22 2022
MODULE NAME: MODULE CODE:
ACCOUNTING 1A ACBP5111/d/e/f/p
ACCOUNTING 1A ACBP5121/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).
© The Independent Institute of Education (Pty) Ltd 2022
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22 2022
Question 1 (Marks: 20)
Q.1.1 ABC Traders entered into the following transactions: (10)
Transaction Source Document Journal
Purchased goods on
credit
Sold goods on credit
Paid for stationery from
petty cash
Paid wages by EFT
Returned goods to
supplier
Required:
Complete the table above in your answer booklet stating which source document
and which journal ABC Traders would use.
Where applicable, you must state if it is an original or duplicate document.
Q.1.2 In your answer booklet, complete the missing amounts in the table below: (3)
VAT EXCLUSIVE VAT (15%) VAT INCLUSIVE
R2 000
R3 750
R40 250
© The Independent Institute of Education (Pty) Ltd 2022
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22 2022
Q.1.3 Below is an extract from the books of Fern Traders on 31 December 2021:
Bank (Unfavourable) R28 000
Debtors control R20 000
Creditors control R12 000
Inventory R21 000
Loan: Plant Bank R18 000
VAT output R1 000
VAT input R800
Capital R15 000
Drawings R2 000
Profit for the year R5 000
Required:
Q.1.3.1 Calculate the current assets on 31 December 2021. (2)
Q.1.3.2 Calculate the total liabilities on 31 December 2021. (3)
Q.1.3.3 Calculate the owner’s equity on 31 December 2021. (2)
(Note – the above information does not include all the assets and
liabilities of Fern Traders at 31 December 2021)
© The Independent Institute of Education (Pty) Ltd 2022
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22 2022
Question 2 (Marks: 20)
Orange Blossom Traders is a registered VAT Vendor situated in Nelspruit. All debtors and creditors
are registered for VAT, and deal in standard rated supplies only. VAT is charged at 15%.
Orange Blossom Traders uses the periodic inventory system. Savoy Ltd has a balance owing to
them of R3 500 at 30 April 2021.
The following transactions took place during the month of May 2021 relating to the sale and
purchase of goods:
DATE Transaction
5 Purchased goods on credit from Savoy Ltd for R5 000 excluding VAT
6 Sold goods on credit to Mr Emerald for R1 380 including VAT
7 The invoice for goods purchased from Savoy Ltd was undercast by R2 300
including VAT
12 Purchased goods on credit from Edge Traders for R10 000 excluding VAT
13 Sold goods on credit to Miss Diamond for R4 600 including VAT
19 EFT made to Savoy Ltd for 50% of the amount owing
29 Purchased goods on credit from Venice Ltd for R3 450 (including VAT)
Required:
Q.2.1 Prepare the following subsidiary journals for Orange Blossom Traders for May 2021:
Q.2.1.1 Debtors Journal. (5)
Q.2.1.2 Creditors Journal. (10)
The journals do not need to be totalled.
The document number and folio columns do not need to be completed.
Q.2.2 Calculate the balance on Savoy Ltd’s account at the end of May 2021. (5)
© The Independent Institute of Education (Pty) Ltd 2022
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22 2022
Question 3 (Marks: 20)
Q.3.1 In your own words, define trading inventory. (3)
Q.3.2 Cherry Blossom Traders imports designer plant pots from Italy. The following relates (6)
to an order for 100 plant pots:
Purchase price R500 each, before a trade discount of
5% on the total amount
Transport inwards for 100 plant pots R10 000
Import duties on 100 plant pots R2 500
Calculate the cost price of each plant pot.
Ignore VAT.
Q.3.3 If Cherry Blossom Traders marks up goods at 25% on selling price, calculate the (3)
selling price excluding VAT of each plant pot.
Q.3.4 The following balances appeared in the books of Cherry Blossom Traders: (7)
Inventory: 1 January 2021 R88 000
Inventory: 31 December 2021 R109 000
Purchases for the year: R75 000
Purchases returns: R19 000
Transport Inwards: R12 000
Import Duties: R5 000
Calculate the cost of sales for the year ended 31 December 2021.
Clearly indicate which amounts are to be added and which amounts are to be
subtracted.
Q.3.5 Which inventory system does Cherry Blossom Traders use? (1)
END OF PAPER
© The Independent Institute of Education (Pty) Ltd 2022
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