Question 1 (Bank reconciliation- part of every exam)

Supplementary cashbook

Dr Cr

BALANCE 1 000 000 Eft Payment 98 609

Direct deposit 300 000 Eft deposit reversal 330 000

Interest 29 000 Trust payment error 300 000

Electronic transfer 1000 Balance C/F 631 391

Tryst payment error 30 000

Total 1 360 000 Total 1 360 000

BANK RECONCILIATION

Dr Cr

Balance C/F 631 391 Balance 176 391

Deposits 35 000

Trust banking charges error 20 000

Ett payment error 400 000

Total 631 391 Total 631 391

Question 2 (instructing correspondent)

TCB

Dr Cr

Eft payment 17 061 Pay bcb 966

Pay Khumalo refund 16 095

Correspondent trust ledger

Dr Cr

Money collected 21 500 Eft payment 17 061

Value transfer 966 Fees & disbursements 5405

TRUST JOURNAL

DETAILS dr Cr
Correspondent trust 21 500
D Khumalo trust 21 500

Money collected
D Khumalo trust 5405
Correspondent trust 5405

Fees and disbursements

D Khumalo trust ledger

Dr Cr

Fees & disbursements 5405 Money collected 21 500

Pay Khumalo refund 16 095

FEE JOURNAL

DETAILS DR CR
Correspondent business 966
Fee 840
Vat 126

Allowance
 Correspondent business ledger

Dr Cr

Fee+vat 966 Value transfer 966

Fee

Dr Cr

Fee 840

Vat

Dr Cr

Vat 126

```` bcb

Dr Cr

Pay bcb 966

Transfer journal

Details Dr cr
Corrospondent trust 966
Corrosopondent business 966

Value transfer

Statement of account
 From: d buckley cash 21 500

To fees 2 520
Vat 378

Disbursements 2507

Eft refund D Khumalo 16 095

Total 21 500 Total 21 500

2.7. one third is the maximum sharing of fees

Question 4 (conveyancing- has most marks & yet its always asked the same way)

TCB

Dr Cr

Balance 185 000 S86(3) investment fnb 50 000

Deposit nathi 100 000 S86(4) investment jack AG 20 000

Deposit mr lender 2 000 000 S86(4) invest absa jack 1 000 000

Jack eft payment 20 000 Pay jack interest absa 190 000

Deposit jack property 1 000 000 Pay lpc interest absa 10 000

Deposit proforma costs 300 000 Pay lpc interest fnb 5000

Withdraw absa investment 1 200 000 Pay jack interest allen grey 2850

Withdraw fnb 55 000 Pay lpc interest allan grey 150

Withdraw allen grey 23 000 Pay transfer duty 100 000

Bank guarantee 3 000 000 Pay transfer fees 200 000

Pay seller purchase price 5 000 000

Refund jack 20 000

Nathi trust ledger

Dr Cr

Balance 185 000

Deposit nathi 100 000

BCB

Dr Cr

Pay transfer fees 200 000 Overdraft balance 33 000

Pay installment 3999

Pay annual fees to lpc 3500

Lender trust ledger

Dr Cr
 Loan(2nd bond) 1 000 000 Deposit mr lender 2 000 000

FNB investment s86(3)

Dr Cr

S86(3) investment 50 000 Withdraw fnb 55 000

Interest lpc 100% 55 000

Jack trust ledger

Dr Cr

PAY TRANSFER DUTY 100 000 Jack eft payment 20 000

Pay jack interest absa 190 000 Deposit jack property 1 000 000

Pay jack interest allen grey 2850 Deposit proforma costs 300 000

Loan (2nd Bond) 1 000 000 Interest 95% jack absa 190 000

Value transfer 200 000 Interest 95% jack allen grey 2850

Change ownership 5 000 000 Bank gurantee 3 000 000

Refund jack 20 000

Allan gray(unit trust) s86(4) investment

Dr Cr

S86(4) investment jack AG 20 000 Withdraw allan grey 23 000

Interest jack 95% allan grey 2850

Interest lpc 5% allen grey 150

Motor vehicle (Wesbank) ledger

Dr Cr

Pay instalment 3999

 LPC annual fees ledger

Dr Cr

Pay annual fees 3500

Absa investment s86(4)

Dr Cr

S86(4) invest absa jack 1000 000 Withdraw absa investment 1 200 000

Interest 95% jack absa 190 000

Interest lpc 5% allen grey 10 000

LPC LEDGER

Dr Cr

Pay LPC interest allen grey 10 000 Interest lpc 5% allen grey 10 000

Pay lpc interest FNB 5000 Interest lpc 100% FNB 5000

Pay lpc interest allen grey 150 Interest lpc 5% allen grey 150

Trust journal

Details Dr Cr
Lender trust 1 000 000
Jack trust 1 000 000

Loan(2nd bond)
Jack trust 5 000 000
Mr seller trust 5 000 000

Change of ownership of
purchase price

Fee journal

Details d Dr Cr
Jack business 200 000
Fee 200 000

Transfer fees

Jack business ledger

Dr Cr

Fee 200 000 Value transfer 200 000

Fee ledger

Dr Cr

Fee 200 000

Transfer journal

Details Dr Cr
Jack trust 200 000
Jack business 200 000

Value transfer

Mr seller trust

Dr Cr

Pay seller purchase price 5 000 000 Change ownership 5 000 000
Question 4 (Theory )

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