Take-Home Exam 1

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MODULE NAME: MODULE CODE:
FINANCIAL MANAGEMENT FOR NON‐FINANCIAL MANAGERS 1 FIMA112/d/p/w
INTRODUCTION TO FINANCIAL MANAGEMENT FIMA5111/d/p/w
ASSESSMENT TYPE: EXAMINATION (PAPER ONLY)
TOTAL MARK ALLOCATION: 120 MARKS
TOTAL HOURS: This assessment should take you 2 Hours to complete, however
you have 21 Hours (midnight to 9PM on the same day) to
submit. This additional time has been allocated to allow for the
download, completion and upload of your submission.
By submitting this assessment, you acknowledge that you have read and understood all the rules
as per the terms in the registration contract, in particular the assignment and assessment rules in
The IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism rules in
the Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in the
student portal.
INSTRUCTIONS:
1. Please adhere to all instructions. These instructions are different from what is normally
present, so take time to go through these carefully.
2. Independent work is required. Students are not allowed to work together on this
assessment. Any contraventions of this will be handled as per disciplinary procedures in The
IIE policy.
3. No material may be copied from original sources, even if referenced correctly, unless it is
a direct quote indicated with quotation marks.
4. All work must be adequately and correctly referenced.
5. You should paraphrase (use your own words) the concepts that you are referencing, rather
than quoting directly.
6. This is an open‐book assessment.
7. Assessments must be typed unless otherwise specified.
8. Ensure that you save a copy of your responses.
a. Complete your responses in a Word document.
b. The document name must be your name.student number.Module Code.
c. Once you have completed the assessment, upload your document under the
submission link in the correct module in Learn.
Additional instructions:
1. This is an OPEN BOOK assessment.
2. Answer All Questions.
3. Show all calculations.
© The Independent Institute of Education (Pty) Ltd 2021
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Question 1 (Marks: 10)
Read the question below carefully and answer the questions as required.

Q.1.1 Indicate on which side of the account (Debit or Credit) the following will INCREASE
Q.1.1.1 Rent Income (1)
Q.1.1.2 Credit Loss Recovered (1)
Q.1.1.3 Audit Fees (1)
Q.1.1.4 Land and buildings (1)
Q.1.1.5 Bank Charges (1)

Q.1.2 Define a Liability as defined in accounting. (3)

Q.1.3 The cash receipts journal records all cash received and deposited into the entity’s (2)
bank account.

Required:
Name any two source documents that are used for entries in the cash receipts
journal.

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Show all steps for your calculations where applicable.

Q.2.1 Answer the following questions and make sure to show all of your calculations:
Q.2.1 On 31 December 2020, Wuta Stores showed the following income and (15)
expenses for the financial year, i.e., the financial period is from 1 January
2020 to 31 December 2020.

R
Sales 500 000
Donation Income 10 000
Interest Income 12 000
Rent Expense 50 000

Rates and Taxes 7 000
Stationery 2 000
Loss on sale of an asset 5 000
Telephone Expense 8 000
Insurance 5 000

Required:
Calculate the profit or loss for the year ended 31 December 2020.

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Q.2.2 Classify the following items as an asset, liability, equity, income or expense by (10)

indicating
In your answer book, the correct Classification as follows:
E.g., Q.2.2.1 – Expense
Q.2.2.1 Packing Material
Q.2.2.2 Mortgage Loan
Q.2.2.3 Furniture
Q.2.2.4 Sales
Q.2.2.5 Depreciation
Q.2.2.6 Creditors
Q.2.2.7 Debtors
Q.2.2.8 Donations Granted
Q.2.2.9 Postage
Q.2.2.10 Commission received

Q.2.3 Mrs S. Twala opened a shop in October 2020 under the name of Stwala Stores. (15)
The following transactions took place:
Day Transaction
1 Mrs S.Twala transferred R200 000 from his personal bank account to the
bank account of Stwala Stores as an initial capital contribution.
5 Computers and printers were bought from Compy Computers for
R20 000 cash.
7 The store manager’s salary was paid via EFT. R22 000
10 A computer system, supplied by Crarsus Computers, was installed for
R20 000. The account will only be settled in November.
12 Sold inventory to the value of R50 000 in the month; customers paid via
cash payments.
14 Stwala Stores borrowed a further R130 000 from a bank, and funds were
deposited into the bank account.
18 The interest on the loan for one month was paid to the bank at R3 000.

Required:
Record the above transactions by copying the table below into your answer
booklets. Indicate whether the applicable element of the accounting
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equation will increase or decrease.

Table Example:
Electricity was paid via the business bank account via EFT on the 4th, R2 000
Day Assets = Owner’s Equity + Liabilities
4 ‐2 000 ‐2 000

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Show all steps for your calculations where applicable.

Q.3.1 The following transactions for June 2020 were available for P.P. Stores. The Petty (17)
st
Cash Vouchers start with the number JV07 on the 1 .
Day Transaction
1 Tea and biscuits were bought from Jacks store for R150
3 Went to Beckers store and purchased envelopes for R40 and
milk for R80.
5 Spent R200 buying petrol for the delivery vehicle
8 Paid casual Wages out of Petty Cash, R400
15 Bought a cake for a birthday for one of the staff, R150
18 Paid for parking for one of the sales reps, R30
22 Paid for postage, R60

Required:
Construct the petty cash journal for P.P. Stores for June 2020
Use the below format by copying it into your answer Books:
Doc Day Details Petty Postage Refreshments Amount Fol Details
Cash

Q.3.2 Crabby Stores had the following transactions that took place during November (13)

2020:
1) On the 5th of the month, the owner took inventory to the value of R800 for
her own use.
2) A Debtor of the business is liquidated and cannot settle their debt
amounting to R600; this needs to be written off at the end of the month
3) Deprecation of R300 needs to be provided for on vehicles at the end of the
month.

Required:
Prepare the General Journal Entries for the above transactions. Journal Narrations
are not required.

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The following balances appear in the general Ledger of Snacky Stores for August 2020:
R
Capital 240 000
Equipment 150 000
Bank 60 000
Creditors Control 30 000
Sales 40 000
Advertisement 12 000
Printing Costs 6 000
Interest Expense 2 000
Salaries and Wages 80 000

Required:
Using the above information, prepare the Trial Balance for Snacky Stores for August 2020.

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The below information relates to the financial information for Benny Spaza Shop for November
2020:

R
Income
Sales 600 000
Rent Income 40 000
Interest Income 8 000
648 000
Expenditure
Raw Materials 200 000
Salaries and Wages 70 000
Electricity 7 000
Rates and Taxes 6 000
Advertising 1 500
Packing Material 5 000
Internet Expense 2 000
291 500

Required:
Complete the incremental budget for Benny Spaza for December 2020, assuming the following for
the budget:
 All income is budgeted to increase by 20%.
 All Expenses are budgeted to increase by 10%, except for Electricity which will increase by
0%, and Advertising which will increase by 5%.

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Answer the questions that follow in your answer book.

Q.6.1 Identify the seven key ideas that underlie Financial Management. (7)

Q.6.2 Identify any three duties of a financial manager. (3)

END OF PAPER
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19;

Q.2.2 Classify the following items as an asset, liability, equity, income or expense by (10)

Q.3.2 Crabby Stores had the following transactions that took place during November (13)

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