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MODULE NAME: MODULE CODE:

ACCOUNTING A ACCOx131
ACCOUNTING A ACCOf131/p/d
ACCOUNTING A ACCT5111/d

ASSESSMENT TYPE: TEST (PAPER ONLY)

TOTAL MARK ALLOCATION: 60 MARKS
TOTAL HOURS: 1 HOUR (+5 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Five minutes per hour of the assessment to a maximum of 15 minutes is dedicated to reading
time before the start of the assessment. You may make notes on your question paper, but not
in your answer sheet. Calculators may not be used during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are allowed.
3. Answer All Questions.
4. Ensure that you have received a special answer booklet (with forms drawn up) for entering your
answers. If you have not received an answer booklet, request one from the invigilator before
starting the assessment. Answer all questions in the answer booklet provided.
5. Show all calculations, where applicable (marks may be awarded for this).
6. Answer all questions in pen, no pencil will be marked.

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Question 1
Q.1.1 Match the terms in Column B to the descriptions listed in Column A. Write down
ONLY the letter of the answer in column B next to the number listed in Column A, in
your answer booklet..
Column A
Q.1.1.1 This is the second step in the
Accounting Cycle.
Q.1.1.2 This document is used by the
business when credit sales is
made to a customer.
Q.1.1.3 Commonly known as ‘T’
accounts.
Q.1.1.4 Source Document used to
record purchases from the petty
cash box.
Q.1.1.5 The process of totalling/closing
off accounts at end of month.
Q.1.1.6 Source document received from
a creditor when the business
purchases goods on credit.
Q.1.1.7 Capital and Drawings accounts
are known as this.
Q.1.1.8 Journals that are used to record
cash transactions.
Q.1.1.9 Relevance and faithful
representation
Q.1.1.10 International Financial Reporting
Standards
© The Independent Institute of Education (Pty) Ltd 2021
2021
(Marks: 15)
(10)
Column B
A Balancing accounts
B Debtors Journal (DJ); Petty
Cash Journal (PCJ)
C Source Documents
D Fundamental qualitative
characteristics
E Proprietary accounts
F Cashbook Receipts (CBR);
Cashbook Payments (CBJ);
Petty Cash Journal (PCJ)
G Duplicate credit invoice
H IFRS
I Petty Cash Voucher
J Trading Inventory
K Original credit invoice
L Journal voucher
M General Ledger accounts
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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.

© The Independent Institute of Education (Pty) Ltd 2021

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Question 2 (Marks: 35)

You have been asked to assist in the bookkeeping for Moropo Stores.
 The business is a registered VAT vendor and trades only with registered VAT vendors.
 The business charges 15% VAT on all its sales. All amounts are inclusive of VAT, unless
otherwise stated or not applicable.
 The business uses the perpetual inventory system and uses different mark‐ups for the
different products they sell and all discount is incidental in nature.

Transactions for the month of April 2020 are as follows:

Date Transaction
1 C. Moropo, the owner contributed R120 000 cash to the business, issued
receipt no. RC20
2 Sold trading inventory (20 items @R500 each, VAT exclusive) to D. Dlamini on
credit. The mark‐up applied is 35% on cost price. Credit invoice CI30 was issued.
4 Cash sales according to the cash register roll (CRR) was R26 450. A mark‐up of
25% on selling price was applied.
8 Received R11 500 from N. Khomo, a tenant, who sub‐lets office space from
Moropo Stores. Issued receipt RC21. Deposited all monies received into the
current banking account.
10 Owner, C. Moropo took inventory for his own use, R500 cost price, VAT
exclusive (JV7).
15 Cash sales according to the cash register roll (CRR) for the day R25 000 exclusive
of VAT. The cost of the goods was R20 000.
17 C. Moropo contributed his personal couch to be used in the reception area of
the business (JV8). The value of the couch was R5 500 (The legal requirements
have not yet been met for the VAT amount to be claimed, thus no VAT will
apply at this stage)
20 Sold trading inventory to M. Muhamed on credit, for R36 800. The mark‐up is
35% on cost price. Credit invoice CI31 was issued.
22 Sold trading inventory to L. Razack on credit, cost price was R15 000. The mark
up on cost is 25%. CI32 was issued.
31 Charged 6% interest on M. Muhamed’s overdue account of R30 000, his
account was overdue by 60 days (Assume a 366‐day year). JV9.

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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.

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Question 3 (Marks: 10)

Y. Young is an inexperienced bookkeeper working for Camden Stores, a Trial Balance was drawn up
but it does not balance. On investigation, it was found that adjustments had not been taken into
account. Ignore VAT

Trial Balance for year ended 30 April 2020

Debit Credit
Statement of Financial Position Section
Capital 443 500
Drawings 48 000
Fixed Deposit 50 000
Land and Buildings 600 000
Equipment 36 000
Vehicles 180 000
Loan 360 000
Debtors Control 8 000
Short‐term Loan 23 450
Trading Inventory 20 000
Creditors Control 113 000
Bank (favourable) 88 750
Petty Cash 11 250
Nominal Accounts Section
Sales 445 000
Sales Returns 20 000
Cost of Sales 217 500
Interest expense 35 150
Interest Income 4 500
Telephone 6 000
Rent expense 12 000
Water and Electricity 3 000
Stationery 680
Totals 1 336 330 1 389 450

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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

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