
Purchases………………………………………………………………..................…… 197 800
Depreciation……………………………………………………………................…... 38 367
Credit losses…………………………………………………………....................….. 1 600
NB: Instructions
Answer: 12500 
◄ Assessment 1
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8/6/23, 2:43 PM FAC1502-23-S2: Assessment 1
UNISA  2023  FAC1502-23-S2  Welcome Message  Assessment 1
QUIZ
Assessment 1
Opened: Friday, 4 August 2023, 8:00 PM

Closes: Monday, 14 August 2023, 9:00 PM
715780
Attempts allowed: 2
Time limit: 1 hour 50 mins
Grading method: Highest grade
Grade to pass: 50.00 out of 100.00
Summary of your previous attempts
Marks / Grade /
Attempt State 85.00 100.00 Review Feedback
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Started on Monday, 10 April 2023, 9:37 PM

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Marks 28.50/60.00
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certain concepts.
Question 1
Partially correct
Jimmy’s Spaza Shop bought furniture for R5 000 cash

from Fit for Office Furnitures.
The furniture account will be debited and the bank account will be credited.
Which elements of the basic accounting equation will 
be affected?
Donald started a furniture business, DD Furniture, by

borrowing R200 000 from his personal bank. He used
the amount of R200 000 to buy a building for the Assets and equity will increase with R200 000.
business.

What is the net effect of these transactions on the
basic accounting equation?
Which general ledger accounts will be debited and The furniture account will be debited and the trade payables account will be credited.
credited when an entity buys furniture on credit?

Mr Thembu withdrew R50 000 from his personal
account and deposit half of that amount into his
Salon Business. Assets + R25 000; Equity + R25 000
The correct effect of this transaction on the elements 

of the basic accounting equation is ...

Jimmy’s Spaza Shop bought furniture for R5 000 cash from Fit for Office Furnitures.
Which elements of the basic accounting equation will be affected? → Assets only.,
Donald started a furniture business, DD Furniture, by borrowing R200 000 from his personal bank. He used the amount of R200 000 to buy a building for
the business.
What is the net effect of these transactions on the basic accounting equation? → Assets and equity will increase with R200 000.,
Which general ledger accounts will be debited and credited when an entity buys furniture on credit? → The furniture account will be debited and the
trade payables account will be credited.,

Mr Thembu withdrew R50 000 from his personal account and deposit half of that amount into his Salon Business.
The correct effect of this transaction on the elements of the basic accounting equation is ... → Assets + R25 000; Equity + R25 000

Question 2
Correct
MENU
Indicate whether the following statement is true or false regarding the procedures that must be followed at the end of the month regarding to posting
from the subsidiary journals?
The total of the trade payables column in the purchases returns journal must be posted to the credit side of the trade payables control accounts on the
last day of the month.
Select one:
True
False 
Correct answer
Question 3
Correct
When an entity uses inconsistent accounting treatments, it allows for the users of the financial information to compare the financial statements of the
entity for a period.
Select one:
True
False 
Correct answer

Question 4
Partially correct
MENU
The following transaction relates to Solar Dealers:
On 8 September
Dashboard 20.2 Solar
/ Courses Dealers
/ UNISA / applied
2023 / for a loan of
Semester 1 R80 000 from NICE/ Bank
/ FAC1502-23-S1 to buy
Welcome a vehicle/ from
Message Big Vehicles.
Assessment 1 The loan was granted, and the
money was paid over to Big Vehicles.
The correct analysis of the effect of the given transaction on the general ledger and the accounting equation of Solar Dealers is …
SOLAR DEALERS
Date General ledger A= E+
20.2 Account Account
Sep debited credited Dr Cr Dr Cr
R R R R
30 Vehicles Loan: Nice Bank 80 000
      
Instructions:
3. If an option has been provided and it is not applicable to the specific question please put N/A in the columns.
Question 5
Incorrect
You are given the following information for Becker & Riaan Nursery for the month ended 28 February 20.2:
Becker and Riaan Nursery owes Big Nursery Suppliers an amount of R32 000. Due to tough economic conditions, Becker & Riaan Nursery had to resort to
providing services on credit and their clients owe them R46 000. Becker & Riaan Nursery also owns equipment to the value of R12 000 and had an
unfavourable bank account balance of R15 000.
What is the net worth (equity) of Becker & Riaan Nursery on 28 February 20.2?
NB: Instructions
3. If the net effect on the accounting equation is a decrease, please enter the amount as a negative (eg: -12141.72)
Answer: 2000 

Question 6
Correct
MENU

The statement of financial position only reflects amounts owed by the business.
Select one:
True
False 
Correct answer
Question 7
Incorrect
Use the following information to calculate the missing figure by using the Basic Accounting Equation:
R
Capital 450 000
Drawings 15 000
Machinery 180 000
Buildings 480 000
Bank ?
NB: Instructions
Answer: 605000 
The correct answer is: -69400

Question 8
Not answered
Marked out of 2.00
MENU
Use the following information to calculate the total equity amount for the basic accounting equation:
R
Capital 630 000
Drawings 25 000
Rent income 60 000
Stationary 2 200
Wages 13 500
Furniture 40 000
Vehicles 800 000
Land 350 000
Buildings 160 000
Inventory 50 000
NB: Instructions
Answer: 
Question 9
Incorrect
If the closing balance of the VAT input account and VAT output account for the month ended 31 December 20.20 amount to R38 111 and R7 691,
respectively. Is the following statement true of false about the VAT control account for the month ended 31 December 20.20.
The VAT control account will be debited by the amount of the VAT output account of R38 111 and credited by the amount of the VAT input account of
R7 691.
Select one:
True 
False
Incorrect answer

Question 10
Not answered
Marked out of 3.00
MENU
The following transactions occurred on 15 March 20.1 in GS Electricians:

(a) Bought a voltage tester on credit for R2 000 from BB Suppliers.
(b) Rendered services on credit to W Write for R3 000.
The correct effect of the transactions on 23 March 20.1 on the accounting equation are …
Instructions:

3. If an options has been provided and it is not applicable to the specific questions please put a 0 in the applicable column.
-2 000 0 +3 000 -3 000 +2 000

Question 11
Partially correct
MENU
Please match the correct descriptions with the correct concepts:

An increase in economic benefits through an increase in assets or a decrease in liabilities that has Income
arisen for the entity.

An example of a liability that must be settled after one year of the statement of financial position Long-term borrowings
date will be …

Net asset value
The … refers to the wealth of the owner from the business only.

Income
Considered as an example of revenue because it is earned from the entity’s normal activities.


An increase in economic benefits through an increase in assets or a decrease in liabilities that has arisen for the entity. → Income,
An example of a liability that must be settled after one year of the statement of financial position date will be … → Long-term borrowings,
The … refers to the wealth of the owner from the business only. → Net asset value,
Considered as an example of revenue because it is earned from the entity’s normal activities. → Credit losses recovered
Question 12
Correct
The amortised cost of a financial asset is calculated by subtracting the amortised amount from the cost of the financial asset.
Select one:
True 
False
Correct answer

Question 13
Correct
MENU

Assets increase on the debit side of a T-account.
Select one:
True 
False
Correct answer
Question 14
Partially correct
A credit sale transaction will be recorded in the … sales journal 
A debt that was recovered after it was previously written off as irrecoverable will be recorded in the … general journal 
When a debtor returns unsatisfactory goods, the bookkeeper will record this transaction in the … sales returns journal 
EFT’s done by debtors will be recorded in the … general journal 

A credit sale transaction will be recorded in the … → sales journal,
A debt that was recovered after it was previously written off as irrecoverable will be recorded in the … → general journal,
When a debtor returns unsatisfactory goods, the bookkeeper will record this transaction in the … → sales returns journal,
EFT’s done by debtors will be recorded in the … → cash receipts journal

Question 15
Correct
MENU

Assets may be exchanged for other assets.
Select one:
True 
False
Correct answer
Question 16
Incorrect
Dineo Dlamini is the owner of Dineo’s Hairdressing Salon. You are given the following information for Dineo’s Hairdressing Salon for the year ended 30
June 20.1.
R
Capital 250 000
Equipment 150 000
Bank (favourable balance) 100 000
Trade payables 90 000
Wages 160 000
Insurance 22 000
Rental expenses 54 000
Advertising 8 000
What is the total asset amount for Dineo’s Hairdressing Salon for the year ended 30 June 20.1?
NB: Instructions
Answer: 503400 

Question 17
Correct
MENU

Employees are internal users who use the financial information of an entity to assess the ability of the entity to continue as a going concern.
Select one:
True
False 
Correct answer

Question 18
Partially correct
MENU
The following balances were extracted from the subsidiary journals of General Spaza Shop as at 28 February 20.2.

R
VAT input 2 760
Sales column 299 920
Purchases column 430 560
VAT output 3 160
Purchases journal
Sales journal
Purchases returns column 24 000
Sales returns column 19 200
On 1 February 20.2, the VAT input account had a debit opening balance of R71 760 and the VAT output account had a credit opening balance of
R103 960.
The VAT rate applicable is 15%.
Instructions:
GENERAL SPAZA SHOP
GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
Feb 28 VAT control 19200 Feb 1 Balance 71 760
     
GJ CRJ
Balance Feb 28 Bank 302 680
    
CPJ
Purchases 433 720
 
SJ
Sales 500 800
 
 

Question 19
Not answered
Marked out of 6.00
MENU
The following information relates to Fruit and Veggie Spaza Shop, who is registered as a VAT vendor (The VAT rate applicable is 15%). The
Dashboard
periodic / Courses
inventory / UNISA
system / 2023
and control / Semester
accounts are in1use:
/ FAC1502-23-S1 / Welcome
(The VAT period Message
of the business / Assessment
ends 1
on equal months.)
FRUIT AND VEGGIES SPAZA SHOP

EXTRACT OF BALANCES AS AT 31 AUGUST 20.20
R
VAT input 13 500
VAT output 67 500
Additional information that still needs to be taken into account:
On 24 August, a desk was purchased on credit from Cabbage Furniture, R139 380.
Which one of the following options represents the correct general journal entries for the desk purchased for Fruit and Veggies:
Instructions:

When recording the debit entries, you must start with the applicable income or expense or asset account, followed by the applicable vat account.
Equipment Cabbage Furniture/Trade payables control N/A
Cabbage Furniture/Trade receivables control Furniture Desk
VAT output VAT input
20 907 118 473 18 180 121 200 0 139 380

Question 20
Correct
MENU

An account in the general ledger is presented in a “T” format and the right-hand side is referred to as the debit side and the left-hand side is referred to
as the credit side.
Select one:
True
False 
Correct answer
Question 21
Correct
A three-step process which involves the identifying and recording of economic events and then
communicating the recorded information through financial statements to the users of the financial Accounting
information. 
The basis at which an entity measures financial assets and financial liabilities at amortised cost.
Historical cost measurement basis
... ensures that the information presented on the financial statements are complete, neutral and free from Faithful representation
error.

An essential quality of the information provided in financial statements is that it is readily ... to the average Understandable
user.


A three-step process which involves the identifying and recording of economic events and then communicating the recorded information through
financial statements to the users of the financial information. → Accounting,
The basis at which an entity measures financial assets and financial liabilities at amortised cost.
→ Historical cost measurement basis,

... ensures that the information presented on the financial statements are complete, neutral and free from error. → Faithful representation,
An essential quality of the information provided in financial statements is that it is readily ... to the average user. → Understandable

Question 22
Partially correct
MENU
The following rules are applicable to income accounts in the general ledger:
Instructions:
If an options has been provided and it is not applicable to the specific questions please put N/A in the column.
- +
- +
- + N/A Balance
◄ Announcements
Jump to...
Assessment 2 ►

MENU 
Started on Saturday, 8 April 2023, 8:04 PM

State Finished
Completed on Saturday, 8 April 2023, 9:59 PM
Marks 15.00/60.00
Feedback
You have unfortunately failed this assignment. This assignment covered learning unit 1 to 5. Before utilising the second
opportunity, please revisit these learning units and watch our recorded videos that covered these learning units. You will
have to work harder to pass your assignments. You are welcomed to contact your lecturers or e-tutor if you need further
assistance regarding grasping certain concepts.

Question 1
Incorrect
MENU
Use the following information to calculate the total current asset amount:
R
Capital 630 000
Drawings 25 000
Rent income 60 000
Stationary 2 200
Wages 13 500
Furniture 40 000
Vehicles 600 000
Bank 30 000
Fixed Deposit: SA Bank 70 000
Land 300 000
Buildings 110 000
Inventory 50 000
Trade receivable control 200 000
NB: Instructions
Answer: 833,500 

Question 2
Incorrect
MENU
If the closing balance of the VAT input account and VAT output account for the month ended 28 February 20.21 amount to R8 978 and R21
780, respectively. Is the following statement true or false about the VAT control account for the month ended 28 February 20.21.
The VAT control account will reflect a payment due to SARS of R12 802.
Select one:
True
False 
Incorrect answer

Question 3
Partially correct
MENU
Dashboard / Courses / UNISA / 2023 / Semester 1 / RFAC1502-23-S1 / Welcome Message / Assessment 1

VAT input 3 516,24
VAT output 4 892,16
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R123 480 and the VAT output account had an opening balance of
R185 220.
Instructions:

3. For embedded questions spelling is very important. If you spell the answer incorrect it will be marked incorrect. Please make sure that
your spelling of the words is correct.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
b/d
Feb 28 VAT control 123.400 Feb 28 VAT control 61.800
     
    
 
 
 

Question 4
Incorrect
MENU
An entity has the following income and expenditure for the financial year: Sales R33 000; Rent expenses R11 000; Interest expenses R1 000;
Insurance R1 500.
The net profit or the net loss of the entity is …
NB: Instructions

3. If it is a loss, please enter the amount as a negative (eg: -12141.72)
Answer: 21.500 
Question 5
Partially correct
On 1 March 20.21 Sithole’s Restaurant purchased chairs and tables for the restaurant for R180 000. The chairs and tables were paid for with
the credit card of the business.
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the amount
- also keep your cell phone horizontal when doing the question).
+180 000 +180 000 0
0 +180 000 -180 000


Question 6
Correct
MENU

Creditors are external users who use the financial information of an entity to assess the ability of the enterprise to pay amounts owing.
Select one:
True 
False
Correct answer

Question 7
Partially correct
MENU
Ms B Betty owns Betties Dealers. In which book of first entry (subsidiary journal) will the bookkeeper of Betties Dealers record the
Dashboard /that
transactions Courses / UNISA
occurred / 2023
on 1 March / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 1
20.1?
Date Transaction
20.1 Cash payments journal 
March 1 Paid the telephone account of R5 000 to Tellycoms via EFT.
Date Transaction
20.1 Cash receipts journal 
March 1 Cash sales as per cash register roll 22 was, R3 000.
Date Transaction
20.1
Cash receipts journal 
March 1 The owner deposited R100 000 into Betties Dealers business as additional capital
contribution.
Date Transaction
20.1 Purchases journal 
March 1 Bought a new cash register for the business with the credit card of the business

Date Transaction
20.1
→ Cash payments journal,
Date Transaction
20.1
→ Cash receipts journal,
Date Transaction
20.1
contribution.
Date Transaction
20.1
→ General journal

Question 8
Incorrect
MENU
The following information relates to Sammy Technologies who buys and sells computers and computer accessories. Sammy Dealers is a
Dashboardas/ a Courses
registered / UNISA
VAT vendor / 2023
and uses / Semester
the periodic 1 / FAC1502-23-S1
inventory system. VAT at /15%
Welcome MessageThe
is applicable. / Assessment 1 the business ends on
VAT period of
unequal months.
Transactions:
20.22
July 6 Purchased 10 laptops from IT Wholesalers on credit for R172 500. (credit invoice no: IT657)
Purchased a point-of-sale scanner from Mega Wholesalers on credit for R2 875 to be used by the cashiers. (credit invoice no:
MW 456)
The correct entry in the general journal of Sammy Technologies will be:
Instructions:

When recording the debit entries, you must start with the applicable income or expense or asset account, followed by the applicable vat
account.
VAT input 2 443.75
VAT output
VAT input Mega Wholesalers/Trade payables control Equipment
Purchases Laptops VAT output
IT Wholesalers/Trade payables control
146 625 431.25 22 500 22 875 2 443.75 375 152 500 172 500 25 875 2 500 175 375 2 875
150 000

Question 9
Not answered
Marked out of 1.00
MENU

The settlement of an obligation can take place through the conversion of an obligation into equity.
Select one:
True
False
Question 10
Correct
The purpose of incurring expenditure is to earn income.
Select one:
True 
False
Correct answer

Question 11
Not answered
Marked out of 4.00
MENU
The correct ledger and accounting analysis of a transaction which states that an entity received R11 000 from a tenant will be …

Instructions:
General ledger
Account to be Account to be credited Assets Equity Liabilities

debited
R R R
    

Question 12
Not answered
Marked out of 2.00
MENU
Use the following information to calculate the total liabilities amount for the basic accounting equation:
R
Capital 680 000
Drawings 35 000
Rent income 65 000
Stationery 3 300
Wages 13 500
Furniture 80 000
Vehicles 620 000
Land 400 000
Buildings 70 000
Inventory 75 000
NB: Instructions
Answer: 

Question 13
Correct
MENU

Equity is the residual interest in the assets of the entity after deducting only its non-current liabilities.
Select one:
True
False 
Correct answer

Question 14
Incorrect
MENU
Gizmo Enterprises
Dashboard provided
/ Courses you with
/ UNISA / the
2023following information
/ Semester regarding the /listWelcome
1 / FAC1502-23-S1 of totals and balances
Message on 28 February
/ Assessment 1 20.8 (Ignore the VAT
implications for purposes of this question)
TOTALS FOR JOURNALS
Trade receivables column…………………………………………………………….. 207 420

Sales column……………………………………………………………………………..... 404 000
The trade receivable’s column in the cash receipts journal was undercast by R900.
What will the correct general ledger entries be when posting the trade receivables column to the general ledger of Gizmo Enterprises?
Instructions:
Trade receivables control Trade payables control Bank and settlement discount granted
Turnover Settlement discount granted Bank
Sales Bank and settlement discount received Settlement discount received
220 320 209 760 208 160 208 320 900

Question 15
Incorrect
MENU

Bookkeeping is part of management accounting that is concerned with the recording of transactions.
Select one:
True 
False
Incorrect answer
Question 16
Partially correct
Ms B Khumalo, the owner of BK Salon and Spa donated hair products valued at R500 to her son’s
school. Donations
The account that will debited in the transaction will be … 
Besides BK Salon and Spa rendering services to their clients, the entity also sells hair products.
Services rendered
The sale of the hair products will be considered as ... in the statement of profit and loss and other
comprehensive income. 
Sales
The account that will be credited in the transaction for the sale of the hair products will be … 
BK Salon and Spa paid their creditor R2 000 via the business banking app.
Sales
The two accounts that are identified in this transaction are … and … 

Ms B Khumalo, the owner of BK Salon and Spa donated hair products valued at R500 to her son’s school.
The account that will debited in the transaction will be … → Donations,
The sale of the hair products will be considered as ... in the statement of profit and loss and other comprehensive income. → Revenue,
The account that will be credited in the transaction for the sale of the hair products will be … → Sales,
BK Salon and Spa paid their creditor R2 000 via the business banking app.

The two accounts that are identified in this transaction are … and … → Trade payables and bank

Question 17
Partially correct
MENU

equity will increase and decrease with R9 750.

Equity of an entity is also referred to as …

The basic accounting equation can be stated Assets = Equity + Liabilities
as …

On 21 January 20.21, Deborah’s coffee shop
received interest of R5 780 from Ten Bank on a
assets will increase with R5 780, and equity will increase with R5 780.
Fixed deposit.
The effect of the transaction on the


accounting equation is ...
Double-entry system of accounting states that every transaction has a dual effect on the elements of the basic accounting equation.
…


Equity of an entity is also referred to as … → net asset value.,
The basic accounting equation can be stated as … → Assets = Equity + Liabilities,
On 21 January 20.21, Deborah’s coffee shop received interest of R5 780 from Ten Bank on a Fixed deposit.
The effect of the transaction on the accounting equation is ... → assets will increase with R5 780, and equity will increase with R5 780.,
Double-entry system of accounting states that … → every transaction has a dual effect on the elements of the basic accounting equation.
Question 18
Correct
According to the current value measurement basis, liabilities should be recorded at the amount paid or the fair value of the consideration
given to acquire the liability at the time of their acquisition.
Select one:
True
False 
Correct answer



Question 19
Incorrect
MENU
Bradly Carstens is the owner Carsten & Sons Plumbing. On 30 October 20.2 you are given the following information for Carsten & Sons
Plumbing.
Clients owing for plumbing services rendered on credit 63 000
Equipment owned by Carsten & Sons Plumbing 80 000
Favourable bank balance 50 000
Carsten and Sons Plumbing owes suppliers for parts purchased on credit 35 000
Vehicles owned by Carsten and Sons Plumbing 210 000
What is the net asset value (equity) of Carsten and Sons Plumbing on 30 October 20.2?
NB: Instructions
Answer: 132.000 

Question 20
Partially correct
MENU

non-profit entities.
The form of business ownership in South Africa that a charity organization would adopt is ...

According to the accounting framework the underlying assumption of financial statements is accuracy and validity.
... 
An acronym for the international accounting standards that South African businesses have partnerships.
to comply with is ...

accuracy and validity.
The fundamental qualitative characteristics of financial statements are …


The form of business ownership in South Africa that a charity organization would adopt is ... → non-profit entities., According to the
accounting framework the underlying assumption of financial statements is ... → going concern.,
An acronym for the international accounting standards that South African businesses have to comply with is ... → IFRS,
The fundamental qualitative characteristics of financial statements are … → relevance and faithful representation.
Question 21
Correct
If the closing balance of the VAT input account and VAT output account for the month ended 31 December 20.20 amount to R38 111 and
R7 691, respectively. Is the following statement true of false about the VAT control account for the month ended 31 December 20.20.
The VAT control account will be debited by the amount of the VAT input account of R38 111 and credited by the amount of the VAT output
account of R7 691.
Select one:
True 
False
Correct answer

Question 22
Incorrect
MENU

The elements that measure profitability can either increase or decrease equity.
Select one:
True
False 
Incorrect answer
◄ Announcements
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Assessment 2 ►

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Started on Thursday, 6 April 2023, 1:21 PM

State Finished
Completed on Thursday, 6 April 2023, 3:14 PM
Marks 37.25/60.00
Feedback
Question 1
Correct

Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the amount - also
keep your cell phone horizontal when doing the question).

0 0 0 0 +2 000 +2 000
0 +3 000 0 +3 000 0 0
-2 000 -3 000 +2 000 0 +3 000
Your answer is correct. 

Question 2
Correct
MENU

Accounting records transactions to provide useful information for decision making.
Select one:
True 
False
Correct answer
Question 3
Partially correct
Show the account that will be credited in the given transaction. Also indicate the correct
element that the account will represent.
Trade payables; Liability
“Bought goods on credit from Wholesale Stores for R26 700.” 
income less expenditure.

The financial performance of an entity is calculated by …

Mr Mashaba bought paint, for his business, on credit from the local hardware store for
R22 500. assets will increase and liabilities increase.
The effect of this transaction on the basic accounting equation will be … 
A posting to the credit side of a ledger account will, where applicable, always have the
an increase in the amount of an income account.
effect of …


Show the account that will be credited in the given transaction. Also indicate the correct element that the account will represent.
“Bought goods on credit from Wholesale Stores for R26 700.” → Trade payables; Liability,
The financial performance of an entity is calculated by … → income less expenditure.,
Mr Mashaba bought paint, for his business, on credit from the local hardware store for R22 500.
The effect of this transaction on the basic accounting equation will be … → equity will decrease and liabilities will increase.,
A posting to the credit side of a ledger account will, where applicable, always have the effect of … → an increase in the amount of an income 
account.

Question 4
Correct
MENU
A purchases invoice for R1 955 was entered twice in the purchases journal and was posted twice to the applicable accounts in the general ledger
and the personal account of the creditor, Mr T Naidoo. The entity is a registered VAT vendor, and the applicable VAT rate is 15%.
The transaction will be corrected by processing the following journal entries:
Instructions:
When recording the credit entries, you must start with the applicable income or expense account, followed by the applicable vat account.
Trade payables control/Mr T Naidoo 1 955
Purchases 1 700
VAT input 255
VAT output Purchases returns VAT input Trade receivables control/Mr T Naidoo
Trade payables control/Mr T Naidoo Purchases
1 661.75 1 700 293.25 255 2 248.25 1 955 1 840

Question 5
Correct
MENU

One of the elements that measures profitability in an entity is a /an expense.

…

an entity will continue operating in the foreseeable future.
The going concern concept means that ...

The difference between the value of assets owned by the entity and equity.
the liabilities it has incurred is referred to as …

Annual Financial Statements.
Where would an entity disclose its accounting policy?


One of the elements that measures profitability in an entity is a /an … → expense.,
The going concern concept means that ... → an entity will continue operating in the foreseeable future.,
The difference between the value of assets owned by the entity and the liabilities it has incurred is referred to as … → equity.,
Where would an entity disclose its accounting policy? → Annual Financial Statements.
Question 6
Incorrect
Transactions will always give rise to either income or expenditure.
Select one:
True 
False
Incorrect answer

Question 7
Correct
MENU

Bookkeeping is mainly confined to the recording of financial transactions.
Select one:
True 
False
Correct answer
Question 8
Correct
Income and expenses including gains and losses of the entity are disclosed in the statement of profit or loss and other comprehensive income.
Select one:
True 
False
Correct answer

Question 9
Correct
MENU
An entity has the following balances: Bank: R5 000; Machinery: R3 000: Trade payables: R2 000.
The equity of the entity according to the basic accounting equation is …
NB: Instructions
Answer: 6000 
Question 10
Incorrect
James Naidoo is the owner of James Electricians. On 30 June 20.1 you are given the following information for James Electricians.
R
Trade receivables 144 000
Equipment 500 000
Unfavourable bank balance 50 000
Vehicles 400 000
Loan 250 000
Short-term portion of long-term borrowings 15 000
Rent deposit paid 5 500
What is the net asset value (equity) of James Electricians on 30 June 20.1?
NB: Instructions
Answer: 646000 

Question 11
Partially correct
MENU
Ms T Nkosi is owner of Innovative Accountants. On 23 April 20.1 Ms T Nkosi made an EFT payment from the bank account of Innovative
Accountants to pay her sons yearly membership fees of R3 500 to the Happy Tennis Club.
The correct general ledger entries and effect on the accounting equation are …
Instructions:
General ledger
Liabilities Assets Equity
Account debited Account credited
R R R
drawigs bank 0 -3500 -3500
    

Question 12
Partially correct
MENU

R
VAT input 1 207,50
VAT output 1 680,00
Purchases journal
Sales journal
Trade receivables column 291 812,50
On 1 February 20.2, the VAT input account had an opening balance of R42 000 and the VAT output account had an opening balance of R63 000.
The applicable VAT rate is 15%.
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
Feb 1 Balance 42000 Feb 28 Trade receivables control 2257,50
     
GJ CRJ
Bank 120750 Feb 28 VAT control 89843,48
    
CPJ
Bank 28943,48
 
SJ
Trade payables control 199950,00
 
92100,98 92100,98
 

Question 13
Correct
MENU
Victor Smith is the owner of Smith Electricians. On 28 February 20.2 you are given the following information for Smith Electricians.
R
Equipment 250 000
Vehicles 480 000
Loan 300 000
What is the net asset value (equity) of Smith Electricians on 28 February 20.2?
NB: Instructions
Answer: 602000 
Question 14
Correct
In which journal would a business entity record the purchase of equipment on credit? The general journal 
In which journal would a business entity record the sale of equipment for cash? The cash receipts journal 
In which journal would a business entity record the purchase of merchandise on credit? The purchases journal 
In which journal would a business entity record the sale of equipment on credit? The general journal 

In which journal would a business entity record the purchase of equipment on credit? → The general journal,
In which journal would a business entity record the sale of equipment for cash? → The cash receipts journal,
In which journal would a business entity record the purchase of merchandise on credit? → The purchases journal,
In which journal would a business entity record the sale of equipment on credit? → The general journal

Question 15
Partially correct
MENU
Mkhize Traders made a direct

deposit to Smith Stationers to
settle an amount owing of
R24 000 for stationery
previously bought on credit. a current liability
What will the effect of this 

transaction be on the general
ledger accounts of Mkhize
Traders?
An unfavourable bank balance

will be disclosed as … in the a non-current liability
statement of financial position. 
A long term loan will be

disclosed as ... in the statement a non-current liability
of financial position. 
Buildings will be disclosed as ...

in the statement of financial The bank account will decrease with R24 000 and the trade payable account will decrease with R24 000.
position. 

Mkhize Traders made a direct deposit to Smith Stationers to settle an amount owing of R24 000 for stationery previously bought on credit.
What will the effect of this transaction be on the general ledger accounts of Mkhize Traders? → The bank account will decrease with R24 000 and
the trade payable account will decrease with R24 000.,
An unfavourable bank balance will be disclosed as … in the statement of financial position. → a current liability,
A long term loan will be disclosed as ... in the statement of financial position. → a non-current liability,
Buildings will be disclosed as ... in the statement of financial position. → a non-current asset

Question 16
Correct
MENU
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the following information for Ronnie’s Hairdressing Salon for
Dashboard
the / My
year ended 30courses / FAC1502-23-S1 / Welcome Message / Assessment 1
June 20.1.
R
Capital 300 000
Equipment 200 000
Vehicles 160 000
Wages 165 000
Insurance 12 000
Advertising 3 000
What is the amount for the total liabilities of Ronnie’s Hairdressing Salon as at 30 June 20.1?
NB: Instructions
Answer: 102400 

Question 17
Partially correct
MENU
The following rules are applicable to liability accounts in the general ledger:
Instructions:

N/A Balance
N/A +
+ - Balance N/A

Question 18
Correct

Liabilities are commonly known as the obligations of the entity.
Select one:
True 
False
Correct answer

Question 19
Incorrect
MENU

Withdrawals made by the owner decrease equity and are therefore considered as an expense of the business.
Select one:
True 
False
Incorrect answer
Question 20
Correct
The net amount, after subtracting trade discount, on the invoice is recorded as the amount of the purchases in the accounting records of the
purchaser.
Select one:
True 
False
Correct answer

Question 21
Incorrect
MENU

According to fair value measurement, liabilities are carried at the present discounted value of the future net cash outflows that are expected to be
required to settle the liabilities in the normal course of business.
Select one:
True
False 
Incorrect answer
Question 22
Correct
The VAT control account will reflect a payment due to SAR of R30 420.
Select one:
True 
False
Correct answer
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Assessment 2 ►

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Started on Monday, 10 April 2023, 12:42 PM

State Finished
Completed on Monday, 10 April 2023, 1:30 PM
Marks 56.50/60.00
Feedback
Question 1
Correct

Information on a financial statement can be verified only by direct verification.
Select one:
True
False 
Correct answer
Question 2
Correct
Liabilities are present obligations of the entity to transfer economic resources as a result of past events.
Select one:
True 
False
Correct answer

Question 3
Correct
MENU

The elements of the financial statements are assets, equity and liabilities.
Select one:
True
False 
Correct answer
Question 4
Correct
equity.
Net asset value of an entity is also referred to as …

Materiality
... plays an important role when the relevance of information is evaluated.

Kinky Tresses Traders bought furniture from Board Man Pty Ltd for R5 000
cash. Net effect on assets is R0.
What is the net effect of the transaction on the elements of the basic 
accounting equation?
rent received for part of the premises that was leased out.
A transaction that is an example of an income to an entity is ...


Net asset value of an entity is also referred to as … → equity.,
... plays an important role when the relevance of information is evaluated. → Materiality,
Kinky Tresses Traders bought furniture from Board Man Pty Ltd for R5 000 cash.
What is the net effect of the transaction on the elements of the basic accounting equation? → Net effect on assets is R0.,
A transaction that is an example of an income to an entity is ... → rent received for part of the premises that was leased out.

Question 5
Correct
MENU

The difference between the value of assets owned by the entity equity.
and the liabilities it has incurred is referred to as …

One of the elements that measures profitability in an entity is a /an expense.
…

Annual Financial Statements.

an entity will continue operating in the foreseeable future.


