FAC1502 Assignment 3 Semester 2 2023

SEMESTER 2
FAC1502
ASSIGNMENT 3
DUE: 19 SEPTEMBER 2023
UNISA  2023  FAC1502-23-S2  Welcome Message  Assessment 3
QUIZ
Assessment 3
Opened: Friday, 8 September 2023, 8:00 PM

Closes: Tuesday, 19 September 2023, 11:00 PM
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10 September 2023, distiction.
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9/10/23, 8:26 PM Assessment 3: Attempt review
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Dashboard / My courses / FAC1502-22-S2
Started on
/ WELCOME Friday, 11
TO FAC1502 March 2022,
FINANCIAL 7:50 PM 1: FINANCIAL ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES
ACCOUNTING
State Finished
/ Assessment 3
Completed on Friday, 11 March 2022, 8:24 PM
Time taken 34 mins 45 secs
Marks 88.00/100.00
Grade 80.00 out of 100.00
Feedback Congratulations, you pass the assessment with a distinction.
Question 1
Correct
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What is included in the statement of financial position of a business?
Select one:
A. Capital, sales and assets.
B. Assets, discounts and liabilities.
C. Income, expenses, assets and liabilities.
D. Equity, assets and liabilities. 
E. Assets, liabilities, profit on disposal of non-current assets.
Question 2
Correct
Indicate whether the following statement is true or false:

The difference between income and expenditure is either a profit or a loss.
Select one:
True 
False

https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=1034305&cmid=117739 1/17
QUESTION 1
Indicate by choosing the correct option whether the following statement is true or false:
A receipts and payments statement for non-profit entities is the same as a bank account for a sole trader.
Select one:
True
False
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The following information was extracted from the accounting records of Lele Plastics:
Balances at 1 April 20.19 R
Equipment: Cost 56 000
Accumulated depreciation: Equipment (37 800)
Additional information
At the beginning of the financial year, 1 April 20.19, Lele Plastics replaced its plastic shredding equipment
with new glass recycling equipment that had a purchase price of R250 000. The replaced plastic shredding
machine was sold for R10 500 cash, it was the only piece of equipment in the books of Lele Plastics prior
to the purchase of the new glass recycling equipment. Depreciation is provided at 15% p.a. on the straight-
line method.
The correct property, plant and equipment note for equipment (total column excluded) for Lele
Plastics on 31 March 20.20 will be:
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
Please keep the sequence of transactions strictly according the information given but also in the correct
format.
3
4
Question 3
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State whether the following statement is true or false:
Settlement discount received will be disclosed as other income in the statement of profit or loss and other
comprehensive income.
Select one:
True
False
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CK TRADERS
AN EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 OCTOBER 20.9
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Trade receivables control…………………………………………………………... 180 560
Trade payable control………………………………………………………………. 129 875
Inventory: Trading (1 November 20.8)……………………………………………. 4 800
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Loan from ATM Bank……………………………………………………………….. 258 564
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Machinery (at cost)………………………………………………………………….. 1 075 308
Accumulated depreciation: Machinery (1 November 20.8)…………………….. ?
Vehicle (at cost)……………………………………………………………………... 125 900
Accumulated depreciation: Vehicle (1 November 20.8)………………………… 12 590
Fixed deposit: TB Bank…………………………………………………………….. 120 782
Allowances for credit losses……………………………………………………….. 1 530
Additional information with regards to adjustments that you still need to take into account.
5
(a) CK Traders acquired machinery CK002 on 1 November 20.6 for an amount R1 075 308 and machinery
CK002 was only available for use from 1 February 20.7 due to site preparation and installation that needed
to be performed. On 31 August 20.9, machinery CK002 was taken out of production and was auctioned on
the same day for a cash amount of R455 040. Depreciation on machinery CK002 must be provided at a
rate of 20% using the straight-line method.
(b) CK Traders has only one vehicle which was purchased on 1 November 20.7 for an amount of R125 900
and the accounting policy indicate that depreciation on vehicles must be provided at a rate of 10% using
the reducing balance method.
The total accumulated depreciation for machinery CK002 to be transferred to asset realisation
account on the date of disposal, will be …
NB: Instructions
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Only show the amount, do not show the R (eg: 12141.72)
3. Round the amount off to the nearest Rand (eg: 12141.72 is 12142)
101979
Answer:
Question 5
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A liability is a claim which a party other than the owner/s has on the assets of the entity. Indicate whether
the following statement is true or false regarding liabilities?
Liabilities are present economic resources controlled by the entity as a result of past events.
Select one:
True
False
Question 6
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The apportionment of depreciation is debited in the asset’s contra account, namely accumulated
depreciation.
Select one:
True
False
Question 7
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It is not important to keep strict control over inventory.
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True
False
Question 8
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The following information pertains to the Man City Supporters Club:
Balances as at 30 September 20.22 R
Membership fees – received……………………………………………………................. 15 810
Accrued membership fees (30/09/20.21)………………………………………......... 1 860
Membership fees received in advance (30/09/20.21)………………………….. 2 700
Advertising 3 500
expenses……………………………………………………………….................
TH fund - (30/09/20.21)…………………………………………………............................ 28 000
The following transactions must be taken into account for the year ended 30 September 20.22:
(a) During the current year 12 new members joined the club. The entrance fee per member is R600 and
75% of the entrance fees received should be capitalised and the balance recognised immediately.
7
(b) At year-end accrued membership fees amounted to R2 250 and membership fees already received
for to the next financial year amounted to R5 400. 50% of the accrued membership fees balance outstanding
at the beginning of the financial year should be written off.
(c) On 1 October 20.19, Thomas Henry donated an amount R28 000 to the club, the funds were then
invested on the same day in a fixed deposit account with Wenger Bank at an interest rate of 9,5%. The
condition for the donation is that the income from the investment should be used to advertise the club and
the capital amount can only be used after 10 years.
(d) Advertising expenses incurred by the club were R3 500 for the 30 September 20.22 financial year.
The advertising expenses that should be recognised as an expense in the statement of income and
expenditure for the year ended 30 September 20.22 will be ...
Instructions:
2. Round off to the nearest Rand (eg: 50.56 is 51)
3500
Answer:
Question 9
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The accountant for Gizmo Traders provides you with the following information for the financial years ended
31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
The gross profit percentage on cost of sales for the year ended 31 May 20.3 is …
Instructions:
2. Round off to the second decimal after the full stop (eg: 50.56)
3. Don't show the % sign only the numbers (eg: 70.01% is 70.01)
8
66.67
Answer:
Question 10
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All transactions dealing with cash received is entered into the cash receipts journal.
Select one:
True
False
Question 11
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GBV Club is a non- profit organisation that was started by 130 members on 1 January 20.7. The objective
of GBV Club is to address gender-based violence that is faced by South African citizens.
On 1 January 20.8 GBV Club opened a small shop to raise additional funding. The shop sells, printed T-
shirts with messages addressing gender-based violence. No T-shirts were on hand on 1 January 20.8.
In order to prepare the financial statements for the current financial period ended 31 December 20.8, the
bookkeeper presented the following information regarding the finances of the club to members at a
meeting held on 31 December 20.8:
(1) GBV Club purchased 1 790 T-shirts during the current financial period at a cost price of R55.00 per
T-shirt.
(2) GBV Club donated 110 T-shirts to citizens during the year to raise more awareness about gender-
based violence.
(3) 430 T-shirts were on hand on 31 December 20.8 (considered as final inventory count for the current
financial year).
(4) T-shirts that have not been donated or not on hand, were all sold at a mark-up of 50% on cost price.
The gross profit/loss amount for the small shop for T-shirts of GBV Club to be shown in the trading
statement for the year ended 31 December 20.8, will be:
9
Instructions:
Keep the sequence of the transactions strictly according to the information given and the correct format.
Question 12
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Please choose the correct option for the given scenario.
The following information was
extracted from the accounting
records of Namgoong Plastics:
Balances at 1 April
R
20.19
Accumulated Answer 1
Cash receipts journal; General journal
depreciation: (26 133)
Equipment
At the beginning of the
financial year, 1 April 20.19,
Namgoong Plastics replaced its
10
plastic shredding equipment
with new glass recycling
equipment that had a purchase
price of R45 600. The replaced
plastic shredding machine was
sold for R5 000 cash, it was the
only piece of equipment in the
books of Namgoong prior to
the purchase of the new glass
recycling equipment.
Depreciation is provided at
20% p.a. on the straight-line
method.
Indicate which journal(s) will

