Solutions

Learning unit 1: Bank reconciliation

1. Bank account

Bank
Details Amount Details Amount
Balance B/D 53 800 Total payments 143 240
Total receipts 109 960 Balance C/D 20 520
163 760 163 760
Balance B/D 20 520

2. Bank reconciliation

Details Amount
Balance as per bank statement 71 020
Add outstanding deposit: 29 September 29 500
Less outstanding EFTs: Suits stationers (4 200)
:Fix couriers (3 800)
Less correction of bank error (72000)
Balance as per bank account 20 520
Learning unit 3: Debtors and creditors reconciliation

(I) Creditors ledger

P. Pretorius Creditors ledger

Document no/name Debit (-) Credit (+) Balance
Balance B/D 558
Credit Note No.22 (R30 – R22.50) 7.50 565.50
Invoice (A. Pretorius) 195 370.50

(ii) Creditors reconciliation statement

Details Amount
Balance as per account statement 382.50
Less: overcharge (15)
15 (22.50)
Less: discount omitted (R150 × 100)
Add: invoice no.45 omitted 94.50
Less: discount omitted on receipt no.82 (9)
Add: reversal of settlement 180
Less: settlement omitted (240)
Balance as per creditors ledger 370.50

(iii) Remittance advice for P. Pretorius

Details Amount
Balance as per account statement 382.50
Less: overcharge (15)
15 (22.50)
Less: discount omitted (R150 × )
100
Add: invoice no.45 omitted 94.50
Less: discount omitted on receipt no.82 (9)
Add: reversal of settlement 180
Less: settlement omitted (240)
EFT PAYMENT 370.50
Learning unit 3: Depreciable assets

1.1. Journal entries

Details Debit Credit

Depreciation 12 960 (C1)
Accumulated depreciation 12 960
Asset disposal 144 000
Vehicle 144 000
Accumulated depreciation 92 160*
Asset disposal 92 160
(R79 200 + R12 960 C1)
Bank 70 000
Asset disposal 70 000
 Asset disposal 18 160
Profit on sale of asset/vehicle 18 160 (C2)

Asset disposal

Details amount Details Amount

Vehicle (Step 1) 144 000 Accumulated depreciation 92 160
(Step 2)
Profit on sale of asset/vehicle (step 4) 18 160 Bank (step 3) 70 000
162 160 162 160

Calculations:

• Current year (2015) depreciation for the sold vehicle

20
(R144 000−R92 160)×100 = R12 960 (C1)

• Profit/loss on sale of vehicle

Carrying value= R144 000 – R92 160 = R51 840 (C3)

Profit= 70 000 (SP) – R51 840= R18 160 (C2)

1.2. PPE NOTE

Details Land and Vehicles equipment Total

buildings
Carrying value at the 1 152 000 129 600 340 000 1 621 600
beginning of the year
Cost 1 152 000 288 000 806 200 2 246 200
Accumulated depreciation - (158 400) (466 200) (624 600)

Movements during the year - (67 392) (201 550) (268 942)
Additions - - -
Disposal at carrying value - (51 840) (C3) - (51 840)
Depreciation for the year - (15 552) (C4) (201 550) (C5) (217 102)

Carrying value at the end of 1 152 000 62 208 138 450 1 352 658
the year
Cost 1 152 000 144 000 806 200 2 102 200
Accumulated depreciation - (81 792)** (667 750)*** (749 542)
Calculations

Depreciation for the year (2015)

Remaining Vehicles:

Cost: R288 000- R144 000=R144 000

Accumulated depreciation: R158 400 – R92 160*= R66 240

20
2015 Depreciation: (R144 000 – R66 240) × 100 = R15 552 (C4)

Equipment depreciation for 2015:

25
R806 200 × = R201 550 (C5)
100

Accumulated depreciation at the end of the year:

Vehicle= R158 400 – R92 160* + R15 552 (C4) =R81 792**

Equipment=R466 200 + R201 550 (C5) =R667 750***