Where would an entity disclose its accounting policy? → Annual Financial Statements.,
The going concern concept means that ... → an entity will continue operating in the foreseeable future.
Question 6
Partially correct
The following rules are applicable to asset accounts in the general ledger:
Instructions:
Balance Balance
+ -
Balance - N/A +

Question 7
Correct
MENU
The trade discount amount is calculated and deducted on the cash or credit invoice.
Select one:
True 
False
Correct answer
Question 8
Correct
Income and expenses including gains and losses of the entity are disclosed in the statement of profit or loss and other comprehensive income.
Select one:
True 
False
Correct answer

Question 9
Correct
MENU

The statement of financial position reflects the financial performance of the business.
Select one:
True
False 
Correct answer
Question 10
Partially correct
The correct ledger and accounting analysis of a transaction which states that an entity received R11 000 from a tenant will be …
Instructions:
General ledger
Account to be Account to be credited Assets Equity Liabilities

debited
R R R
Bank Rent received 11000 11000 0
    

Question 11
Correct
MENU
Indicate whether the following statement is true or false regarding the procedures that must be followed at the end of the month regarding to
posting from the subsidiary journals?
Entries made in the general journal for creditors must be posted on a daily basis to the personal accounts of the creditors.
Select one:
True 
False
Correct answer

Question 12
Correct
MENU
The following information relates to Fruit and Veggie Spaza Shop, who is registered as a VAT vendor (The VAT rate applicable is 15%).
Dashboard
The periodic/ inventory
Courses system
/ UNISAand
/ control
2023 / accounts
Semesterare
1 / inFAC1502-23-S1
use: (The VAT /period
Welcome
of theMessage / ends
business Assessment 1 months.)
on equal

R
VAT input 13 500
VAT output 67 500
Instructions:
If an option has been provided and it is not applicable to the specific question, please put N/A in the account column and a 0 in the amounts
column.
Furniture 121 200
VAT input 18 180
Cabbage Furniture/Trade payables control 139 380
VAT output VAT input Furniture
Cabbage Furniture/Trade payables control N/A Cabbage Furniture/Trade receivables control
Desk Equipment
20 907 121 200 118 473 0 139 380 18 180

Question 13
Correct
MENU
R
Bank (Favourable balance) 32 000
Vehicles 40 000
Equipment ?
Capital 128 000
NB: Instructions
Answer: 40800 

Question 14
Correct
MENU

Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the amount -
also keep your cell phone horizontal when doing the question).
0 0 0 0 +2 000 +2 000
0 +3 000 0 +3 000 0 0
0 -3 000 -2 000 +3 000 +2 000

Question 15
Correct
MENU
An entity has the following balances: Bank: R10 000; Machinery: R2 000; Capital: R5 000.
Dashboard
The / Courses
total liabilities / UNISA
of the / 2023 / toSemester
entity according 1 accounting
the basic / FAC1502-23-S1
equation/ isWelcome
… Message / Assessment 1
NB: Instructions
Answer: 7000 

Question 16
Correct
MENU
Ms B Betty owns Betties Dealers. In which book of first entry (subsidiary journal) will the bookkeeper of Betties Dealers record the
Dashboard /that
transactions Courses / UNISA
occurred / 2023
on 1 March / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 1
20.1?
Date Transaction
20.1 Cash payments journal 
Date Transaction
20.1
Cash receipts journal 
contribution.
Date Transaction
20.1 General journal 
Date Transaction
20.1 Cash receipts journal 

Date Transaction
20.1
→ Cash payments journal,
Date Transaction
20.1
contribution.
Date Transaction
20.1
→ General journal,
Date Transaction
20.1
→ Cash receipts journal

Question 17
Correct
Mark 12.00 out of 12.00
MENU
The following VAT balances were extracted from the subsidiary journals of General Spaza Shop as at 28 February 20.2.

R
VAT input 4 600
VAT output 87 400
VAT input 126 500
VAT output 6 900
Purchases journal
VAT 75 900
Sales journal
VAT 144 900
VAT 9 200
VAT 11 500
On 1 February 20.2, the VAT input account had an opening balance of R161 000 and the VAT output account had an opening balance of
R239 200.
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
Feb 28 Trade receivables control 11500 Feb 1 Balance 239200
     
GJ CRJ
VAT control 466900 Feb 28 Bank 87400
    
CPJ
Trade payables control 6900
 
SJ
 
478400 478400
 

MENU
Question 18
Dashboard
Correct / Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 1
Analyse the given transaction and then choose the correct option for the analysis of the transaction:
Transaction: BK Salon bought three foot spas for R1 000 from Salon Suppliers, via the business banking app. The foot spas will be used in the
salon for pedicures.
The effect of the given transaction on equity in the basic accounting equation. None. 
The account to be debited in the given transaction. Equipment 
The effect of the given transaction on assets in the basic accounting equation. Assets will increase and decrease with R1 000. 
The account to be credited in the given transaction. Bank 

The effect of the given transaction on equity in the basic accounting equation. → None.,
The account to be debited in the given transaction. → Equipment,
The effect of the given transaction on assets in the basic accounting equation. → Assets will increase and decrease with R1 000.,
The account to be credited in the given transaction. → Bank

Question 19
Correct
MENU
Betty Moloi is the owner of Betty Plumbing. You are given the following information for Betty Plumbing for the year ended 30 June 20.1.
R
Capital 250 000
Commission income 45 000
Accrued expenses 800
Wages 100 000
Insurance 3 500
Maintenance of vehicles 4 000
The amount of the total expenditure for Betty Plumbing for the year ended 30 June 20.1 is ...
NB: Instructions
Answer: 123000 
Question 20
Correct

Accounting records transactions to provide useful information for decision making.
Select one:
True 
False
Correct answer

Question 21
Incorrect
MENU
Use the following information to calculate the profit or loss for the year:
R
Capital 680 000
Drawings 35 000
Rent income 65 000
Stationery 3 300
Wages 13 500
Furniture 80 000
Vehicles 620 000
Land 400 000
Buildings 70 000
Inventory 75 000
NB: Instructions
Answer: 676600 

Question 22
Correct
MENU

An account in the general ledger is presented in a “T” format and the left-hand side is referred to as the debit side and the right-hand side is
referred to as the credit side.
Select one:
True 
False
Correct answer
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Assessment 2 ►

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Started on Thursday, 8 June 2023, 11:38 PM

State Finished
Completed on Friday, 9 June 2023, 12:16 AM
Marks 45.63/60.00
Feedback
Question 1
Incorrect
The fundamental qualitative characteristics for useful financial information are relevance and comparability.
Select one:
True 
False
Incorrect answer
Question 2
Correct

Equity is the residual interest in the assets of the entity after deducting only its non-current liabilities.
Select one:
True
False 
Correct answer

Question 3
Correct
MENU
The VAT control account will be debited with the amount of the VAT input account of R7 691 and credited with the amount of the VAT output account of
R38 111.
Select one:
True 
False
Correct answer

Question 4
Incorrect
MENU
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the following information for Ronnie’s Hairdressing Salon for the
Dashboard
year ended /30My courses
June 20.1./ FAC1502-23-S1 / Welcome Message / Assessment 1
R
Capital 300 000
Equipment 200 000
Vehicles 160 000
Wages 165 000
Insurance 12 000
Advertising 3 000
What is the amount for the total liabilities of Ronnie’s Hairdressing Salon as at 30 June 20.1?
NB: Instructions
Answer: 9800 

Question 5
Partially correct
MENU
Ms B Betty owns Betties Dealers. In which book of first entry (subsidiary journal) will the bookkeeper of Betties Dealers record the transactions
Dashboard
that / My
occurred courses
on 25 March/ 20.1?
FAC1502-23-S1 / Welcome Message / Assessment 1
Date Transaction
20.1 Sales journal 
March 25 Sold goods on credit to Arch Traders for R40 000.
Date Transaction
20.1
Purchases returns journal 
March 25 Send some of the IT accessories, bought from JJ Computers on credit, back because it is
not fit for the purpose Betties Dealers wanted to use it.
Date Transaction
20.1 Purchases journal 
March 25 Purchased a laptop and other IT accessories from JJ Computers on credit for R5 000.
Date Transaction
20.1 Purchases returns journal 
March 25 Received a credit note from Ray Traders for R300 for damaged goods that was returned.

Date Transaction
20.1
→ Sales journal,
Date Transaction
20.1
Date Transaction
20.1
Date Transaction
20.1
→ Purchases returns journal

Question 6
Correct
MENU

According to
the accounting
definition,
accounting
consists of
three activities
identifying, recording, communicating
which relate

to transactions.
The three
activities of
accounting are
The statement
that best
describes the to provide useful financial information for decision making to a wide range of users
main aim of 
accounting is
The elements
of financial assets, liabilities, equity, income, and expenses
statements are

...
Financial
information of
an entity is
communicated a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes of equity and a cas
to the internal

and external
users by way of
...
According to the accounting definition, accounting consists of three activities which relate to transactions.
The three activities of accounting are → identifying, recording, communicating,
The statement that best describes the main aim of accounting is → to provide useful financial information for decision making to a wide range of users,
The elements of financial statements are ... → assets, liabilities, equity, income, and expenses,
Financial information of an entity is communicated to the internal and external users by way of ... → a statement of financial position, a statement of
profit or loss and other comprehensive income, a statement of changes of equity and a cash flow statement

Question 7
Correct
MENU

Current value measurement basis provides information updated to reflect conditions at the measurement date.
Select one:
True 
False
Correct answer
Question 8
Correct
An entity has the following balances: Capital: R4 500: Trade payables: R3 200; Loan: R2 500.
NB: Instructions
Answer: 10200 

Question 9
Correct
MENU
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the following information for Ronnie’s Hairdressing Salon for the year ended 30
September 20.1.
Capital 300 000
Equipment 200 000
Wages 165 000
What is the profit or loss of Ronnie’s Hairdressing Salon for the year ended 30 September 20.1?
NB: Instructions

Answer: -42600 

Question 10
Correct
MENU

The profit on sale of a non-current asset is an example of a gain of a business entity which does not arise from normal activities of the entity.
Select one:
True 
False
Correct answer
Question 11
Partially correct
Mr Sithole belongs to a stokvel. He wants to start his own bookshop called JS Bookshop. On 1 February 20.2 he received R12 000 from the stokvel
which he deposited directly into the bank account of JS Bookshop as his opening capital.
The correct analysis of the effect of the given transaction on the general ledger and the accounting equation of JS Bookshop is ...
JS BOOKSHOP
General ledger Assets Equity Liabilities

Account to Account to be
be debited credited Debit Credit Debit Credit Debit Credit
R R R R R R
bank capital 12000 0 0 12000 0 0
       
Instructions:

Question 12
Correct
MENU

The elements that is directly related to measurement of financial performance are income and expenses.
Select one:
True 
False
Correct answer
Question 13
Correct
respectively. Is the following statement true or false about the VAT control account for the month ended 31 December 20.20.
The VAT control account will reflect a refund of R12 214.
Select one:
True
False 
Correct answer

Question 14
Partially correct
MENU

R
VAT input 2 760
VAT output 3 160
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had a debit opening balance of R71 760 and the VAT output account had a credit opening balance of
R103 960.
Instructions:
GENERAL SPAZA SHOP
GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
Feb 28 Sales returns 2880 Feb 1 Balance 103960
     
GJ CRJ
Balance 182120 Feb 28 Bank 2760
    
CPJ
Bank 3160
 
SJ
Sales returns 75120
 
185000 185000
 

Question 15
Correct
MENU

An account in the general ledger is presented in a “T” format and the right-hand side is referred to as the debit side and the left-hand side is referred to
as the credit side.
Select one:
True
False 
Correct answer
Question 16
Correct
A purchases invoice for R1 955 was entered twice in the purchases journal and was posted twice to the applicable accounts in the general ledger and the
personal account of the creditor, Mr T Naidoo. The entity is a registered VAT vendor, and the applicable VAT rate is 15%.
Instructions:

When recording the credit entries, you must start with the applicable income or expense account, followed by the applicable vat account.
Purchases 1 700
VAT input 255
VAT input Trade payables control/Mr T Naidoo Purchases returns Trade receivables control/Mr T Naidoo
VAT output Purchases
1 955 1 840 293.25 1 661.75 1 700 255 2 248.25


Question 17
Partially correct
MENU
On 1 February 20.2 an EFT of R6 400 was made to the Municipality to pay the electricity deposit for Khulani Barbers.
The correct recording of the effect of the given transaction on the general ledger and the basic accounting equation is ...
Instructions:
Electricity expenses Bank 6 400 6 400 0 0 0 0
Electricity expenses Bank Electricity: Deposit
6 400 0

Question 18
Incorrect
MENU
Use the following information to calculate the total liabilities amount for the basic accounting equation:
R
Capital 680 000
Drawings 35 000
Rent income 65 000
Stationery 3 300
Wages 13 500
Furniture 80 000
Vehicles 620 000
Land 400 000
Buildings 70 000
Inventory 75 000
NB: Instructions
Answer: 2541000 

Question 19
Correct
MENU
Use the information provided to analyse the given transaction and then choose the correct option for the analysis of the transaction:
BK Salon's business bank account has a balance of -R5 000.
Transaction: Mrs G Singh is a pensioner and BK Salon allows her to have a haircut and pay what she can at the end of each month. Mrs G Singh owes BK
Salon R1 500 and at the end of the month she pays BK Salon R150.
The new bank balance of BK Salon after Mrs G Singh pays R150. -R4 850 
The effect of the given transaction on equity in the basic accounting equation. None. 
The account to be credited in the given transaction. Trade receivables 
The account to be debited in the given transaction. Bank 

The new bank balance of BK Salon after Mrs G Singh pays R150. → -R4 850,
The effect of the given transaction on equity in the basic accounting equation. → None.,
The account to be credited in the given transaction. → Trade receivables,
The account to be debited in the given transaction. → Bank

Question 20
Correct
MENU
Gizmo Enterprises
Dashboard provided/you
/ My courses with the following
FAC1502-23-S1 information
/ Welcome regarding
Message the list of totals
/ Assessment 1 and balances on 28 February 20.8 (Ignore the VAT implications
for purposes of this question)
TOTALS FOR JOURNALS

Sales column……………………………………………………………………………..... 404 000
What will the correct general ledger entries be when posting the trade receivables column to the general ledger of Gizmo Enterprises?
Instructions:
Bank and settlement discount received Trade receivables control Settlement discount granted Settlement discount received
Bank and settlement discount granted Bank Trade payables control Turnover
Sales
220 320 900 209 760 208 160

Question 21
Correct
MENU

The fundamental qualitative characteristics of financial statements are relevance and faithful representation.
Select one:
True 
False
Correct answer
Question 22
Partially correct
Solly’s accounting firm bought furniture for R10 000 on credit from Fit for Office Furnitures.
Assets and Liabilities.
Which elements of the basic accounting equation will be affected? 
Moloi Traders placed an advert in the local newspaper on credit, the cost of the advertisement
is R6 000.
assets will increase and liabilities will increase.
The effect of this transaction on the basic accounting equation will be … 
Mr Moloi made a deposit of R100 000 into his business bank account as a capital contribution
to start his business. assets and equity will increase.
The effect of this transaction on the basic accounting equation will be … 
During the financial year, the owner withdraws R50 000 from the business for his personal use. equity will decrease and assets will decrease.
The effect of this transaction on the basic accounting equation will be … 

Solly’s accounting firm bought furniture for R10 000 on credit from Fit for Office Furnitures.
Which elements of the basic accounting equation will be affected? → Assets and Liabilities.,
Moloi Traders placed an advert in the local newspaper on credit, the cost of the advertisement is R6 000.
The effect of this transaction on the basic accounting equation will be … → equity will decrease and liabilities will increase.,
Mr Moloi made a deposit of R100 000 into his business bank account as a capital contribution to start his business.
The effect of this transaction on the basic accounting equation will be … → assets and equity will increase.,
During the financial year, the owner withdraws R50 000 from the business for his personal use.
The effect of this transaction on the basic accounting equation will be … → equity will decrease and assets will decrease.

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Assessment 2 ►
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MENU 
Started on Wednesday, 5 April 2023, 10:33 AM

State Finished
Completed on Wednesday, 5 April 2023, 12:17 PM
Marks 35.50/60.00
Feedback
Question 1
Correct
Instructions:

Balance -
+ N/A
N/A + - Balance

Question 2
Correct
MENU
The following information relates to Fruit and Veggie Spaza Shop, who is registered as a VAT vendor (The VAT rate applicable is 15%).
Dashboard
The periodic/ inventory
Courses system
/ UNISAand
/ control
2023 / accounts
Semesterare
1 / inFAC1502-23-S1
use: (The VAT /period
Welcome
of theMessage / ends
business Assessment 1 months.)
on equal

R
VAT input 13 500
VAT output 67 500
Instructions:
If an option has been provided and it is not applicable to the specific question, please put N/A in the account column and a 0 in the amounts
column.
Furniture 121 200
VAT input 18 180
Cabbage Furniture/Trade receivables control VAT output Equipment
Furniture Cabbage Furniture/Trade payables control N/A
VAT input Desk
18 180 20 907 121 200 0 139 380 118 473

Question 3
Incorrect
MENU

The difference between the value of assets owned by the entity and an entity will operate indefinitely.
the liabilities it has incurred is referred to as …

expense.

One of the elements that measures profitability in an entity is a /an Annual Financial Statements.
…

equity.


Where would an entity disclose its accounting policy? → Annual Financial Statements.,
The going concern concept means that ... → an entity will continue operating in the foreseeable future.

Question 4
Partially correct
MENU

Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the amount - also
keep your cell phone horizontal when doing the question).
0 0 0 +2 000 +2 000
0 -3 000 0 +3 000 0 0
+2 000 -2 000 -3 000 0 +3 000

Question 5
Partially correct
MENU

Salaries will … in the statement of profit and loss and a non-current liability
other comprehensive income.

Electricity deposit will be disclosed as … in the a current liability
statement of financial position.

Trade payables will be disclosed as … in the statement be disclosed as finance costs
of financial position.

Drawings will … in the statement of profit and loss not be disclosed in the statement of profit or loss and other comprehensive income
and other comprehensive income.


Salaries will … in the statement of profit and loss and other comprehensive income. → be disclosed as distribution, administrative and other
expenses,
Electricity deposit will be disclosed as … in the statement of financial position. → a current asset,
Trade payables will be disclosed as … in the statement of financial position. → a current liability,
Drawings will … in the statement of profit and loss and other comprehensive income. → not be disclosed in the statement of profit or loss and other
comprehensive income
Question 6
Correct
An entity has the following balances: Bank: R3 000; Vehicles: R12 000: Trade receivables: R2 000.
NB: Instructions
Answer: 17000 

Question 7
Correct
MENU

The historical cost of asset and liabilities are increased if they become impaired or onerous.
Select one:
True
False 
Correct answer
Question 8
Correct
Accounting is a process that involves three activities namely the identification of transactions, the recording of transactions and the communication
of information recorded via the financial statements of the entity.
Select one:
True 
False
Correct answer

Question 9
Incorrect
MENU

The statement of financial position is prepared to reflect the financial position of the business over a specific period.
Select one:
True 
False
Incorrect answer
Question 10
Partially correct
A debt that was recovered after it was previously written off as irrecoverable will be recorded in the … sales returns journal 
A credit sale transaction will be recorded in the … sales journal 
When a debtor returns unsatisfactory goods, the bookkeeper will record this transaction in the … cash receipts journal 
EFT’s done by debtors will be recorded in the … cash receipts journal 

A debt that was recovered after it was previously written off as irrecoverable will be recorded in the … → general journal,
A credit sale transaction will be recorded in the … → sales journal,
When a debtor returns unsatisfactory goods, the bookkeeper will record this transaction in the … → sales returns journal,
EFT’s done by debtors will be recorded in the … → cash receipts journal

Question 11
Correct
MENU

An example of a business entity which will be classified as a service and a trading entity will be a lawyer’s practice.
Select one:
True
False 
Correct answer
Question 12
Correct
The VAT control account is used to determine the amount to be paid to or to be claimed from SARS.
Select one:
True 
False
Correct answer

Question 13
Incorrect
MENU
Use the following information to calculate the missing figure by using the basic accounting equation:
R
Capital 450 000
Furniture 110 000
Buildings 200 000
Vehicles 150 000
Machinery 135 000
Income 80 000
Bank ?
Expenses 45 000
NB: Instructions
Answer: 85000 
Question 14
Correct
Transactions generate income or give rise to expenditure.
Select one:
True 
False
Correct answer

Question 15
Correct
MENU

Equity is the interest of the owner after liabilities are deducted from assets.
Select one:
True 
False
Correct answer
Question 16
Partially correct
Big Transport Services transported Mrs M Solomon’s household furniture to her new residence in Polokwane on 1 October 20.2. Big Transport
Services rendered this service to Mrs M Solomon for R50 000 on credit.
The correct analysis of the given transaction in the general ledger and the accounting equation of Big Transport Services is ...
Instructions:
BIG TRANSPORT SERVICES
Date General ledger

Assets Equity Liabilities
20.2
Oct
R R R
1 Trade payables control Services rendered 50000 5000 0
    

Question 17
Partially correct
MENU

R
VAT input 1 207,50
VAT output 1 680,00
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R42 000 and the VAT output account had an opening balance of R63 000.
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
     
GJ CRJ
    
CPJ
Bank 1680
 
SJ
Trade receivables control 38062.50
 
122738.15 122738.15
 

Question 18
Correct
MENU
The net amount, after subtracting trade discount, on the invoice is recorded as the amount of the purchases in the accounting records of the
purchaser.
Select one:
True 
False
Correct answer
Question 19
Correct
The settlement of an obligation can take place through the conversion of an obligation into equity.
Select one:
True 
False
Correct answer

Question 20
Incorrect
MENU
Victor Smith is the owner of Smith Electricians. On 28 February 20.2 you are given the following information for Smith Electricians.
R
Equipment 350 000
Vehicles 480 000
Loan 300 000
NB: Instructions
Answer: 682000 
Question 21
Partially correct
Sales will … in the statement of profit or loss and be disclosed as revenue

other comprehensive income.

Rent expenses will … in the statement of profit or loss be disclosed as other income
and other comprehensive income.

An example of a current asset will be ... be disclosed as distribution, administrative and other expenses

Interest income will … in the statement of profit or prepaid expenses
loss and other comprehensive income.


Sales will … in the statement of profit or loss and other comprehensive income. → be disclosed as revenue,
Rent expenses will … in the statement of profit or loss and other comprehensive income. → be disclosed as distribution, administrative and other
expenses,
An example of a current asset will be ... → prepaid expenses,

Interest income will … in the statement of profit or loss and other comprehensive income. → be disclosed as other income

Question 22
Incorrect
MENU
R
Capital 450 000
Drawings 15 000
Machinery 180 000
Buildings 480 000
Bank ?
NB: Instructions
Answer: -30600 
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Assessment 2 ►

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Started on Sunday, 9 April 2023, 10:59 AM

State Finished
Completed on Sunday, 9 April 2023, 12:07 PM
Marks 13.20/60.00
Feedback
You have unfortunately failed this assignment. This assignment covered learning unit 1 to 5. Before utilising the second
opportunity, please revisit these learning units and watch our recorded videos that covered these learning units. You will
have to work harder to pass your assignments. You are welcomed to contact your lecturers or e-tutor if you need further
assistance regarding grasping certain concepts.
Question 1
Incorrect

The purpose of incurring expenditure is to earn income.
Select one:
True
False 
Incorrect answer

Question 2
Correct
MENU
Trade discount is the discount that is given by a wholesaler to a retailer.
Select one:
True 
False
Correct answer
Question 3
Correct

According to the current value measurement basis, assets should be recorded at the amount paid or the fair value of the consideration given
to acquire the assets at the time of their acquisition.
Select one:
True 
False
Correct answer

Question 4
Incorrect
MENU
Instructions:

+ -
Balance N/A
N/A + - Balance
Question 5
Correct

The double-entry system in accounting provides a logical method of recording transactions.
Select one:
True 
False
Correct answer

Question 6
Incorrect
MENU

Liabilities are present economic resources controlled by the entity because of past events.
Select one:
True 
False
Incorrect answer
Question 7
Incorrect
The elements of the financial statements are assets, equity and liabilities.
Select one:
True 
False
Incorrect answer

Question 8
Incorrect
MENU
An entity has the following balances: Bank: R5 000; Machinery: R3 000: Trade payables: R2 000.
NB: Instructions
Answer: 3000 

Question 9
Partially correct
MENU
The owner of GS Electricians, Mr Gizmo Smith, deposited R10 000 on 1 March 20.1 as opening capital into the business bank account after
obtaining a personal loan from LG Bank.
The correct analysis of the effect of the given transaction on the general ledger and the accounting equation is ...
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the amount
- also keep your cell phone horizontal when doing the question).
Loan: LG Bank Bank 0 +10 000 -10 000
Capital Loan: LG Bank 0 Bank
+10 000 -10 000


Question 10
Partially correct
MENU
Use the information provided to analyse the given transaction and then choose the correct option for the analysis of the transaction:
The business bank account of BK Salon has a balance of -R5 000.
Transaction: BK Salon paid a creditor R2 000 via the business banking app.
The effect of the above transaction on liabilities in the basic accounting Liabilities will increase and decrease with R2 000.
equation.

The account to be credited in the given transaction. Bank


The account to be debited in the given transaction. Trade payables


The effect of the given transaction on assets in the basic accounting equation. Trade receivables


The effect of the above transaction on liabilities in the basic accounting equation. → Liabilities will increase and decrease with R2 000.,
The account to be credited in the given transaction. → Bank,
The account to be debited in the given transaction. → Trade payables,

The effect of the given transaction on assets in the basic accounting equation. → None

Question 11
Incorrect
MENU
You are given the following information for Becker & Riaan Nursery for the month ended 28 February 20.2:
Becker and Riaan Nursery owes Big Nursery Suppliers an amount of R32 000. Due to tough economic conditions, Becker & Riaan Nursery
had to resort to providing services on credit and their clients owe them R46 000. Becker & Riaan Nursery also owns equipment to the value
of R12 000 and had an unfavourable bank account balance of R15 000.
NB: Instructions
Answer: -10200 

Question 12
Incorrect
MENU
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the following information for Ronnie’s Hairdressing Salon
Dashboard
for the year /ended
Courses / UNISA
30 June 20.1. / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 1
R
Capital 300 000
Equipment 200 000
Vehicles 160 000
Bank (unfavourable balance) 150 000
Wages 165 000
Water and electricity: deposit 2 000
Insurance 12 000
Advertising 3 000
What is the amount of the total comprehensive income/loss for Ronnie’s Hairdressing Salon for the year ended
30 June 20.1?
NB: Instructions
Answer: 365000 

Question 13
Correct
MENU

Accounting is a process that involves three activities namely identification of transaction, recording and communication of information
recorded via the financial statements of the entity.
Select one:
True 
False
Correct answer

Question 14
Incorrect
MENU
A sales invoice for R920 was entered twice in the sales journal and was posted twice to the applicable accounts in the general ledger and the
personal account of the debtor, Mr T Maharaj. The entity is a registered VAT vendor, and the applicable VAT rate is 15%.
Instructions:

When recording the debit entries, you must start with the applicable income or expense account, followed by the applicable vat account.
Trade receivables control/Mr T Maharaj 1 840
VAT input 276
Trade payables control/Mr T Maharaj 1 564
Sales Turnover VAT output
VAT input Trade payables control/Mr T Maharaj Trade receivables control/Mr T Maharaj
1 564 138 800 1 600 782 920 120 1 840 276 240

Question 15
Incorrect
MENU
Mr S Nkome owns a business called Quick Foods. He forgot to pay his rent for his flat at 31 December 20.2. He quickly made an EFT of
R6 500 from the bank account of Quick Foods directly into the bank account of the owner of the flat.
The correct analysis of the effect of the given transaction on the general ledger and the accounting equation of Quick Foods is ...
QUICK FOODS
General ledger
R R R
6500 NA 6500 975 N/A
    
Instructions:

Question 16
Incorrect
MENU
Dineo Dlamini is the owner of Dineo’s Hairdressing Salon. You are given the following information for Dineo’s Hairdressing Salon
Dashboard
for the year /ended
Courses / UNISA
30 June 20.1. / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 1
R
Capital 250 000
Equipment 150 000
Wages 160 000
Insurance 22 000
Advertising 8 000
Which will the correct total comprehensive income/loss for Dineo’s Hairdressing Salon for the year ended 30 June 20.1 be?
NB: Instructions
Answer: 534000 
Question 17
Incorrect
Indicate whether the following statement regarding income is true or false:

In practice, it is normally required that revenue should be earned before it is recognised.
Select one:
True
False 

Incorrect answer

Question 18
Partially correct
MENU

The users that will use accounting information to assess the contribution of the entity to the accrued income
economy and the creation of work opportunities is ...

Assets, equity and liabilities.
What are the elements of the statement of financial position?

COG Traders returned inventory to the value of R4 000 to Pete’s Deals. Credit note: 90 was issued to
COG Traders. accrued expenses
In which journal of COG Traders will you enter the above transaction? 
An example of a current asset will be … income received in advance



The users that will use accounting information to assess the contribution of the entity to the economy and the creation of work
opportunities is ... → the public.,
What are the elements of the statement of financial position? → Assets, equity and liabilities.,
COG Traders returned inventory to the value of R4 000 to Pete’s Deals. Credit note: 90 was issued to COG Traders.
In which journal of COG Traders will you enter the above transaction? → Purchases returns journal,
An example of a current asset will be … → accrued income

Question 19
Partially correct
MENU

Considered as an example of revenue because it is earned from the entity’s normal Credit losses recovered
activities.

An example of a liability that must be settled after one year of the statement of financial Expenses
position date will be …

An increase in economic benefits through an increase in assets or a decrease in liabilities Profit on sale of current asset
that has arisen for the entity.

Income
The … refers to the wealth of the owner from the business only.


Considered as an example of revenue because it is earned from the entity’s normal activities. → Credit losses recovered,
An example of a liability that must be settled after one year of the statement of financial position date will be … → Long-term borrowings,
An increase in economic benefits through an increase in assets or a decrease in liabilities that has arisen for the entity. → Income,
The … refers to the wealth of the owner from the business only. → Net asset value

Question 20
Partially correct
MENU
R 1 / FAC1502-23-S1 / Welcome Message / Assessment 1

Dashboard / Courses / UNISA / 2023 / Semester
VAT input 2 760
VAT output 3 160
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had a debit opening balance of R71 760 and the VAT output account had a credit opening
balance of R103 960.
Calculate the closing balance of the VAT input account as at 28 February 20.2.
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
Feb 1 Balance 71760 Feb 28 Bank 103960

b/d PRJ
     
Feb 28 Purchases 420 Trade payables control 693.07

CRJ GJ
    

CPJ
 
VAT control 500

PJ
 

602800 602800
 
MENU

Question 21
Partially correct
The process concerned with the daily recording of business transactions from
Accounting
source documents in such a way the entities or individuals can determine their
exact financial position. 
A/An … will be recognised as an element of the financial statements when it is Liability

probable that economic benefits will flow to the entity.

The international financial reporting standards as set by the Financial Reporting
International Financial Reporting Standards (IFRSs)
Standards Council (FSRC) to ensure to a great extent that the same type of
transactions is recorded by different entities in more or less the same way. 
The process of incorporating in the statement of financial position or statement

Asset
of profit or loss and other comprehensive income an item that meets the
definition of an element and satisfies the criteria for recognition. 

The process concerned with the daily recording of business transactions from source documents in such a way the entities or individuals can
determine their exact financial position. → Bookkeeping,
A/An … will be recognised as an element of the financial statements when it is probable that economic benefits will flow to the entity. →
Asset,
The international financial reporting standards as set by the Financial Reporting Standards Council (FSRC) to ensure to a great extent that the
same type of transactions is recorded by different entities in more or less the same way. → International Financial Reporting Standards
(IFRSs),
The process of incorporating in the statement of financial position or statement of profit or loss and other comprehensive income an item
that meets the definition of an element and satisfies the criteria for recognition. → Recognition

Question 22
Correct
MENU
If the closing balance of the VAT input account and VAT output account for the month ended 28 February 20.21 amount to R8 978 and R21
780, respectively. Is the following statement true or false about the VAT control account for the month ended 28 February 20.21.
The VAT control account will reflect a payment due to SARS of R12 802.
Select one:
True 
False
Correct answer
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Assessment 2 ►

8/6/23, 2:41 PM Assessment 1
QUIZ
Time left 0:19:08
Question 1
Answer saved
Marked out of 6.00
A sales invoice for R920 was entered twice in the sales journal and was posted twice to
the applicable accounts in the general ledger and the personal account of the debtor,
Mr T Maharaj. The entity is a registered VAT vendor, and the applicable VAT rate is 15%.
Instructions:

When recording the debit entries, you must start with the applicable income or expense
account, followed by the applicable vat account.
Sales 800
VAT output 120

Trade receivables control/Mr T Maharaj Turnover
Trade payables control/Mr T Maharaj VAT output
VAT input Sales
138 920 1 840 782 1 564 240 1 600 120 800 276

https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=11860735&cmid=623189#question-12035331-1 1/19
Question 2
Answer saved
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COG Traders returned inventory to the value of

R4 000 to Pete’s Deals. Credit note: 90 was
issued to COG Traders. accrued expenses
In which journal of COG Traders will you enter the
above transaction?
An example of a current asset will be … accrued income
The users that will use accounting information to

assess the contribution of the entity to the
the public.
economy and the creation of work opportunities
is ...
What are the elements of the statement of

Assets, equity and liabilities.
nancial position?
Question 3
Answer saved
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A loss decrease equity.
Select one:
True
False
Question 4
Answer saved
Marked out of 1.00

Management are considered as an internal user of nancial information who use the
nancial information to exercise control which means evaluating the current situation
and taking corrective steps.
Select one:
True
False

Question 5
Answer saved
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Ms T Massey is the owner of Massey Traders. On 28 February 20.23 the weekly wages
were paid directly into the bank accounts of the workers, R1 000.
Use the information provided to answer the questions about the given transaction.
Instructions:
The effect on the accounting equation of

the account debited will be ... Assets will increase with R1 000
The account to be credited is ... Bank
The effect on the accounting equation of

the account credited will be ... Assets will decrease with R1 000
The account to be debited is ... Salaries
Question 6
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Please choose the correct option for the given scenario:
RG Plumbing bought ten-bathroom sinks

on credit from AK Suppliers.
The account that will debited in this Equipment and non-current asset.
transaction will be… and it will be
classi ed as a/an …
RG Plumbing rendered services to SR

Developers which was paid in cash.
The account that will be credited in this Services rendered and income.
transaction will be …. and it will be
classi ed as a/an ….
RG Plumbing donated 150 litre geyser to

local children’s home. The account that
will debited in this transaction will be … Donations and expense
and it will be classi ed as a/an …
The administrative assistant at RG

Plumbing used the business credit card to
buy a laptop to be used in the o ce from
Green Electronics.
Equipment and non-current asset.
The account that will be debited in this
transaction will be… and it will be
classi ed as a/an …

Question 7
Answer saved
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Debits Credits
R R
Stationery 1 610 Interest on bank account 450
Interest expenses 5 200 Accumulated depreciation
Trade receivables control 24 300 (plant and equipment) 17 500
Water and electricity 8 800 Rent income 13 400
Depreciation (Vehicles) 15 000 Trade payables control 34 320
Salaries 110 360 Accumulated depreciation
Drawings 21 900 (vehicles) 15 350
Inventory 32 000 Bank 11 600
1 040 370 1 040 370

Instructions:
3. A decrease in an amount must be indicated by using a negative sign in front
of the amount (eg: -1000.01)
Please note: Only include the total amount for assets, equity and liabilities in the
table provided.
R R R
1040370 928250 112120

Question 8
Incomplete answer
Marked out of 3.00
On 1 March 20.21 Sithole’s Restaurant purchased chairs and tables for the restaurant
for R180 000. The chairs and tables were paid for with the credit card of the business.
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and
click on the place where you want to place the amount - also keep your cell phone
horizontal when doing the question).