be used to record the
transactions relating to the
sale of the plastic shredding
equipment?
Extract of the pre-closing

trial balance of THC Traders
as at 30 September 2019
Debi Credi
t t
R R
Plant and 120
machinery 000
(cost)
Accumulat 41
ed 750
depreciatio
n: plant Answer 2
and Depreciation R38 367; Loss on sale of equipment R1 500; Interest on fixed deposit R7 500.
machinery
Equipment 90
(cost) 000
Accumulat 17
ed 100
depreciatio
n:
equipment
Land and 180
buildings 000
(cost)
Fixed 100
deposit (@ 000
7.5% p.a.)
11
Depreciatio 38
n 367
Loss on 1
sale of 500
equipment
Interest on 7 500
fixed
deposit
The amounts that will be

disclosed in the statement of
profit or loss and other
comprehensive income of
THC Traders for the year
ended 30 September 2019
relating to non-current
assets are:
An example that is not a Answer 3
current liability? Accrued income
Current liability are liabilities Answer 4

that … are expected to be settled within twelve months after the statement of financial position date.
Question 13
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That portion of a long-term loan or obligation to be repaid within the next 12 months, must be disclosed
as a non-current liability in the statement of financial position.
Select one:
True
False
Question 14
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12
On 1 June 20.20, Lesogo Traders obtained a loan of R800 000 from Petty Bank to purchase equipment.
Interest on loan is calculated at 15% per annum. The loan repayment schedule indicated that capital
repayments on the loan will be made in five annual equal instalments beginning on 31 May 20.21.
How will the loan be disclosed in the statement of financial position of Lesogo Traders as at 31 July
20.20?
Instructions:
format.
Question 15
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A mistake in the inventory figure will affect the calculation of cost of sales, the gross profit and,
subsequently, the profit in the statement of profit or loss and other comprehensive income.
Select one:
True
False
13
Question 16
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A loss on sale of a motor vehicle is recorded when the motor vehicle is sold for less than its carrying value.
Select one:
True
False
Question 17
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In the process of reconciling the balance on the trade payables control account with the list of balances as
per trade payables ledger, it was noted that certain accounts with credit balances of R1 000 need to be
transferred from the trade receivables ledger to the trade payables ledger.
The correct general ledger entries in the books of Pam Traders to record the given transaction will
be ...
Instructions:
Question 18
14
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Membership fees received in advance at the end of a financial period will be entered on the credit side of
the membership fees account.
Select one:
True
False
Question 19
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According to IFRS the annual depreciation calculated on an asset is credited to the asset account in the
general ledger.
Select one:
True
False
Question 20
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Jeff Dry Cleaners acquired a second hand industrial dryer from a bankrupt laundromat, for R75 000. The
transportation costs to Jeff Dry Cleaners was R5 000. The cost of installing the machine in its desired
location was R6 500.
The total cost of the machine to be capitalised in the machinery account will be?
15
NB: Instructions
86500
Answer:
Question 21
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The following information was obtained from the records of Ronnie’s Dealers for the month ended 30 June
20.2:
R
Balance of trade payables control account in general ledger on 31 May 40 000
20.2
Trade payables column in the purchases returns 5 000
journal……………………...
Trade payables column in the purchases 24 000
journal………………………………
Cash payments journal: Trade payables 15 000
column……………………………….
Settlement discount received 1 500
column.............................................................
General journal: Accounts with debit balances transferred to the trade
receivables ledger from the trade payables
ledger……………………………… 1 000
(a) An invoice for R600 for merchandise purchased on credit from DT Traders was erroneously omitted
from the purchases journal.
(b) A credit note for R200 received from MM Wholesalers was incorrectly entered in the sales returns
journal but posted to the correct side of MM Wholesalers account.
The correct trade payables control account in the general ledger of Ronnie’s Dealers on 30 June 20.2
will be?
Instructions:
16
format.
Question 22
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The entity needs to provide security to take out a mortgage.
Select one:
True
False
Question 23
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The following information was extracted from the accounting records Kola Metals:
17
At the beginning of the financial year, 1 April 20.21, Kola Metals replaced its metal melting machine with a
new metal melting machine that had a purchase price of R64 600. The replaced metal melting machine
was sold on credit for R10 000. It was the only piece of equipment in the books of Kola Metals prior to the
purchase of the new metal melting equipment. Depreciation is provided at 20% p.a. on the straight-line
method.
Use the information as extracted from the accounting records of Kola Metals to complete the asset
realisation account to calculate the profit/loss on the sale on the metal melting machine that will
be disclosed in the statement of profit or loss and other comprehensive income. The amount will
be:
Instructions:
Question 24
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
The gross profit percentage on sales for the year ended 31 May 20.4 is …
Instructions:
50
Answer:
Question 25
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It is important to have the correct inventory valuation because a mistake in the inventory amount will
make the equity amount in the statement of financial position incorrect.
Select one:
True
False
Question 26
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19
Packing material on hand, stationery on hand and cleaning materials on hand at the end of the financial
year will be subclassified as individual expense item in the statement of profit or loss and other
Select one:
True
False
Finish attempt ...
VERSION 2
UE Traders will incur the following costs after purchasing a machine from PZ Equipment Suppliers:
1. List price of the machine was R28 000. A trade discount of R3 500 was allowed off the list price.
2. Delivery costs of the machine to UE Traders, R 2 500.
3. Installation costs, R6 000.
The total cost to be disclosed in respect of the machine on the property, plant and equipment note
at the end of the financial year will be ...
NB: Instructions
33000
Answer:
Question 2
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20
The entity does not need to provide security to take out a mortgage.
Select one:
True
False
Question 3
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If the debit side of the asset realisation account is bigger than the credit side of an asset realisation
account, the difference is a profit on sale of asset.
Select one:
True
False
Question 4
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The cost of stationery used is included in the calculation of cost of sales.
Select one:
True
False
Question 5
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Membership fees received in advance at the end of a financial period will be entered on the debit side of
Select one:
True
False
Question 6
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The total of the
trade payables
column in the cash Answer 1
payments journal debit side of the trade payables control account in the general ledger.
will be posted to
the …
Non-current
Answer 2
liabilities are
are expected to be settled beyond twelve months after the statement of financial position date.
liabilities that …
Examples of non-
Answer 3
current liabilities
debentures and long-term borrowings.
are ...
What will be
Answer 4
classified as a
Trade payables
current liability?
Question 7
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You are given the following extract of the pre-adjustment trial balance for Arch Traders for the financial
year ended 30 September 20.2.
ARCH TRADERS
EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 30 SEPTEMBER 20.2
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Accumulated depreciation: Vehicles(1 October 20.1……. 100 000
Accumulated depreciation: Equipment (1 October 20.1)… 60 000
Trade receivables control…………………………………… 225 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
Trade payables control……………………………………… 300 000
On 1 October 20.1 Arch Traders bought a new vehicle to the value of R280 000.
On 30 June 20.2 one of the two old vehicles bought on 1 October 20.0 were sold for R100 000 cash. The
vehicle was bought at a cost price of R250 000.
Depreciation for the year must be provided as follows:
- Equipment: 10% per annum on the straight-line method

