Professional Documents
Culture Documents
Q.1.1 Match the terms in Column B to the descriptions listed in Column A. Write down (10)
ONLY the letter of the answer in column B next to the number listed in Column A, in
your answer booklet..
Column A Column B
Q.1.1.1 This is the second step in the A Balancing accounts
Accounting Cycle.
Q.1.1.2 This document is used by the B Debtors Journal (DJ); Petty
business when credit sales is Cash Journal (PCJ)
made to a customer.
Q.1.1.3 Commonly known as ‘T’ C Source Documents
accounts.
Q.1.1.4 Source Document used to D Fundamental qualitative
record purchases from the petty characteristics
cash box.
Q.1.1.5 The process of totalling/closing E Proprietary accounts
off accounts at end of month.
Q.1.1.6 Source document received from F Cashbook Receipts (CBR);
a creditor when the business Cashbook Payments (CBJ);
purchases goods on credit. Petty Cash Journal (PCJ)
Q.1.1.7 Capital and Drawings accounts G Duplicate credit invoice
are known as this.
Q.1.1.8 Journals that are used to record H IFRS
cash transactions.
Q.1.1.9 Relevance and faithful I Petty Cash Voucher
representation
Q.1.1.10 International Financial Reporting J Trading Inventory
Standards
K Original credit invoice
L Journal voucher
M General Ledger accounts
Q.1.2 Indicate whether the following statements are True or False, by writing down a (5)
‘True’ or ‘False’ next to the number, in your answer booklet.
Q.1.2.1 All cash sales must be recorded in the Debtors Journal.
Q.1.2.2 A credit note will be used to record returns/rebates in the Creditors
Allowances Journals.
Q.1.2.3 The General Journal will be used to record transactions that cannot
be recorded in any of the subsidiary journals.
Q.1.2.4 A business loss will decrease owner’s equity.
Q.1.2.5 When a business owner takes goods home for his own use, an entry
to record this is unnecessary.
Required:
Complete the following journals in your answer booklets, by providing the missing information
and/or calculating the missing amounts for letters A to T:
Cashbook Receipts,
Debtors Journal
General Journal.
Note: The missing letters correspond to the transactions listed in date order. You do not have to
write the answers to the “?”. You will use these in your workings only, to assist you in completing A
to T. Show all workings.
Round to the two decimal places.
The following adjustments for April 2020 have not been taken into account:
1) A motorbike purchased for R80 000, to be used for deliveries was posted to the Land
and Buildings in error and not to the Vehicles account.
2) An amount of R120 was not processed to the Stationery account.
3) The owner made a Capital contribution in the form of a personal cheque for R8 000,
this transaction was processed to the Bank account but not to the Capital account.
4) An amount of R5 000 was transferred from the business’ bank account to the Fixed
Deposit account, the amount was taken off the bank account but not processed to
the Fixed Deposit account.
5) A credit sale of R4 000 made to a debtor, was debited to creditors control and
credited to sales. This still needs to be corrected.
6) The balance of the cost of sales account in the general ledger account was R271 500
the amounts was incorrectly carried over. A journal entry is required to correct this.
7) Sales returns of R2 000 has been processed to inventory but not sales returns.
Required:
Prepared the recommended adjustment column as part of completing the general ledger
reconciliation statement.
Show all workings as marks will be awarded to these.
END OF PAPER