3. If an options has been provided and it is not applicable to the speci c questions
please put a 0 in the applicable column.
0 0 +180 000 -180 000 +180 000 +180 000
Your answer is not complete; please drag an item to each drop region.
Question 9
Answer saved
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Liabilities are the residual interest in the assets of an entity after deducting all its
liabilities.
Select one:
True
False

Question 10
Answer saved
Marked out of 6.00
The bookkeeper of Luna Dealers provides you with the following general ledger
accounts for the VAT output and VAT input for the year ended 30 June 20.1:
LUNA DEALERS
GENERAL LEDGER
Dr VAT output Cr
20.1 R 20.1 R
Jun 30 Trade receivables Jun 1 Balance b/d 90 540
control SRJ12 900
VAT control GJ12 174 120 Jun 30 Bank CRJ12 35 100
Trade receivables
control SJ12 48 000
Trade payables
control CPJ12 1 380
175 020 175 020
LUNA DEALERS
GENERAL LEDGER
Dr VAT input Cr
20.1 R 20.1 R
Jun 1 Balance b/d 86 740 Jun 30 Trade payables
control PRJ12 1 500
Bank CPJ12 40 500 VAT control GJ12 172 340
Trade receivables
control CRJ12 1 600
Trade payables
control PJ12 45 000
173 840 173 840
What will the correct entries be in the VAT control account in the general ledger of
Luna Dealers for the year ended 30 June 20.1 be?
Instructions:
VAT input 172 340 VAT output 174 120
Balance 1 780
Receiver of Revenue Balance VAT output
Trade payables control VAT input
1 780 173 840 175 020 172 340 174 120

Question 11
Answer saved
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If the closing balance of the VAT input account and VAT output account for the month
ended 31 December 20.20 amount to R7 691 and R38 111, respectively. Is the following
statement true of false about the VAT control account for the month ended 31
December 20.20.
The VAT control account will re ect a payment due to SAR of R30 420.
Select one:
True
False

Question 12
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The following balances were extracted from the subsidiary journals of General Spaza
Shop as at 28 February 20.2.
R
VAT input 3 546,24
Amounts for sales added in the Sales column 513 371,04
VAT output 4 892,16
Purchases journal
Sales journal
Purchases returns column 50 399,44
On 1 February 20.2, the VAT input account had an opening balance of R123 525 and
the VAT output account had an opening balance of R185 265.
Instructions:
3. For embedded questions spelling is very important. If you spell the answer
incorrect it will be marked incorrect. Please make sure that your spelling of the
words is correct.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
Feb 1 Balance b/d 123525 Feb 28 Trade payables control PRJ 50399.44
Feb 28 Bank CRJ 3546.24 VAT control GJ 249422.72
Trade receivables control CPJ 96850.92
Trade payables control PJ 75900
299822.16 299822.16

Question 13
Answer saved
Marked out of 2.00
You were presented with the following statement of financial position of Fancy
Hairdressers:
FANCY HAIRDRESSERS
STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 20.10
Notes R
ASSETS
Non-current assets 475 000
Property, plant and equipment 450 000
Fixed deposit: Pretty Bank 25 000
Current assets 125 000
Trade and other receivables 35 000
Cash and cash equivalent 90 000
Total assets 600 000
EQUITY AND LIABILITIES

Equity ?
Capital R(? – 15 000) ?
Non-current liabilities 250 000
Long-term borrowings 250 000
Current liabilities 50 600
Trade and other payables 50 600
Total equity and liabilities 600 000
What is the correct amount for capital, before drawings?
NB: Instructions
Answer: 299400
Question 14
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The nancial position of an entity is reported over a nancial period.
Select one:
True
False

Question 15
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Gizmo Enterprises provided you with the following information regarding the list of
totals and balances on 28 February 20.8 (Ignore the VAT implications for purposes of
this question)
TOTALS FOR JOURNALS

Sales column……………………………………………………………………………..... 404 000
What will the correct general ledger entries be when posting the trade receivables
column to the general ledger of Gizmo Enterprises?
Instructions:
Settlement discount received Bank and settlement discount granted
Settlement discount granted Bank and settlement discount received
Trade receivables control Sales
Turnover Bank
Trade payables control
220 320 208 160 900 209 760

Question 16
Answer saved
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On 23 March 20.1 the bookkeeper of Gizmo Electricians made the following electronic
payments; to the municipality for the payment of the water and electricity account of
R5 000 and to a few contract workers to pay their wages of R3 000 in total.
The correct effect of the transactions on 23 March 20.1 on the accounting equation
are ...
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and
click on the place where you want to place the amount - also keep your cell phone
horizontal when doing the question).
0 0 5 000 5 000 0 0
3 000 5 000 0
0 0 3 000 3 000 0 0
Question 17
Answer saved
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Victor Smith is the owner of Smith Electricians. On 28 February 20.2 you are given the
following information for Smith Electricians.
R
Equipment 250 000
Vehicles 480 000
Loan 300 000
NB: Instructions

Answer: 602000

Question 18
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Indicate by choosing the correct option whether the following statement is true or
false:
Trade discount is discount recorded in the accounting records of the purchaser.
Select one:
True
False
Question 19
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An entity has the following balances: Bank: R5 000; Machinery: R3 000: Trade payables:
R2 000.
NB: Instructions
Answer: 6000

Question 20
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On 28 February 20.1 the cash register roll of Abdoola Spaza showed credit card
payments by clients for services rendered of R15 000.
The correct effect of the transaction on the basic accounting equation in the books of
Abdoola Spaza is ...
Instructions:
amount (eg: -1000.01)
5. If an option has been provided and it is not applicable to the speci c question please
put N/A in the column.
R R R
15000 15000 N/A
N/A

Question 21
Incomplete answer
Marked out of 5.00
The correct ledger and accounting analysis of a transaction which states that an
entity received R11 000 from a tenant will be … The bank account of the entity had a
credit balance of R15 000.
Instructions:


amount (eg: -1000.01)
5. For embedded questions spelling is very important. If you spell the answer incorrect
it will be marked incorrect. Please make sure that your spelling of the words is correct.
General ledger
Account to be Assets Equity Liabilities

Account to be credited
debited
R R R
bank rent received N/A

11000 11000
Please answer all parts of the question.
Question 22
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The double-entry system in accounting provides a illogical method of recording

transactions.
Select one:
True
False

Question 23
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On 31 December 20.1 an EFT of R2 500 was made to Best Municipality to pay the
electricity deposit for Correcting Dentist.
The correct analysis of the effect of the given transaction on the general ledger
and the accounting equation of Correcting Dentist is ...
Instructions:
it will be marked incorrect. Please make sure that your spelling of the words is correct.
4. If an option has been provided and it is not applicable to the speci c question
please put N/A in the columns.
CORRECTING DENTIST

Account to be debited Account to
Debit Credit Debit Credit Debit Credit
be credited
R R R R R R
electricity deposit bank 2500 -2500 n/a n/a n/a n/a
Question 24
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A user of nancial
information that is not
an external user of employees.
nancial information is
...
The objective for the

development of
accounting standards to limit the variety of available accounting practices.
was ...
The term used to

describe the entity’s
ability to continue to
operate for the going concern.
foreseeable future is
referred to as …
One of the limitations of

using money as a
not all events can be expressed in monetary terms.
common denominator is
that ...

Question 25
Answer saved
Marked out of 2.00
On 15 February 20.1 Abdoola Spaza sold goods to the value of R21 360, on credit, to
Mrs S Dlamini. Abdoola Spaza uses the periodic inventory system.
Instructions:
amount (eg: -1000.01)
R R R
21360 21360 n/a
n/a

Question 26
Answer saved
Marked out of 2.00
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the following
information for Ronnie’s Hairdressing Salon for the year ended 30 September 20.1.
Capital 300 000
Equipment 200 000
Wages 165 000
What is the correct equity of Ronnie’s Hairdressing Salon for the year ended
30 September 20.1?
NB: Instructions

Answer: 257400
Question 27
Answer saved
Marked out of 1.00
Accounting policy aims to ensure that the same type of transactions are recorded
consistently.
Select one:
True
False

Question 28
Answer saved
Marked out of 1.00

Accounting is a process in which relevant events to a particular business or entity are
identi ed as evidence of economic activity.
Select one:
True
False
Question 29
Answer saved
Marked out of 1.00
An entity has the following balances: Bank (Cr): R3 000; Vehicles: R12 000; Trade
payables: R2 000.
NB: Instructions
Answer: 7000

Question 30
Answer saved
Marked out of 2.00
Use the following information to calculate the total non-current asset amount:
R
Capital 630 000
Drawings 25 000
Rent income 60 000
Stationary 2 200
Wages 13 500
Furniture 40 000
Vehicles 600 000
Fixed Deposit: SA Bank 70 000
Land 300 000
Buildings 110 000
Inventory 50 000
NB: Instructions
Answer: 1120000

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QUIZ
Time left 0:55:11
Question 1
Not yet answered
Marked out of 1.00
Indicate whether the following statement regarding income is true or false:
Income is recognised when the decline in economic bene ts resulting from a

decrease in an asset or the increase of a liability.
Select one:
True
False
Question 2
Not yet answered
Marked out of 4.00
Big Transport Services transported Mrs M Solomon’s household furniture to her

new residence in Polokwane on 1 October 20.2. Big Transport Services rendered
this service to Mrs M Solomon for R50 000 on credit.
The correct analysis of the given transaction in the general ledger and the
accounting equation of Big Transport Services is ...
Instructions:

3. A decrease in an amount must be indicated by using a negative sign in front of

the amount (eg: -1000.01)
please put N/A in the column.
Date General ledger

Assets Equity Liabilities
20.2
Oct
R R R
1 N/A
Trade receivables control Services rendered 50000 50000

https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=11872932&cmid=623189 1/18
Question 3
Not yet answered
Make
Marked out a
of 5.00 note of any responses entered on this page in the last few minutes, then try to re-connect.
The correct ledger and accounting analysis of a transaction which states that an
entity received R11 000 from a tenant will be … The bank account of the entity had
a credit balance of R5 000.
Instructions:


words is correct.
General ledger

debited
R R R
BANK RENT RECEIVED 11000 N/AS

11000
Question 4
Not yet answered
Marked out of 1.00

Information on a nancial statement can be veri ed only by direct veri cation.
Select one:
True
False

Question 5
Not yet answered
Make
Marked out a
Use the information provided to analyse the given transaction and then choose the
correct option for the analysis of the transaction:
BK Salon's business bank account has a balance of -R5 000.
Transaction: Mrs G Singh is a pensioner and BK Salon allows her to have a haircut
and pay what she can at the end of each month. Mrs G Singh owes BK Salon R1 500
and at the end of the month she pays BK Salon R150.
The account to be debited in

Bank
the given transaction.
The new bank balance of BK

Salon after Mrs G Singh pays -R4 850
R150.
The account to be credited in

Trade receivables
the given transaction.
The effect of the given

transaction on equity in the None.
basic accounting equation.
Question 6
Not yet answered
Marked out of 4.00
COG Traders returned inventory to the value of

R4 000 to Pete’s Deals. Credit note: 90 was
issued to COG Traders. Purchases returns journal
In which journal of COG Traders will you enter
the above transaction?
The users that will use accounting information

to assess the contribution of the entity to the
the public.
economy and the creation of work
opportunities is ...
What are the elements of the statement of

nancial position? Assets, equity and liabilities.
An example of a current asset will be … accrued income

Question 7
Not yet answered
Make
Marked out a
totals and balances on 28 February 20.8 (Ignore the VAT implications for purposes
of this question)
TOTALS FOR JOURNALS

Sales column……………………………………………………………………………..... 404 000
What will the correct general ledger entries be when posting the trade receivables
column to the general ledger of Gizmo Enterprises?
Instructions:
Turnover Trade receivables control
Settlement discount granted Bank
Trade payables control Settlement discount received
Sales Bank and settlement discount granted
Bank and settlement discount received
209 760 900 220 320 208 160
Question 8
Not yet answered
Marked out of 1.00
Revenue represents sales made by the business to its customers.
Select one:
True
False

Question 9
Not yet answered
Make
Marked out a
On 12 February 20.1 Mr T Naidoo paid his account of R2 500 via EFT into the bank
account of Abdoola Spaza.
The correct effect of the transaction on the basic accounting equation in the books
of Abdoola Spaza is ...
Instructions:
R R R
2500 2500 N/A
N/A
Question 10
Not yet answered
Marked out of 4.00
Ms T Massey is the owner of Massey Traders. On 28 February 20.23 a direct

payment of R1 265 (VAT inclusive) was made to Huge Deliveries for carriage on
goods purchased. Massey Traders is a registered VAT vendor and the VAT rate
applicable is 15%. Massey Traders makes use of the periodic inventory system.
Instructions:
The VAT amount will be ... R165
In which book of rst entry will the

transaction be entered? Cash payments journal
The account(s) to be debited are ... Carriage on purchases
The account(s) to be credited are ... Bank

Question 11
Not yet answered
Make
Marked out a
The correct effect of the transactions on 23 March 20.1 on the accounting equation
are …
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer
and click on the place where you want to place the amount - also keep your cell
phone horizontal when doing the question).

0 +2 000 +3 000 0-3 000 -2 000 0 0 0 0 +2 000
0 +3 000 0 +3 000 +3 000 0

Question 12
Not yet answered
Marked out of 1.00
Indicate whether the following statement is true or false regarding the procedures
that must be followed at the end of the month regarding to posting from the
subsidiary journals?
The total of the trade payables column in the purchases returns journal must be
posted to the credit side of the trade payables control accounts on the last day of
the month.
Select one:
True
False

Question 13
Not yet answered
Make
Marked out a
Debits Credits
R R
Depreciation (Vehicles) 21 000 Accumulated
depreciation
Drawings 71 900
Inventory 39 000
1 106 720 1 106 720
Instructions:


Please note: Only include the total amount for assets, equity and liabilities in the
table provided.

R R R
1106720 996400 110320
Question 14
Not yet answered
Marked out of 1.00
An entity has the following balances:
Inventory R5 000
Machinery R3 000
Trade receivables R2 000
Bank (Cr) R1 250

NB: Instructions
Answer: 8750

Question 15
Not yet answered
Make
Marked out a note
of 12.00 of any responses entered on this page in the last few minutes, then try to re-connect.
The following balances were extracted from the subsidiary journals of General
Spaza Shop as at 28 February 20.2.
R
VAT input 3 516,24
VAT output 4 892,16
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R123 480
and the VAT output account had an opening balance of R185 220.
Calculate the closing balance of the VAT input account as at 28 February

20.2.
Instructions:

words is correct.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
Feb 1 Balance b/d Feb 28 Trade payables control PRJ

123525 50399.44
299822.16 299822.16

Question 16
Once connection
Not yet answered has been re-established, your responses should be saved and this message will disappear.
Marked out of 1.00
If the closing balance of the VAT input account and VAT output account for the
month ended 31 December 20.20 amount to R7 691 and R38 111, respectively. Is the
following statement true of false about the VAT control account for the month
ended 31 December 20.20.
The VAT control account will be debited with the amount of the VAT input account of
R7 691 and credited with the amount of the VAT output account of R38 111.
Select one:
True
False
Question 17
Not yet answered
Marked out of 1.00
An example of a business entity which will be classi ed as a service and trading

entity will be a Plumber.
Select one:
True
False

Question 18
Not yet answered
Make
Marked out a
Use the following information to calculate the total liabilities amount for the
basic accounting equation:
R
Capital 680 000
Drawings 35 000
Rent income 65 000
Stationery 3 300
Wages 13 500
Furniture 80 000
Vehicles 620 000
Land 400 000
Buildings 70 000
Inventory 75 000
NB: Instructions
Answer: 254100

Question 19
Not yet answered
Make
Marked out a
The following information relates to Fruit and Veggie Spaza Shop, who is
registered as a VAT vendor (The VAT rate applicable is 15%). The periodic
inventory system and control accounts are in use: (The VAT period of the
business ends on equal months.)

R
VAT input 13 500
VAT output 67 500
On 24 August, a desk was purchased on credit from Cabbage Furniture, R139

380.
Which one of the following options represents the correct general journal
entries for the desk purchased for Fruit and Veggies:
Instructions:

If an option has been provided and it is not applicable to the speci c question,
please put N/A in the account column and a 0 in the amounts column.
When recording the debit entries, you must start with the applicable income or
expense or asset account, followed by the applicable vat account.
Furniture 121 200
VAT input 18 180

VAT output
VAT input
Cabbage Furniture/Trade receivables control
Furniture
N/A
Desk
Equipment
Cabbage Furniture/Trade payables control
139 380 0 18 180 20 907 118 473 121 200

Question 20
Not yet answered
Make
Marked out a
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the
following information for Ronnie’s Hairdressing Salon for the year ended 30
June 20.1.
R
Capital 300 000
Equipment 200 000
Vehicles 160 000
Wages 165 000
Insurance 12 000
Advertising 3 000
What is the amount of the total comprehensive income/loss for Ronnie’s

Hairdressing Salon for the year ended 30 June 20.1?
NB: Instructions
3. If the net effect on the accounting equation is a decrease, please enter the
amount as a negative (eg: -12141.72)
Answer: 39400
Question 21
Not yet answered
Marked out of 1.00
An example of a business entity which will be classi ed as a service and a trading

entity will be a hairdressing salon.
Select one:
True
False

Question 22
Not yet answered
Make
Marked out a
An entity has the following income and expenditure for the nancial year: Sales
R33 000; Rent expenses R11 000; Interest expenses R1 000; Insurance R1 500.
The net pro t or the net loss of the entity is …
NB: Instructions

Answer: 19500
Question 23
Not yet answered
Marked out of 4.00
Khulani Barbers paid the electricity deposit of R6 400 via EFT on 1 February 20.2.
The correct recording of the effect of the given transaction on the general ledger
and the basic accounting equation is ...
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer
and click on the place where you want to place the amount - also keep your cell
phone horizontal when doing the question).
Electricity: Deposit Bank Electricity expenses

Electricity expenses Bank 6 400 0 6 400 0 0 0
6 400 0

Question 24
Not yet answered
Make
Marked out a

A liability shall be classi ed as a current liability when it is expected to be converted
into money (realised) within twelve months of the statement of nancial position
date.
Select one:
True
False
Question 25
Not yet answered
Marked out of 1.00
The statement of pro t or loss and other comprehensive income provides

information about the nancial position of the business entity at the end of that
speci ed period.
Select one:
True
False
Question 26
Not yet answered
Marked out of 2.00
Victor Smith is the owner of Smith Electricians. On 28 February 20.2 you are given
the following information for Smith Electricians.
R
Equipment 350 000
Vehicles 480 000
Loan 300 000
NB: Instructions

Answer: 632000

Question 27
Not yet answered
Make
Marked out a
You are given the following information for Luna Dealers for the year ended 30 June
20.1.
Totals of the VAT output and VAT input columns in the subsidiary journals:
R
VAT output
Sales journal: VAT output…………………………………………………….. 9 600
Cash receipts journal: VAT output…………………………………………… 7 020
Cash payments journal: VAT output…………………………………………. 276
Sales returns journal: VAT output……………………………………………. 180
VAT input
Purchases journal: VAT input…………………………………………………. 9 000
Purchases returns journal: VAT input…………………………………….….. 300
Cash payments journal: VAT input…………………………………………… 8 100
Cash receipts journal: VAT input……………………………………………… 320
Balances of the VAT output and VAT input accounts in the general ledger
VAT input (Debit balance on 1 June 20.1) …………………………………… 17 348
VAT output (Credit balance on 1 June 20.1) ………………………………… 18 108
What will the correct general ledger entries be in the VAT input account for Luna
Dealers for the year ended 30 June 20.1.?
Instructions:
300
Trade payables control VAT control 34 468
Bank
320
Trade payables control Purchases returns
VAT control Trade receivables control
Settlement discount received Receiver of revenue
Bank Purchases
34 468 320 300 34 768

Question 28
Not yet answered
Make
Marked out a
On 28 February 20.1 Dlamini Furniture Shop repaired some of the old furniture for
Abdoola Spaza for R14 000. The amount was paid with the credit card of Abdoola
Spaza.
The correct effect of the transaction on the basic accounting equation in the books
of Abdoola Spaza is ...
Instructions:
5. If an option has been provided and it is not applicable to the speci c question,
R R R
N/A 14000 14000
N/A

Question 29
Not yet answered
Make
Marked out a
Bradly Carstens is the owner Carsten & Sons Plumbing. On 30 October 20.2 you are
given the following information for Carsten & Sons Plumbing.
Carsten and Sons Plumbing owes suppliers for parts purchased on 36 000
credit
What is the net asset value (equity) of Carsten and Sons Plumbing on 30 October
20.2?
NB: Instructions
Answer: 273000
Question 30
Not yet answered
Marked out of 4.00
A user of nancial
information that is
not an external user employees.
of nancial
information is ...
The objective for the

development of
to limit the variety of available accounting practices.
accounting standards
was ...
The term used to

describe the entity’s
ability to continue to
operate for the going concern.
foreseeable future is
referred to as …
One of the limitations

of using money as a
common not all events can be expressed in monetary terms.
denominator is that
...


QUIZ
Time left 0:56:12
Question 1
Not yet answered
Marked out of 2.00
On 28 February 20.1 Dlamini Furniture Shop repaired some of the furniture for Abdoola
Spaza for R14 000. The furniture was for Mr Abdoola’s private use, and the amount was
paid with the credit card of Abdoola Spaza.
Instructions:
amount (eg: -1000.01)
R R R
N/A 14000 14000
N/A
Question 2
Not yet answered
Marked out of 1.00
If the closing balance of the VAT input account and VAT output account for the month
ended 31 December 20.20 amount to R38 111 and R7 691, respectively. Is the following
statement true of false about the VAT control account for the month ended 31 December
20.20.
The VAT control account will re ect a refund of R30 420.
Select one:
True
False

Question 3
Not yet answered
Marked out of 4.00
On 18 February 20.1 Abdoola Spaza had a bank overdraft balance of R2 200. On 19

February 20.1 Mr W Alli, a tenant, made a direct payment of R3 200 into the bank account
of Abdoola Spaza.
Instructions:
amount (eg: -1000.01)
5. If an option has been provided and it is not applicable to the speci c question, please
R R R
3200 3200 N/A
N/A
Question 4
Not yet answered
Marked out of 1.00
Financial resources are limited.
Select one:
True
False

Question 5
Not yet answered
Marked out of 2.00
Use the following information to calculate the total liabilities amount for the
Basic Accounting Equation:
R
Capital 630 000
Drawings 25 000
Rent income 60 000
Stationary 2 200
Wages 13 500
Furniture 40 000
Vehicles 600 000
Bank 30 000
Land 300 000
Buildings 110 000
Inventory 50 000
NB: Instructions
Answer: 152700
Question 6
Not yet answered
Marked out of 3.00
R180 000. The chairs and tables were paid for with the credit card of the business.
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click
on the place where you want to place the amount - also keep your cell phone horizontal
when doing the question).

3. If an options has been provided and it is not applicable to the speci c questions please
put a 0 in the applicable column.
0 0 +180 000 -180 000 +180 000 +180 000

Question 7
Not yet answered
Marked out of 3.00
Gizmo Enterprises provided you with the following information regarding the list of totals
and balances on 28 February 20.8 (Ignore the VAT implications for purposes of this
question)
TOTALS FOR JOURNALS

Sales column……………………………………………………………………………..... 404 000
What will the correct general ledger entries be when posting the trade receivables column
to the general ledger of Gizmo Enterprises?
Instructions:
Bank and settlement discount received Bank
Settlement discount received Bank and settlement discount granted
Settlement discount granted Turnover
Sales Trade receivables control
220 320 208 160 209 760 900
Question 8
Not yet answered
Marked out of 1.00
The elements that is directly related to measurement of nancial performance are income
and expenses.
Select one:
True
False

Question 9
Not yet answered
Marked out of 6.00
The following information relates to Sammy Technologies who buys and sells
computers and computer accessories. Sammy Technologies is a registered as a VAT
vendor and uses the periodic inventory system. VAT at 15% is applicable. The VAT
period of the business ends on unequal months.
Transactions:
20.22
July 6 Purchased 10 laptops from IT Wholesalers on credit for R172 500. (credit
invoice no: IT657)
Purchased a point-of-sale scanner from Mega Wholesalers on credit for R2
875 to be used by the cashiers. (credit invoice no: MW 456)
Instructions:

When recording the debit entries, you must start with the applicable income or expense or
asset account, followed by the applicable vat account.
Equipment 2 500
VAT input 375

IT Wholesalers/Trade payables control Mega Wholesalers/Trade payables control
IT Wholesalers/Trade payables control 2 875
VAT output Laptops
Purchases Equipment
VAT input
431.25 2 500 152 500 175 375 172 500 25 875 2 443.75 375
146 625 2 875 150 000 22 500 22 875

Question 10
Not yet answered
Marked out of 3.00
Debits Credits
R R
Stationery 1 610 Interest on bank account 450
1 040 370 1 040 370

Instructions:
provided.
R R R
1040370 928250 112120
Question 11
Not yet answered
Marked out of 2.00
The following transactions occurred in the books of BC Plumbers for April 20.21:
20.21
April 5 Bought stationery from KZN Stationers for R2 000 and paid with the credit
card of the business.
16 Bought plumbing equipment on credit for R3 000 from Plumbing
Suppliers.
22 Made a direct payment of R1 000 into the bank account of Plumbing
Suppliers.
What will the balance of the trade payables account in the general ledger of BC
Plumber for the month ended 30 April 20.21 be?
NB: Instructions
Answer: 4000

Question 12
Not yet answered
Marked out of 2.00
On 15 February 20.1 Abdoola Spaza sold goods to the value of R21 360, on credit, to Mrs S
Dlamini. Abdoola Spaza uses the periodic inventory system.
Instructions:
amount (eg: -1000.01)
R R R
21360 21360 N/A
N/A

Question 13
Not yet answered
Marked out of 2.00
Betties Smith is the owner of Betties Plumbing. You are given the following information for
Betties Plumbing for the year ended 28 February 20.2
R
Capital 150 000
Drawings 5 500

Wages 60 000

Water and electricity expenses 8 000

Interest expense 7 500
What is the correct equity amount for Betties Smith for the year ended 28 February 20.2?
NB: Instructions
Answer: 384500
Question 14
Not yet answered
Marked out of 1.00
The net amount, after subtracting trade discount, on the invoice is recorded as the amount
of the purchases in the accounting records of the purchaser.
Select one:
True
False

Question 15
Not yet answered
Marked out of 6.00
totals and balances on 28 February 20.8
R

Gizmo Enterprises received a credit note that was issued by Mrs A Steinhoff for R690.
Mrs Steinhoff’s account in the trade payables ledger was debited with R690 but no
entry was made in the general ledger of Gizmo Enterprises.
What will the correct general ledger entries be for purchases returns for Gizmo
Enterprises on 28 February 20.8?
Instructions:
Purchases 10 580 Trade payables control/Mrs A Steinhoff 10 580
Trade payables control/Mrs A Steinhoff VAT output

VAT input 1 290
Trade payables control Purchases returns
Purchases VAT input
8 000 9 200 1 200 9 890 10 580 1 290 8 600 1 380

Question 16
Not yet answered
Marked out of 4.00
R180 000 cash.
The correct analysis of the effect of the given transaction on the general ledger and the
Instructions:

Furniture Chairs and tables Purchases

Equipment Bank 180 000 180 000 0 0 0 0
Inventory Trade payables control Bank
Equipment
180 000 0

Question 17
Not yet answered
Marked out of 4.00
You are given the following information for Luna Dealers, a VAT registered vendor, for the
year ended 30 June 20.1.
R
VAT output
VAT input
VAT input (1 June 20.1) ……………………………………............................ 17 348
VAT output (1 June 20.1) …………………………………............................. 18 108
Use the information provided to answer the questions about transactions regarding
the VAT input account in the general ledger of Luna Dealers for the year ended 30 June
20.1?
Instructions:
The cash payments journal: VAT input, R8 100

will be posted to the ... side of the VAT input
debit/bank
account in the general ledger of Luna Dealers
with reference ...
The purchases returns journal: VAT input, R300

will be posted to the ... side of the VAT input
account in the general ledger of Luna Dealers credit/trade payables control
with reference ...
The purchases journal: VAT input, R9 000 will

be posted to the ... side of the VAT input
account in the general ledger of Luna Dealers debit/trade payables control
with reference ...
The Cash receipts journal: VAT input, R320 will

be posted to the ... side of the VAT input
account in the general ledger of Luna Dealers debit/trade receivables control
with reference ...
Question 18
Not yet answered
Marked out of 1.00
receivables: R20 000.
NB: Instructions

Answer: 143000

Question 19
Not yet answered
Marked out of 1.00

Transactions generate income or give rise to expenditure.
Select one:
True
False
Question 20
Not yet answered
Marked out of 4.00
The statement of ... provides

information on an entity’s
economic resources and the claims
against these resources, as well as Financial position
information on its liquidity and

solvency.
The nancial performance of an

entity should be re ected by the
concept of ... In accordance with
this basis, the effects of
transactions are recognised when
they occur and not as cash is Accrual accounting
received or paid and they are
recorded in the accounting periods
and reported in the nancial
statements of the periods to which
they relate.
Accounting information is needed

by the ... of an enterprise for the
exercise of control, that is,
evaluating the current situation of Management
the enterprise and taking corrective
steps, if necessary.
... information has one or both of

the characteristics of predictive Relevant
value or con rmatory value.