- Vehicles : 20% per annum on the diminishing balance method
Use the information as extracted from the accounting records of Arch Traders to complete the
asset realisation account to calculate the profit/loss on the sale of the old vehicle that will be
disclosed in the statement of profit or loss and other comprehensive income. The amount will be:
Instructions:
23
format.
Question 8
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Indicate whether the following statement is true or false regarding consumable stores on hand at the end
of the financial year:
Consumable stores on hand will be shown under trade payables as a current liability in the statement of
financial position.
Select one:
True
False
Question 9
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The following information pertains to the Gunner Supporters Club:
24
Membership fees – received…………………………………………………………................ 15 810
Accrued membership fees (30/09/20.19)…………………………………………............ 1 860
Membership fees received in advance (30/09/20.19)…………………………...….. 2 700
Advertising expenses………………………………………………………………....................... 2 500
Thierry Henry fund - (30/09/20.19)…………………………………………………............. 22 000
for to the next financial year amounted to R5 400. 50% of the accrued membership fees balance
outstanding at the beginning of the financial year should be written off.
(c) On 1 October 20.19, Thierry Henry donated an amount R22 000 to the club, the funds were then
condition for the donation is that the income from the investment should be used to advertise the club
and the capital amount can only be used after 10 years.
expenditure for the year ended 30 September 20.20 will be...
Instructions:
2500
Answer:
Question 10
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Accrued membership fees at the beginning of a financial period will be entered on the credit side of the
membership fees account.
Select one:
True
False
Question 11
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You are given the following information for Vice Traders for the year ended 31 May 20.2:
R
Inventory (1 June 20.1)………………………………………………… 120 000
Purchases……………………………………………………………….. 90 000
Sales……………………………………………………………………... 200 000
On 31 May 20.2 a fire occurred before the annual inventory count could be completed. It is estimated that
30% of the stock was destroyed. The accountant informs you that the gross profit percentage on sales was
20% in the previous financial year and the same mark-up was applied in the current financial year.
What is the estimated closing inventory amount on 31 May 20.2?
NB: Instructions

15000
Answer:
Question 12
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20.2:
R
20.2
journal……………………...
journal………………………………
column……………………………….
column.............................................................
ledger……………………………… 1 000
will be?
Instructions:
format.
27
Question 13
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Under a perpetual inventory system, the cost of goods sold is recorded as each transaction takes place.
When goods are sold for cash a column in the cash receipts journal is added to collect the data regarding
the cost price.
Select one:
True
False
Question 14
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The cost price of machinery is shown under current assets in the statement of financial position as part of
property, plant and equipment.
Select one:
True
False
Question 16
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Trade receivables control is included as current assets in the statement of financial position.
Select one:
True
False
Question 17
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The following information pertains to All STARS Tennis Club.
ALL STARS TENNIS CLUB
Extract from the list of balances as at 31 December 20.19:
R
Accumulated fund (1 January 20.19)..…………………………….. 19 320
Fixed deposit………………………………………………………... 80 000
Entrance fees……………………………………………………….. 5 000
Donations received ………………………………………………… 38 600
Interest on fixed deposit……………………………………………. 4 000
Membership fees received…………………………………………. 37 440
29
Only 75% of the entrance fees must be capitalized.
If it is assumed that the deficit for the year ended 31 December 20.19 was R2 988.
What will the balance of the accumulated fund account be on 31 December 20.19?
Instructions:
If an options has been provided and it is not applicable to the specific questions please put N/A in the
accounts column and a 0 in the amounts column.
Question 18
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ARCH TRADERS
Debit Credit
R
30
R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
On 1 July 20.2 Arch Traders bought new equipment to the value of R80 000.
On 30 June 20.2 old equipment with a cost price of R85 000, bought on 1 October 20.0, were sold for
R55 000.

The correct property, plant and equipment note for equipment (total column excluded) for Arch
Traders on 30 September 20.2 will be:
Instructions:
31
Question 19
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32
Select one:
True
False
Question 20
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In the process of reconciling the balances on the trade payables control account with the list of individual
balances as per the trade payables ledger for FAB Traders, the bookkeeper noted that the purchases
journal was undercast by R2 000.
The correct general ledger entries in the books of FAB Traders to rectify the purchases journal total
posted to the ledger will be ...
Instructions:
Question 21
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The accounting policy note will provide information such as depreciation rates used for vehicles and
equipment as this information is not presented on the face of the statement of financial position.
Select one:
True
False
Question 22
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The following information was extracted from the accounting records of Namgoong Plastics:
At the beginning of the financial year, 1 April 20.19, Namgoong Plastics replaced its plastic shredding
equipment with new glass recycling equipment that had a purchase price of R45 600. The replaced plastic
shredding machine was sold for R5 000 cash, it was the only piece of equipment in the books of Namgoong
prior to the purchase of the new glass recycling equipment.
Depreciation is provided at 20% p.a. on the straight-line method.
The depreciation on the glass recycling equipment for the year ended 31 March 20.20 amounted to:
Instructions:
9120
Answer:
Question 23
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Candace buys a pair of shoes from Unique Heels for R275 (before discount). The pair of shoes was
discounted by 25%.
What is the discount amount?
Instructions:
2. Round off to the nearest cent (eg: 50.56)
68.75
Answer:
Question 24
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year will be subclassified as trade receivables in the statement of financial position.
Select one:
True
False
Question 25
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35
If debentures are redeemable within the next 18 months the debentures will be shown as a current
liability in the statement of financial position.
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True
False
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Liabilities are held primarily for the purpose of being traded.
Select one:
True
False
36
VERSION 3
Indicate whether the following statement, regarding cost of goods purchased, is true or false:
Cost of goods purchased excludes opening and closing inventory.
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True
False
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MADIJO Traders acquired machinery on 1 March 20.20 for an amount of R1 051 800. This machinery was
only available for use from 1 May 20.20 due to massive tests that needed to be performed first. MADIJO
Traders’ current financial period ends on 31 January 20.21. According to MADIJO Traders’ accounting
policy, depreciation on machinery is provided using the unit of production method over it’s the useful life
of 5 years according to the following production schedule:
Year 1 Year 2 Year 3 Year 4 Year 5

