3. ‘You recently started a practice and conclude the following transactions: ‘You deposit R10 000 into your business bank account as capital ‘You obtain a loan from Kredit CC totalling RB 000 to be used as additional working capital ‘and deposit this in your business bank. ‘You draw the following amounts by card: #Petty Cash 250 # Cashiers float 100) You pay for fuel at the local garage R120. You pay salaries of F3 000. You pay yourself a salary of R4 000 and draw a further R1 000. ‘You pay the first instalment on the loan from Kredit CC in the amount of R400. |G Ghnt i cost you on an ary elma ps yu cpa of FOE f0 meet (GAT aan VT TOC 1 veces eam NOE ‘The bank levies charges tot Record the above transactions in your business and trust accounting records clearly Identifying the records. Transfer whatever you are entitled to and extract a trial balance. No provision is required for VAT. AT You have recently commenced practice and conclude the following transactions: 1. You deposit R25 000 into your business bank account as own capital. 2. You pay your first month's rent of R4 600. 3, You draw R250 for petty cash. 4, Youopena petrol account at a nearby service station and pay a deposit of R500. 5, You draw R100 by card as a float for your cashier. 6 You pay your candidate attorney an advance on salary of R300. Your client Clive instructs you to register a close corporation for registration fee of R90. 40. You finalise Clive's mandate and charge a feo of R500. 11, Clive pays R250 off his account. 42, You receive a statement from Books CC in respect of stationery purchased of R611 and a word processor of R7 000, and you pay the CIPC Powered by (@ CamScanner14, You cargoth folie the above transactions in your business and trust accounting records clearly identifying the ‘ecords. Transfer to your business account that which you are entitled to. No provision need be Made for VAT. Record AB You commence practice for your own account and conclude the under mentioned transactions. You are a registered VAT vendor. 1996 March 1. You deposit R20 000 into your firm's banking account as working capital. 2. You pay your office rent of R3 450 which includes VAT at 15% (your landlord is a registered vendor). 3. ‘You purchase a passenger vehicle for R80 500 which includes VAT at 15% which is financed by Leaseco, and you a the first instalment of R1 $93. 31. @ You pay staff salaries of R8 500. You transfer whatever you are entitled to your business banking account and account to your client Ben (an accounting statement is not required) Record the above transactions in your accounting records. A9_——_You are required to record the following transactions in your accounting records. You are a registered vendor for VAT purposes and should therefore provide for VAT where appropriate. es NSxIS ) 1. Purchase of office furniture for R11 500 from H & H Office Supplies which includes VAT at 15%. You pay for the purchase by EFT immediately. AEE TOOT VOU eT Ra RS IETTED You pay your office rental of RS 750 to Landlord which includes VAT at 15%. You deposit R40 000 of your own funds into your firm as working capital. | ‘You pay your staff salaries of R8 270. Your client Msomi purchases a motor vehicle on terms for R115 000 which includes VAT at 15%, The purehaseis anced by another lent Seneke on whose behal you bold Boos GTIUSH Account| YouTHiold|A20 O00 iniTrust\forjhim, The balance of — R100 000 (financed by Seneke) is paid by EFT. ‘Transfer whatever you are entitled to, from your trust to your Business banking account. Powered by (@ CamScanner‘A10 The following is an extract of your client b accounts at 31" January 2006, from your business and trust ledger Business Trust Debit balances Credit balance Sugar Distributors CC 2412 5,648 R Spencer 11400 618 B Roger 1,000 2,000 ABC Properties 513 6,199 P Kolyn 728 333 Zulu 2500 (Credit balance) -4300 (Debit balance) You are required to transfer what you are entitled to. Show the entries in your ledger, journals and ‘cashbooks, identifying the total amount transferred and reflecting the ledger balances after the transfer. @ 11 whotentries, if any, would you make in the books of account of your practice when you discover the following. {e) Your bank statement shows that contrary to your express instructions, your bank has debited your trust account with bank charges. (b) Your bookkeeper has inadvertently entered your trust EFT of R2 000 in the trust eash book and ledger as R200. (c) Your bookkeeper has inadvertently credited a trust creditor, Jones, with a receipt of A500 which should have beon credited to Smith's trust account. (a) An EFT was deposited in your trust bank account instead of your business bank account. (e) Your bookkeeper has overpaid a trust creditor in the sum of R1 000. He pays you back @ month later. Purchase of office furniture by EFT in the amount of RS7 600 inclusive of VAT. GG Receipt of a cash deposit of Rt 000 in respect of 2 new instruction to institute a third party claim. © ny _ Receipt of an amount of R100 000 from the purchaser of a house belonging to your client, the seller, pending transfer. {) You pay an account of R345 {inclusive of VAT) from counsel for the drawing of particulars of claim in the third party matter, mentioned in (g) above. {j) You establish that a previous client of yours, who owes you RS75 In respect of an account rendered for fees, has been sequestrated and there is no possibilty of his estate ever paying you. (x) You pay provisional tax of R3 000. {You pay R50.000 into the frm as capital. {m) The bank correctly debits your banking account with bank charges of R690 in respect of transactions on your trust bank account. {n) You receive an amount of R10 000 from your client in respect of bail to be posted on this behalf. Powered by @ CamScannerANZ You are required to prepare fully narrated Journal entries to record the following. Identify ‘the journals to be used. 1 ‘You purchase an LDV (bakkie) for R92,000, inclusive of vat, which is financed by ABSA Ltd. You are a registered vat vendor. 2D Your client, Josephine owes you R983 and you are holding Ri 500 in trust on her behalf. ‘You are entitled to effect a transfer. 3. Your correspondent has given you 20% allowance on fees of R900. When making this entry, provide for VAT at 10%. 4, Your bookkeeper has erroneously credited Cynthia's trust ledger account with R3 000 instead of Petunias trust ledger account. 5. You allow your client Jonas a 10% reduction on fees of R1 000 and VAT of R150 already ‘charged. Show how you would record the reduction. 6 You receive counsel's brief marked R1 600 in Mr Naude's divorce. 7. You charge your client Willie R220 for interest on an arrear account. A13 Your client Ismail instructs you to collect RS 000 owing to ‘executing the instructions you: im from Mohamed. In 1. charge an instruction fee of R1 000 plus VAT. 2. pay a tracing agent, who is not a registered vat vendor, R250. 3. pay the sheriff, who is a registered vat vendor, R230 (inclusive of vat). 4, receive an EFT of R3 000 from Mohamed. 5. charge a collection fee of R300 plus VAT. 6. pay the Receiver of Revenue the VAT due. You are required to: 1. record the above transactions in your books of account. 2. transfer whatever you are entitled to, to your business banking account. 3. account fully to your client and prepare an accounting statement. 14 Your client Marcus instructs you to collect R5000 from Thomas and gives you a covering deposi of, 1000 in cash. You instruct and pay a tracing agent R260. You charge a letter of demand and summons {fees of R300, Thomas pays an amount of R2000 and you charge a collection fee of R200. ‘You are required to: Record the abovementioned transactions in your accounting records. Transfer whatever you are entitled to transfer to your business account, account fully to your client but retain the deposit to cover future fees and disbursements. Prepare an accounting statement and make provision for VAT on your fees of 15%. a Powered by @ CamScanner