Question 21
Not yet answered
Marked out of 12.00
R
VAT input 3 516,24
VAT output 4 892,16
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R123 480 and
the VAT output account had an opening balance of R185 220.
Instructions:

it will be marked incorrect. Please make sure that your spelling of the words is
correct.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
GJ CRJ
CPJ
SJ
363552.82 363552.82

Question 22
Not yet answered
Marked out of 4.00
Please choose the correct option for the given scenario:
RG Plumbing bought ten-bathroom sinks on

credit from AK Suppliers.
The account that will debited in this Equipment and non-current asset.
transaction will be… and it will be classi ed
as a/an …
RG Plumbing donated 150 litre geyser to

local children’s home. The account that will
Donations and expense
debited in this transaction will be …and it will
be classi ed as a/an …
The administrative assistant at RG Plumbing

used the business credit card to buy a laptop
to be used in the o ce from Green
Electronics. Equipment and non-current asset.
The account that will be debited in this
transaction will be… and it will be classi ed
as a/an …
RG Plumbing rendered services to SR

Developers which was paid in cash.
The account that will be credited in this Services rendered and income.
transaction will be …. and it will be classi ed
as a/an ….
Question 23
Not yet answered
Marked out of 4.00
EFT’s done by debtors will be recorded in the … cash receipts journal
When a debtor returns unsatisfactory goods, the

bookkeeper will record this transaction in the … sales returns journal
A debt that was recovered after it was previously written

off as irrecoverable will be recorded in the … general journal
A credit sale transaction will be recorded in the … sales journal

Question 24
Not yet answered
Marked out of 2.00
Use the following information to calculate the missing figure by using the
basic accounting equation:
R
Capital 450 000
Furniture 110 000
Buildings 200 000
Vehicles 150 000
Machinery 135 000
Income 80 000
Bank ?
Expenses 45 000
NB: Instructions
3. If the net effect on the accounting equation is a decrease, please enter the
amount as a negative (eg: -12141.72)
Answer: -50000
Question 25
Not yet answered
Marked out of 1.00

According to the Conceptual Framework, if the bene t of providing information outweighs
the costs of providing the information, then it should not be included in the nancial
statements of an entity.
Select one:
True
False

Question 26
Not yet answered
Marked out of 1.00
Dineo Dlamini is the owner of Dineo’s Hairdressing Salon. You are given the following
information for Dineo’s Hairdressing Salon for the year ended 30 June 20.1.
R
Capital 250 000
Equipment 150 000
Wages 160 000
Insurance 22 000
Advertising 8 000
What is the total asset amount for Dineo’s Hairdressing Salon for the year ended 30
June 20.1?
NB: Instructions
Answer: 250000
Question 27
Not yet answered
Marked out of 1.00
The elements of the nancial statements that measure the nancial performance are
income and expenses.
Select one:
True
False
Question 28
Not yet answered
Marked out of 1.00
Withdrawals made by the owner decrease equity and are therefore considered as an
expense of the business.
Select one:
True
False

Question 29
Not yet answered
Marked out of 5.00
The correct ledger and accounting analysis of a transaction which states that an entity
received R11 000 from a tenant will be … The bank account of the entity had a credit
balance of R5 000.
Instructions:


amount (eg: -1000.01)
will be marked incorrect. Please make sure that your spelling of the words is correct.
General ledger

debited
R R R
BANK RENT RECEIVED 11000 N/A

11000
Question 30
Not yet answered
Marked out of 1.00

When an entity uses inconsistent accounting treatments, it allows for the users of the
nancial information to compare the nancial statements of the entity for a period.
Select one:
True
False

QUIZ
Time left 0:23:49
Question 1
Not yet answered
Marked out of 1.00
Trade discount is the discount that is given by a wholesaler to a retailer.
Select one:
True
False
Question 2
Not yet answered
Marked out of 3.00
Instructions:

If an options has been provided and it is not applicable to the speci c questions please put
N/A in the column.
Balance N/A
+ -
Balance + N/A -

Question 3
Not yet answered
Marked out of 1.00

Trade payables and long-term loans are examples of debts that an entity can have.
Select one:
True
False
Question 4
Not yet answered
Marked out of 2.00
Bradly Carstens is the owner Carsten & Sons Plumbing. On 30 October 20.2 you are given
the following information for Carsten & Sons Plumbing.
NB: Instructions
Answer: 369000
Question 5
Not yet answered
Marked out of 1.00
Non-current assets are those assets with a useful life of longer than twelve months.
Select one:
True
False

Question 6
Not yet answered
Marked out of 2.00
R
Equipment 250 000
Vehicles 480 000
Loan 300 000
NB: Instructions
Answer: 602000
Question 7
Not yet answered
Marked out of 4.00
... plays an important role

when the relevance of Materiality
information is evaluated.
Kinky Tresses Traders

bought furniture from
Board Man Pty Ltd for
R5 000 cash.
Net effect on assets is R0.
What is the net effect of
the transaction on the
elements of the basic
accounting equation?
A transaction that is an
example of an income to rent received for part of the premises that was leased out.
an entity is ...
Net asset value of an

entity is also referred to equity.
as …

Question 8
Not yet answered
Marked out of 6.00
The bookkeeper of Luna Dealers provides you with the following general ledger accounts
for the VAT output and VAT input for the year ended 30 June 20.1:
LUNA DEALERS
GENERAL LEDGER
Dr VAT output Cr
20.1 R 20.1 R
control SRJ12 1 035
VAT control GJ12 ? Jun 30 Bank CRJ12 35 235
Trade receivables
control SJ12 48 615
Trade payables
control CPJ12 1 455
175 890 175 890
LUNA DEALERS
GENERAL LEDGER
Dr VAT input Cr
20.1 R 20.1 R
control PRJ12 2 700
Bank CPJ12 41 520 VAT control GJ12 ?
Trade receivables
control CRJ12 1 650
Trade payables
control PJ12 49 080
179 280 179 280
What will the correct entries be in the VAT control account in the general ledger of
Luna Dealers for the year ended 30 June 20.1 be?
Instructions:
Balance 1 725
176 580 176 580

Trade payables control VAT input 175 890
Balance VAT output
176 580 174 855 3 390 1 725 179 280

Question 9
Not yet answered
Marked out of 4.00
On 18 February 20.1 Abdoola Spaza had a bank balance of R1 000. On 19 February 20.1 the
bookkeeper of Abdoola Spaza made an EFT to Telkom to pay the amount of R2 400 for the
telephone expenses for January 20.1.
Instructions:
amount (eg: -1000.01)
5. If an option has been provided and it is not applicable to the speci c question, please put
N/A in the column.
R R R
-2400 -2400 N/A
N/A

Question 10
Not yet answered
Marked out of 4.00
On 11 November 20.2, Beauty’s Spaza Shop made an EFT

payment to Vodacom to pay the entity’s telephone account of
R3 200.
The telephone expenses account will be debited, and the bank account will be credite
The correct accounts to debited and credited in the general
ledger of Beauty’s Spaza Shop will be …
LETTIE’S SPAZA SHOP

GENERAL LEDGER
Dr Trade receivables control Cr
R R
20.20 20.20
Jun 1 Balance b/d 55 Jun 20 Bank 14 Lettie’s Spaza Shop sold goods on credit.
600 000
10 Sales 10
450
The transaction on 10 June on the debit side of the trade

receivables control account originated because …
On 28 February 20.2, Excellent Spaza Shop received interest of

R5 600 from BIG Bank on a xed deposit.
Assets will increase with R5 600, and equity will increase with R5 600.
The correct effect that the transaction on the basic accounting
equation have will be …
LETTIE’S SPAZA SHOP

GENERAL LEDGER
Dr Trade payables control Cr
R R
20.20 20.20
Lettie’s Spaza Shop purchased equipment on credit.
Jun 15 Bank b/d 5 Jun 1 Balance b/d 16
100 000
The transaction on 15 June on the debit side of the trade

payables control account originated because …
Question 11
Not yet answered
Marked out of 4.00
Ms B Betty owns Betties Dealers. In which book of rst entry (subsidiary journal) will the
bookkeeper of Betties Dealers record the transactions that occurred on 25 March 20.1?
Date Transaction
20.1
General journal
Date Transaction
20.1 Purchases returns journal
Date Transaction
20.1 Sales journal
Date Transaction
20.1 General journal

Question 12
Not yet answered
Marked out of 2.00
Equipment 310 000
Vehicles 410 000
Loan 250 000
Drawings 3 450
What is the capital amount of Smith Electricians on 28 February 20.2?
NB: Instructions

Answer: 600450
Question 13
Not yet answered
Marked out of 5.00
On 31 December 20.1 an EFT of R2 500 was made to Best Municipality to pay the electricity
deposit for Correcting Dentist. The bank account of Correcting Dentist had a debit balance
of R1 000.
accounting equation of Correcting Dentist is ...
Instructions:

4. If an option has been provided and it is not applicable to the speci c question please put
N/A in the columns.
CORRECTING DENTIST
Account to be debited Account to

Debit Credit Debit Credit Debit Credit
be credited
R R R R R R
ELECTRICITY EXPENSE BANK 2500 2500 N/A N/A N/A N/A

Question 14
Not yet answered
Marked out of 1.00
An entity has the following balances: Bank: R100 000; Machinery: R20 000; Capital: R50
000; Drawings: R2 500.
The total liabilities of the entity according to the basic accounting equation is …
NB: Instructions

Answer: 72500

Question 15
Not yet answered
Marked out of 12.00
R
VAT input 3 546,24
VAT output 4 892,16
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R123 525 and the
VAT output account had an opening balance of R185 265.
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R R
20.2
Feb 28 Trade receivables control SRJ 4267.10 Balance 185265
Feb 1 b/d

GJ CRJ

CPJ

SJ
363552.82 363552.82

Question 16
Not yet answered
Marked out of 4.00
R180 000 cash. Sithole's bank had a credit balance.
Instructions:

a 0 in the applicable column.
Equipment Chairs and tables Purchases

Equipment Bank 0 180 000 180 000 0 0 0
Trade payables control Furniture Inventory
Bank
0 180 000
Question 17
Not yet answered
Marked out of 1.00

The difference between income and expenditure is either a pro t or a loss.
Select one:
True
False

Question 18
Not yet answered
Marked out of 3.00
R
Vehicles 460 000
Plant and equipment 185 000
Stationery 1 510
Depreciation (Vehicles) 21 500
Salaries 90 260
Drawings 15 000
Inventory 27 000
Capital 458 250
Sales 620 000
Loan: Nice Bank 75 000
Rent expenses 18 400
Accumulated depreciation: Vehicles 15 000
Accumulated depreciation: Plant and equipment 6 500

Instructions:
amount (eg: -1000.01)
provided.
R R R
637300 540980 96320
Question 19
Not yet answered
Marked out of 1.00

The fundamental qualitative characteristics for useful nancial information are relevance
and comparability.
Select one:
True
False

Question 20
Not yet answered
Marked out of 2.00
Use the following information to calculate the total liabilities amount for the Basic
Accounting Equation:
R
Capital 630 000
Drawings 25 000
Rent income 60 000
Stationary 2 200
Wages 13 500
Furniture 40 000
Vehicles 600 000
Bank 30 000
Land 300 000
Buildings 110 000
Inventory 50 000
NB: Instructions
Answer: 152700
Question 21
Not yet answered
Marked out of 1.00
receivables: R2 000; Drawings: R175.
The capital amount of the entity according to the basic accounting equation is …
NB: Instructions
Answer: 17175

Question 22
Not yet answered
Marked out of 1.00
If the closing balance of the VAT input account and VAT output account for the month ended
31 December 20.20 amount to R4 566 and R16 780, respectively. Is the following
statement true or false about the VAT control account for the month ended 31 December
20.20.
The VAT control account will be debited with the amount of the VAT output account of R16
780 and credited with the amount of the VAT input account of R4 566.
Select one:
True
False
Question 23
Not yet answered
Marked out of 3.00
Instructions:

0 -180 000 -180 000

+180 000 0 -180 000

Question 24
Not yet answered
Marked out of 6.00
The following information relates to Sammy Technologies who buys and sells computers
and computer accessories. Sammy Technologies is a registered as a VAT vendor and
uses the periodic inventory system. VAT at 15% is applicable. The VAT period of the
business ends on unequal months.
Transactions:
20.22
July 6 Purchased 10 laptops from IT Wholesalers on credit for R172 500. (credit
invoice no: IT657)
Purchased a point-of-sale scanner from Mega Wholesalers on credit for R2 875
to be used by the cashiers. (credit invoice no: MW 456)
Instructions:

When recording the debit entries, you must start with the applicable income or expense or
asset account, followed by the applicable vat account.
Equipment 2 500
VAT input 375

VAT output Equipment
Mega Wholesalers/Trade payables control 2 875
Laptops VAT input
Mega Wholesalers/Trade payables control Purchases
IT Wholesalers/Trade payables control
22 875 152 500 2 500 22 500 431.25 25 875 175 375 375
146 625 172 500 150 000 2 875 2 443.75

Question 25
Not yet answered
Marked out of 2.00
Spaza for R14 000. The furniture was for Mr Abdoola’s private use, and the amount was paid
with the credit card of Abdoola Spaza.
Instructions:
amount (eg: -1000.01)
N/A in the column.
R R R
N/A 14000 14000
N/A
Question 26
Not yet answered
Marked out of 1.00
Equity is the residual interest in the assets of the entity after deducting only its non-current
liabilities.
Select one:
True
False

Question 27
Not yet answered
Marked out of 1.00

Management are considered as an internal user of nancial information who use the
nancial information to exercise control which means evaluating the current situation and
taking corrective steps.
Select one:
True
False
Question 28
Not yet answered
Marked out of 1.00
Historical costs measures are entry values and provide monetary information about
liabilities and assets and related expenses and income using the information derived, at
least in part, from the price of the transaction or other event that gave rise to them.
Select one:
True
False
Question 29
Not yet answered
Marked out of 4.00
The form of business ownership in South

Africa that a charity organization would adopt non-pro t entities.
is ...
According to the accounting framework the

underlying assumption of nancial statements going concern.
is ...
The fundamental qualitative characteristics of
nancial statements are … relevance and faithful representation.
An acronym for the international accounting

standards that South African businesses have IFRS

Question 30
Not yet answered
Marked out of 2.00
On 28 February 20.1 Abdoola Spaza purchased furniture for the shop for R250 010. The
furniture was bought on credit from Dlamini Furniture Shop.
Instructions:


amount (eg: -1000.01)
N/A in the column.
R R R
N/A 250010 250010
N/A

QUIZ
Time left 0:54:11
Question 1
Not yet answered
Marked out of 5.00
Big Transport Services transported Mrs M Solomon’s household furniture to her

new residence in Polokwane on 1 October 20.2. Big Transport Services rendered
this service to Mrs M Solomon for R50 000 cash. The bank account of Big
Transport had a credit balance of R10 000
The correct analysis of the given transaction in the general ledger and the
accounting equation of Big Transport Services is ...
Instructions:


Date General ledger

20.2 Assets Equity Liabilities
Oct
R R R
N/A
1 Bank Services rendered 50000 50000

Question 2
Not yet answered
Marked out of 1.00
payables: R2 000.
NB: Instructions
Answer: 13000

Question 3
Not yet answered
Marked out of 3.00
R
Vehicles 460 000
Stationery 1 510
Salaries 90 260
Drawings 15 000
Inventory 27 000
Capital 458 250
Sales 620 000

Instructions:
3. A decrease in an amount must be indicated by using a negative sign in
front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg:
1000.01)
Please note: Only include the total amount for assets, equity and liabilities in
the table provided.
R R R
637300 540980 96320

Question 4
Not yet answered
Marked out of 3.00
The following rules are applicable to expense accounts in the general ledger:
Instructions:

If an options has been provided and it is not applicable to the speci c questions
Balance N/A
N/A + - + Balance -
Question 5
Not yet answered
Marked out of 1.00

An example of a business entity which will be classi ed as a service and trading
entity will be an Accounting practice.
Select one:
True
False

Question 6
Not yet answered
Marked out of 2.00
Betties Smith is the owner of Betties Plumbing. You are given the following
information for Betties Plumbing for the year ended 28 February 20.2:
R
Capital 250 000
Wages 70 000
Insurance 1 500
What is the amount for the total expenditure for Betties Plumbing for the year
ended 28 February 20.2?
NB: Instructions
Answer: 119600

Question 7
Not yet answered
Marked out of 2.00
On 28 February 20.1 Dlamini Furniture Shop repaired some of the furniture for
Abdoola Spaza for R14 000. The furniture was for Mr Abdoola’s private use, and
the amount was paid with the credit card of Abdoola Spaza.
The correct effect of the transaction on the basic accounting equation in the
books of Abdoola Spaza is ...
Instructions:
R R R
14000 N/A 14000
N/A

Question 8
Not yet answered
Marked out of 4.00
Mr S Nkome owns a business called Quick Foods. He forgot to pay his rent
for his flat at 31 December 20.2. He quickly made an EFT of R6 500 from the
bank account of Quick Foods directly into the bank account of the owner of
the flat.
The correct analysis of the effect of the given transaction on the general
ledger and the accounting equation of Quick Foods is ...
Instructions:


words is correct.
QUICK FOODS
General ledger
R R R
DRAWINGS BANK
N/A -6500 -6500
Question 9
Not yet answered
Marked out of 1.00

Equity is the interest of the owner after liabilities are deducted from assets.
Select one:
True
False

Question 10
Not yet answered
Marked out of 1.00
An entity has the following balances:

Inventory R5 000
Machinery R3 000
Trade receivables R2 000
Bank (Cr) R1 250

Drawings R750
The capital amount of the entity according to the basic accounting equation is
…
NB: Instructions
Answer: 8000
Question 11
Not yet answered
Marked out of 1.00
If the closing balance of the VAT input account and VAT output account for the
month ended 31 December 20.20 amount to R38 111 and R7 691, respectively.
Is the following statement true of false about the VAT control account for the
month ended 31 December 20.20.
The VAT control account will be debited by the amount of the VAT input account
of R7 691 and credited by the amount of the VAT output account of R38 111.
Select one:
True
False
Question 12
Not yet answered
Marked out of 1.00
A loss increase equity.
Select one:
True
False

Question 13
Not yet answered
Marked out of 1.00

Lerato Moshate is the only owner of Lerato’s Hair and Nails. Lerato’s Hair and
Nails will be classi ed as a sole trader.
Select one:
True
False
Question 14
Not yet answered
Marked out of 2.00
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given
the following information for Ronnie’s Hairdressing Salon for the year
ended 30 June 20.1.
R
Capital 300 000
Equipment 200 000
Vehicles 160 000
Wages 165 000
Insurance 12 000
Advertising 3 000
What is the amount for the total assets of Ronnie’s Hairdressing

Salon as at 30 June 20.1?
NB: Instructions
Answer: 580600

Question 15
Not yet answered
Marked out of 4.00
... information has one or

both of the
characteristics of Relevant
predictive value or
con rmatory value.
Accounting information is
needed by the ... of an
enterprise for the
exercise of control, that
is, evaluating the current Management
situation of the enterprise

and taking corrective
steps, if necessary.
The nancial
performance of an entity
should be re ected by the
concept of ... In
accordance with this
basis, the effects of
transactions are
recognised when they Accrual accounting
occur and not as cash is
received or paid and they
are recorded in the
accounting periods and
reported in the nancial
statements of the periods
to which they relate.
The statement of ...

provides information on
an entity’s economic
resources and the claims Financial position
against these resources,
as well as information on
its liquidity and solvency.
Question 16
Not yet answered
Marked out of 1.00

Pro t re ects income that exceeds expenses.
Select one:
True
False

Question 17
Not yet answered
Marked out of 1.00

The historical cost of asset and liabilities are increased if they become impaired
or onerous.
Select one:
True
False
Question 18
Not yet answered
Marked out of 4.00
EFT’s done by debtors will be recorded in the … cash receipts journal
A debt that was recovered after it was

previously written off as irrecoverable will be general journal
recorded in the …
A credit sale transaction will be recorded in the

sales journal
…
When a debtor returns unsatisfactory goods,

the bookkeeper will record this transaction in sales returns journal
the …

Question 19
Not yet answered
Marked out of 6.00
A purchases invoice for R1 955 was entered twice in the purchases journal and
was posted twice to the applicable accounts in the general ledger and the
personal account of the creditor, Mr T Naidoo. The entity is a registered VAT
vendor, and the applicable VAT rate is 15%.
Instructions:

When recording the credit entries, you must start with the applicable income or
expense account, followed by the applicable vat account.
VAT output Purchases Purchases 1 700
Purchases returns VAT input VAT input 255
Trade receivables control/Mr T Naidoo Trade payables control/Mr T Naidoo
1 955 1 840 1 661.75 255 1 700 2 248.25 293.25
Question 20
Not yet answered
Marked out of 1.00

Expenses increase on the debit side and decrease on the credit side of the T-
account as expenses increase the pro t for the year.
Select one:
True
False

Question 21
Not yet answered
Marked out of 4.00
Every transaction has a dual effect on the

elements of the Basic Accounting Equation and
for every transaction the Basic Accounting Double-entry system
Equation must remain in balance.
Interest which the owner of the entity has in the

Equity
business.
Creditors interest or interests of parties other

Liabilities
than the owners.
Business separate from its owners and

presents its own annual nancial statements.
Accounting entity

Question 22
Not yet answered
Marked out of 12.00
The following balances were extracted from the subsidiary journals of General
Spaza Shop as at 28 February 20.2.
R
VAT input 2 760
VAT output 3 160
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had a debit opening balance of
R71 760 and the VAT output account had a credit opening balance of
R103 960.
Calculate the closing balance of the VAT input account as at 28 February
20.2.
Instructions:
incorrect it will be marked incorrect. Please make sure that your spelling of
the words is correct.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
Feb 1 Balance 71760 Feb 28 Trade payables control 3600

b/d PRJ
Feb 28 Bank 2760 177504

CRJ VAT control GJ

CPJ

PJ

181104
181104
Question 23
Not yet answered
Marked out of 1.00
Indicate by choosing the correct option whether the following statement is true
or false:
Trade discount is discount recorded in the accounting records of the purchaser.
Select one:
True
False

Question 24
Not yet answered
Marked out of 2.00
Use the following information to calculate the total comprehensive

income/loss for the year ended 28 February 20.2:
R
Capital 680 000
Drawings 35 000
Rent income 65 000
Stationery 3 300
Wages 13 500
Furniture 80 000
Vehicles 620 000
Land 400 000
Buildings 70 000
Inventory 75 000
NB: Instructions
3. If the net effect is a loss, please enter the amount as a negative (eg:
-12141.72)
Answer: 466600

Question 25
Not yet answered
Marked out of 4.00
Ms B Betty owns the Spaza Shop, Betties Dealers. The account that will be
debited by the bookkeeper of Betties Dealers in each of the following
transactions will be:
Date Transaction
20.1
Bank
contribution.
Date Transaction
20.1 Equipment
March 1 Bought a new cash register for the spaza shop with the credit card of the business
Date Transaction
20.1 Telephone expenses
Date Transaction
20.1 Bank

Question 26
Not yet answered
Marked out of 6.00
The bookkeeper of Luna Dealers provides you with the following general ledger
accounts for the VAT output and VAT input for the year ended 30 June 20.1:
LUNA DEALERS
GENERAL LEDGER
Dr VAT output Cr
20.1 R 20.1 R
control SRJ12 900
VAT control GJ12 174 120 Jun 30 Bank CRJ12 35 100
Trade receivables
control SJ12 48 000
Trade payables
control CPJ12 1 380
175 020 175 020
LUNA DEALERS
GENERAL LEDGER
Dr VAT input Cr
20.1 R 20.1 R
control PRJ12 1 500
Bank CPJ12 40 500 VAT control GJ12 172 340
Trade receivables
control CRJ12 1 600
Trade payables
control PJ12 45 000
173 840 173 840
What will the correct entries be in the VAT control account in the general ledger
of Luna Dealers for the year ended 30 June 20.1 be?
Instructions:
Balance 1 780
VAT output Trade payables control Balance
Receiver of Revenue VAT input
1 780 173 840 172 340 174 120 175 020

Question 27
Not yet answered
Marked out of 2.00
On 18 February 20.1 Abdoola Spaza had a bank overdraft balance of R1 200. On

19 February 20.1 Mr W Alli, a debtor, made a direct payment of R1 200 into the
bank account of Abdoola Spaza.
The correct effect of the transaction on the basic accounting equation in the
books of Abdoola Spaza is ...
Instructions:
5. If an option has been provided and it is not applicable to the speci c

question, please put N/A in the column.
R R R
1200 1200 N/A
N/A

Question 28
Not yet answered
Marked out of 4.00
On 23 March 20.1 the bookkeeper of Gizmo Electricians made the following

electronic payments; to the municipality for the payment of the water and
electricity account of R5 000 and to a few contract workers to pay their wages of
R3 000 in total.
The correct effect of the transactions on 23 March 20.1 on the accounting

equation are ...
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the
answer and click on the place where you want to place the amount - also keep

3. If an options has been provided and it is not applicable to the speci c
questions please put a 0 in the applicable column.
0 5 000 3 0000 0 5 000 5 000 0 0
0 0 3 000 3 000 0 0

Question 29
Not yet answered
Marked out of 2.00
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the
following information for Ronnie’s Hairdressing Salon for the year ended 30
June 20.1.
Capital........................................................................................................................300
000
Drawings................................................................................................................... 3
570
Equipment............................................................................................................... 150
000
Vehicles..................................................................................................................... 174
000
Bank (favourable balance)................................................................................. 15

000
Accrued income.................................................................................................... 3
500
Income received in advance............................................................................ 4

500
Prepaid expenses................................................................................................. 4
600
Accrued expenses................................................................................................ 7
200
Trade payables...................................................................................................... 82
600
Trade receivables.................................................................................................. 66
500
Services rendered................................................................................................. 245

000
Interest income...................................................................................................... 4
400
Wages........................................................................................................................145
000
Telephone expenses............................................................................................. 45
000
Rent income: deposit........................................................................................... 4

000
Water and electricity expenses........................................................................ 14
340
Insurance expenses.............................................................................................. 15
000
Rental income......................................................................................................... 48
000
Advertising expenses........................................................................................... 4
750
What is the amount of the total assets for Ronnie’s Hairdressing Salon for the
year ended 30 June 20.1?
NB: Instructions
Answer: 409000
Question 30
Not yet answered
Marked out of 3.00
Bradly Carstens is the owner Carsten & Sons Plumbing. On 30 October 20.2 you
are given the following information for Carsten & Sons Plumbing.

Carsten and Sons Plumbing owes supplies for parts purchased on 27 000
credit
The correct representation of the accounting equation of Bradly Carstens &

Sons Plumbing after consideration of the given information is ...
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the
answer and click on the place where you want to place the amount - also keep
358 000 209 000 245 000 113 000 331 000 63 000 159 000
27 000 358 000 331 000
272 000 27 000

QUIZ
Time left 1:07:26
Question 1
Not yet answered
Marked out of 1.00
An entity has the following balances: Bank: R5 000; Machinery: R3 000: Trade payables: R2
000.
NB: Instructions
Answer: 6000
Question 2
Not yet answered
Marked out of 2.00
On 1 February 20.1 Abdoola Spaza purchased merchandise on credit from TR Wholesalers,

R23 541. Abdoola Spaza used the periodic inventory system.
Instructions:


amount (eg: -1000.01)
N/A in the column.
R R R
N/A 23541 23541
N/A

Question 3
Not yet answered
Marked out of 1.00
An entity has the following balances: Bank, R15 000; Machinery, R5 000; Accumulated
depreciation: Machinery, R500; Capital, R10 000.
NB: Instructions
Answer: 9500
Question 4
Not yet answered
Marked out of 2.00
Betties Smith is the owner of Betties Plumbing. You are given the following
information for Betties Plumbing for the year ended 28 February 20.2:
R
Capital 250 000
Wages 70 000
Insurance 1 500
What is the amount for the total expenditure for Betties Plumbing for the year ended
28 February 20.2?
NB: Instructions

Answer: 109800

Question 5
Not yet answered
Marked out of 2.00
You are given the following information for Becker & Riaan Nursery for the month ended
28 February 20.2:
Becker and Riaan Nursery owes Big Nursery Suppliers an amount of R35 000. Due to tough
economic conditions, Becker & Riaan Nursery had to resort to providing services on credit
and their clients owe them R45 000. Becker & Riaan Nursery also owns equipment to the
value of R15 000 and had an unfavourable bank account balance of R20 000.
NB: Instructions

Answer: 5000

Question 6
Not yet answered
Marked out of 12.00
R
VAT input 3 516,24
VAT output 4 892,16
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R123 480 and the
VAT output account had an opening balance of R185 220.
Instructions:

GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
GJ CRJ
CPJ
SJ
367911.6 367911.6

Question 7
Not yet answered
Marked out of 5.00
The correct ledger and accounting analysis of a transaction which states that an entity
received R11 000 from a tenant will be … The bank account of the entity had a credit
balance of R5 000.
Instructions:


amount (eg: -1000.01)
N/A in the column.
General ledger

debited
R R R
BANK RENT RECEIVED 11000 N/A

11000

Question 8
Not yet answered
Marked out of 4.00
The following transaction relates to Solar Dealers:
On 8 September 20.2 Solar Dealers applied for a loan of R80 000 from NICE Bank to
buy a vehicle from Big Vehicles. The loan was granted, and the money was paid over to
Big Vehicles.
The correct analysis of the effect of the given transaction on the general ledger
and the accounting equation of Solar Dealers is …
Instructions:
N/A in the columns.
SOLAR DEALERS
Date General ledger A= E+

20.2 Account Account
Sep debited credited Dr Cr Dr Cr
R R R R
30 Vehicles Loan: Nice Bank 80000 N/A N/A N/A N
Instructions:
3. If an option has been provided and it is not applicable to the specific question please
put N/A in the columns.
Question 9
Not yet answered
Marked out of 4.00
Ms T Massey is the owner of Massey Traders. On 28 February 20.23 the telephone account
of Massey Traders was paid, with the debit card of the business, at Checkers, R1 350.
Instructions:
The effect on the accounting equation of the account

Assets will increase
debited will be ...
The effect on the accounting equation of the account

Assets will decrease
credited will be ...
The account to be credited is ... Bank
The account to be debited is ... Telephone expenses

Question 10
Not yet answered
Marked out of 4.00
On 23 March 20.1 the bookkeeper of Gizmo Electricians made the following electronic
payments; to the municipality for the payment of the water and electricity account of R5 000
and to a few contract workers to pay their wages of R3 000 in total.
The correct effect of the transactions on 23 March 20.1 on the accounting equation are ...
Instructions:
0 0 5 000 5 000 0 0
3 000 0 5 000
0 0 3 000 3 000 0 0
Question 11
Not yet answered
Marked out of 4.00
The fundamental qualitative characteristics of

relevance and faithful representation.
nancial statements are …
An acronym for the international accounting

standards that South African businesses have IFRS
According to the accounting framework the

underlying assumption of nancial statements going concern.
is ...
The form of business ownership in South
Africa that a charity organization would adopt non-pro t entities.
is ...

Question 12
Not yet answered
Marked out of 1.00

According to current cost basis, liabilities are carried at the discounted amount of cash or
cash equivalent that would be required to settle the obligation currently.
Select one:
True
False
Question 13
Not yet answered
Marked out of 1.00
The recipient of the specialised message about an entity’s nances (the user of nancial
information) must understand it.
Select one:
True
False
Question 14
Not yet answered
Marked out of 1.00

Non-current assets are those assets with a useful life of longer than twelve months.
Select one:
True
False
Question 15
Not yet answered
Marked out of 1.00

The historical cost of asset and liabilities are increased if they become impaired or onerous.
Select one:
True
False

Question 16
Not yet answered
Marked out of 1.00

Due to the double entry system, it is impossible for a transaction to only affect one element
in the basic accounting equation.
Select one:
True
False
Question 17
Not yet answered
Marked out of 1.00
Liabilities are present obligations of the entity to transfer economic resources as a result of
past events.
Select one:
True
False

Question 18
Not yet answered
Marked out of 3.00
R
Vehicles 460 000
Stationery 1 510
Salaries 90 260
Drawings 15 000
Inventory 27 000
Capital 458 250
Sales 620 000

Instructions:
amount (eg: -1000.01)
provided.
R R R
637300 540980 96320

Question 19
Not yet answered
Marked out of 4.00
Sales will … in
the statement
of pro t or loss
and other be disclosed as revenue
comprehensive
income.
Interest
income will …
in the
statement of
be disclosed as other income
pro t or loss
and other
comprehensive
income.
Rent expenses
will … in the
statement of
pro t or loss be disclosed as distribution, administrative and other expenses
and other
comprehensive
income.
An example of
a current asset prepaid expenses
will be ...
Question 20
Not yet answered
Marked out of 1.00
28 February 20.21 amount to R8 978 and R21 780, respectively. Is the following
statement true or false about the VAT control account for the month ended 28 February
20.21.
The VAT control account will be debited with the amount of the VAT output account of R21
780 and credited with the amount of the VAT input account of R8 978.
Select one:
True
False

Question 21
Not yet answered
Marked out of 6.00
Gizmo Enterprises provided you with the following information regarding the list of totals
and balances on 28 February 20.8
R

A credit note was issued to Mrs A Steinhoff for R230. Mrs Steinhoff’s account in the trade
receivables ledger was credited with R230 but no entry was made in the general ledger of
Gizmo Enterprises.
What will the correct general ledger entries be for sales returns for Gizmo
Enterprises on 28 February 20.8?
Instructions:
Sales Sales returns

VAT output 630
VAT output VAT input
Trade receivables control/Mrs A Steinhoff Trade receivables control
4 200 570 4 000 630 4 370 4 830 4 600 3 800

Question 22
Not yet answered
Marked out of 2.00
Spaza for R14 000. The furniture was for Mr Abdoola’s private use, and the amount was paid
with the credit card of Abdoola Spaza.
Instructions:
amount (eg: -1000.01)
N/A in the column.
R R R
N/A 14000 14000
N/A
Question 23
Not yet answered
Marked out of 2.00
Use the following information to calculate the missing figure by using the basic
accounting equation:
R
Land 150 000
Buildings 50 000
Furniture 80 000
Trade payables control ?
Capital 200 000
Drawings 10 000
NB: Instructions
Answer: 105000

Question 24
Not yet answered
Marked out of 1.00
31 December 20.20 amount to R38 111 and R7 691, respectively. Is the following
statement true of false about the VAT control account for the month ended 31 December
20.20.
The VAT control account will be debited by the amount of the VAT input account of R7 691
and credited by the amount of the VAT output account of R38 111.
Select one:
True
False
Question 25
Not yet answered
Marked out of 2.00
Bradly Carstens is the owner Carsten & Sons Plumbing. On 30 October 20.2 you are given
the following information for Carsten & Sons Plumbing.
NB: Instructions

Answer: 369000

Question 26
Not yet answered
Marked out of 4.00
Which
transactions
will be
recorded in All the cash received by the business entity.
the cash
receipts
journal?
Which
transactions
will be
All the credit purchases of merchandise made by the business entity.
recorded in
the general
journal?
Which
transactions
will be
recorded in All the returns of credit sales of merchandise by the business entity.
the sales
returns
journal?
Which
transactions
will be
recorded in All the credit purchases made by the business entity.
the
purchases
journal?
Question 27
Not yet answered
Marked out of 1.00
An asset shall be classi ed as a current asset when it is expected to be converted into

money (realised) within twelve months of the statement of nancial position date.
Select one:
True
False

Question 28
Not yet answered
Marked out of 3.00
The following rules are applicable to liability accounts in the general ledger:
Instructions:

N/A in the column.
N/A Balance
- +
+ N/A - Balance

Question 29
Not yet answered
Marked out of 6.00
The following information relates to Fruit and Veggie Spaza Shop, who is registered
as a VAT vendor (The VAT rate applicable is 15%). The periodic inventory system and
control accounts are in use: (The VAT period of the business ends on equal months.)

R
VAT input 13 500
VAT output 67 500

On 4 August, an account was received from Strawberry Stationers for the printing of
documents, R5 060.
What will the correct general journal entry regarding the printing of documents
for Fruit and Veggies be:
Instructions:
An option can be used more than once..
N/A in the accounts column and a 0 in the amounts column.
When recording the debit entries, you must start with the applicable income or expense
account, followed by the applicable vat account.
Printing 4 400
VAT input 660
Strawberry Stationers/Trade payables control 5 060
Strawberry Stationers/Trade receivables control Strawberry Stationers/Trade payables control
N/A Printing
VAT input Stationery
VAT output
4 301 4 400 759 5 060 660 0

Question 30
Not yet answered
Marked out of 3.00
The owner of GS Electricians, Mr Gizmo Smith, deposited R10 000 on 1 March 20.1 as
opening capital into the business bank account after obtaining a personal loan from LG
Bank.
Instructions:

Bank Capital 0 +10 000 +10 000

Bank Capital 0 Loan: LG Bank
-10 000

QUIZ
Time left 0:44:27
Question 1
Not yet answered
Marked out of 3.00
The owner of Pet Spa provided you with the

following information for the year ended
28 February 20.2.
R
Equipment………………………………………………………….. 200 000
Trade receivables control………………………………………… 20 000
Bank………………………………………………………………… 10 000
Water and electricity: Deposit................................................... 2 350
Rent income deposit................................................................. 10 500
Trade payables control…………………………………………… 30 000
The correct calculation of Pet Spa's equity

on 28 February 20.2 will be ...
Instructions:
Drag the correct answer into the correct space
(cell phone click on the answer and click on
the place where you want to place the amount
- also keep your cell phone horizontal when
doing the question).
230 000 30 000 242 850 232 350

191 850 232 350 40 500
40 500 200 000 212 850 191 850

Question 2
Not yet answered
Marked out of 4.00
Please choose the correct option for the given

scenario.
The correct
closing
transfer
entries for
the sales
debit sales and credit the trading account.
account at
the end of
the nancial
year will be
...
The correct
closing
transfer
entries for
the interest
on xed
debit interest on xed deposit and credit the pro t or loss account.
deposit
account at
the end of
the nancial
year will be
...
The correct
closing
transfer
entries for
the
depreciation debit the depreciation account and credit the pro t or loss account.
account at
the end of
the nancial
year will be
...
The correct
closing
transfer
entries for
the credit
losses credit the credit losses account and debit the pro t or loss account.
account at
the end of
the nancial
year will be
...