Expected unit of production 90 000 78 000 66 000 63 000 63 000
Actual units produced 54 000 N/A N/A N/A N/A
37
The amount for depreciation expenses to be shown in the statement of profit or loss and other
comprehensive income for the year ended 31 January 20.21 will be …
NB: Instructions
157770
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Lola has prepared his financial statements for the year ended 30 April 2021, which showed a profit for the
year of R150 000, current assets of R96 000, non-current assets of R200 000 and a total assets figure of
R296 000. He has since discovered that the closing inventory amount, he used was overstated by R25 000.
Indicate whether the following statement is true or false regarding the correction of the error that was
made?
The revised profit for the year should be R125 000.
Select one:
True
False
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What will be considered as a non-current liability? Mortgage
Answer 1
What is an example of a financial asset? fixed deposit
Answer 2
What will be classified as a current liability? Trade payables
Answer 3
38
An example of an intangible asset is ... trademarks
Answer 4
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Designer Traders obtained an unsecured loan for an amount of R208 600 at the beginning of the current
financial year from ATM Bank at an interest rate of 18% per annum. 50% of the loan was repaid on 1
March 20.19 and the remainder needs to be repaid on 1 March 20.20. The interest is not capitalised but
paid to the bank on the day the loan is repaid. Designer Traders current financial period ends on 31 May
20.19 and according to the extract from pre-adjustment trial balance as at 31 May 20.19, interest on loan
amounted to R28 161.
The amount for interest payable to be shown in the statement of financial position for the year
ended 31 May 20.19 will be?
Instructions:
2. Round off to the nearest R (eg: 50.56 is 51)
32854.50
Answer:
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Plastics prior to the purchase of the new glass recycling equipment. Depreciation is provided at 20% p.a.
on the straight-line method.
39
The correct property, plant and equipment note for equipment (total column excluded) for Namgoong
Plastics on 31 March 20.20 will be:
Instructions:
format.
40
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41
Furniture Traders sold three tables and six chairs to Beauty Traders, for their nail technicians, for an
amount of R31 050 (15% VAT inclusive). Furniture Traders makes use of a mark-up percentage on sales of
35%
What is the cost price of the tables and chairs?
NB: Instructions
20000
Answer:
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ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
R55 000 cash.
42

Use the information as extracted from the accounting records of Arch Traders to complete the
asset realisation account to calculate the profit/loss on the sale of the old equipment that will be
disclosed in the statement of profit or loss and other comprehensive income. The amount will be:
Instructions:
format.
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43
Indicate whether the following statement is true or false.
A liability shall be classified as a current liability when it is expected to be converted into money (realised)
within 12 months of the statement of financial position date.
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True
False
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An entity can use either a perpetual (continuous) inventory system or a periodic inventory system,
depending on the nature of the entity, the type of merchandise sold and the level of computerization in
the entity.
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True
False
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Consumable stores on hand will not be included in the calculation of the cost of sales.
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True
False
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44
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made?
The revised non-current assets should be R225 000.
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True
False
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Use the following information from the accounting records of NICE NETBALL CLUB on 31 December 20.19,
the end of the accounting period.
Refreshments:
Inventory of refreshments on 1 January 20.19, R5 000 and there were R6 656 refreshments on hand on
31 December 20.19.
Refreshments bought for cash R5 804
Refreshments bought on credit R11 480.
Refreshments sold on credit R18 960.
Refreshments to the amount of R1 660 were donated to a shelter for homeless children.
The gross profit of refreshments for the financial year ended 31 December 20.19 will be:
Instructions:
45
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The property, plant and equipment note will provide more information such as depreciation rates used for
vehicles and equipment as this information is not presented on the face of the statement of financial
position.
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True
False
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On 31 March 20.2, Ronnie’s Dealers received a statement from MM Wholesalers (a creditor). The
bookkeeper noticed that Ronnie's Dealers owe MM Wholesalers R2 400 and that interest of 5% was
charged due to late payment of the account. No entry was made in the accounting records of Ronnie
Dealers for the interest amount charged.
46
What will the correct general journal entry for the given transaction in the books of Ronnie Dealers
be?
Instructions:
format.
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The cost price of machinery is shown under non-current assets in the statement of financial position as
part of property, plant and equipment.
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True
False
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47
Mars Traders acquired machinery on 1 September 20.19 for an amount of R375 900. The current financial
period of Mars Traders ends on 28 February 20.22. According to Mars Traders’ accounting policy, the
depreciation on machinery is provided using the unit of production method over the useful life of 5 years
according to the following production schedule:
Actual units produced 11 250 18 000 21 750 N/A N/A
The amount for depreciation to be shown in the statement of profit or loss and other comprehensive
income for the year ended 28 February 20.22 will be …
NB: Instructions
243440
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Membership fees received in advance at the end of a financial period will be entered on the debit side of
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48
Payment of a current liability usually takes place within the next period of 12 months.
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True
False
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If the information was entered correctly in the journal but a posting error was made to the trade payables
ledger, the individual creditor’s account must be corrected, and the creditors list must be adjusted to
correct the error.
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True
False
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A summary of all cash transactions for a non-profit entity is represented in the income and expenditure
statement.
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True
False
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49
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Extract from the Trial balance of Phat Cats Club at 31 May 20.20
R
Membership fees received 194 250
Membership fees in arrears – 1 June 20.19 56 250
Membership fees prepaid – 1 June 20.19 15 000
Entrance fees received 37 500
- The club had 180 members during the current financial year. Membership fees amount to R750 per
member per annum. Some members did not pay their membership fees for the current financial year. 37
members have paid their 20.21 membership fees in advance. R7 500 of the membership fees in arrears on
1 June 20.19 must be written off as irrecoverable.
- During the current year, there were 23 new members who paid an entrance fee of R1 000 each. 75%
of the entrance fee must be capitalised and the balance treated as income.
The amount for entrance fees to be recognised in the statement of income and expenditure for the
year ended 31 May 20.20 is …
Instructions:
5750
Answer:
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Only original receipts can be used as source documents to record transactions in the cash receipts journal.
50
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True
False
51
VERSION 1
was sold for R10 000 cash. It was the only piece of equipment in the books of Kola Metals prior to the
method.
realisation account to calculate the profit/loss on the sale on the metal melting machine that will be
disclosed in the statement of profit of loss and other comprehensive income. The amount will be
Instructions:

53
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
100
Answer:
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20.2:
R
20.2
journal……………………...
journal………………………………
54
column……………………………….
column.............................................................
ledger……………………………… 1 000
will be?
Instructions:
format.
Your answer is not complete; please drag an item to each drop region.
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55
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The financial year-end for Thabo Stores is 31 October. A vehicle was bought on 1 April 20.1 for R650 000.
The rate of depreciation for vehicles is 20% and depreciation is calculated using the diminishing balance
method.
The depreciation at the end of the financial year (rounded off to the nearest rand) on the vehicle bought
on 1 April 20.1 is …
Select one:
A.
R130 000
B.
R75 833
C.
R379 167
D.
R54 167
E.
R65 000
Clear my choice
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Every entity tries to invest its available cash in the most profitable way, that is, the entity tries to obtain the
highest yield on its investment.
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True
False
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56
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comprehensive income for the year ended 31 January 20.21 will be … (round off your final answer to the
nearest Rand)
NB: Instructions
157770
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Which one of the following represents the correct general ledger entries in the books of FAB Traders to
rectify the purchases journal total?
57
Select one:
A.
General ledger Amount
Account debited Account credited R
Purchases Trade payables control 2 000
B.
Purchases returns Trade payables control 2 000
C.
Trade payables control Purchases 2 000
D.
Trade receivables control Trade payables control 2 000
E.
Trade payables control Purchase returns 2 000
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CK TRADERS
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Land………………………………………………………………………………….. 60 000
58
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
The total accumulated depreciation for machinery CK002 to be transferred to asset realisation account on
the date of disposal, will be …
NB: Instructions
555576
Answer:
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Which of the following is not an example of a current liability?
Select one:
A.
Trade payables
B.
Income received in advance
59
C.
Accrued income
D.
Short-term loan
E.
Accrued expenses
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Where in the statement of financial position would a business that trades in the sale of motor vehicles
disclose the fleet truck it uses to deliver sold vehicles to customers?
Select one:
A.
Current liabilities: Trade and other payables
B.
Current assets: Property, plant and equipment
C.
Current assets: Trade and other receivables
D.
Current assets: Inventory
E.
Non-current assets: Property, plant and equipment
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60
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An instalment on a loan which is payable in the next financial year will disclosed as ... in the statement of
financial position.
Select one:
A.
non-current asset
B.
current asset
C.
current liability
D.
equity
E.
non-current liability
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A fixed deposit is an example of a financial asset.
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True
False
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61
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True
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How will the loan be disclosed in the statement of financial position as at 31 July 20.20?
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format.
62
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ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
On 30 June 20.2 one of the two old vehicles bought on 1 October 20.0 were sold for R100 000. The vehicle
was bought at a cost price of R250 000.

63
The correct property, plant and equipment note for vehicles (total column excluded) for Arch Traders on
30 September 20.2 will be:
Carrying value : Beginning of year 410000
Cost 500000
Accumulated depreciation (90000)
Additions 280000
Disposal
Cost 250000
Accumulated depreciation (80000)
Depreciation for the year (128000)
Carrying amount: End of year The correct answer is not given on the options
Choose any
Cost 530000
Accumulated depreciation The correct answer is not given on the options
Choose any
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A mistake in the inventory figure will affect the calculation of cost of sales, the gross profit and,
subsequently, the profit in the statement of profit or loss and other comprehensive income.
64
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True
False
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A savings account is an example of a cash investment.
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True
False
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
25
Answer:
Finish attempt ...
65
VERSION 2
The amount for interest payable to be shown in the statement of financial position for the year ended 31
May 20.19 will be?
Instructions:
32854.50
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Betties Dealers has a loan of R1 000 000 from VL Bank. The loan is secured by mortgage over land and
buildings and is redeemable in four equal annual instalments. The first instalment on loan is payable on 31
August 20.2. The interest rate payable is 15% Betties Dealers financial year end 28 February.
How will the given transaction be disclosed in the statement of financial position for the year ended 28
February 20.1?
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format.
66
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The accountant of Mixed-up Traders requires your assistance to properly balance and reconcile the trade
receivables control and trade payable control accounts with the total list of trade receivables and total list
of trade payables for the month ended on 30 November 20.9.
The accountant provided you with the following information in respect of October and November 20.9 which
was obtained from the records of Mixed-up Traders:
Balance for trade payables control account - 31 October 20.9 R19 442
Balance for trade receivables control accounts - 31 October 20.9 R33 450
Totals for the month of November 20.9
Cash payment journal:
Purchases…………………………………………………………………… R29 760
Trade payables column……………………………………………………. R5 980
Settlement discount received column…………………………………….. R786
VAT input column……………………………………………………………. R4 464
VAT output column…………………………………………………………... R118
Cash receipts journal:
Sales………………………………………………………………………… R130 600
Trade receivables column………………………………………………… R 42 500
Settlement discount granted column…………………………………….. R 2 980
VAT input column…………………………………………………………... R 447
VAT output column…………………………………………………………. R 19 590
Sales journal:
67
Trade receivables column…………………………………………………. R90 500
VAT output column…………………………………………………………. R13 575
Sales return journal:
VAT output column………………………………………………………….. R 846
Purchases journal:
VAT input column…………………………………………………………… R 1 377
Purchases return journal:
Trade payables column……………………………………………………… R560
VAT input column…………………………………………………………….. R 73
General journal:
Credit losses (excluding VAT input)……………………………………….. R1 096
VAT input (on credit losses)………………………………………………… R 164
Creditors with debit balances transferred to trade receivables ledger……….. R 2 567
Total list of the debtor’s balances per trade receivable ledger - 30 Nov 20.9.. R76 307
Total list of the creditor’s balances per trade payable ledger - 30 Nov 20.9… R25 481
In the process of reconciling the balance of trade payables control accounts with the list of balances in the
trade payables ledger, the following errors and omissions were identified (all the following transactions
are inclusive of 15% VAT):
(a) A debit note for R986 in respect of goods returned to S Hart was entered in the sales return journal
instead of purchases return journal and posted to the account of S Haurt in the trade receivables ledger
instead of S Hart in the trade payable ledger. No correcting entries have been made in any journals.
(b) An invoice of R690 for goods purchased from B Smith, was erroneously omitted from the purchases
journal.
(c) The total list of trade payables balances was undercast by R450.
(d) An invoice for R1 799 which had been correctly entered in the purchases journal was entered against
the account of Siyanqoba Ltd as R1 997.
Complete the trade payables control account for the month ended 30 November 20.9 to determine the
balance of the trade payables control account.
Instructions:
Please keep the sequence of transactions strictly according to the information given but also in the correct
format.
68
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financial position.
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Lerato sold a pair of jeans for R575.00 (VAT inclusive). If her mark-up percentage as a percentage of cost is
25%, what is the cost price of the product? (Round off your final answer to the nearest Rand)
NB: Instructions
69
400
Answer:
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The cost price and the accumulated depreciation on equipment A are R70 000 and R35 000 respectively
on 1 March 20.1. Equipment A is sold on 1 March 20.1 for R40 000.
Which of the following is correct regarding the sale of equipment A?
Select one:
A.
A loss of R5 000 was made on the sale of the equipment A.
B.
C.
D.
A profit of R30 000 was made on the sale of the equipment A.
E.
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70
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Dividends earned on investments in shares are paid out at a fixed rate annually.
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True
False
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amount of R31 050 (15% VAT inclusive). Furniture Traders makes use of a mark-up percentage on cost of
35%
What is the amount for the sales (VAT exclusive) of the tables and chairs?
NB: Instructions
27000
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line method.
71
Traders on 31 March 20.20 will be:
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format.
72
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year will be subclassified as trade payables in the statement of financial position.
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True
False
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73
machine was sold on credit for R39 800, it was the only piece of equipment in the books of Lele Plastics
prior to the purchase of the new glass recycling equipment. Depreciation is provided at 10% p.a. on the
straight-line method.
Assuming the plastic shredding equipment was sold at a loss of R4 200, the effect of the transaction on the
accounting equation will be:
Instructions:
74
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Indicate whether the following statement is true or false regarding debentures:
Debentures usually have many creditors.
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True
False
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The following information was extracted from the accounting records of Kumkani Traders:
Balances at 1 November 20.9:
R
Equipment: Cost………………………………………………………. 280 000
Accumulated depreciation: Equipment……………………………… (164 800)
(a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to upgrade some
of its processes by selling old printing equipment for R31 000 cash. The machine was bought on 1
November 20.4 for R180 000. Depreciated was provided for at 15% p.a. on the straight-line method.
(b) On 1 December 20.9 Kumkani Traders bought 3D printing equipment for R145 600 on credit from
Fourth Dimension. Depreciation on the new machine must be provided for at 25% per annum on the
diminishing balance method.
Calculate the depreciation on the 3D printing equipment for the year ended 31 October 20.10.
Select one:
A.
Depreciation amount will be R33 367.
B.
C.
75
D.
E.
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The amount for depreciation to be shown in the statement of profit or loss and other comprehensive income for
the year ended 28 February 20.22 will be … (Round off your final answer to the nearest Rand)
NB: Instructions
243440
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76
Which of the following is an example of a financial asset?
Select one:
A.
Fixed deposits
B.
Trade and other payables
C.
Patents
D.
Copyrights
E.
Franchises
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An example of an intangible asset is …
Select one:
A.
Buildings
B.
Equipment
C.
Trademarks
D.
Vehicles
E.
Inventory
77
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On 1 May 20.1, Thabo Stores invested R700 000 into a five- year fixed deposit account at RG Bank. The
interest rate is 8,5% per annum. The financial year-end for Thabo Stores is 30 April.
Which of the following is correct if the interest was paid into the bank account of Thabo Stores?
a.
The fixed deposit account will be debited with R59 500 and the bank account will be credited with R59
500 on 30 April 20.2.
b.
The interest income account will be debited with R59 500 and the fixed deposit account will be credited
with R59 500.
c.
The interest income account will be debited with R59 500 and the bank account will be credited with R59
500 on 30 April 20.2.
d.
The fixed deposit account will be debited with R59 500 and the interest income account will be credited
with R59 500.
e.
The interest income account will be credited with R59 500 and the bank account will be debited
with R59 500 on 30 April 20.2.
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78
Select one:
True
False
Finish attempt ...
79
VERSION 3
method.
Select one:
A.
R65 000
B.
R75 833
C.
R54 167
D.
R379 167
E.
R130 000
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Which of the following concepts represent possible assets whose existence will be confirmed by the
occurrence or non-occurrence of uncertain future events that are not wholly within the control of the
entity concerned?
Select one:
A.
Contingent liabilities
80
B.
Income
C.
Expenses
D.
Accrued income
E.
Contingent assets
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A non-current asset will be scrapped when the asset is no longer useful and traded in as partial payment
on the purchase of a new asset.
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True
False
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Janice sold a jacket for R1 840.00 (VAT inclusive). If her mark-up percentage as a percentage of cost is
20%, what is the cost price of the product?
NB: Instructions
81
1333.33
Answer:
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The understatement of the closing inventory amount with R40 000 will result in the cost of sales amount
being understated by R40 000 in the statement of profit and loss and other comprehensive income
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True
False
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made?
The revised total assets amount will be R321 000.