Question 3
Not yet answered
Marked out of 6.00
The balance of the insurance account in the

trial balance prepared on 30 June 20.2 is
R96 300. The monthly insurance premium for
this financial year is R10 700 per month. On 1
July 20.2, the bookkeeper of KA Traders
made a further electronic funds transfer of
R64 200 to Clarke Insurers but the
bookkeeper forgot to do the general ledger
entries for this transaction. The financial year
end of KA Traders is 30 June.
The correct general ledger entries in the

insurance account in the books of KA
Traders on 30 June 20.2 are ...
Instructions:
1. First do the adjustment general ledger

entries and then do your closing transfer
2. Use a full stop to indicate any

decimals (eg: 1000.01)
3. Round off to the second decimal after
the full stop (eg: 50.56)
KA TRADERS
GENERAL LEDGER
Dr Insurance Cr
20.2 R 20.2
Jun Balance 96 300 Jun Pro t or loss account 128400

30 30
Jul Bank 64200 Accrued expenses 321000

1

Question 4
Not yet answered
Marked out of 3.00
The following rules are applicable to asset

accounts in the general ledger:
Instructions:
Drag the correct answer into the correct
space.

If an options has been provided and it is not
applicable to the speci c questions please
Balance + - N/A
Balance -
+ N/A

Question 5
Not yet answered
Marked out of 6.00
The bookkeeper of Luna Dealers provides

you with the following general ledger
accounts for the VAT output and VAT input
for the year ended 30 June 20.1:
LUNA DEALERS
GENERAL LEDGER
Dr VAT output Cr
20.1 R 20.1 R
control SRJ12 1 005
Trade receivables
control SJ12 48 750
Trade payables
control CPJ12 1 440
176 215 176 215
LUNA DEALERS
GENERAL LEDGER
Dr VAT input Cr
20.1 R 20.1 R
control PRJ12 1 800
Trade receivables
control CRJ12 1 665
Trade payables
control PJ12 46 980
176 835 176 835
What will the correct entries be in the VAT

control account in the general ledger of
Luna Dealers for the year ended 30 June
20.1 be?
Instructions:
space.
175 035 175 210 176 215 176 835

VAT input 175 035 VAT output
175 210
620 175
Balance 175
175 210 175 210
Balance Receiver of Revenue

Question 6
Not yet answered
Marked out of 1.00
Indicate whether the following statement

is true or false regarding the statement of
nancial position:
The statement re ects the non-current
liabilities and current liabilities of the
business.
Select one:
True
False
Question 7
Not yet answered
Marked out of 4.00
On 2 March 20.08, a tenant of SLS Dealers, did

an electronic funds transfer of R280 000 into
SLS Dealers business bank account. The
monthly rental is R18 000 per month. The
nancial year-end is 28 February 20.9.
What will the closing transfer entry for the

transaction on 28 February 20.9 be?
Instructions:
space.
Rental expenses

Prepaid expenses
Accrued expenses
Profit or loss account 216 000
Accrued income
Income received in advance
Rental income
Profit or loss account
Bank
280 000 64 000 18 500

Question 8
Not yet answered
Marked out of 1.00

is true or false:
Under a periodic inventory system, the cost of

sales is determined at the time of the
Select one:
True
False

Question 9
Not yet answered
Marked out of 7.00
On 1 September 20.18 Lloyd Traders received

a prepayment for an amount of R82 550 from
a client that is currently occupying part of
Lloyd’s o ce building under a lease
agreement. The prepayment is the rent for 13
months. The prepayment transaction has not
yet been recorded in the accounting books of
Lloyd Traders. The current nancial period
ends on 28 February 20.19.
The correct journal entries (including cash

transactions) that need to be processed, to
ensure that the rental income amount to be
disclosed in the statement of pro t or loss
and other comprehensive income for the year
ended 28 February 20.19 is correct?
Instructions:

space.
Rental income
Rental income
Bank 76 200
Rental expenses
Bank
Income received
Accrued incomein advance 6 350

Prepaid expenses
Accrued expenses
82 550 25 400 6 350 76 200
38 100 44 450

Question 10
Not yet answered
Marked out of 3.00
Vice Smith is the owner of Vice Electricians.

On 30 June 20.1 you are given the following
information for Vice Electricians.
Trade 144
receivables……………………………………………………………………………… 000
Equipment………………………………………………………………………………………… 500
000
Unfavourable bank 200

balance………………………………………………………………….. 000
Trade 100
payables…………………………………………………………………………………. 000
Vehicles……………………………………………………………………………………………..480
000
Loan………………………………………………………………………………………………….. 300
000
The correct representation of the accounting

equation of Vice Electricians after
considering the given information is ...
Instructions:
1. Drag the correct answer into the correct

space (cell phone click on the answer and
click on the place where you want to place the
amount - also keep your cell phone horizontal
1 324 000 1 424 000 144 000
1 124 000
524 000144 000 500 000 1 124 000 600 000
200 000 100 000 480 000
300 000 600 000 524 000
1 724 000

Question 11
Not yet answered
Marked out of 4.00

scenario.
On
comparison
of the
journals
with the
bank
statement
it was
noted that
cash sales
for 30th of
June 20.22 a credit entry as deposits not yet credited in the bank reconciliation statement.
was
banked but
it did not
re ect on
the bank
statement.
The
bookkeeper
will record
…
On
comparison
of the
journals
with the
bank
statement
it was
noted that
bank
charges for
R350 bank charges in the cash payments journal.
re ected in
the debit
column of
the bank
statement
only. The
bookkeeper
will record
the R350 as
…
Cash
withdrawn
to restore
the petty decrease the bank account.
cash oat
will …

A
favourable
general
ledger bank the debit side of the bank reconciliation statement.
balance will
be recorded
on …
Question 12
Not yet answered
Marked out of 4.00
The inexperienced accounting clerk

wrongfully entered the manager's salary of
R11 000 into the insurance account. Ignore
any VAT implications for this transaction.
The correct journal entry of the

correction of the error will be …
NB: Instructions
1. Use a full stop to indicate any decimals

(eg: 1000.01)
2. Only show the amount, do not show the R
(eg: 12141.72)
3. Round the amount of to the nearest Rand

(eg: 12141.72 will be 12142)
GENERAL JOURNAL - MAY

20.2
GJ1

R R
31 Salaries 11000
Insurance 11000

Question 13
Not yet answered
Marked out of 1.00
An entity has the following balances: Bank:

R3 000; Vehicles: R12 000: Trade receivables:
R2 000.
The equity of the entity according to the

basic accounting equation is …
NB: Instructions
1. Use a full stop to indicate any decimals (eg:
1000.01)
(eg: 12141.72)
Answer:
17000

Question 14
Not yet answered
Marked out of 3.00
Debits Credits
R R
Vehicles 325 Capital 357
000 750
Plant and 170 Sales 530
equipment 000 000
Stationery 1 Interest on 450
610 bank
account
Insurance 6 Loan: Nice 60
200 Bank 000
Interest 5 Accumulated
expenses 200 depreciation
Trade 24 (plant and 17
receivables 300 equipment) 500
control
Water and 8 Rent income 13
electricity 800 400
Depreciation 15 Trade 34
(Vehicles) 000 payables 320
control
Salaries 110 Accumulated
360 depreciation
Drawings 21 (vehicles) 15
900 350
Inventory 32 Bank 11
000 600
Cost of 320
sales 000
1 040 1
370 040
370
The accounting equation (A = E + L) can

be expressed as …
Instructions:
2. Round off to the second decimal after the
full stop (eg: 50.56)
3. A decrease in an amount must
be indicated by using a negative sign in
4. An increase must be indicated
by the amount without any sign (eg:
1000.01)
Please note: Only include the total amount

for assets, equity and liabilities in the table
provided.
R R R

Question 15
Not yet answered
Marked out of 1.00
Sales is R125 000. Mark-up of 30% on selling

price. What is the cost of sales amount?
Answer:
96154

Question 16
Not yet answered
Marked out of 4.00
Analyse the given transaction and then

choose the correct option for the analysis of
the transaction:
Transaction:
BG Traders was able to recover R500 from Ms

S Nel whose account was previously written
off as irrecoverable.
The
account to
be credited
in the credit losses recovered
above
transaction
will be …
The
account to
be debited
in the Bank
above
transaction
will be …
The effect
of the
above
transaction
on assets Assets will increase with R500.
in the
basic
accounting
equation.
The effect
of the
above
transaction
on equity Equity will increase with R500.
in the
basic
accounting
equation.

Question 17
Not yet answered
Marked out of 1.00
Use the information provided below to

calculate the cost of sales:
R
Opening inventory 20
000
Purchases 90
000
Settlement discount granted 15
000
Freight charges 32
000
Closing inventory 70
000
Answer:
72000

Question 18
Not yet answered
Marked out of 2.00
Use the following information to

calculate the total current asset amount:
R
Services rendered 450
000
Capital 630
000
Drawings 25
000
Rent income 60
000
Interest income 36
000
Stationary 2 200
Wages 13
500
Insurance expenses 15
600
Furniture 40
000
Vehicles 600
000
Bank 30
000
300
Fixed Deposit: SA Bank 70
000
Land 300
000
Buildings 110
000
Inventory 50
000
Trade receivable control 200
000
NB: Instructions
(eg: 1000.01)
(eg: 12141.72)
Answer:
90300

Question 19
Not yet answered
Marked out of 1.00
On 1 May 20.18 Venus Traders entered into a

new two-year advertising agreement with Tino
Advertising Agency. The advertising
agreement was effective with immediate
effect and stipulated that Venus Traders
would pay R2 750 per month to Tino
Advertising Agency for advertising services
that would be provided by Tino Advertising
Agency on a monthly basis. Tino Advertising
Agency has performed all the necessary
advertising services that was required from
them since the effective date of the
advertising agreement for the current
nancial period (the current nancial period
ends on 28 February 20.19).
The pre-adjustment trial balance for the year

ended 28 February 20.19 re ected advertising
expenses for an amount of R22 000 as well as
accrued advertising expenses of R4 500 on
1 March 20.18 (the beginning of the current
nancial period). On 20 April 20.18 Venus
Traders paid the advertising expenses that
was outstanding from the previous nancial
period. The outstanding advertising expenses
for the current nancial period must still be
provided for.
The advertising expenses amount to be

disclosed in the statement of nancial
position as at 28 February 20.19 will be:
Instructions:
2. Round off to the nearest Rand (eg: 50.56 is

51)
3. Only show the amount, do not show the

R (eg: 12141.72)
Answer:
5500

Question 20
Not yet answered
Marked out of 4.00

scenario.
Bank
charges of
R740 will Cash payments journal
be entered
in the ...
Debit order
to PG Cell
Providers
for two cell
phone
contract
including
calls and Cash payments journal
sms’s,
R8 500.
The
transaction
will be
entered in
the ...
Incorrect
credit of
R5 000
made by a
client of
the bank
into the
bank
account of
Kiyu
Traders as Bank reconciliation statement
the client
captured
the
incorrect
bene ciary
details. The
transaction
will be
entered in
the ...

The
bookkeeper
incorrectly
entered the
amount
paid to
creditor, HG
Traders, as
R569
instead of
R695 which Cash payments journal
was
correctly
stated on
the bank
statement.
The
transaction
will be
entered in
the ...
Question 21
Not yet answered
Marked out of 2.00
On 12 February 20.1 Mr T Naidoo paid his

account of R2 500 via EFT into the bank
The correct effect of the transaction on the

basic accounting equation in the books of
Instructions:


be indicated by using a negative sign in front

by the amount without any sign (eg: 1000.01)
5. If an option has been provided and it is not

applicable to the speci c question please put
N/A in the column.
6. First do the increase and then the

decrease. N/A must be done last.
R R R
-2500 -2500 n/a
n/a

Question 22
Not yet answered
Marked out of 1.00
The pre-adjustment trial balance of JAM

Traders as at 28 February 20.19, reflected an
allowance for credit losses that amounts to
R990 and credit losses amounting to R345
(credit losses were written off using method 1
although they were not aware of these two
methods as explained below). The financial
manager of JAM Traders determined that the
allowance for credit losses for the current
financial year ended 28 February 20.19 must
be R1 435 and credit losses that must still be
written off amounts to R780.
The financial manager, after having a

discussion with the bookkeeper of JAM
Traders, learned that there are two methods
that can be used to write off the above credit
losses of R780. Under method 1, credit
losses are written off against the allowance
for credit losses account; by debiting the
allowance for credit losses and crediting the
trade receivables control account and the
debtor's personal account. Under method 2,
credit losses are written off by debiting the
credit losses and crediting the trade
receivables control account and the debtor's
personal account (while the allowance for
credit losses remain unchanged).
Is the following statement true or false

regarding the balance on the allowance for
credit losses and the amount for credit losses
that needs to be disclosed in the statement of
profit or loss and other comprehensive
income for the year ended
28 February 20.19, if one of the methods is
followed by JAM Traders.
The balance on the allowance for credit

losses account will be R1 435 under both
methods. However, credit losses to be
disclosed in the statement of profit or loss
and other comprehensive income for the
year ended 28 February 20.19, will be
R1 225 under method 1 and R1 125 under
method 2.
Select one:
True
False

Question 23
Not yet answered
Marked out of 1.00
Sales is R125 000. Mark-up on cost price is

30%. What is the cost of sales amount?
Answer:
96154
Question 24
Not yet answered
Marked out of 4.00
The following sales journal totals were

provided to you:
FRUIT AND VEGGIE SPAZA SHOP
SALES JOURNAL – AUGUST 20.20
Trade
Date Details Fol VAT Sales receivables
output control
R R R
? 6 900 7 935
After calculating the VAT amount, the totals

will be posted to the general ledger as
follows (The VAT rate applicable is 15%):
Instructions:

space.
Always do the VAT entry last.

put N/A in the accounts column and a 0 in the
amounts column.
VAT output control

Trade receivables Sales 6 900
7 935
Sales
N/A 0 VAT output 1 035
N/A
7 935 6 900 1 035 0
1 190.25

Question 25
Not yet answered
Marked out of 12.00
The following VAT balances were extracted

from the subsidiary journals of General Spaza
R
VAT input 4 600
VAT output 87 400
VAT input 126 500
VAT output 6 900
Purchases journal
VAT 75 900
Sales journal
VAT 144 900
VAT 9 200
VAT 11 500
On 1 February 20.2, the VAT input account

had an opening balance of R161 000 and the
VAT output account had an opening balance
of R239 200.
Calculate the closing balance of the VAT

input account as at 28 February 20.2.
Instructions:

3. For embedded questions spelling is very
important. If you spell the answer incorrect it
will be marked incorrect. Please make sure
that your spelling of the words is correct.
4. Keep the ledger entries strictly according
to the information given.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
b/d PRJ
CRJ GJ
Feb 28 Bank 4600 VAT control 358800
CPJ
PJ

368000 368000
Question 26
Not yet answered
Marked out of 1.00
Indicate by choosing the correct option

whether the following statement is true or
false:
The amount of additional capital plus total

comprehensive income for the year less
drawings is referred to as the capital amount
for the business.
Select one:
True
False
Question 27
Not yet answered
Marked out of 1.00

false:
After reconciling the year-end physical trading
inventory count amount with the balance of
the trading inventory account in the general
ledger, it was determined that there is a
trading inventory de cit. The trading inventory
de cit will be recorded as income in the
statement of pro t or loss and other
Select one:
True
False

Question 28
Not yet answered
Marked out of 4.00
The owner of GS Electricians, Mr Gizmo

Smith, deposited R250 000 on 1 March 20.1
as opening capital into the business bank
account after obtaining a personal loan from
LG Bank. On 25 March 20.1 GS Electricians
made an electronic payment to Mr Gizmo
Smith's account for R500 for his own personal
use. On 23 March 20.1, Mr Gizmo Smith
transferred his personal electric generator
worth R6 000 to his business, GS Electricians.
Assuming that the difference between income

and expense is R7 000, the correct statement
of changes in equity for the month ended 31
March 20.1 is ...
Instructions:
Capital contribution from owner 256 000

Capital contribution from owner
7 000
Total
Totalcomprehensive
comprehensiveincome
incomefor
forthe
theperiod
period
(500)
Drawings
Total comprehensive loss for the period
Drawings 262 500
Balance as at 31 March 20.1
250 000 6 000 (6 000) 256 000
244 000 500 (500) 7 000
(7 000) 262 500 256 500 255 500
249 500 12 500

Question 29
Not yet answered
Marked out of 1.00

pro t or loss and other comprehensive
income:
Income represents sales made by the
business to its customers.
Select one:
True
False

Question 30
Not yet answered
Marked out of 8.00
You are given the following information of

Kiyu Traders for 30 September 20.1:

The following information appeared on the

bank statement only:
a) A direct deposit by debtor, Ms P

Sithole, for R20 000.
b) Bank charges of R700.
c) Interest on a favourable balance of R1
830.
d) Debit order to ARK Insurers for
insurance of R6 250.
e) Debit order to PG Cell Providers for
10 cell phone contract including
calls and sms’s, R42 500.
The following information appeared in the

cash journals of Kiyu Traders only:
f) A cash payment of R7 350 was

entered in the cash receipts journal
on the 29 September of 20.1 but
was only deposited 1 October 20.1
by the bookkeeper.
g) The bookkeeper incorrectly entered

the amount paid to creditor, HG
Traders, as R965 instead of R695
which was correctly stated on the
bank statement.
What will the correct cash receipts journal

entries in the books of Kiyu Traders be for
September 20.1?
Instructions:

space.
If an option has been provided and it is not

applicable to the specific question, please put
N/A in the account column and a 0 in the
amounts column.
350 000
P Sithole/Trade receivables control 20 000

P Sithole/Trade receivables control
N/A 0
Interest income
HG Traders/Trade payables control
N/A 0
Bank charges N/A 0
N/A 0
Insurance: ARK Insurers

HG Traders/Trade payables control 270
Telephone expenses: PG Cell Providers 372 100
N/A
350 000 20 000 1 830 270
700 475 000 1 660 6 250
42 500 497 100 399 450 0
372 100
Question 31
Not yet answered
Marked out of 1.00
Isolation Traders paid an insurance premium

of R10 824 on 1 March 20.19 for 12 months.
Upon the inspection of the pre-adjustment
trial balance for the year ended 31 May 20.19,
the bookkeeper noticed that insurance
premiums amounting to R7 380 for the period
starting 1 June 20.18 until 28 February 20.19,
were paid in the previous nancial period. The
bookkeeper also noticed that, the insurance
premium paid on 1 March 20.19 has not yet
been recorded in the books, and no
adjustment has been processed and no
reversal has been processed relating to
insurance premium paid in the previous
nancial period.
The amount for insurance expense to be

shown in the statement of pro t or loss and
other comprehensive income for the year
ended 31 May 20.19 will be:
NB: Instructions
1000.01)

(eg: 12141.72)
3. Round the amount of to the nearest R (eg:

12141.72 will be 12142)
Answer:
10086

Question 32
Not yet answered
Marked out of 1.00
Indicate whether the following statement is

true or false.
At the end of the nancial year, the gross
pro t/loss is not transferred to the trading
account.
Select one:
True
False

QUIZ
Started on Tuesday, 22 August 2023, 11:19 AM

State Finished
Completed on Tuesday, 22 August 2023, 1:19 PM
Time taken 2 hours
Feedback Congratulations, you pass the assessment. Please make sure you know the
work because the next assessment will be more di cult.
Question 1
Complete
Kales Plumbing Services provided with the following information for the nancial year ended
28 February 20.1.
R

Salaries…………………………………………………………...................... 320 000
Wages……………………………………………………………................... 50 000
Telephone……………………………………………………….................. 5 000

Stationery………………………………………………............................ 3 000
Interest income…………………………………………………............. 2 000

Insurance………………………………………………............................. 9 000
The pro t/loss for the year of Kales Plumbing Services for the year ended 28 February 20.1 is
...
Instructions:


4. Indicate a pro t as 12142 and a loss as -12142
Answer: 572000

Question 2
Complete

Short and long- term year-end adjustments are not recorded in the general journal of an entity.
Select one:
True
False

Question 3
Complete
You are given the following extract of information for Luna Dealers for the financial year ended
on 28 February 20.2.
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000

Rental income…………………………………………………………… 15 000

Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

d) The rental income was received for 8 months although the contract is for the full 20.2
financial year.
Assuming that the gross profit calculated in the trading account is R160 000, the correct
profit or loss account in the general ledger of Luna Dealers on 28 February 20.2 will be:
Instructions:

Transactions should be posted to the pro t or loss account according to the sequence they
appear in the extract of Trial Balance (TB) and in the correct format. Failure to adhere to this
instruction will results into a loss of marks.
Carriage on sales
Settlement discount granted
Salaries and wages
Sales Purchases
Carriage on purchases Carriage on sales
Settlement discount received Settlement discount granted
Commission income Rental income
Salaries and wages Telephone expenses
Water and electricity Credit losses

Depreciation Trading account (net profit)
Trading account (gross profit) Capital (Total comprehensive loss for the year)
Capital (Total comprehensive profit for the year) Drawings
Capital Inventory
100 000 5 000 50 000 30 000 235 000 38 800 200 500 800
10 000 29 000 30 000 28 000 2 000 15 000 7 500 22 500 1 600
400 1 500 160 000 185 000 150 000 192 500 158 200
Question 4
Complete
On 12 February 20.1 Mr T Naidoo paid his account of R2 500 via EFT into the bank account of
Abdoola Spaza.
Spaza is ...
Instructions:


amount (eg: -1000.01)
in the column.
R R R
2500 2500 n/a
n/a

Question 5
Complete
Debits Credits
R R
Drawings 31 900 Accumulated depreciation
Inventory 32 000 (plant and equipment) 5 500
Cost of sales 340 000 Interest income 7 500
880 270 880 270

Instructions:
amount (eg: -1000.01)
provided.
R R R
880270
Question 6
Complete
Transactions in the cash receipts journal will

be ticked off with items in the … of the ... credit column; bank statement
Direct deposits made by a client will re ect

credit column; bank statement
in the … of the ...
Interest on an overdrawn bank balance will

re ect in the … of the … debit column; bank statement
Transactions in the cash payments journal

will be ticked off with items in the … of the ... debit column; bank statement
Question 7
Complete
Answer: 62068.97

Question 8
Complete
Select one:
True
False

Question 9
Complete
Majozi, the owner of MAJOZI Traders keep incomplete records of the business transactions.
The following information is available.
MAJOZI TRADERS
20.18 20.19
R R
Vehicles at cost ……………………………………………… 28 800 28 800
Inventory……………………………………………................ 21 770 ?
Bank (favourable)…………………………………………...... 25 000 20 000
Prepaid expenses……………………………………………… 360 365
Inventory R25 750

Stationery R825
How will the inventory items be disclosed in the statement of financial position of Majozi
Instructions:
ASSETS
Current assets
Inventories 26 825
N/A 0
N/A
ASSETS EQUITY AND LIABILITIES Non-current assets 0
Current assets Equity Capital
Non-current liabilities Current liabilities Fixed deposit
Inventories Packing materials Stationery
N/A Consumables stores on hand
25 750 825 250 1 075 0 26 825 21 770

Question 10
Complete
Analyse the given transaction and then choose the correct option for the analysis of the
transaction:
Transaction: Mr G Dali owed BG Traders R400 however he was declared insolvent on 1 July 2022.
BG Traders decided to write off the debt of R400.
The account to be debited in the above transaction is

credit losses
…
The account to be credited in the above transaction is

allowance for credit losses
…
The effect of the above transaction on assets in the

basic accounting equation. Assets will decrease with R400.
The effect of the above transaction on equity in the

basic accounting equation. Equity will decrease with R400.

Question 11
Complete
Debit Credit
R R
Drawings………………………………………………………………....................…… ?
Mortgage: GL Bank ........................................……………….......................... 200 000
Sales………………………………………………………………………......................... 345 060
Sales returns…………………………………………………………….................….. 6 780
Rental income…………………………………………………………...............….... 19 800
Purchases………………………………………………………………..................…… 197 800
Depreciation……………………………………………………………................…... 38 367
Credit losses…………………………………………………………....................….. 1 600
(a) On 1 April 20.2 Zungu Traders bought a factory building by means of a mortgage, from
ABC Bank, that bears interest at a rate of 15% per annum compounded annually. Interest for
the current year must still be provided for.
(b) The fixed deposit investment of R60 000 was made on 1 March 20.2. Interest on this
investment is paid annually.
The correct amount that must be disclosed as interest on mortgage for the year
ended 31 August 20.2 is …
NB: Instructions
Answer: 15000

Question 12
Complete
The effect of inventory purchased for cash in an

business that uses a periodic inventory system Assets increase and decrease.
on the accounting equation.
The effect of inventory purchased on credit in a

business that uses the periodic inventory system No effect
The effect of the sale of inventory for cash in a

business that uses the periodic inventory system Assets increase and equity increases.
The effect of the sale of inventory on credit in a

Question 13
Complete

R
Purchases 40 000
Import duties 2 000
Answer: 75000

Question 14
Complete
Instructions:

correct.
NM STORES
GENERAL LEDGER
Dr Rental income Cr
20.3 R 20.2 R
Sep Income received in advance 49000 Oct Balance 133000

30 1
Trading account 84000

Question 15
Complete
R
Capital………………………………………………………………………… 100 000
Drawings……………………………………………………………………… 5 000
Inventory (1 March 20.1)……………………………………………………. 50 000
Sales…………………………………………………………………………... 250 000
Sales returns………………………………………………………………….. 15 000
Purchases…………………………………………………………………….. 40 000
Purchases returns……………………………………………………………. 1 200
Carriage on purchases………………………………………………………. 200
Carriage on sales…………………………………………………………….. 500
Settlement discount received……………………………………………….. 500
Settlement discount granted………………………………………………… 2 000
Commission income………………………………………………………….. 10 000
Rental income…………………………………………………………………. 15 000
Salaries and wages…………………………………………………………… 29 000
Telephone……………………………………………………………………… 2 000
Water and electricity………………………………………………………….. 1 600
Credit losses…………………………………………………………………… 400
Depreciation…………………………………………………………............... 1 500
closing transfer in the general journal of Luna Dealers on 28 February 20.2 for the gross profit?
Instructions:
Trading account 160 000
Trading account Profit or loss account Inventory Drawings
Capital
100 000 5 000 95 000

Question 16
Complete
You are given the following information for Luna Dealers for the year ended 30 June 20.1.
R
VAT output
VAT input
What will the correct general ledger entries be in the VAT input account for Luna Dealers for the
year ended 30 June 20.1.?
Instructions:
300
Bank VAT control 34 468
320
Bank Settlement discount received Purchases
Purchases returns Trade receivables control Trade payables control
VAT control Receiver of revenue
300 320 34 768 34 468

Question 17
Complete
Instructions:

in the column.
N/A Balance
- +
Balance + - N/A

Question 18
Complete
R
VAT input 3 546,24
VAT output 4 892,16
Purchases journal
Sales journal
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
299822.16 299822.16

Question 19
Not answered
Marked out of 4.00
information for Ronnie’s Hairdressing Salon for the year ended 30 June 20.1.
R
Capital (1 July 20.0).................................................................................................... 300 000
Drawings......................................................................................................................... 3 570
Equipment...................................................................................................................... 150 000

Vehicles............................................................................................................................ 174 000
Bank (favourable balance)........................................................................................ 15 000

Accrued income........................................................................................................... 3 500
Income received in advance................................................................................... 4 500

Prepaid expenses........................................................................................................ 4 600
Accrued expenses....................................................................................................... 7 200
Trade payables............................................................................................................. 82 600

Trade receivables........................................................................................................ 66 500
Services rendered....................................................................................................... 245 000

Interest income........................................................................................................... 4 400
Wages............................................................................................................................ 145 000

Telephone expenses................................................................................................. 45 000
Rent income: deposit............................................................................................... 4 000

Water and electricity................................................................................................ 14 340
Insurance expenses.................................................................................................. 15 000
Rental income............................................................................................................ 48 000

Advertising expenses............................................................................................... 4 750
The correct disclosure of assets in the statement of nancial position of Ronnie's Hairdressing
Salon as at 30 June 20.1 is …
NB: Instructions
Non-current assets Capital Equipment
Property, plant and equipment Vehicles Current assets
Trade receivables Total income Total expenses
Long-term loan Trade payables Trade and other receivables

Trade and other payables Bank Cash and cash equivalent
Inventories N/A Total assets
Prepayments Income received in advance Accrued income
Accrued expenses Rent income: deposit
150 000 174 000 324 000 15 000 3 500 4 500 0 4 600 7 200
82 600 66 500 4 000 297 400 301 400 224 090 70 000 74 600 89 800
94 300 413 600 89 600
Question 20
Complete
Answer: 69230.78
Question 21
Complete
With the periodic inventory system an entity will not keep continuous track of inventory levels for
the different inventory items it sells.
Select one:
True
False

Question 22
Complete
The pre-adjustment trial balance of JAM Traders as at 28 February 20.19, reflected an

allowance for credit losses that amounts to R990 and credit losses amounting to R345 (credit
losses were written off using method 1 although they were not aware of these two methods as
explained below). The financial manager of JAM Traders determined that the allowance for
credit losses for the current financial year ended 28 February 20.19 must be R1 435 and credit
losses that must still be written off amounts to R780.
The financial manager, after having a discussion with the bookkeeper of JAM Traders, learned
that there are two methods that can be used to write off the above credit losses of R780. Under
method 1, credit losses are written off against the allowance for credit losses account; by
debiting the allowance for credit losses and crediting the trade receivables control account and
the debtor's personal account. Under method 2, credit losses are written off by debiting the
credit losses and crediting the trade receivables control account and the debtor's personal
account (while the allowance for credit losses remain unchanged).
Is the following statement true or false regarding the balance on the allowance for credit losses
and the amount for credit losses that needs to be disclosed in the statement of profit or loss and
other comprehensive income for the year ended 28 February 20.19, if one of the methods is
The balance on the allowance for credit losses account will be R1 435 under method 1 and will
remain unchanged at R990 under method 2.
Select one:
True
False
Question 23
Complete
Select one:
True
False

Question 24
Complete
Victor Smith is the owner of Smith Electricians. On 28 February 20.2 you are given the following
information for Smith Electricians.
R
Trade receivables................................................................................................................. 222 000
Equipment.............................................................................................................................. 320 000
Favourable bank balance................................................................................................. 45 000

Trade payables..................................................................................................................... 50 000
Vehicles.................................................................................................................................. 480 000

Fixed deposit........................................................................................................................ 300 000
Drawings................................................................................................................................ 3 500
NB: Instructions

Answer: 1320500
Question 25
Complete
An entity has the following balances: Bank (Cr): R3 000; Vehicles: R120 000; Trade receivables:
R20 000.
NB: Instructions
Answer: 137000

Question 26
Complete
Transactions
on the credit
side of the
bank
have not been
ticked are
entered in the
...
Transactions
on the debit
side of the
bank
have not been
ticked are
entered in the
...
The general
ledger bank
account that
balance of
R10 000 ...
The bank
account in the
general ledger
that has a Is a current asset and will be disclosed under cash and cash equivalents.
debit balance
of R10 000 ...

Question 27
Complete
The following information relates to Sammy Dealers, who is registered as a VAT vendor and
who uses the periodic inventory system. VAT at 15% is applicable. The VAT period of the
As per the trial balance on 30 April 2022. Mini Traders owes Sammy Dealers, R2 300. Mini
Traders settled the account of R2 300 on 1 May 2022. A settlement discount of 20% was granted
to Mini Traders.
What will the correct entries of the transaction be in the books of Sammy Dealers?
Instructions:
Drag the correct answer into the correct space (including the blank spaces on headings).
VAT input
discount received
Cash payments journal Cash receipts journal Mini Traders Sammy Dealers
VAT input Mini Traders VAT output discount granted discount received
2 300 2 300 (60) (400)
1 840 2 300 (60) (400) (460) 1 917 (383) (50) (69) (331)

Question 28
Complete
Vice Smith is the owner of Vice Electricians. On 30 June 20.1 you are given the following
Trade receivables……………………………………………………………………………… 144 000
Equipment………………………………………………………………………………………… 500 000
Favourable bank balance………………………………………………………………….. 200 000
Trade payables…………………………………………………………………………………. 100 000
Vehicles…………………………………………………………………………………………….. 480 000
Loan………………………………………………………………………………………………….. 300 000
The correct representation of the accounting equation of Vice Electricians after considering the
given information is ...
Instructions:
the question).
924 000 1 324 000 400 000

1 224 000 844 000 100 000 744 000 924 000 1 324 000 400 000 224 000
600 000 1 624 000 1 524 000

Question 29
Not answered
Marked out of 8.00

Unfavourable balance of bank statement 120 000
a) A direct deposit by debtor, Mr R Singh, for R50 000.

c) Interest on a unfavourable balance of R1 830.
d) Debit order to PG Cell Providers for 10 cell phone contract including calls and
sms’s, R42 500.
bank account of Kuyi Traders for R120000 as additional capital contribution.
g) The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as

R2100 instead of R1200 which was correctly stated on the bank statement.
September 20.1?
Instructions:

Mr R Singh/Trade receivables control Mr K Naidoo(Capital)
Mr K Naidoo(Cash) HG Traders/ Trade payables control
HG Traders/Trade receivables control Bank charges
Interest on bank overdraft Interest income
PG Cell Providers N/A
300000 50000 120000 900 470 900 131250 700 1830 42500
176 280 0

Question 30
Complete
Prepaid expenses will be disclosed as a current liability in the statement of nancial position at
the end of a nancial period.
Select one:
True
False
Question 31
Not answered
Marked out of 4.00
On 31 July 20.2 the balance in the packing material account of Kiyu Stores in the pre-
adjustment trial balance was R34 000. After a physical inventory count, it was revealed that
there was only R6 000 worth of packing material used during the financial year. The financial
year of Kiyu Stores begins on the 1 August.
The following general ledger entries represent the correct general ledger entries in the
books of Kiyu Stores on 1 August 20.2:
Instructions:
amount (eg: -1000.01)
N/A in the column.
KA TRADERS
General ledger Assets Equity Liabili
Account to be debited Account to be credited Debit Credit Debit Credit Debit

R R R R R
Question 32
Complete
Vehicles used for delivery are included as non-current assets in the statement of nancial
position.
Select one:
True
False


QUIZ

State Finished
Feedback Congratulations, you pass the assessment.
Question 1
Complete
On 31 December 20.2, the end of the financial year for Kiyu Traders, the total amount of unused packing material was R4 500. The
amount reflecting in the trial balance for packing material at year-end was R6 000.
The correct general ledger entries in the packing material account of Kiyu Stores on 31 December 20.2 are ...
Instructions:
1. First do the adjustment general ledger entries and then do your closing transfer general ledger entries.
KIYU STORES
GENERAL LEDGER
Dr Packing material Cr
20.2 R 20.2 R
Dec 31 Balance 6000 Dec 31 Consumable stores on hand 4500

Question 2
Complete
An extract from the list of balances of Green Traders at year-end, re ected the following balances:

The amount for rental income to be disclosed in the statement of pro t or loss and other comprehensive income for the year ended
Instructions:

Answer: 48374
Question 3
Complete

Under a periodic inventory system, the cost of sales is determined at the time of recording of the sale.
Select one:
True
False

Question 4
Complete
Instructions:

If an options has been provided and it is not applicable to the speci c questions please put N/A in the column.
Balance N/A
+ -
Balance + - N/A
Question 5
Complete
Due to some debtors not being able

to pay their accounts, an entity will allowance for credit losses
then have a/an … policy.
Allowance for credit losses will be …

deducted from the trade receivables balance in the note in the statement of nancial position.
at the end of the nancial year.
Credit losses will be closed off to the

pro t or loss account
… at the end of the nancial year.
The trade receivables control

account must be credited with … actual recoverable debt
Question 6
Complete
An entity has the following balances: Capital, R10 000; Trade payables, R3 200; Loan, R5 000.
NB: Instructions

Answer: 18200

Question 7
Complete
Select one:
True
False
Question 8
Complete
On 2 March 20.1, a tenant of ABC Traders, did an electronic funds transfer of R160 000 into ABC Traders’ business bank account. The
monthly rental is R16 000 per month. The financial year-end is 28 February 20.2.
Instructions:

6. Your answer is case sensitive; therefore, you need to put the very rst letter of the answer in uppercase, but the rest of your answer
must be in lowercase (eg: Interest on loan)
ABC TRADERS

R R
ACCRUED INCOME 32000
32000
RENT INCOME

Question 9
Complete
Mark 12.00 out of 12.00
R
VAT input 1 207,50
VAT output 1 680,00
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R42 000 and the VAT output account had an opening balance
of R63 000.
Instructions:
3. For embedded questions spelling is very important. If you spell the answer incorrect it will be marked incorrect. Please make sure
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
GJ CRJ
VAT control 124057.5 Feb 28 Bank 22995
CPJ
SJ
125737.50 125737.50

Question 10
Complete
Select one:
True
False
Question 11
Complete
Vice Smith is the owner of Vice Electricians. On 30 June 20.1 you are given the following information for Vice Electricians.
Equipment………………………………………………………………………………………… 500 000
Trade payables…………………………………………………………………………………. 100 000
Vehicles…………………………………………………………………………………………….. 480 000
Fixed deposit…………………………………………………………………………………….. 300 000
The correct representation of the accounting equation of Vice Electricians after considering the given information is ...
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the
amount - also keep your cell phone horizontal when doing the question).
1 524 000 1 624 000 100 000
600 000 980 000 1 124 000 400 000 144 000 500 000 200 000 100 000 480 000 300 000 1 624 000
1 524 000 1 724 000

Question 12
Complete
Transactions in the cash receipts journal will be ticked off with items in the … of the ... credit column; bank statement
Direct deposits made by a client will re ect in the … of the ... debit column; bank statement
Interest on an overdrawn bank balance will re ect in the … of the … debit column; bank statement
Transactions in the cash payments journal will be ticked off with items in the … of the
... debit column; bank statement
Question 13
Complete
Answer: 66666.67
Question 14
Not answered
Marked out of 1.00
The balance of equity at the beginning of the nancial year in the statement of changes in equity is not disclosed in the statement of
nancial position.
Select one:
True
False
Question 15
Complete

R
Purchases 140 000
Sales returns 15 000
Answer: 18200

Question 16
Complete
On 18 February 20.1 Abdoola Spaza had a bank overdraft balance of R1 200. On 19 February 20.1 Mr W Alli, a debtor, made a direct
payment of R1 200 into the bank account of Abdoola Spaza.
The correct effect of the transaction on the basic accounting equation in the books of Abdoola Spaza is ...
Instructions:
5. If an option has been provided and it is not applicable to the speci c question, please put N/A in the column.
R R R
1200 1200 N/A
N/A

Question 17
Complete
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000

Rental income…………………………………………………………… 15 000

Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

Assuming that the gross profit calculated in the trading account is R160 000, the correct profit or loss account in the general
ledger of Luna Dealers on 28 February 20.2 will be:
Instructions:

Transactions should be posted to the pro t or loss account according to the sequence they appear in the extract of Trial Balance (TB)
and in the correct format. Failure to adhere to this instruction will results into a loss of marks.
Depreciation 1 500
192 500 192 500
Sales Purchases Carriage on purchases
Carriage on sales Settlement discount received Settlement discount granted
Commission income Rental income Salaries and wages
Telephone expenses Water and electricity Credit losses

Depreciation Trading account (net profit) Trading account (gross profit)
Capital (Total comprehensive loss for the year) Capital (Total comprehensive profit for the year) Drawings
Capital Inventory
100 000 5 000 50 000 30 000 235 000 38 800 200 500 800 10 000 29 000 30 000
28 000 2 000 15 000 7 500 22 500 1 600 400 1 500 160 000 185 000 150 000 192 500 158 200
Question 18
Complete
Packaging material, R826
The effect that the adjustment journal entry for inventory will have on the basic accounting equation of PMT Traders for the
year ended 28 February 20.19 will be?
Instructions:
3. If an options has been provided and it is not applicable to the speci c questions please put a 0 in the amounts column.
+1 397 +1 397 0
+9 560 - 9 560 +10 770 -10 770 +1 121 -1 121 0 +740 -740 +2 670 -2 670 +250 -250
+321 -321 +826 -826 +1 397 -1 397 +4 531 -4 531 +1 210 -1 210

Question 19
Complete
Carriage on sales will be closed off to the ... at the end of the nancial year. Trading account
Carriage on purchases will be closed off to the ... at the end of the nancial year. Trading account
The net loss calculated in the pro t and loss account will ... as the capital account will be ... when the
closing transfer is done. decrease equity : debited
The net pro t calculated in the pro t and loss account will ... as the capital account will be ... when the
increase equity : credited
closing transfer is done.

Question 20
Complete
Debit Credit
R R
Capital (1 October 20.19)……………………………………………......…… 200 000
Drawings…………………………………………………………………..............… ?
Sales…………………………………………………………………...............……... 345 060
Sales returns…………………………………………………………...........……. 6 780
Rental income…………………………………………………………..........…... 19 800
Purchases………………………………………………………………............….. 197 800
Depreciation…………………………………………………………..........…….. 38 367
Credit losses……………………………………………………………..........….. 1 600
(a) Upon reviewing the list of account receivables outstanding at year end, the accountant determined that the allowance for credit
losses account should amount to R5 450 on 30 September 20.20.
Use the information in the pre-adjustment trial balance and the additional information to determine what adjustment is needed to adjust
the allowance for credit losses:
Instructions:
Credit losses 2 450
Trade receivables control Allowance for credit losses Credit losses Profit or loss account
5 450 3 000 8 450

Question 21
Complete
The following information relates to Sammy Technologies who buys and sells computers and computer accessories. Sammy Dealers
is a registered as a VAT vendor and uses the periodic inventory system. VAT at 15% is applicable. The VAT period of the business
ends on unequal months.
Transactions:
20.22
MW 456)
Instructions:
Mega Wholesalers 375 2 500 2 875
IT Wholesalers Sammy Technologies Trade payables control
17 250 2 250 15 000 2 587.50 14 662.50 2 875 375 2 500 431.25 2 443.75 172 500
22 500 150 000 25 875 146 625
Question 22
Complete
The nancial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who was immediately required to assist
with the creation of an allowance for credit losses (current nancial year ends on 28 February 20.19). The auditors of Steven Traders
raised an audit nding in the previous nancial period, stating that trade and other receivables were overstated since no allowances for
credit losses has been created although there was evidence that some of the debtors did not pay their accounts in the previous nancial
periods.
The nancial manager wants to avoid this audit nding in the current nancial period. The nancial manager requested the bookkeeper to
write a memo and indicate which accounts will be affected when the allowance for credit losses is created? The bookkeeper has written
the following statement down and requires you to con rm whether the statement is true or false when the allowance for credit losses is
created.
When the allowance for credit losses is created, credit the credit losses account and debit the allowance for credit losses account.
Select one:
True
False

Question 23
Complete
Answer: 66666.67

Question 24
Complete
Unfavourable balance of general ledger bank account 25 000

The following information appeared on the bank statement for September 20.1 only:
a) A direct deposit by debtor, Ms P Sithole, for R4 000.

c) Interest on a favourable balance of R366.
d) Debit order to ARK Insurers for insurance of R650.
e) Debit order to PG Cell Providers for two cell phone contract including calls and sms’s, R8 500.
f) On 29 September the owner of Kuyi Traders,Mr K Naidoo, made an EFT into the bank account of Kuyi Traders for R100 000 as
additional capital contribution.
g) Incorrect credit of R5 000 made by a client of the bank into the bank account of Kiyu Traders as the client captured the incorrect
beneficiary details.
h) A cash payment of R15 000 was entered in the cash receipts journal on the 29 September of 20.1 but was only deposited 1 October
20.1 by the bookkeeper.
i) The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as R569 instead of R695 which was correctly stated on
the bank statement.
What will the correct cash receipts journal entries in the books of Kiyu Traders be for September 20.1?
Instructions:
If an option has been provided and it is not applicable to the speci c question, please put N/A in the account column and a 0 in the
amounts column.
70 000
N/A 0
Interest income 366
N/A 0
N/A 0
Capital 100 000
N/A 0
N/A 0
N/A 0
174 366
P Sithole/Trade receivables control P Sithole/Trade payables control Interest income
Interest on bank overdraft Capital Mr K Naidoo (cash)
Insurance: ARK Insurers Telephone expenses: PG Cell Providers HG Traders/Trade payables control
HG Traders/Trade receivables control N/A

70 000 4 000 366 740 8 500 126 174 366 104 366 100 000 740 8 500 126 0
Question 25
Complete
Bank charges of R740 will be entered in the ... Cash payments journal
Debit order to PG Cell Providers for two cell phone contract including calls and sms’s, R8 500. The
transaction will be entered in the ... Cash payments journal
Incorrect credit of R5 000 made by a client of the bank into the bank account of Kiyu Traders as the
Bank reconciliation statement
client captured the incorrect bene ciary details. The transaction will be entered in the ...
The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as R569 instead of R695
which was correctly stated on the bank statement. The transaction will be entered in the ...
Question 26
Complete
Debits Credits
R R
Stationery 2 610 Interest on bank account 1 450
1 057470 1 057 470

Instructions:
Please note: Only include the total amount for assets, equity and liabilities in the table provided.
R R R
1057470

Question 27
Complete
At the end of the nancial year, the loss calculated in the pro t or loss account in the general ledger is to transferred to the capital account
by crediting the pro t or loss account and debiting the capital account.
Select one:
True
False
Question 28
Complete
Gizmo Enterprises provided you with the following information regarding the list of totals and balances on 28 February 20.8
R

Gizmo Enterprises received a credit note that was issued by Mrs A Steinhoff for R690. Mrs Steinhoff’s account in the trade payables
ledger was debited with R690 but no entry was made in the general ledger of Gizmo Enterprises.
What will the correct general ledger entries be for purchases returns for Gizmo Enterprises on 28 February 20.8?
Instructions:
VAT input 1 290
Trade payables control/Mrs A Steinhoff Purchases returns Trade payables control
Purchases VAT input VAT output
9 890 10 580 9 200 1 380 1 200 8 000 8 600 1 290

Question 29
Complete
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the following information for Ronnie’s Hairdressing
Salon for the year ended 30 June 20.1.
R
Capital 300 000
Equipment 200 000
Vehicles 160 000
Wages 165 000
Insurance 12 000
Advertising 3 000
30 June 20.1?
NB: Instructions
Answer: 39400

Question 30
Complete
R
Capital (1 July 20.0).................................................................................................... 300 000
Drawings......................................................................................................................... 3 570
Equipment...................................................................................................................... 150 000

Vehicles............................................................................................................................ 174 000

Accrued income........................................................................................................... 3 500

Trade payables............................................................................................................. 82 600


Interest income........................................................................................................... 4 400
Wages............................................................................................................................ 145 000


Rental income............................................................................................................ 48 000

The correct disclosure of assets in the statement of nancial position of Ronnie's Hairdressing Salon as at 30 June 20.1 is …
NB: Instructions
324 000
Non-current assets
324 000
Property, plant and equipment
Current assets
Inventories
Prepayments 4 600

Non-current assets Capital Equipment Property, plant and equipment
Vehicles Current assets Trade receivables Total income
Total expenses Long-term loan Trade payables Trade and other receivables
Trade and other payables Bank Cash and cash equivalent Inventories
N/A Total assets Prepayments Income received in advance
Accrued income Accrued expenses Rent income: deposit
150 000 174 000 324 000 15 000 3 500 4 500 0 4 600 7 200 82 600 66 500 4 000 297 400
301 400 224 090 70 000 74 600 89 800 94 300 413 600 89 600
Question 31
Complete
Debit Credit
R R
Capital (1 March 20.1)…………………………………………….......……..... 200 000
Drawings………………………………………………………………..................... ?
Sales………………………………………………………………............................... 345 060
Sales returns…………………………………………………………...................... 6 780
Rental income…………………………………………………………................... 19 800
Purchases……………………………………………………………........................ 197 800
Depreciation…………………………………………………………...................... 38 367
Credit losses…………………………………………………………….................. 1 600
(a) On 1 April 20.1 Kumkani Traders bought a factory building by means of a mortgage, from Ginsberg Bank, that bears interest at a rate
of 10.05% per annum compounded annually. The loan is redeemable in 20 annual instalments of R22 980. The instalments are in arrears.
Interest for the current year must still be provided for.
(b) The xed deposit investment of R50 000 was made on 1 April 20.1. Interest on this investment is paid annually.
The correct amount that must be disclosed in the statement of pro t or loss and other comprehensive income as interest on mortgage
for the year ended 28 February 20.2 will be ...
NB: Instructions

Answer: 3438

Question 32
Complete
Indicate whether the following statement is true or false regarding the statement of nancial position:
Select one:
True
False

QUIZ
Started on Tuesday, 22 August 2023, 1:27 PM

State Finished
Question 1
Complete
In a sole proprietorship, usually the owner himself is responsible for the daily activities of the
business.
Select one:
True
False

Question 2
Complete
The bookkeeper of Luna Dealers provides you with the following general ledger accounts for
the VAT output and VAT input for the year ended 30 June 20.1:
LUNA DEALERS
GENERAL LEDGER
Dr VAT output Cr
20.1 R 20.1 R
control SRJ12 1 005
Trade receivables
control SJ12 48 750
Trade payables
control CPJ12 1 440
176 215 176 215
LUNA DEALERS
GENERAL LEDGER
Dr VAT input Cr
20.1 R 20.1 R
control PRJ12 1 800
Trade receivables
control CRJ12 1 665
Trade payables
control PJ12 46 980
176 835 176 835
What will the correct entries be in the VAT control account in the general ledger of Luna
Dealers for the year ended 30 June 20.1 be?
Instructions:

175 210
Balance 620
176 215 176 215
175 035 175 210 176 215 176 835 620 175
VAT input VAT output Balance Receiver of Revenue

Question 3
Complete

R
Purchases 480 000
Import duties 22 000
Answer: 865000
Question 4
Complete
NB: Instructions
Answer: 70000
Question 5
Complete
An entity or an individual who does

not pay at the time of a transaction
as a result of a credit sale is known Trade debtor
as a ….
… to offered to trade debtors to

encourage a faster settlement of Settlement discount granted
debts within the credit term.
Entities that have a settlement

discount policy must at the end of create an allowance for settlement discount granted.
the nancial year…
Interest charged on an overdue

debtors account will …the trade increase
receivables control account.

Question 6
Complete
Instructions:
amount (eg: -1000.01)
N/A in the column.
KA TRADERS

R R R R R
Packing material Profit or loss account 6000 6000 N/A N/A N/A
Question 7
Complete
Answer: 75000

Question 8
Complete
R
TOTALS FOR JOURNALS
Sales column……………………………………………………………………………..... 409 000
Instructions:
Turnover Bank
228 560 229 520 237 600

Question 9
Complete
to Mini Traders.
Instructions:
VAT input
discount received
2 300 2 300 (60) (400)
1 840 2 300 (60) (400) (460) 1 917 (383) (50) (69) (331)
Question 10
Complete
The rates and taxes account in the pre-adjustment trial balance of HS Traders on 28 February
20.2 shows an amount of R17 760. HS Traders was unable pay the rates and taxes for the last
four months of the current financial year. The rates and taxes amount to be paid was determined
by the municipality and has been the same amount for every month for the current financial
year.
The correct general ledger entries in the rates and taxes account in the books of HS
Traders on 28 February 20.2 are ...
Instructions:
1. First do the adjustment general ledger entries and then do your closing transfer general
ledger entries.

HS TRADERS
GENERAL LEDGER
Dr Rates and taxes Cr
20.2 R 20.2 R
Feb Balance 17760 Feb Accrued expenses 5920

28 28

Question 11
Complete
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000

Rental income…………………………………………………………… 15 000

Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

financial year.
Instructions:

Depreciation 1 500

Sales Purchases

192 500 192 500

Capital Inventory
100 000 5 000 50 000 30 000 235 000 38 800 200 500 800
10 000 29 000 30 000 28 000 2 000 15 000 7 500 22 500 1 600
400 1 500 160 000 185 000 150 000 192 500 158 200
Question 12
Not answered
Marked out of 1.00

Select one:
True
False
Question 13
Complete
The current asset, inventories, in the statement of nancial position includes trading inventory on
hand at the end of a nancial year as well as all consumable stores on hand at the end of a
nancial year.
Select one:
True
False
Question 14
Complete
In the periodic inventory method, the business entity will keep continuous track of inventory
levels for the different inventory items it sells.
Select one:
True
False

Question 15
Complete
Indicate whether the following statement is true or false regarding the statement of pro t or loss
and other comprehensive income:
Gross pro t is income before adding other income and deducting operating expenses.
Select one:
True
False

Question 16
Complete
On
comparison
of the
journals
with the
bank
statement
it was
noted that
cash sales
for 30th of
was
banked but
it did not
re ect on
the bank
statement.
The
bookkeeper
will record
…
On
comparison
of the
journals
with the
bank
statement
it was
noted that
bank
charges for
re ected in
the debit
column of
the bank
statement
only. The
bookkeeper
will record
the R350 as
…
Cash
withdrawn
to restore
cash oat
will …
A
favourable
general
balance will
be recorded
on …

Question 17
Complete
Carriage on sales will be closed off to the ... at the end of the
Pro t or loss account
nancial year.
Carriage on purchases will be closed off to the ... at the end of

the nancial year. Trading account
The net loss calculated in the pro t and loss account will ... as
the capital account will be ... when the closing transfer is done. decrease equity : debited
The net pro t calculated in the pro t and loss account will ... as
the capital account will be ... when the closing transfer is done.
Question 18
Complete
Answer: 83333.33
Question 19
Complete
A closing transfer entry will be done at the end of the nancial year in the general journal to
transfer sales returns to the sales account.
Select one:
True
False

Question 20
Complete
Unfavourable balance of R100

000 of the bank account in the
general ledge will be entered on Debit side of the bank reconciliation statement.
the ...
Favourable balance of R90 000

of the bank account in the
general ledger will be entered Credit side of the bank reconciliation statement.
on the ...

in the bank statement will be Credit side of the bank reconciliation statement.
entered on the ...
Unfavourable bank statement

balance of R45 000 will be Debit side of the bank reconciliation statement.
entered on the ...
Question 21
Complete
MAJOZI TRADERS
20.18 20.19
R R
Vehicles at cost ……………………………………………… 28 800 28 800
Inventory……………………………………………................ 21 770 ?
Bank (favourable)…………………………………………...... 25 000 20 000
Inventory R25 750

Stationery R825
The total amount of trading inventory for Majozi Traders as at 30 June 20.19 will be?
Instructions:
Answer: 25750

Question 22
Not answered
Marked out of 3.00
Debits Credits
R R
Drawings 21 900
Inventory 32 000
1 078 370 1 078 370

Instructions:
amount (eg: -1000.01)
provided.
R R R

Question 23
Complete
Mark 10.00 out of 12.00
The following VAT balances were extracted from the subsidiary journals of General Spaza Shop
as at 28 February 20.2.
R
VAT input 4 600
VAT output 87 400
VAT input 126 500
VAT output 6 900
Purchases journal
VAT 75 900
Sales journal
VAT 144 900
VAT 9 200
VAT 11 500
Instructions:

3. For embedded questions spelling is very important. If you spell the answer incorrect it will be
marked incorrect. Please make sure that your spelling of the words is correct.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
b/d PRJ
CRJ GJ
CPJ
PJ
368000 368000

Question 24
Complete
Instructions:
the question).

0 +180 000 +180 000

+180 000 -180 000 0

Question 25
Complete
Debit Credit
R R
Capital (1 October 20.21)……………………………………………….............….. 200 000
Drawings……………………………………………………………….......................…… ?
Inventory: Trading (1 October 20.21)…………………………….........……… 61 725
Mortgage: GL Bank 195 000
……………….....................................................................
Sales…………………………………………………………………….........................…... 345 060
Sales returns…………………………………………………………......................……. 6 780
Rental income………………………………………………………....................……... 19 800
Purchases……………………………………………………………….......................….. 197 800
Depreciation………………………………………………………….....................……. 38 367
Credit losses…………………………………………………………….....................….. 1 600
(a) Upon reviewing the list of account receivables outstanding at year end, the accountant
determined that the allowance for credit losses account should amount to R4 500 on
30 September 20.22.
Use the information in the pre-adjustment trial balance and the additional information to
determine what adjustment is needed to adjust the allowance for credit losses:
Instructions:
Trade receivables control Credit losses Allowance for credit losses
9 500 4 000 500 5 500

Question 26
Complete
On 28 February 20.1 Mr Abdoola bought stationery from O ce Suppliers, R1 800, for Abdoola
Spaza. He paid with his credit card because he forgot to take the credit card of Abdoola Spaza.
The money was not paid back by Abdoola Spaza.
Spaza is ...
Instructions:
amount (eg: -1000.01)
in the column.
R R R
1800 1800 N/A
N/A N/A

Question 27
Complete
Debit Credit
R R
Capital (1 October 20.21)………………………………………............………… 200 000
Drawings………………………………………………………………....................…… ?
Inventory: Trading (1 October 20.21)………………………………......…… 61 725
Allowance for credit losses……………………………………………..........…. 4 450
Mortgage: GL Bank ........................................………………......................... 200 000
Fixed deposit (at 7.5% per annum)…………………………………............ 50 000
Sales………………………………………………………………………........................ 345 060
Carriage on purchases……………………………………………….............…… 9 500
Sales returns…………………………………………………………….................…. 6 780
Rental income…………………………………………………………...............…... 19 800
Purchases………………………………………………………………..................….. 197 800
Purchases returns……………………………………………………...............…… 2 890
Depreciation……………………………………………………………................….. 38 367
Credit losses…………………………………………………………....................….. 1 600
(a) On 1 April 20.22 Rocky Traders bought a factory building by means of a mortgage, from GL
Bank, that bears interest at a rate of 12% per annum. Interest for the current year must still be
provided for.
(b) The xed deposit investment of R50 000 was made on 1 April 20.22. Interest on this
The correct amount that must be disclosed as interest on mortgage in the statement of pro t
or loss and other comprehensive income for the year ended 30 September 20.22 will be ...
Instructions:

Answer: 9950

Question 28
Complete


c) Interest on a favourable balance of R1 830.
d) Debit order to ARK Insurers for insurance of R6 250.
e) Debit order to PG Cell Providers for 10 cell phone contract including calls and sms’s,
R42 500.
f) On 29 September the owner of Kuyi Traders, Mr K Naidoo, made an EFT into the
g) A cash payment of R197 683 was entered in the cash receipts journal on the 29
h) The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as R807
September 20.1?
Instructions:
125 000
Mr R Singh/Trade receivables control 30 000
N/A 0
N/A 0
N/A 0
Capital 50 000
Interest income N/A Capital 0
206 830
Mr R Singh/Trade receivables control Bank charges
Telephone expenses : PG Cell Providers Insurance: ARK Insurers
HG Traders/Trade payables control HG Traders/Trade receivables control
Mr R Singh/Trade payables control N/A
125 000 1 830 50 000 30 000 700 6 250 42 500 63 870
206 830 125 000 0

Question 29
Complete
R
Capital 450 000
Furniture 110 000
Buildings 200 000
Vehicles 150 000
Machinery 135 000
Income 80 000
Bank ?
Expenses 45 000
NB: Instructions
3. If the net effect on the accounting equation is a decrease, please enter the amount as
a negative (eg: -12141.72)
Answer: -50000

Question 30
Complete
R
Capital.............................................................................................................................. 300 000
Drawings......................................................................................................................... 3 570
Equipment...................................................................................................................... 150 000

Vehicles............................................................................................................................ 174 000

Accrued income........................................................................................................... 3 500

Trade payables............................................................................................................. 82 600


Interest income........................................................................................................... 4 400
Wages............................................................................................................................ 145 000


Rental income............................................................................................................ 48 000

Assuming that the expenses exceed the income by R7 000, the correct statement of changes in
equity for the month ended 30 June 20.1 is ...
NB: Instructions
Balance as at 1 July 20.0 300 000
Total comprehensive income for the period 7 000
Drawings (3 570)
Balance as at 1 July 20.0 Total comprehensive income for the period

Balance as at 30 June 20.1 303 430
Total comprehensive loss for the period Drawings
Balance as at 30 June 20.1
300 000 7 000 (7 000) 3 570 (3 570) 303 430 310 570 296 570 289 430

Question 31
Complete
Mild Traders sells goods on behalf of Take-it Traders and earns a commission of 10% based on
revenue for that speci c nancial period. During the current nancial period ending on
28 February 20.19, Take-it Traders paid a commission amounting to R18 456 and this transaction
was recorded in the accounting books of Mild Traders (commission was calculated based on
unaudited revenue account for the current nancial period). After an independent audit of the
revenue account, it was discovered that the revenue account of Take-it Traders was overstated
by an amount of R35 500. Take-it Traders accepted the audit nding and agreed to correct the
revenue amount. On 27 February 20.19, Take-it Traders informed Mild Traders about the audit
nding on the revenue account. Take-it Traders also informed Mild Traders that they will subtract
the amount of commission overpaid from the commission earned by Mild Traders in the next
nancial year. No adjustment journal entry has been recorded in the accounting books of Mild
Traders for the overpaid commission.
The effect of the adjustment journal entry for the overpaid commission on the basic accounting
equation of Mild Traders for the year ended 28 February 20.19 will be …
Instructions:
the question).
0 in the amounts column.
-3 550 0 +3 550
+35 500 -35 500 +18 456 -18 456 +17 044 -17 044 +3 550 -3 550 +22 006
-22 006 0

Question 32
Complete

The balance on the allowance for credit losses account will be R1 435 under both methods.
However, credit losses to be disclosed in the statement of profit or loss and other
comprehensive income for the year ended 28 February 20.19, will be R1 225 under method 1
and R1 125 under method 2.
Select one:
True
False

QUIZ
Started on Wednesday, 23 August 2023, 6:25 PM

State Finished
Completed on Wednesday, 23 August 2023, 8:10 PM
Feedback Congratulations, you pass the assessment with a distinction.
Question 1
Complete
At the end of the nancial year, after the year-end adjustments are recorded in the general ledger
accounts, the accountant will then prepare a post-adjustment trial balance.
Select one:
True
False
Question 2
Complete
Indicate whether the following statement is true or false regarding the statement of nancial
position:
The statement re ects the nancial performance of the business.
Select one:
True
False

Question 3
Complete
The pre-adjustment trial balance of PMT Traders as at 28 February 20.19, reflected the
following balances:
A physical inventory count conducted at year-end, revealed that the following inventory were
on hand:
No adjustment journal entries have been processed as yet in the accounting books of PMT
Traders regarding the inventory count.
The effect that the adjustment journal entry for inventory will have on the basic
accounting equation of PMT Traders for the year ended 28 February 20.19 will be?
Instructions:
the question).
+1 397 +1 397 0
+9 560 - 9 560 +10 770 -10 770 +1 121 -1 121 0 +740 -740
+2 670 -2 670 +250 -250 +321 -321 +826 -826 +1 397
-1 397 +4 531 -4 531 +1 210 -1 210

Question 4
Complete
Abdoola Spaza.
Spaza is ...
Instructions:
amount (eg: -1000.01)
in the column.
R R R
-2500 -2500 N/A
N/A

Question 5
Complete
A physical inventory count revealed that the following inventory was on hand for Candise
Traders at the financial year end 31 March 20.2:
Inventory R21 220

Stationery R625
How will these items be disclosed in the statement of financial position as at 31 March
20.2?
NB: Instructions

in the column.
CANDISE TRADERS
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20.2

R
ASSETS
Current assets
Inventories 29949
N/A 0
Question 6
Complete

R
Purchases 240 000
Answer: 112000

Question 7
Complete
Under a periodic inventory system, the cost of sales is determined at the time of the recording of
the sale.
Select one:
True
False
Question 8
Complete
An entity has the following income and expenditure for the nancial year: Sales R33 000; Rent
expenses R11 000; Interest income R3 000; Insurance R7 500.
The net pro t or the net loss of the entity is …
NB: Instructions

Answer: 17500

Question 9
Complete
The nancial year-end of Parker Traders is 30 April 20.20. At nancial year-end the balance of the
trade receivables control account was R40 000. On 30 April 20.20 it was determined that an
allowance for credit losses to the amount of 15% of the trade receivables should be created, due
to the impact of the COVID pandemic. Parker Traders is a registered VAT vendor.
What will the general journal entry be in the books of Parker Traders for the given transaction on
30 April 20.20?
Instructions:
Credit losses 6 000
Credit losses Trade receivables control
Allowance for credit losses Trade payables control
Allowance for settlement discount granted Allowance for credit losses recovered
40 000 6 900

Question 10
Complete
R
VAT output
Sales journal: VAT output…………………………………………………………. 9 600
Cash receipts journal: VAT output………………………………………………… 7 020
Cash payments journal: VAT output……………………………………………… 276
Sales returns journal: VAT output………………………………………………… 180
VAT input
Purchases journal: VAT input……………………………………………………... 9 000
Purchases returns journal: VAT input…………………………………….……… 300
Cash payments journal: VAT input……………………………………………….. 8 100
Cash receipts journal: VAT input………………………………………………….. 320
VAT input (1 June 20.1) …………………………………………………………… 17 348
VAT output (1 June 20.1) ………………………………………………………….. 18 108
What will the correct general ledger entries be in the VAT output account for Luna Dealers
for the year ended 30 June 20.1.?
Instructions:
180
VAT control 34 824 Bank
276
Trade receivables control Trade payables control Bank
Settlement discount granted Sales Sales returns
276 180 34 824 35 004

Question 11
Not answered
Marked out of 3.00
Debits Credits
R R
880 270 880 270

Instructions:
amount (eg: -1000.01)
provided.
R R R
Question 12
Complete



business that uses the periodic inventory system Assets increase and decrease.


Question 13
Complete
R
Capital (1 July 20.0).................................................................................................... 300 000
Drawings......................................................................................................................... 3 570
Equipment...................................................................................................................... 150 000

Vehicles............................................................................................................................ 174 000

Accrued income........................................................................................................... 3 500

Trade payables............................................................................................................. 82 600


Interest income........................................................................................................... 4 400
Wages............................................................................................................................ 145 000


Rental income............................................................................................................ 48 000

NB: Instructions
324 000
Non-current assets
324 000
Current assets
Trade and other receivables 66 500
Prepayments 4 600

Trade receivables Total income Total expenses 413 600

150 000 174 000 324 000 15 000 3 500 4 500 0 4 600 7 200
82 600 66 500 4 000 297 400 301 400 224 090 70 000 74 600 89 800
94 300 413 600 89 600
Question 14
Complete

Select one:
True
False
Question 15
Complete
28 February 20.1.