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True
False
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20.2:
R
20.2
journal……………………...
journal………………………………
column……………………………….
column.............................................................
ledger……………………………… 1 000
will be?
Instructions:
format.
83
Question 8
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Which of the following will be classified as a current liability?
Select one:
A.
Trade receivables
B.
Accrued income
C.
Trade payables
D.
VAT receivable from SARS
E.
Inventory
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Question 9
84
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Which of the following are examples of non-current liabilities?
Select one:
A.
Long-term borrowings, current portion of long-term borrowings and debentures.
B.
Debentures, fixed deposits and long-term borrowings.
C.
Debentures, short-term loans and mortgages.
D.
Debentures and long-term borrowings.
E.
Current portion of long-term borrowings and non-current portion of long-term borrowings.
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ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
85
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
R55 000.

Instructions:
86
87
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Use the information as extracted from the accounting records of Namgoong Plastics to complete the asset
realisation account to calculate the profit/loss on the sale of the plastic shredding equipment that will be
disclosed in the statement of profit of loss and other comprehensive income. The amount will be:
Instructions:
format.
88
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charged due to late payment of the account. No entry was made in the accounting records of Ronnie’s
What will the correct general journal entry for the given transaction in the books of Ronnie Dealers be?
Instructions:
format.
89
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The cost price of property, plant and equipment includes any other expenses incurred in getting the asset
operational.
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True
False
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CK TRADERS
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
90
NB: Instructions
101979
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
91
50
Answer:
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Non-current liabilities are liabilities that …
Select one:
A.
have a useful life longer than four months.
B.
are present economic resources used by the entity because of past events.
C.
D.
refers to the wealth of the owner.
E.
are expected to be converted into money in the entities normal operating cycle.
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B Traders bought laptops from SK Office Equipment for R22 000 (VAT exclusive) on credit. The VAT rate
applicable is 15%.
What is the VAT amount applicable to the transaction?
NB: Instructions
92
3300
Answer:
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year will be subclassified as trade payables in the statement of financial position.
Select one:
True
False
93
VERSION 4

Trademarks and patents are examples of intangible assets.
Select one:
True
False
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method.
Instructions:

94
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When determining the historical cost of inventory, other costs that must not be included are the cost of
transporting the goods from the point of sale to the premises of the purchaser.
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True
False
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The following balances appeared in the general ledger of Vice Traders on 30 June 20.2:
R
Inventory (1 July 20.1)………………………………………………… 60 000
Sales……………………………………………………………………. 270 000
95
Net purchases…………………………………………………………. 75 000
Customs 1 500
duties…………………………………………………………
Carriage on purchases……………………………………………...... 2 000
Carriage on sales……………………………………………………… 500
Settlement discount 3 000
granted…………………………………………..
Additional information:
Inventory on hand on 30 June 20.2 is R20 000.
What will the correct statement of profit or loss and other comprehensive income for the year ended 30
June 20.2 be?
Instructions:
format.
96
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Select one:
A.
Copyrights
B.
Franchises
C.
D.
Fixed deposits
E.
Patents
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discounted by 25%. What is the discount amount?
Select one:
A.
R68,75
B.
R55
97
C.
R220
D.
R275
E.
R206,25
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A current asset will be scrapped when the asset is no longer useful and traded in as partial payment on
the purchase of a new asset.
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True
False
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Current liability are liabilities that …
Select one:
A.
B.
have a useful life longer than one year.
98
C.
D.
are expected to be settled within twelve months after the statement of financial position date.
E.
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Balances at 1 November 20.9 R
Equipment: Cost…………………………………………………………….. 280 000
Accumulated depreciation: Equipment…………………………………… (164 800)
(a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to upgrade some of
its processes by selling old printing equipment for R38 000 cash. The machine was bought on 1
Use the information as extracted from the accounting records of Kumkani Traders and assume the
accumulated depreciation on the sold equipment was R142 500 at the date of sale and that the total
depreciation for the year was R47 554.
The correct amount that must be disclosed as the total carrying amount of equipment at the end of the
financial year, 31 October 20.10 will be:
NB: Instructions
168746
Answer:
99
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Equipment: 280 000
Cost………………………………………………………………
Accumulated depreciation: (164 800)
Equipment……………………………………..
its processes by selling old printing equipment for R35 000 cash. The machine was bought on 1 November
20.4 for R195 000. Depreciated was provided for at 15% p.a. on the straight-line method.
How will the note to the financial statement: Property, plant and equipment be disclosed for the year ended
ended 31 October 20.10?
Instructions:
100
101
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Which of the following will be considered as a non-current liability?
Select one:
A.
Accrued expenses
B.
Trade payables
C.
D.
Prepaid expenses
E.
Mortgage
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
102
Instructions:
100
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NB: Instructions

400
Answer:
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Cash investments are usually invested at a fixed rate or at a rate that does not change often.
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True
False
Question 15
103
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Betties Dealers obtained a loan of R1 000 000 from VL Bank on 1 September 20.1. The loan is secured by
mortgage over land and buildings and is redeemable in four equal annual instalments. The first instalment
on loan is payable on 31 August 20.2. The interest rate payable is 15%. Betties Dealers financial year end
28 February.
The amount of the interest expense to be disclosed in the statement of profit or loss and other
comprehensive income for the year ended 28 February 20.2 is …
Instructions:
75000
Answer:
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True
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104
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Which of the following is an example of an intangible asset?
Select one:
A.
Fixed deposits
B.
Vehicles
C.
Intellectual property
D.
Cash and cash equivalents
E.
Consumable inventory
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Extract of the pre-closing trial balance of SLS Traders as at 30 September 20.20
Debit Credit
R R
Plant and machinery (cost) 360 000
Accumulated depreciation: plant and machinery 125 250
Equipment (cost) 270 000
Accumulated depreciation: equipment 51 300
Land 200 000
Buildings (cost) 140 000
Fixed deposit (@ 7.5% p.a.) 500 000
Depreciation 115 101
Loss on sale of equipment 4 500
Interest on fixed deposit 37 500
105
How will non-current assets be disclosed in the statement of financial position of SLS Traders as at
30 September 20.20?
Instructions:
106
VERSION 6

Depreciation on the straight-line method is when the cost price of the asset is written off over the
expected useful life of the asset.
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True
False
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method.
Instructions:

107
108
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Legal action can also result in liabilities.
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True
False
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Which of the following are examples of non-current liabilities?
Select one:
A.
Debentures, short-term loans and mortgages.
B.
Debentures, fixed deposits and long-term borrowings.
C.
Long-term borrowings, current portion of long-term borrowings and debentures.
D.
Debentures and long-term borrowings.
E.
Current portion of long-term borrowings and non-current portion of long-term borrowings.
109
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R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Purchases returns………………………………………………….. 4 000
Settlement discount received……………………………………… 1 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500
Carriage on purchases……………………………………………... 2 000
Carriage on sales…………………………………………………… 500
Settlement discount granted………………………………………. 3 000
Which of the following represents the correct amount for the cost of purchases?
NB: Instructions
3500
Answer:
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During the physical inventory count conducted by Nice Traders for the year ended 31 May 20.19, inventory
on hand consists of trading inventory, R12 507, packaging material, R1 596, stationery. R978 and cleaning
material, R560. Before Nice Traders signed off the inventory count sheets, the supervisor noticed that
110
trading inventory on hand included consignment inventory to the value of R1 547 that is owned by Besties
Suppliers.
Extract from Pre-adjustment trial balance for the year ended 31 May 20.19:
R
Trading inventory: 1 June 20.18 15 450
Purchases 36 962
Packaging material 6 303
Stationery 4 597
Cleaning material 3 896
Which of the following represents the correct closing trading inventory amount for Nice Traders for the year
ended 31 May 20.19?
Select one:
A.
R14 094
B.
R15 641
C.
R15 081
D.
R10 960
E.
R13 534
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Non-current liabilities are liabilities that …
Select one:
A.
111
B.
C.
D.
E.
have a useful life longer than four months.
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R
Inventory (1 June 20.1)………………………………………………… 120 000
Purchases……………………………………………………………….. 90 000
Sales……………………………………………………………………... 200 000
NB: Instructions

15000
Answer:
Question 9
112
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Matties Discount Store sells furniture. They bought a laptop for the receptionist for R7 590 (including VAT)
on credit from Diya Computers. The VAT rate is 15% and Matties Discount Store is a registered VAT
vendor.
The correct entries in the books of Matties Discount Store with regard to the transaction is ...
Instructions:
The VAT transaction should always be done last.
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Select one:
113
True
False
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line method.
Use the information as extracted from the accounting records of Lele Plastics to complete the asset realisation
account to calculate the profit/loss on the sale of the plastic shredding equipment that will be disclosed in the
statement of profit of loss and other comprehensive income. The amount will be:
Instructions:
format.
114
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
66.67
Answer:
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115
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Select one:
A.
Accrued income
B.
Inventory
C.
Trade receivables
D.
E.
Trade payables
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operational excluding import duties and non-refundable purchase taxes.
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True
False
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116
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year will be subclassified as cost of sales in the statement of profit or loss and other comprehensive
income.
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True
False
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R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500

117
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YO-YOLA TRADERS
Notes to the financial statements for the financial year ended 28 February 20.21
Property, plant and equipment
Buildings
R
Carrying amount:
Beginning of year 357 500
Cost 550 000
Accumulated depreciation (192 500)
118
Additions -
Depreciation for the year (27 500)
Disposals 0
Cost 0
Accumulated depreciation 0
Carrying amount:
End of the year ?
Cost ?
Accumulated depreciation ?
Equipment are depreciated at 5% per annum on the straight-line method.
What will the carrying amount for equipment be for Yo-Yola Traders for the year ended 28 February 20.21?
Instructions:
330000
Answer:
119
VERSION 7