Salaries…………………………………………………………...................... 320 000
Wages……………………………………………………………................... 50 000
Telephone……………………………………………………….................. 5 000

Stationery………………………………………………............................ 3 000
Interest income…………………………………………………............. 2 000
Insurance………………………………………………............................. 9 000
...
Instructions:

Answer: 572000

Question 16
Complete


R42 500.

September 20.1?
Instructions:

350 000
N/A 0
N/A 0
N/A 0
N/A 0
HG Traders/Trade
P Sithole/Trade receivables control payables control Interest income 270
HG Traders/Trade payables control Bank charges 372 100
Insurance: ARK Insurers Telephone expenses: PG Cell Providers
N/A
350 000 20 000 1 830 270 700 475 000 1 660 6 250 42 500
497 100 399 450 0 372 100

Question 17
Complete
Mark 10.00 out of 12.00
R
VAT input 3 546,24
VAT output 4 892,16
Purchases journal
Sales journal
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R R
20.2
Feb 28 Trade receivables control SRJ 4267.10 Balance 185265
Feb 1 b/d

GJ CRJ

CPJ

SJ
363552.82 363552.82

Question 18
Complete
CK TRADERS

R
Capital…………………………………………………………………………………......................……. 350 000
Drawings………………………………………………………………………………....................……. 2 500
Bank (Favourable)…………………………………………………………………................………. 15 909
Petty cash………………………………………………………………………………...................…… 254
Cash oat………………………………………………………………………………...................…… 2 542
Rental income…………………………………………………………………………….............…… 19 800
Interest on xed deposit…………………………………………………………….........……… 7 247
Advertising…………………………………………………………………………….................…….. 23 580
Stationery……………………………………………………………………………….................…… 3 540
Credit losses……………………………………………………………………………...................... 650
(a) CK Traders sublets part of its building to B Silver. B Silver paid R19 800 on the
1 November 20.8 for 15 months. The rental agreement stipulated that CK Traders will increase
the rental amount to R1 500 from 1 August 20.9.
(b) CK Traders deposited R120 782 into a xed deposit account with TB Bank on
1 February 20.9, at an interest rate of 12% per annum. The interest is receivable twice per annum
in June and December.
(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso
advertising agency for a period of 2 years for a total amount of R23 580. CK Traders paid
R23 580 to Kgomotso advertising agency on 1 November 20.8 to cover the full contracted
period.
Inventory R7 775
Stationery R260
(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at
11,5% per annum. The loan repayment schedule indicate that the capital repayment of the loan
would be made in four equal instalments as follows:
The amount for rental income to be shown in the statement of pro t or loss and other
comprehensive income for the year ended 31 October 20.9 will be …
Instructions:

Answer: 15840
Question 19
Complete
The following balances appeared in the general ledger of Vice Traders on 30 June 20.2:
R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Purchases returns………………………………………………….. 4 000
Settlement discount received……………………………………… 1 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500
Carriage on purchases……………………………………………... 2 000
Carriage on sales…………………………………………………… 500
Settlement discount granted………………………………………. 3 000
Inventory on hand on 30 June 20.2 is R20 000.
Which of the following represents the correct amount for the cost of purchases?
Instructions:

Please keep the sequence of transactions strictly according the information given but also in the
correct format.
Purchases 80 000
Purchases returns (4 000)
Settlement discount received (1 000)
Customs duties 1 500
78 500
Inventory (1 July 20.1) Inventory (30 June 20.2) Purchases
Purchases returns Settlement discount received Sales
Customs duties Carriage on purchases Carriage on sales
80 000 4 000 (4 000) 60 000 20 000 (20 000) (60 000) 1 000
(1 000) 270 000 (80 000) 1 500 (1 500) 2 000 (2 000) 500 (500)
3 000 77 000 78 500 118 500 76 500 71 500 (3 000) 88 500

Question 20
Complete

Select one:
True
False
Question 21
Complete

be ticked off with items in the … of the ...



Question 22
Complete
Depreciation is disclosed as an operating expense.
Select one:
True
False

Question 23
Complete
Answer: 62061

Question 24
Complete

Debit Credit
R R
Additional information Asset; Prepaid expenses; R3 900.
The insurance amount for Kumkani Traders’s factory building for the month of October and
November 20.2 has already been paid by the end of the current nancial year. The insurance
premium amount has remained constant for the last 2 years.
What is the element grouping; description and the amount of the October and November 20.2
insurance expenses, that has already been paid for in the current nancial year, in the statement
of nancial position?
Debit Credit
R R
Water and 21 340

electricity.......................................................................................................
Liability: Trade and other payables: R2 134
The water and electricity invoice for October has not yet been received or recorded; the accountant
made provision for the bill by taking the average of the invoices of the past 11 months and adding
10%. He has done this because the water and electricity bill has remained constant for the past 11
months and an increase of 10% has been introduced from 1 October 20.2.
What is the element grouping; description and amount of the water and electricity expenses,
not accounted for during the 20.2 financial year, in the statement of financial position?
A physical inventory count revealed that the following inventory was on hand for Mashaba Traders
at the nancial year end 28 February 20.21:
Inventory R21 220

Packaging material R8 100 Current assets: Inventories R29 945
Stationery R625
How will these items be disclosed in the statement of nancial position as at 30 June 20.21?

Debit Credit
R R

Debit sales; credit settlement discount granted.
Post the closing journal entry for settlement discount granted by showing which account will be
debited and which account will be credited.
Question 25
Complete
Interest on a favourable balance of R366 will be entered in

the ... Cash receipts journal
The bookkeeper incorrectly entered the amount paid to

creditor, HG Traders, as R965 instead of R695 which was
correctly stated on the bank statement. The transaction Cash receipts journal
will be entered in the ...
Debit order to PG Cell Providers for 10 cell phone contract

including calls and sms’s, R42 500. The transaction will be Cash payments journal
entered in the ...
An entity can claim ... from SARS for transaction fees

charged by the bank on services rendered. VAT Input
Question 26
Complete
All the amounts in the pro t or loss account excludes VAT amounts.
Select one:
True
False

Question 27
Complete
Betties Smith is the owner of Betties Plumbing. You are given the following information
for Betties Plumbing for the year ended 28 February 20.2:
R
Capital 252 000
Wages 100 000
Insurance 1 500
What is the amount of the total expenditure for Betties Plumbing for the year ended 28
February 20.2?
NB: Instructions
Answer: 116000J

Question 28
Complete
NM Stores will sublet part of it building to NS Technologies for R17 000 per month from 1
October 20.1. NS Technologies has an agreement with NM Stores in which a deposit of one
month’s rental must be paid on the first day of new financial year. On 1 October 20.1 the
beginning of the financial year, NS Technologies made an EFT of R102 000 which included the
one month’s rental as a deposit into the bank account of NM Stores.
Instructions:
ledger entries.

NM STORES
GENERAL LEDGER
Dr Rental income Cr
20.2 R 20.1 R
Sep Pro t or loss account Oct Bank

204000 102000
30 1
20.2
Sep Trading account 102000

30
Question 29
Complete
Answer: 92593

Question 30
Complete
Bradly Carstens is the owner Carsten & Sons Plumbing. On 30 October 20.2 you are given the
following information for Carsten & Sons Plumbing.
R

The correct representation of the accounting equation of Bradly Carstens & Sons Plumbing
after consideration of the given information is ...
Instructions:
the question).
237 000 290 000 53 000

63 000 250 000 30 000 93 000 23 000 53 000 157 000 220 000 187 000
290 000 237 000
Question 31
Complete
The following rules are applicable to expense accounts in the general ledger:
Instructions:

in the column.
Balance -
+ N/A
Balance + - N/A

Question 32
Complete
R
Capital…………………………………………………………………………......... 100 000
Drawings………………………………………………………………………......... 5 000
Inventory (1 March 20.1)…………………………………………………………… 50 000
Sales…………………………………………………………………………………. 250 000
Sales returns………………………………………………………………………… 15 000
Purchases………………………………………………………………………….... 40 000
Purchases returns…………………………………………………………….......... 1 200
Carriage on purchases……………………………………………………….......... 200
Carriage on sales…………………………………………………………………… 500
Settlement discount received……………………………………………………… 500
Settlement discount granted………………………………………………………. 2 000
Commission income………………………………………………………………… 10 000
Rental income……………………………………………………………………….. 15 000
Salaries and wages…………………………………………………………………. 29 000
Telephone expenses………………………………………………………………... 2 000
Water and electricity………………………………………………………………… 1 600
Credit losses…………………………………………………………………………. 400
Depreciation………………………………………………………………………….. 1 500
The correct trading account in the general ledger of Luna Dealers on 28 February 20.2 will be:
Instructions:

Keep the transactions in the same sequence as the information given.
Inventory (opening) Sales 233 000

50 000
Purchases Inventory (closing) 30 000

38 300
Carriage on purchases 200
Profit or loss account (gross profit)

174 500
Inventory Inventory263
(opening)
000 263 000
Inventory (closing) Purchases
Purchases returns Sales
Sales returns Carriage on purchases
Carriage on sales Profit or loss account (gross profit)
Profit or loss account (net profit) Capital
233 000 50 000 30 000 250 000 15 000 40 000 1 200 200 500
2 000 38 300 174 700 263 000 172 800 191 500 280 000 232 800 172 600
262 800 174 500

QUIZ
Time left 0:44:27
Question 1
Not yet answered
Marked out of 3.00
The owner of Pet Spa provided you with the

following information for the year ended
28 February 20.2.
R
Equipment………………………………………………………….. 200 000
Trade receivables control………………………………………… 20 000
Bank………………………………………………………………… 10 000
Water and electricity: Deposit................................................... 2 350
Rent income deposit................................................................. 10 500
Trade payables control…………………………………………… 30 000
The correct calculation of Pet Spa's equity

on 28 February 20.2 will be ...
Instructions:
Drag the correct answer into the correct space
(cell phone click on the answer and click on
the place where you want to place the amount
- also keep your cell phone horizontal when
doing the question).
230 000 30 000 242 850 232 350

191 850 232 350 40 500
40 500 200 000 212 850 191 850

Question 2
Not yet answered
Marked out of 4.00

scenario.
The correct
closing
transfer
entries for
the sales
debit sales and credit the trading account.
account at
the end of
the nancial
year will be
...
The correct
closing
transfer
entries for
the interest
on xed
debit interest on xed deposit and credit the pro t or loss account.
deposit
account at
the end of
the nancial
year will be
...
The correct
closing
transfer
entries for
the
depreciation debit the depreciation account and credit the pro t or loss account.
account at
the end of
the nancial
year will be
...
The correct
closing
transfer
entries for
the credit
losses credit the credit losses account and debit the pro t or loss account.
account at
the end of
the nancial
year will be
...

Question 3
Not yet answered
Marked out of 6.00
The balance of the insurance account in the

trial balance prepared on 30 June 20.2 is
R96 300. The monthly insurance premium for
this financial year is R10 700 per month. On 1
July 20.2, the bookkeeper of KA Traders
made a further electronic funds transfer of
R64 200 to Clarke Insurers but the
bookkeeper forgot to do the general ledger
entries for this transaction. The financial year
end of KA Traders is 30 June.
The correct general ledger entries in the

insurance account in the books of KA
Traders on 30 June 20.2 are ...
Instructions:
1. First do the adjustment general ledger

entries and then do your closing transfer

3. Round off to the second decimal after
the full stop (eg: 50.56)
KA TRADERS
GENERAL LEDGER
Dr Insurance Cr
20.2 R 20.2
Jun Balance 96 300 Jun Pro t or loss account 128400

30 30
Jul Bank 64200 Accrued expenses 321000

1

Question 4
Not yet answered
Marked out of 3.00
The following rules are applicable to asset

accounts in the general ledger:
Instructions:
space.

Balance + - N/A
Balance -
+ N/A

Question 5
Not yet answered
Marked out of 6.00
The bookkeeper of Luna Dealers provides

you with the following general ledger
accounts for the VAT output and VAT input
for the year ended 30 June 20.1:
LUNA DEALERS
GENERAL LEDGER
Dr VAT output Cr
20.1 R 20.1 R
control SRJ12 1 005
Trade receivables
control SJ12 48 750
Trade payables
control CPJ12 1 440
176 215 176 215
LUNA DEALERS
GENERAL LEDGER
Dr VAT input Cr
20.1 R 20.1 R
control PRJ12 1 800
Trade receivables
control CRJ12 1 665
Trade payables
control PJ12 46 980
176 835 176 835
What will the correct entries be in the VAT

control account in the general ledger of
Luna Dealers for the year ended 30 June
20.1 be?
Instructions:
space.
175 035 175 210 176 215 176 835

175 210
620 175
Balance 175
175 210 175 210
Balance Receiver of Revenue

Question 6
Not yet answered
Marked out of 1.00

nancial position:
The statement re ects the non-current
liabilities and current liabilities of the
business.
Select one:
True
False
Question 7
Not yet answered
Marked out of 4.00
On 2 March 20.08, a tenant of SLS Dealers, did

an electronic funds transfer of R280 000 into
SLS Dealers business bank account. The
monthly rental is R18 000 per month. The
nancial year-end is 28 February 20.9.
What will the closing transfer entry for the

transaction on 28 February 20.9 be?
Instructions:
space.
Rental expenses

Prepaid expenses
Accrued expenses
Accrued income
Rental income
Bank
280 000 64 000 18 500

Question 8
Not yet answered
Marked out of 1.00

is true or false:
Under a periodic inventory system, the cost of

sales is determined at the time of the
Select one:
True
False

Question 9
Not yet answered
Marked out of 7.00
On 1 September 20.18 Lloyd Traders received

a prepayment for an amount of R82 550 from
a client that is currently occupying part of
Lloyd’s o ce building under a lease
agreement. The prepayment is the rent for 13
months. The prepayment transaction has not
yet been recorded in the accounting books of
Lloyd Traders. The current nancial period
ends on 28 February 20.19.
The correct journal entries (including cash

transactions) that need to be processed, to
ensure that the rental income amount to be
disclosed in the statement of pro t or loss
and other comprehensive income for the year
ended 28 February 20.19 is correct?
Instructions:

space.
Rental income
Rental income
Bank 76 200
Rental expenses
Bank
Income received
Accrued incomein advance 6 350

Prepaid expenses
Accrued expenses
82 550 25 400 6 350 76 200
38 100 44 450

Question 10
Not yet answered
Marked out of 3.00
Vice Smith is the owner of Vice Electricians.

On 30 June 20.1 you are given the following
Trade 144
receivables……………………………………………………………………………… 000
Equipment………………………………………………………………………………………… 500
000
Unfavourable bank 200

balance………………………………………………………………….. 000
Trade 100
payables…………………………………………………………………………………. 000
Vehicles……………………………………………………………………………………………..480
000
Loan………………………………………………………………………………………………….. 300
000
The correct representation of the accounting

equation of Vice Electricians after
considering the given information is ...
Instructions:

1 324 000 1 424 000 144 000
1 124 000
524 000144 000 500 000 1 124 000 600 000
200 000 100 000 480 000
300 000 600 000 524 000
1 724 000

Question 11
Not yet answered
Marked out of 4.00

scenario.
On
comparison
of the
journals
with the
bank
statement
it was
noted that
cash sales
for 30th of
was
banked but
it did not
re ect on
the bank
statement.
The
bookkeeper
will record
…
On
comparison
of the
journals
with the
bank
statement
it was
noted that
bank
charges for
re ected in
the debit
column of
the bank
statement
only. The
bookkeeper
will record
the R350 as
…
Cash
withdrawn
to restore
cash oat
will …

A
favourable
general
balance will
be recorded
on …
Question 12
Not yet answered
Marked out of 4.00
The inexperienced accounting clerk

wrongfully entered the manager's salary of
R11 000 into the insurance account. Ignore
any VAT implications for this transaction.
The correct journal entry of the

correction of the error will be …
NB: Instructions

(eg: 1000.01)
(eg: 12141.72)
3. Round the amount of to the nearest Rand

(eg: 12141.72 will be 12142)
GENERAL JOURNAL - MAY

20.2
GJ1

R R
31 Salaries 11000
Insurance 11000

Question 13
Not yet answered
Marked out of 1.00
An entity has the following balances: Bank:

R3 000; Vehicles: R12 000: Trade receivables:
R2 000.
The equity of the entity according to the

basic accounting equation is …
NB: Instructions
1000.01)
(eg: 12141.72)
Answer:
17000

Question 14
Not yet answered
Marked out of 3.00
Debits Credits
R R
Vehicles 325 Capital 357
000 750
Plant and 170 Sales 530
equipment 000 000
Stationery 1 Interest on 450
610 bank
account
Insurance 6 Loan: Nice 60
200 Bank 000
Interest 5 Accumulated
expenses 200 depreciation
Trade 24 (plant and 17
receivables 300 equipment) 500
control
Water and 8 Rent income 13
electricity 800 400
Depreciation 15 Trade 34
(Vehicles) 000 payables 320
control
Salaries 110 Accumulated
360 depreciation
Drawings 21 (vehicles) 15
900 350
Inventory 32 Bank 11
000 600
Cost of 320
sales 000
1 040 1
370 040
370
The accounting equation (A = E + L) can

be expressed as …
Instructions:
be indicated by using a negative sign in
by the amount without any sign (eg:
1000.01)
Please note: Only include the total amount

for assets, equity and liabilities in the table
provided.
R R R

Question 15
Not yet answered
Marked out of 1.00
Sales is R125 000. Mark-up of 30% on selling

price. What is the cost of sales amount?
Answer:
96154

Question 16
Not yet answered
Marked out of 4.00
Analyse the given transaction and then

choose the correct option for the analysis of
the transaction:
Transaction:
BG Traders was able to recover R500 from Ms

S Nel whose account was previously written
off as irrecoverable.
The
account to
be credited
in the credit losses recovered
above
transaction
will be …
The
account to
be debited
in the Bank
above
transaction
will be …
The effect
of the
above
transaction
on assets Assets will increase with R500.
in the
basic
accounting
equation.
The effect
of the
above
transaction
on equity Equity will increase with R500.
in the
basic
accounting
equation.

Question 17
Not yet answered
Marked out of 1.00
Use the information provided below to

calculate the cost of sales:
R
Opening inventory 20
000
Purchases 90
000
Settlement discount granted 15
000
Freight charges 32
000
Closing inventory 70
000
Answer:
72000

Question 18
Not yet answered
Marked out of 2.00
Use the following information to

calculate the total current asset amount:
R
Services rendered 450
000
Capital 630
000
Drawings 25
000
Rent income 60
000
Interest income 36
000
Stationary 2 200
Wages 13
500
Insurance expenses 15
600
Furniture 40
000
Vehicles 600
000
Bank 30
000
300
Fixed Deposit: SA Bank 70
000
Land 300
000
Buildings 110
000
Inventory 50
000
Trade receivable control 200
000
NB: Instructions
(eg: 1000.01)
(eg: 12141.72)
Answer:
90300

Question 19
Not yet answered
Marked out of 1.00
On 1 May 20.18 Venus Traders entered into a

new two-year advertising agreement with Tino
Advertising Agency. The advertising
agreement was effective with immediate
effect and stipulated that Venus Traders
would pay R2 750 per month to Tino
Advertising Agency for advertising services
that would be provided by Tino Advertising
Agency on a monthly basis. Tino Advertising
Agency has performed all the necessary
advertising services that was required from
them since the effective date of the
advertising agreement for the current
nancial period (the current nancial period
ends on 28 February 20.19).
The pre-adjustment trial balance for the year

ended 28 February 20.19 re ected advertising
expenses for an amount of R22 000 as well as
accrued advertising expenses of R4 500 on
1 March 20.18 (the beginning of the current
nancial period). On 20 April 20.18 Venus
Traders paid the advertising expenses that
was outstanding from the previous nancial
period. The outstanding advertising expenses
for the current nancial period must still be
provided for.
The advertising expenses amount to be

disclosed in the statement of nancial
position as at 28 February 20.19 will be:
Instructions:
2. Round off to the nearest Rand (eg: 50.56 is

51)
3. Only show the amount, do not show the

R (eg: 12141.72)
Answer:
5500

Question 20
Not yet answered
Marked out of 4.00

scenario.
Bank
charges of
R740 will Cash payments journal
be entered
in the ...
Debit order
to PG Cell
Providers
for two cell
phone
contract
including
calls and Cash payments journal
sms’s,
R8 500.
The
transaction
will be
entered in
the ...
Incorrect
credit of
R5 000
made by a
client of
the bank
into the
bank
account of
Kiyu
Traders as Bank reconciliation statement
the client
captured
the
incorrect
bene ciary
details. The
transaction
will be
entered in
the ...

The
bookkeeper
incorrectly
entered the
amount
paid to
creditor, HG
Traders, as
R569
instead of
R695 which Cash payments journal
was
correctly
stated on
the bank
statement.
The
transaction
will be
entered in
the ...
Question 21
Not yet answered
Marked out of 2.00
On 12 February 20.1 Mr T Naidoo paid his

account of R2 500 via EFT into the bank
The correct effect of the transaction on the

basic accounting equation in the books of
Instructions:


be indicated by using a negative sign in front

by the amount without any sign (eg: 1000.01)
5. If an option has been provided and it is not

applicable to the speci c question please put
N/A in the column.
6. First do the increase and then the

decrease. N/A must be done last.
R R R
-2500 -2500 n/a
n/a

Question 22
Not yet answered
Marked out of 1.00
The pre-adjustment trial balance of JAM

Traders as at 28 February 20.19, reflected an
allowance for credit losses that amounts to
R990 and credit losses amounting to R345
(credit losses were written off using method 1
although they were not aware of these two
methods as explained below). The financial
manager of JAM Traders determined that the
allowance for credit losses for the current
financial year ended 28 February 20.19 must
be R1 435 and credit losses that must still be
written off amounts to R780.
The financial manager, after having a

discussion with the bookkeeper of JAM
Traders, learned that there are two methods
that can be used to write off the above credit
losses of R780. Under method 1, credit
losses are written off against the allowance
for credit losses account; by debiting the
allowance for credit losses and crediting the
trade receivables control account and the
debtor's personal account. Under method 2,
credit losses are written off by debiting the
credit losses and crediting the trade
receivables control account and the debtor's
personal account (while the allowance for
credit losses remain unchanged).
Is the following statement true or false

regarding the balance on the allowance for
credit losses and the amount for credit losses
that needs to be disclosed in the statement of
profit or loss and other comprehensive
income for the year ended
28 February 20.19, if one of the methods is
The balance on the allowance for credit

losses account will be R1 435 under both
methods. However, credit losses to be
disclosed in the statement of profit or loss
and other comprehensive income for the
year ended 28 February 20.19, will be
R1 225 under method 1 and R1 125 under
method 2.
Select one:
True
False

Question 23
Not yet answered
Marked out of 1.00
Sales is R125 000. Mark-up on cost price is

30%. What is the cost of sales amount?
Answer:
96154
Question 24
Not yet answered
Marked out of 4.00
The following sales journal totals were

provided to you:
FRUIT AND VEGGIE SPAZA SHOP
SALES JOURNAL – AUGUST 20.20
Trade
Date Details Fol VAT Sales receivables
output control
R R R
? 6 900 7 935
After calculating the VAT amount, the totals

will be posted to the general ledger as
follows (The VAT rate applicable is 15%):
Instructions:

space.
Always do the VAT entry last.

put N/A in the accounts column and a 0 in the
amounts column.
VAT output control

Trade receivables Sales 6 900
7 935
Sales
N/A 0 VAT output 1 035
N/A
7 935 6 900 1 035 0
1 190.25

Question 25
Not yet answered
Marked out of 12.00
The following VAT balances were extracted

from the subsidiary journals of General Spaza
R
VAT input 4 600
VAT output 87 400
VAT input 126 500
VAT output 6 900
Purchases journal
VAT 75 900
Sales journal
VAT 144 900
VAT 9 200
VAT 11 500
On 1 February 20.2, the VAT input account

had an opening balance of R161 000 and the
VAT output account had an opening balance
of R239 200.
Calculate the closing balance of the VAT

input account as at 28 February 20.2.
Instructions:

3. For embedded questions spelling is very
important. If you spell the answer incorrect it
will be marked incorrect. Please make sure
4. Keep the ledger entries strictly according
to the information given.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
b/d PRJ
CRJ GJ
CPJ
PJ

368000 368000
Question 26
Not yet answered
Marked out of 1.00

false:
The amount of additional capital plus total

comprehensive income for the year less
drawings is referred to as the capital amount
for the business.
Select one:
True
False
Question 27
Not yet answered
Marked out of 1.00

false:
After reconciling the year-end physical trading
inventory count amount with the balance of
the trading inventory account in the general
ledger, it was determined that there is a
trading inventory de cit. The trading inventory
de cit will be recorded as income in the
statement of pro t or loss and other
Select one:
True
False

Question 28
Not yet answered
Marked out of 4.00
The owner of GS Electricians, Mr Gizmo

Smith, deposited R250 000 on 1 March 20.1
as opening capital into the business bank
account after obtaining a personal loan from
LG Bank. On 25 March 20.1 GS Electricians
made an electronic payment to Mr Gizmo
Smith's account for R500 for his own personal
use. On 23 March 20.1, Mr Gizmo Smith
transferred his personal electric generator
worth R6 000 to his business, GS Electricians.
Assuming that the difference between income

and expense is R7 000, the correct statement
of changes in equity for the month ended 31
March 20.1 is ...
Instructions:
Capital contribution from owner 256 000

Capital contribution from owner
7 000
Total
Totalcomprehensive
comprehensiveincome
incomefor
forthe
theperiod
period
(500)
Drawings
Total comprehensive loss for the period
Drawings 262 500
Balance as at 31 March 20.1
250 000 6 000 (6 000) 256 000
244 000 500 (500) 7 000
(7 000) 262 500 256 500 255 500
249 500 12 500

Question 29
Not yet answered
Marked out of 1.00

pro t or loss and other comprehensive
income:
Income represents sales made by the
business to its customers.
Select one:
True
False

Question 30
Not yet answered
Marked out of 8.00
You are given the following information of

Kiyu Traders for 30 September 20.1:

The following information appeared on the

bank statement only:
a) A direct deposit by debtor, Ms P

Sithole, for R20 000.
c) Interest on a favourable balance of R1
830.
d) Debit order to ARK Insurers for
insurance of R6 250.
e) Debit order to PG Cell Providers for
10 cell phone contract including
calls and sms’s, R42 500.
The following information appeared in the

cash journals of Kiyu Traders only:
f) A cash payment of R7 350 was

entered in the cash receipts journal
on the 29 September of 20.1 but
was only deposited 1 October 20.1
by the bookkeeper.
g) The bookkeeper incorrectly entered

the amount paid to creditor, HG
Traders, as R965 instead of R695
which was correctly stated on the
bank statement.
What will the correct cash receipts journal

entries in the books of Kiyu Traders be for
September 20.1?
Instructions:

space.
If an option has been provided and it is not

applicable to the specific question, please put
N/A in the account column and a 0 in the
amounts column.
350 000

P Sithole/Trade receivables control
N/A 0
Interest income
HG Traders/Trade payables control
N/A 0
Bank charges N/A 0
N/A 0
Insurance: ARK Insurers

HG Traders/Trade payables control 270
Telephone expenses: PG Cell Providers 372 100
N/A
350 000 20 000 1 830 270
700 475 000 1 660 6 250
42 500 497 100 399 450 0
372 100
Question 31
Not yet answered
Marked out of 1.00
Isolation Traders paid an insurance premium

of R10 824 on 1 March 20.19 for 12 months.
Upon the inspection of the pre-adjustment
trial balance for the year ended 31 May 20.19,
the bookkeeper noticed that insurance
premiums amounting to R7 380 for the period
starting 1 June 20.18 until 28 February 20.19,
were paid in the previous nancial period. The
bookkeeper also noticed that, the insurance
premium paid on 1 March 20.19 has not yet
been recorded in the books, and no
adjustment has been processed and no
reversal has been processed relating to
insurance premium paid in the previous
nancial period.
The amount for insurance expense to be

shown in the statement of pro t or loss and
other comprehensive income for the year
ended 31 May 20.19 will be:
NB: Instructions
1000.01)

(eg: 12141.72)
3. Round the amount of to the nearest R (eg:

12141.72 will be 12142)
Answer:
10086

Question 32
Not yet answered
Marked out of 1.00
Indicate whether the following statement is

true or false.
At the end of the nancial year, the gross
pro t/loss is not transferred to the trading
account.
Select one:
True
False

QUIZ
Started on Tuesday, 22 August 2023, 1:27 PM

State Finished
Question 1
Complete
In a sole proprietorship, usually the owner himself is responsible for the daily activities of the
business.
Select one:
True
False

Question 2
Complete
The bookkeeper of Luna Dealers provides you with the following general ledger accounts for
the VAT output and VAT input for the year ended 30 June 20.1:
LUNA DEALERS
GENERAL LEDGER
Dr VAT output Cr
20.1 R 20.1 R
control SRJ12 1 005
Trade receivables
control SJ12 48 750
Trade payables
control CPJ12 1 440
176 215 176 215
LUNA DEALERS
GENERAL LEDGER
Dr VAT input Cr
20.1 R 20.1 R
control PRJ12 1 800
Trade receivables
control CRJ12 1 665
Trade payables
control PJ12 46 980
176 835 176 835
What will the correct entries be in the VAT control account in the general ledger of Luna
Dealers for the year ended 30 June 20.1 be?
Instructions:

175 210
Balance 620
176 215 176 215
175 035 175 210 176 215 176 835 620 175
VAT input VAT output Balance Receiver of Revenue

Question 3
Complete

R
Purchases 480 000
Answer: 865000
Question 4
Complete
NB: Instructions
Answer: 70000
Question 5
Complete
An entity or an individual who does

not pay at the time of a transaction
as a result of a credit sale is known Trade debtor
as a ….
… to offered to trade debtors to

encourage a faster settlement of Settlement discount granted
debts within the credit term.
Entities that have a settlement

discount policy must at the end of create an allowance for settlement discount granted.
the nancial year…
Interest charged on an overdue

debtors account will …the trade increase
receivables control account.

Question 6
Complete
Instructions:
amount (eg: -1000.01)
N/A in the column.
KA TRADERS

R R R R R
Packing material Profit or loss account 6000 6000 N/A N/A N/A
Question 7
Complete
Answer: 75000

Question 8
Complete
R
TOTALS FOR JOURNALS
Sales column……………………………………………………………………………..... 409 000
Instructions:
Turnover Bank
228 560 229 520 237 600

Question 9
Complete
to Mini Traders.
Instructions:
VAT input
discount received
2 300 2 300 (60) (400)
1 840 2 300 (60) (400) (460) 1 917 (383) (50) (69) (331)
Question 10
Complete
The rates and taxes account in the pre-adjustment trial balance of HS Traders on 28 February
20.2 shows an amount of R17 760. HS Traders was unable pay the rates and taxes for the last
four months of the current financial year. The rates and taxes amount to be paid was determined
by the municipality and has been the same amount for every month for the current financial
year.
The correct general ledger entries in the rates and taxes account in the books of HS
Traders on 28 February 20.2 are ...
Instructions:
ledger entries.

HS TRADERS
GENERAL LEDGER
Dr Rates and taxes Cr
20.2 R 20.2 R
Feb Balance 17760 Feb Accrued expenses 5920

28 28

Question 11
Complete
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000

Rental income…………………………………………………………… 15 000

Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

financial year.
Instructions:

Depreciation 1 500

Sales Purchases

192 500 192 500

Capital Inventory
100 000 5 000 50 000 30 000 235 000 38 800 200 500 800
10 000 29 000 30 000 28 000 2 000 15 000 7 500 22 500 1 600
400 1 500 160 000 185 000 150 000 192 500 158 200
Question 12
Not answered
Marked out of 1.00

Select one:
True
False
Question 13
Complete
The current asset, inventories, in the statement of nancial position includes trading inventory on
hand at the end of a nancial year as well as all consumable stores on hand at the end of a
nancial year.
Select one:
True
False
Question 14
Complete
In the periodic inventory method, the business entity will keep continuous track of inventory
levels for the different inventory items it sells.
Select one:
True
False

Question 15
Complete
Gross pro t is income before adding other income and deducting operating expenses.
Select one:
True
False

Question 16
Complete
On
comparison
of the
journals
with the
bank
statement
it was
noted that
cash sales
for 30th of
was
banked but
it did not
re ect on
the bank
statement.
The
bookkeeper
will record
…
On
comparison
of the
journals
with the
bank
statement
it was
noted that
bank
charges for
re ected in
the debit
column of
the bank
statement
only. The
bookkeeper
will record
the R350 as
…
Cash
withdrawn
to restore
cash oat
will …
A
favourable
general
balance will
be recorded
on …

Question 17
Complete
Carriage on sales will be closed off to the ... at the end of the
Pro t or loss account
nancial year.
Carriage on purchases will be closed off to the ... at the end of

the nancial year. Trading account
The net loss calculated in the pro t and loss account will ... as
the capital account will be ... when the closing transfer is done. decrease equity : debited
The net pro t calculated in the pro t and loss account will ... as
the capital account will be ... when the closing transfer is done.
Question 18
Complete
Answer: 83333.33
Question 19
Complete
A closing transfer entry will be done at the end of the nancial year in the general journal to
transfer sales returns to the sales account.
Select one:
True
False

Question 20
Complete
Unfavourable balance of R100

000 of the bank account in the
general ledge will be entered on Debit side of the bank reconciliation statement.
the ...

of the bank account in the
general ledger will be entered Credit side of the bank reconciliation statement.
on the ...

in the bank statement will be Credit side of the bank reconciliation statement.
entered on the ...
Unfavourable bank statement

balance of R45 000 will be Debit side of the bank reconciliation statement.
entered on the ...
Question 21
Complete
MAJOZI TRADERS
20.18 20.19
R R
Vehicles at cost ……………………………………………… 28 800 28 800
Inventory……………………………………………................ 21 770 ?
Bank (favourable)…………………………………………...... 25 000 20 000
Inventory R25 750

Stationery R825
The total amount of trading inventory for Majozi Traders as at 30 June 20.19 will be?
Instructions:
Answer: 25750

Question 22
Not answered
Marked out of 3.00
Debits Credits
R R
Drawings 21 900
Inventory 32 000
1 078 370 1 078 370

Instructions:
amount (eg: -1000.01)
provided.
R R R

Question 23
Complete
Mark 10.00 out of 12.00
The following VAT balances were extracted from the subsidiary journals of General Spaza Shop
as at 28 February 20.2.
R
VAT input 4 600
VAT output 87 400
VAT input 126 500
VAT output 6 900
Purchases journal
VAT 75 900
Sales journal
VAT 144 900
VAT 9 200
VAT 11 500
Instructions:

3. For embedded questions spelling is very important. If you spell the answer incorrect it will be
marked incorrect. Please make sure that your spelling of the words is correct.
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
b/d PRJ
CRJ GJ
CPJ
PJ
368000 368000

Question 24
Complete
Instructions:
the question).

0 +180 000 +180 000

+180 000 -180 000 0

Question 25
Complete
Debit Credit
R R
Capital (1 October 20.21)……………………………………………….............….. 200 000
Drawings……………………………………………………………….......................…… ?
Inventory: Trading (1 October 20.21)…………………………….........……… 61 725
Mortgage: GL Bank 195 000
……………….....................................................................
Sales…………………………………………………………………….........................…... 345 060
Sales returns…………………………………………………………......................……. 6 780
Rental income………………………………………………………....................……... 19 800
Purchases……………………………………………………………….......................….. 197 800
Depreciation………………………………………………………….....................……. 38 367
Credit losses…………………………………………………………….....................….. 1 600
(a) Upon reviewing the list of account receivables outstanding at year end, the accountant
determined that the allowance for credit losses account should amount to R4 500 on
30 September 20.22.
Use the information in the pre-adjustment trial balance and the additional information to
determine what adjustment is needed to adjust the allowance for credit losses:
Instructions:
Trade receivables control Credit losses Allowance for credit losses
9 500 4 000 500 5 500

Question 26
Complete
On 28 February 20.1 Mr Abdoola bought stationery from O ce Suppliers, R1 800, for Abdoola
Spaza. He paid with his credit card because he forgot to take the credit card of Abdoola Spaza.
The money was not paid back by Abdoola Spaza.
Spaza is ...
Instructions:
amount (eg: -1000.01)
in the column.
R R R
1800 1800 N/A
N/A N/A

Question 27
Complete
Debit Credit
R R
Capital (1 October 20.21)………………………………………............………… 200 000
Drawings………………………………………………………………....................…… ?
Inventory: Trading (1 October 20.21)………………………………......…… 61 725
Allowance for credit losses……………………………………………..........…. 4 450
Mortgage: GL Bank ........................................………………......................... 200 000
Fixed deposit (at 7.5% per annum)…………………………………............ 50 000
Sales………………………………………………………………………........................ 345 060
Carriage on purchases……………………………………………….............…… 9 500
Sales returns…………………………………………………………….................…. 6 780
Rental income…………………………………………………………...............…... 19 800
Purchases………………………………………………………………..................….. 197 800
Purchases returns……………………………………………………...............…… 2 890
Depreciation……………………………………………………………................….. 38 367
Credit losses…………………………………………………………....................….. 1 600
(a) On 1 April 20.22 Rocky Traders bought a factory building by means of a mortgage, from GL
Bank, that bears interest at a rate of 12% per annum. Interest for the current year must still be
provided for.
(b) The xed deposit investment of R50 000 was made on 1 April 20.22. Interest on this
The correct amount that must be disclosed as interest on mortgage in the statement of pro t
or loss and other comprehensive income for the year ended 30 September 20.22 will be ...
Instructions:

Answer: 9950

Question 28
Complete


R42 500.
f) On 29 September the owner of Kuyi Traders, Mr K Naidoo, made an EFT into the
g) A cash payment of R197 683 was entered in the cash receipts journal on the 29
h) The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as R807
September 20.1?
Instructions:
125 000
Mr R Singh/Trade receivables control 30 000
N/A 0
N/A 0
N/A 0
Capital 50 000
Interest income N/A Capital 0
206 830
Mr R Singh/Trade receivables control Bank charges
Telephone expenses : PG Cell Providers Insurance: ARK Insurers
HG Traders/Trade payables control HG Traders/Trade receivables control
Mr R Singh/Trade payables control N/A
125 000 1 830 50 000 30 000 700 6 250 42 500 63 870
206 830 125 000 0

Question 29
Complete
R
Capital 450 000
Furniture 110 000
Buildings 200 000
Vehicles 150 000
Machinery 135 000
Income 80 000
Bank ?
Expenses 45 000
NB: Instructions
3. If the net effect on the accounting equation is a decrease, please enter the amount as
a negative (eg: -12141.72)
Answer: -50000

Question 30
Complete
R
Capital.............................................................................................................................. 300 000
Drawings......................................................................................................................... 3 570
Equipment...................................................................................................................... 150 000

Vehicles............................................................................................................................ 174 000

Accrued income........................................................................................................... 3 500

Trade payables............................................................................................................. 82 600


Interest income........................................................................................................... 4 400
Wages............................................................................................................................ 145 000


Rental income............................................................................................................ 48 000

Assuming that the expenses exceed the income by R7 000, the correct statement of changes in
equity for the month ended 30 June 20.1 is ...
NB: Instructions
Balance as at 1 July 20.0 300 000
Total comprehensive income for the period 7 000
Drawings (3 570)
Balance as at 1 July 20.0 Total comprehensive income for the period

Balance as at 30 June 20.1 303 430
Total comprehensive loss for the period Drawings
Balance as at 30 June 20.1
300 000 7 000 (7 000) 3 570 (3 570) 303 430 310 570 296 570 289 430

Question 31
Complete
Mild Traders sells goods on behalf of Take-it Traders and earns a commission of 10% based on
revenue for that speci c nancial period. During the current nancial period ending on
28 February 20.19, Take-it Traders paid a commission amounting to R18 456 and this transaction
was recorded in the accounting books of Mild Traders (commission was calculated based on
unaudited revenue account for the current nancial period). After an independent audit of the
revenue account, it was discovered that the revenue account of Take-it Traders was overstated
by an amount of R35 500. Take-it Traders accepted the audit nding and agreed to correct the
revenue amount. On 27 February 20.19, Take-it Traders informed Mild Traders about the audit
nding on the revenue account. Take-it Traders also informed Mild Traders that they will subtract
the amount of commission overpaid from the commission earned by Mild Traders in the next
nancial year. No adjustment journal entry has been recorded in the accounting books of Mild
Traders for the overpaid commission.
The effect of the adjustment journal entry for the overpaid commission on the basic accounting
equation of Mild Traders for the year ended 28 February 20.19 will be …
Instructions:
the question).
-3 550 0 +3 550
+35 500 -35 500 +18 456 -18 456 +17 044 -17 044 +3 550 -3 550 +22 006
-22 006 0

Question 32
Complete

The balance on the allowance for credit losses account will be R1 435 under both methods.
However, credit losses to be disclosed in the statement of profit or loss and other
comprehensive income for the year ended 28 February 20.19, will be R1 225 under method 1
and R1 125 under method 2.
Select one:
True
False

QUIZ

State Finished
Time taken 2 hours
Feedback Congratulations, you pass the assessment. Please make sure you know the
work because the next assessment will be more di cult.
Question 1
Complete
28 February 20.1.
R

Salaries…………………………………………………………...................... 320 000
Wages……………………………………………………………................... 50 000
Telephone……………………………………………………….................. 5 000

Stationery………………………………………………............................ 3 000
Interest income…………………………………………………............. 2 000

Insurance………………………………………………............................. 9 000
...
Instructions:


Answer: 572000

Question 2
Complete

Short and long- term year-end adjustments are not recorded in the general journal of an entity.
Select one:
True
False

Question 3
Complete
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000

Rental income…………………………………………………………… 15 000

Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

financial year.
Instructions:

Carriage on sales
Salaries and wages
Sales Purchases

Capital Inventory
100 000 5 000 50 000 30 000 235 000 38 800 200 500 800
10 000 29 000 30 000 28 000 2 000 15 000 7 500 22 500 1 600
400 1 500 160 000 185 000 150 000 192 500 158 200
Question 4
Complete
Abdoola Spaza.
Spaza is ...
Instructions:


amount (eg: -1000.01)
in the column.
R R R
2500 2500 n/a
n/a

Question 5
Complete
Debits Credits
R R
880 270 880 270

Instructions:
amount (eg: -1000.01)
provided.
R R R
880270
Question 6
Complete

be ticked off with items in the … of the ... credit column; bank statement



Question 7
Complete
Answer: 62068.97

Question 8
Complete
Select one:
True
False

Question 9
Complete
MAJOZI TRADERS
20.18 20.19
R R
Vehicles at cost ……………………………………………… 28 800 28 800
Inventory……………………………………………................ 21 770 ?
Bank (favourable)…………………………………………...... 25 000 20 000
Inventory R25 750

Stationery R825
How will the inventory items be disclosed in the statement of financial position of Majozi
Instructions:
ASSETS
Current assets
Inventories 26 825
N/A 0
N/A
ASSETS EQUITY AND LIABILITIES Non-current assets 0
Current assets Equity Capital
Non-current liabilities Current liabilities Fixed deposit
Inventories Packing materials Stationery
N/A Consumables stores on hand
25 750 825 250 1 075 0 26 825 21 770

Question 10
Complete
Analyse the given transaction and then choose the correct option for the analysis of the
transaction:
Transaction: Mr G Dali owed BG Traders R400 however he was declared insolvent on 1 July 2022.
BG Traders decided to write off the debt of R400.
The account to be debited in the above transaction is

credit losses
…
The account to be credited in the above transaction is

allowance for credit losses
…
The effect of the above transaction on assets in the

basic accounting equation. Assets will decrease with R400.
The effect of the above transaction on equity in the

basic accounting equation. Equity will decrease with R400.

Question 11
Complete
Debit Credit
R R
Drawings………………………………………………………………....................…… ?
Mortgage: GL Bank ........................................……………….......................... 200 000
Sales………………………………………………………………………......................... 345 060
Sales returns…………………………………………………………….................….. 6 780
Rental income…………………………………………………………...............….... 19 800
Purchases………………………………………………………………..................…… 197 800
Depreciation……………………………………………………………................…... 38 367
Credit losses…………………………………………………………....................….. 1 600
(a) On 1 April 20.2 Zungu Traders bought a factory building by means of a mortgage, from
ABC Bank, that bears interest at a rate of 15% per annum compounded annually. Interest for
the current year must still be provided for.
(b) The fixed deposit investment of R60 000 was made on 1 March 20.2. Interest on this
The correct amount that must be disclosed as interest on mortgage for the year
ended 31 August 20.2 is …
NB: Instructions
Answer: 15000

Question 12
Complete




Question 13
Complete

R
Purchases 40 000
Import duties 2 000
Answer: 75000

Question 14
Complete
Instructions:

correct.
NM STORES
GENERAL LEDGER
Dr Rental income Cr
20.3 R 20.2 R
Sep Income received in advance 49000 Oct Balance 133000

30 1

Question 15
Complete
R
Capital………………………………………………………………………… 100 000
Drawings……………………………………………………………………… 5 000
Inventory (1 March 20.1)……………………………………………………. 50 000
Sales…………………………………………………………………………... 250 000
Sales returns………………………………………………………………….. 15 000
Purchases…………………………………………………………………….. 40 000
Purchases returns……………………………………………………………. 1 200
Carriage on purchases………………………………………………………. 200
Carriage on sales…………………………………………………………….. 500
Settlement discount received……………………………………………….. 500
Settlement discount granted………………………………………………… 2 000
Commission income………………………………………………………….. 10 000
Rental income…………………………………………………………………. 15 000
Salaries and wages…………………………………………………………… 29 000
Telephone……………………………………………………………………… 2 000
Water and electricity………………………………………………………….. 1 600
Credit losses…………………………………………………………………… 400
Depreciation…………………………………………………………............... 1 500
closing transfer in the general journal of Luna Dealers on 28 February 20.2 for the gross profit?
Instructions:
Trading account 160 000
Trading account Profit or loss account Inventory Drawings
Capital
100 000 5 000 95 000

Question 16
Complete
R
VAT output
VAT input
What will the correct general ledger entries be in the VAT input account for Luna Dealers for the
year ended 30 June 20.1.?
Instructions:
300
Bank VAT control 34 468
320
Bank Settlement discount received Purchases
Purchases returns Trade receivables control Trade payables control
300 320 34 768 34 468

Question 17
Complete
Instructions:

in the column.
N/A Balance
- +
Balance + - N/A

Question 18
Complete
R
VAT input 3 546,24
VAT output 4 892,16
Purchases journal
Sales journal
Instructions:
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT input Cr
20.2 R 20.2 R
299822.16 299822.16

Question 19
Not answered
Marked out of 4.00
R
Capital (1 July 20.0).................................................................................................... 300 000
Drawings......................................................................................................................... 3 570
Equipment...................................................................................................................... 150 000

Vehicles............................................................................................................................ 174 000

Accrued income........................................................................................................... 3 500

Trade payables............................................................................................................. 82 600


Interest income........................................................................................................... 4 400
Wages............................................................................................................................ 145 000


Rental income............................................................................................................ 48 000

NB: Instructions
Trade receivables Total income Total expenses

150 000 174 000 324 000 15 000 3 500 4 500 0 4 600 7 200
82 600 66 500 4 000 297 400 301 400 224 090 70 000 74 600 89 800
94 300 413 600 89 600
Question 20
Complete
Answer: 69230.78
Question 21
Complete
Select one:
True
False

Question 22
Complete

Select one:
True
False
Question 23
Complete
Select one:
True
False

Question 24
Complete
Victor Smith is the owner of Smith Electricians. On 28 February 20.2 you are given the following
information for Smith Electricians.
R
Trade receivables................................................................................................................. 222 000
Equipment.............................................................................................................................. 320 000
Favourable bank balance................................................................................................. 45 000

Trade payables..................................................................................................................... 50 000
Vehicles.................................................................................................................................. 480 000

Fixed deposit........................................................................................................................ 300 000
Drawings................................................................................................................................ 3 500
NB: Instructions

Answer: 1320500
Question 25
Complete
An entity has the following balances: Bank (Cr): R3 000; Vehicles: R120 000; Trade receivables:
R20 000.
NB: Instructions
Answer: 137000

Question 26
Complete
Transactions
on the credit
side of the
bank
have not been
ticked are
entered in the
...
Transactions
on the debit
side of the
bank
have not been
ticked are
entered in the
...
The general
ledger bank
account that
balance of
R10 000 ...
The bank
account in the
general ledger
that has a Is a current asset and will be disclosed under cash and cash equivalents.
debit balance
of R10 000 ...

Question 27
Complete
to Mini Traders.
Instructions:
VAT input
discount received
2 300 2 300 (60) (400)
1 840 2 300 (60) (400) (460) 1 917 (383) (50) (69) (331)

Question 28
Complete
Vice Smith is the owner of Vice Electricians. On 30 June 20.1 you are given the following
Equipment………………………………………………………………………………………… 500 000
Trade payables…………………………………………………………………………………. 100 000
Vehicles…………………………………………………………………………………………….. 480 000
Loan………………………………………………………………………………………………….. 300 000
The correct representation of the accounting equation of Vice Electricians after considering the
given information is ...
Instructions:
the question).
924 000 1 324 000 400 000

1 224 000 844 000 100 000 744 000 924 000 1 324 000 400 000 224 000
600 000 1 624 000 1 524 000

Question 29
Not answered
Marked out of 8.00

Unfavourable balance of bank statement 120 000

c) Interest on a unfavourable balance of R1 830.
d) Debit order to PG Cell Providers for 10 cell phone contract including calls and
sms’s, R42 500.
bank account of Kuyi Traders for R120000 as additional capital contribution.

September 20.1?
Instructions:

Mr R Singh/Trade receivables control Mr K Naidoo(Capital)
Mr K Naidoo(Cash) HG Traders/ Trade payables control
HG Traders/Trade receivables control Bank charges
Interest on bank overdraft Interest income
PG Cell Providers N/A
300000 50000 120000 900 470 900 131250 700 1830 42500
176 280 0

Question 30
Complete
Prepaid expenses will be disclosed as a current liability in the statement of nancial position at
the end of a nancial period.
Select one:
True
False
Question 31
Not answered
Marked out of 4.00
Instructions:
amount (eg: -1000.01)
N/A in the column.
KA TRADERS

R R R R R
Question 32
Complete
Vehicles used for delivery are included as non-current assets in the statement of nancial
position.
Select one:
True
False


QUIZ

State Finished
Question 1
Complete
On 31 December 20.2, the end of the financial year for Kiyu Traders, the total amount of unused packing material was R4 500. The
amount reflecting in the trial balance for packing material at year-end was R6 000.
The correct general ledger entries in the packing material account of Kiyu Stores on 31 December 20.2 are ...
Instructions:
1. First do the adjustment general ledger entries and then do your closing transfer general ledger entries.
KIYU STORES
GENERAL LEDGER
Dr Packing material Cr
20.2 R 20.2 R
Dec 31 Balance 6000 Dec 31 Consumable stores on hand 4500

Question 2
Complete
An extract from the list of balances of Green Traders at year-end, re ected the following balances:

The amount for rental income to be disclosed in the statement of pro t or loss and other comprehensive income for the year ended
Instructions:

Answer: 48374
Question 3
Complete

Under a periodic inventory system, the cost of sales is determined at the time of recording of the sale.
Select one:
True
False

Question 4
Complete
Instructions:

If an options has been provided and it is not applicable to the speci c questions please put N/A in the column.
Balance N/A
+ -
Balance + - N/A
Question 5
Complete
Due to some debtors not being able

to pay their accounts, an entity will allowance for credit losses
then have a/an … policy.
Allowance for credit losses will be …

deducted from the trade receivables balance in the note in the statement of nancial position.
at the end of the nancial year.
Credit losses will be closed off to the

pro t or loss account
… at the end of the nancial year.
The trade receivables control

account must be credited with … actual recoverable debt
Question 6
Complete
An entity has the following balances: Capital, R10 000; Trade payables, R3 200; Loan, R5 000.
NB: Instructions

Answer: 18200

Question 7
Complete
Select one:
True
False
Question 8
Complete
On 2 March 20.1, a tenant of ABC Traders, did an electronic funds transfer of R160 000 into ABC Traders’ business bank account. The
monthly rental is R16 000 per month. The financial year-end is 28 February 20.2.
Instructions:

6. Your answer is case sensitive; therefore, you need to put the very rst letter of the answer in uppercase, but the rest of your answer
must be in lowercase (eg: Interest on loan)
ABC TRADERS

R R
ACCRUED INCOME 32000
32000
RENT INCOME

Question 9
Complete
Mark 12.00 out of 12.00
R
VAT input 1 207,50
VAT output 1 680,00
Purchases journal
Sales journal
On 1 February 20.2, the VAT input account had an opening balance of R42 000 and the VAT output account had an opening balance
of R63 000.
Instructions:
3. For embedded questions spelling is very important. If you spell the answer incorrect it will be marked incorrect. Please make sure
GENERAL SPAZA SHOP

GENERAL LEDGER
Dr VAT output Cr
20.2 R 20.2 R
SRJ b/d
GJ CRJ
VAT control 124057.5 Feb 28 Bank 22995
CPJ
SJ
125737.50 125737.50

Question 10
Complete
Select one:
True
False
Question 11
Complete
Vice Smith is the owner of Vice Electricians. On 30 June 20.1 you are given the following information for Vice Electricians.
Equipment………………………………………………………………………………………… 500 000
Trade payables…………………………………………………………………………………. 100 000
Vehicles…………………………………………………………………………………………….. 480 000
Fixed deposit…………………………………………………………………………………….. 300 000
The correct representation of the accounting equation of Vice Electricians after considering the given information is ...
Instructions:
1 524 000 1 624 000 100 000
600 000 980 000 1 124 000 400 000 144 000 500 000 200 000 100 000 480 000 300 000 1 624 000
1 524 000 1 724 000

Question 12
Complete
Transactions in the cash receipts journal will be ticked off with items in the … of the ... credit column; bank statement
Direct deposits made by a client will re ect in the … of the ... debit column; bank statement
Interest on an overdrawn bank balance will re ect in the … of the … debit column; bank statement
Transactions in the cash payments journal will be ticked off with items in the … of the
... debit column; bank statement
Question 13
Complete
Answer: 66666.67
Question 14
Not answered
Marked out of 1.00
The balance of equity at the beginning of the nancial year in the statement of changes in equity is not disclosed in the statement of
nancial position.
Select one:
True
False
Question 15
Complete

R
Purchases 140 000
Answer: 18200

Question 16
Complete
On 18 February 20.1 Abdoola Spaza had a bank overdraft balance of R1 200. On 19 February 20.1 Mr W Alli, a debtor, made a direct
payment of R1 200 into the bank account of Abdoola Spaza.
The correct effect of the transaction on the basic accounting equation in the books of Abdoola Spaza is ...
Instructions:
5. If an option has been provided and it is not applicable to the speci c question, please put N/A in the column.
R R R
1200 1200 N/A
N/A

Question 17
Complete
R
Capital……………………………………………………………………. 100 000
Drawings…………………………………………………………………. 5 000
Inventory (1 March 20.1)……………………………………………….. 50 000
Sales……………………………………………………………………… 250 000
Sales returns…………………………………………………………….. 15 000
Purchases……………………………………………………………….. 40 000

Rental income…………………………………………………………… 15 000

Credit losses…………………………………………………………….. 400
Depreciation…………………………………………………………...... 1 500

Assuming that the gross profit calculated in the trading account is R160 000, the correct profit or loss account in the general
ledger of Luna Dealers on 28 February 20.2 will be:
Instructions:

Transactions should be posted to the pro t or loss account according to the sequence they appear in the extract of Trial Balance (TB)
and in the correct format. Failure to adhere to this instruction will results into a loss of marks.
Depreciation 1 500
192 500 192 500
Sales Purchases Carriage on purchases
Carriage on sales Settlement discount received Settlement discount granted
Commission income Rental income Salaries and wages
Telephone expenses Water and electricity Credit losses

Depreciation Trading account (net profit) Trading account (gross profit)
Capital (Total comprehensive loss for the year) Capital (Total comprehensive profit for the year) Drawings
Capital Inventory
100 000 5 000 50 000 30 000 235 000 38 800 200 500 800 10 000 29 000 30 000
28 000 2 000 15 000 7 500 22 500 1 600 400 1 500 160 000 185 000 150 000 192 500 158 200
Question 18
Complete
The effect that the adjustment journal entry for inventory will have on the basic accounting equation of PMT Traders for the
year ended 28 February 20.19 will be?
Instructions:
3. If an options has been provided and it is not applicable to the speci c questions please put a 0 in the amounts column.
+1 397 +1 397 0
+9 560 - 9 560 +10 770 -10 770 +1 121 -1 121 0 +740 -740 +2 670 -2 670 +250 -250
+321 -321 +826 -826 +1 397 -1 397 +4 531 -4 531 +1 210 -1 210

Question 19
Complete
Carriage on sales will be closed off to the ... at the end of the nancial year. Trading account
Carriage on purchases will be closed off to the ... at the end of the nancial year. Trading account
The net loss calculated in the pro t and loss account will ... as the capital account will be ... when the
closing transfer is done. decrease equity : debited
The net pro t calculated in the pro t and loss account will ... as the capital account will be ... when the
closing transfer is done.

Question 20
Complete
Debit Credit
R R
Capital (1 October 20.19)……………………………………………......…… 200 000
Drawings…………………………………………………………………..............… ?
Sales…………………………………………………………………...............……... 345 060
Sales returns…………………………………………………………...........……. 6 780
Rental income…………………………………………………………..........…... 19 800
Purchases………………………………………………………………............….. 197 800
Depreciation…………………………………………………………..........…….. 38 367
Credit losses……………………………………………………………..........….. 1 600
(a) Upon reviewing the list of account receivables outstanding at year end, the accountant determined that the allowance for credit
losses account should amount to R5 450 on 30 September 20.20.
Use the information in the pre-adjustment trial balance and the additional information to determine what adjustment is needed to adjust
the allowance for credit losses:
Instructions:
Credit losses 2 450
Trade receivables control Allowance for credit losses Credit losses Profit or loss account
5 450 3 000 8 450

Question 21
Complete
The following information relates to Sammy Technologies who buys and sells computers and computer accessories. Sammy Dealers
is a registered as a VAT vendor and uses the periodic inventory system. VAT at 15% is applicable. The VAT period of the business
ends on unequal months.
Transactions:
20.22
MW 456)
Instructions:
Mega Wholesalers 375 2 500 2 875
IT Wholesalers Sammy Technologies Trade payables control
17 250 2 250 15 000 2 587.50 14 662.50 2 875 375 2 500 431.25 2 443.75 172 500
22 500 150 000 25 875 146 625
Question 22
Complete
The nancial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who was immediately required to assist
with the creation of an allowance for credit losses (current nancial year ends on 28 February 20.19). The auditors of Steven Traders
raised an audit nding in the previous nancial period, stating that trade and other receivables were overstated since no allowances for
credit losses has been created although there was evidence that some of the debtors did not pay their accounts in the previous nancial
periods.
The nancial manager wants to avoid this audit nding in the current nancial period. The nancial manager requested the bookkeeper to
write a memo and indicate which accounts will be affected when the allowance for credit losses is created? The bookkeeper has written
the following statement down and requires you to con rm whether the statement is true or false when the allowance for credit losses is
created.
When the allowance for credit losses is created, credit the credit losses account and debit the allowance for credit losses account.
Select one:
True
False

Question 23
Complete
Answer: 66666.67

Question 24
Complete

The following information appeared on the bank statement for September 20.1 only:

c) Interest on a favourable balance of R366.
d) Debit order to ARK Insurers for insurance of R650.
e) Debit order to PG Cell Providers for two cell phone contract including calls and sms’s, R8 500.
f) On 29 September the owner of Kuyi Traders,Mr K Naidoo, made an EFT into the bank account of Kuyi Traders for R100 000 as
additional capital contribution.
g) Incorrect credit of R5 000 made by a client of the bank into the bank account of Kiyu Traders as the client captured the incorrect
beneficiary details.
h) A cash payment of R15 000 was entered in the cash receipts journal on the 29 September of 20.1 but was only deposited 1 October
20.1 by the bookkeeper.
i) The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as R569 instead of R695 which was correctly stated on
the bank statement.
What will the correct cash receipts journal entries in the books of Kiyu Traders be for September 20.1?
Instructions:
If an option has been provided and it is not applicable to the speci c question, please put N/A in the account column and a 0 in the
amounts column.
70 000
N/A 0
Interest income 366
N/A 0
N/A 0
Capital 100 000
N/A 0
N/A 0
N/A 0
174 366
P Sithole/Trade receivables control P Sithole/Trade payables control Interest income
Interest on bank overdraft Capital Mr K Naidoo (cash)
Insurance: ARK Insurers Telephone expenses: PG Cell Providers HG Traders/Trade payables control
HG Traders/Trade receivables control N/A

70 000 4 000 366 740 8 500 126 174 366 104 366 100 000 740 8 500 126 0
Question 25
Complete
Bank charges of R740 will be entered in the ... Cash payments journal
Debit order to PG Cell Providers for two cell phone contract including calls and sms’s, R8 500. The
transaction will be entered in the ... Cash payments journal
Incorrect credit of R5 000 made by a client of the bank into the bank account of Kiyu Traders as the
Bank reconciliation statement
client captured the incorrect bene ciary details. The transaction will be entered in the ...
The bookkeeper incorrectly entered the amount paid to creditor, HG Traders, as R569 instead of R695
which was correctly stated on the bank statement. The transaction will be entered in the ...
Question 26
Complete
Debits Credits
R R
Stationery 2 610 Interest on bank account 1 450
1 057470 1 057 470

Instructions:
Please note: Only include the total amount for assets, equity and liabilities in the table provided.
R R R
1057470

Question 27
Complete
At the end of the nancial year, the loss calculated in the pro t or loss account in the general ledger is to transferred to the capital account
by crediting the pro t or loss account and debiting the capital account.
Select one:
True
False
Question 28
Complete
Gizmo Enterprises provided you with the following information regarding the list of totals and balances on 28 February 20.8
R

Gizmo Enterprises received a credit note that was issued by Mrs A Steinhoff for R690. Mrs Steinhoff’s account in the trade payables
ledger was debited with R690 but no entry was made in the general ledger of Gizmo Enterprises.
What will the correct general ledger entries be for purchases returns for Gizmo Enterprises on 28 February 20.8?
Instructions:
VAT input 1 290
Trade payables control/Mrs A Steinhoff Purchases returns Trade payables control
Purchases VAT input VAT output
9 890 10 580 9 200 1 380 1 200 8 000 8 600 1 290

Question 29
Complete
Ronnie Peters is the owner of Ronnie’s Hairdressing Salon. You are given the following information for Ronnie’s Hairdressing
Salon for the year ended 30 June 20.1.
R
Capital 300 000
Equipment 200 000
Vehicles 160 000
Wages 165 000
Insurance 12 000
Advertising 3 000
30 June 20.1?
NB: Instructions
Answer: 39400

Question 30
Complete
R
Capital (1 July 20.0).................................................................................................... 300 000
Drawings......................................................................................................................... 3 570
Equipment...................................................................................................................... 150 000

Vehicles............................................................................................................................ 174 000

Accrued income........................................................................................................... 3 500

Trade payables............................................................................................................. 82 600


Interest income........................................................................................................... 4 400
Wages............................................................................................................................ 145 000


Rental income............................................................................................................ 48 000

The correct disclosure of assets in the statement of nancial position of Ronnie's Hairdressing Salon as at 30 June 20.1 is …
NB: Instructions
324 000
Non-current assets
324 000
Current assets
Inventories
Prepayments 4 600

Non-current assets Capital Equipment Property, plant and equipment
Vehicles Current assets Trade receivables Total income
Total expenses Long-term loan Trade payables Trade and other receivables
Trade and other payables Bank Cash and cash equivalent Inventories
N/A Total assets Prepayments Income received in advance
Accrued income Accrued expenses Rent income: deposit
150 000 174 000 324 000 15 000 3 500 4 500 0 4 600 7 200 82 600 66 500 4 000 297 400
301 400 224 090 70 000 74 600 89 800 94 300 413 600 89 600
Question 31
Complete
Debit Credit
R R
Capital (1 March 20.1)…………………………………………….......……..... 200 000
Drawings………………………………………………………………..................... ?
Sales………………………………………………………………............................... 345 060
Sales returns…………………………………………………………...................... 6 780
Rental income…………………………………………………………................... 19 800
Purchases……………………………………………………………........................ 197 800
Depreciation…………………………………………………………...................... 38 367
Credit losses…………………………………………………………….................. 1 600
(a) On 1 April 20.1 Kumkani Traders bought a factory building by means of a mortgage, from Ginsberg Bank, that bears interest at a rate
of 10.05% per annum compounded annually. The loan is redeemable in 20 annual instalments of R22 980. The instalments are in arrears.
Interest for the current year must still be provided for.
(b) The xed deposit investment of R50 000 was made on 1 April 20.1. Interest on this investment is paid annually.
The correct amount that must be disclosed in the statement of pro t or loss and other comprehensive income as interest on mortgage
for the year ended 28 February 20.2 will be ...
NB: Instructions

Answer: 3438

Question 32
Complete
Indicate whether the following statement is true or false regarding the statement of nancial position:
Select one:
True
False

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Fac1502 Assignment 2 Semester 2

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FAC1502-23-S2  Welcome Message  Assessment 2

Mark 1.00 out of 1.00

Mark 0.00 out of 4.00

Please choose the correct option for the given scenario.

The settlement discount received account will be … at the end of

The settlement discount granted account will be … at the end of the

In the perpetual inventory system, the … account must be … when

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Mark 6.00 out of 6.00

BALANCES OF GENERAL LEDGER ACCOUNTS

Sales returns 4 200 Trade receivables control 4 830

Trade receivables control/Mrs A Steinhoff

Trade receivables control Sales

VAT input VAT output

4 600 4 830 4 370 630 570 4 200 3 800 4 000

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Mark 8.00 out of 8.00

Favourable balance of general ledger bank account 132 500

The following information appeared on the bank statement only:

a) Bank charges of R700.

Drag the correct answer into the correct space.

Interest income 1 830

Capital Mr K Naidoo (cash) 352 028

Bank charges Insurance expenses : ARK Insurers

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Mark 0.00 out of 2.00

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Mark 4.00 out of 4.00

Inventory R85 000

Drag the correct answer into the correct space.

Current assets Non-current liabilities Current liabilities

Fixed deposit Consumable stores on hand Inventories

Packing materials Stationery N/A

85 000 2 875 650 65 310 3 525 88 525 0

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Mark 1.00 out of 1.00

Indicate whether the following statement is true or false:

Mark 0.00 out of 1.00

Round off your answer to the nearest Rand.

Mark 2.00 out of 4.00

5. Do not use any abbreviations.

RENT INCOME 11000

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Mark 0.00 out of 1.00

Mark 4.00 out of 4.00

Please choose the correct option for the given scenario.

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Mark 1.00 out of 1.00

Mark 1.00 out of 1.00

The advertising expenses amount to be disclosed in the statement of nancial position as at

1. Use a full stop to indicate any decimals (eg: 1000.01)

3. Only show the amount, do not show the R (eg: 12141.72)

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Mark 3.00 out of 3.00

2. An option can be used more than once.

0 +180 000 +180 000

Mark 2.00 out of 2.00

Equity = Assets - Liabilities

15000 15000 N/A

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