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True
False
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NB: Instructions
120
243440
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The following information was obtained from the records of Ronnie’s Dealers for the month ended
30 June 20.2:
R
journal………………………
journal……………………………….
column……………………………….
column……………………................................
receivables ledger from the trade payables 1 000
ledger……………………………
List of individual creditors per trade payables ledger:
Credit 49 650
balances…………………………………………………………………… 6 000
Debit
balances…………………………………………………………………….
List of creditors balances as at 30 June 20.2 as per the trade payables

ledger:
18 000
DT 12 000
Traders…………………………………………………................................. 9 000
MM
Wholesalers…………………………………………………………………..
JJ
Traders………………………………………………………………………….
(a) An invoice for R2 100 which has been entered correctly in the purchases journal was entered
incorrectly against the account of MM Wholesalers as R1 200.
(b) The total of the list of credit balances was undercast by R700.
121
The correct account for MM Wholesalers in the trade payables ledger after taking into consideration the
additional information provided of Ronnie’s Dealers on 30 June 20.2 will be:
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If an options has been provided and it is not applicable to the specific questions please put a 0 in the amounts
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financial position.
Select one:
A.
equity
B.
current asset
C.
current liability
D.
122
E.
non-current asset
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During the physical inventory count conducted by Top Traders for the year ended 31 May 20.21, inventory
on hand consists of trading inventory, R10 607, packaging material R1 759, stationery R998 and cleaning
material R550. Before Top Traders signed off the inventory count sheets, the supervisor noticed that trading
inventory on hand included consignment inventory to the value of R1 947 that is owned by Bow Suppliers.
R
Purchases 40 000
Stationery 5 597
The correct closing trading inventory amount for Top Traders for the year ended 31 May 20.21 is ...
Instructions:
8660
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123
Assuming the plastic shredding equipment was sold at a loss of R4 200, the effect of the transaction on the
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Select one:
A.
B.
124
C.
D.
Fixed deposits
E.
Vehicles
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Income received in advance is classified as a current asset.
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Equipment: 280 000
Cost………………………………………………………………
Equipment……………………………………..
125
The current amount to be disclosed as depreciation on the 3D printing equipment for the year ended
31 October 20.10 is ...
Instructions:
27247
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Select one:
A.
R55
B.
R275
C.
R68,75
D.
R220
E.
R206,25
Clear my choice
126
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Depreciation on the straight-line method is when the cost price of the asset is written off on a different
percentage of cost price less accumulated depreciation annually.
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True
False
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The carrying amount of an intangible asset is shown under non-current assets in the statement of
financial position.
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127
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Purchases…………………………………………………………………… R29 760
Sales………………………………………………………………………… R130 600
Sales journal:
Purchases journal:
General journal:
128
journal.
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format.
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129
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A non-current asset will be scrapped when the asset is no longer useful and traded in as partial payment
on the purchase of a new asset.
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True
False
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NNOSHI TRADERS
Notes to the financial statements for the financial year ended 30 June 20.20
Property, plant, equipment
Vehicles
R
Carrying amount:
Cost 172
000
Additions 60 000
Depreciation (29 738)
Disposals ?
Cost 45 000
Carrying amount:
End of year
Cost
Accumulated depreciation
(a) The vehicle that was sold was an old van that was bought on 1 January 20.17 for R45 000. On 31
March 20.20 the van was sold for R25 000 cash.
(b) Vehicles are depreciated at 15% per annum on the straight-line method.
The profit/loss on the sale of the van will be?
130
NB: Instructions
4. Indicate a profit on sale of asset as 12142 and a loss on sale of asset as -12142
-1438
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line method.
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format.
131
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132
Which of the following will be considered as a non-current liability?
Select one:
A.
Mortgage
B.
Trade payables
C.
D.
Prepaid expenses
E.
Accrued expenses
Clear my choice
133
VERSION 8
Janice sold a jacket for R1 840.00 (VAT inclusive). If her mark-up percentage as a percentage of cost is
20%, what is the cost price of the product?
NB: Instructions
1333.33
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A physical inventory count revealed that the following was on hand on the premises of JFK Traders at the
financial year-end 30 June 20.20:
Trading inventory R6 500
Packaging material R2 500
Stationery R 500
134
How will these items be disclosed in the statement of financial position as at 30 June 20.20?
Select one:
A.
Non-current assets: Inventory R9 500
B.
Non-current assets: Inventory R6 500.
C.
Current assets: Fixed Deposit R6 500
D.
Current assets: Inventory R9 500
E.
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R
Equipment: Cost………………………………………………………. 280 000
Select one:
A.
135
B.
C.
D.
E.
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Accumulated depreciation: Equipment(32 000)
method.
Instructions:
136
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Select one:
A.
have a useful life longer than one year.
B.
C.
D.
E.
137
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ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
R55 000.

138
Instructions:
139
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According to the diminishing balance method depreciation is written off on a different percentage of cost
price less accumulated depreciation annually.
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True
False
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140
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R
Purchases 29 678
Stationery 3 500
The correct amount for inventory to be disclosed in the statement of financial position of Top Traders as at 31
May 20.21 is ...
Instructions:
9830
Answer:
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True
False
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141
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The classification inventory includes consumable inventory which are consumed in the normal business
activities.
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True
False
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
142
33.33
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20.2:
R
20.2
journal……………………...
journal………………………………
column……………………………….
column.............................................................
ledger……………………………… 1 000
will be?
Instructions:
format.
143
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Which one of the following represents the correct general ledger entries in the books of FAB Traders to
rectify the purchases journal total?
Select one:
A.
Purchases returns Trade payables control 2 000
B.
Trade payables control Purchases 2 000
C.
144
D.
E.
Trade payables control Purchase returns 2 000
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The bookkeeper of HS Stores forgot to enter a credit purchases transaction of R10 000 in the purchases
journal, this omission will result in the trade payables control balance being understated by R10 000.
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True
False
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True
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145
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R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500
NB: Instructions
78500
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30 June 20.2:
R
journal……………………..
journal………………………………
146
column………………………………
column…………………...................................
ledger……………………………
Credit 49 650
balances…………………………………………………………………… 6 000
Debit
balances…………………………………………………………………….
(c) The balance of the trade payables control account in the general ledger on 31 May 20.2 is R40 000
and on 1 July 20.2 it was R45 250.
What will the correct reconciliation of the creditors balances with the balance of the trade payables
account of Ronnie’s Dealers on 30 June 20.2 be?
Instructions:
format.
147
VERSION 9
R
Inventory (1 June 20.1)………………………………………………… 120 000
Purchases……………………………………………………………….. 90 000
Sales……………………………………………………………………... 200 000

148
NB: Instructions

15000
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Income received in advance is classified as a current asset.
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True
False
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If debentures are redeemable within the next 12 months the debentures will be shown as a current liability
in the statement of financial position.
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True
False
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149
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According to the diminishing balance method depreciation is written off over the expected useful life of
the asset.
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True
False
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When an entity uses a periodic inventory system the totals of the purchases journal will be posted to the
general ledger as follows:
Select one:
A.
Debit the trade receivables control account; credit the VAT output account and the purchases account.
B.
Debit the trade payables control account and the VAT input account; credit the purchases account.
C.
Credit the trade payables control account and the VAT input account; debit the purchases account.
D.
Debit the trade payables control account; credit the VAT input account and the purchases account.
E.
Credit the trade payables control account; debit the VAT input account and the purchases account.
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150
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A profit on sale of a motor vehicle is recorded when the motor vehicle is sold for more than its carrying
value.
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True
False
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R
Inventory (1 July 20.1)………………………………………………… 60 000
Sales……………………………………………………………………. 270 000
Net purchases…………………………………………………………. 75 000
Customs 1 500
duties…………………………………………………………
granted…………………………………………..
151
What will the correct statement of profit or loss and other comprehensive income for the year ended 30 Jun
e 20.2 be?
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152
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Extract of the pre-closing trial balance of SLS Traders as at 30 September 20.20
Debit Credit
R R
Plant and machinery (cost) 360 000
Accumulated depreciation: plant and machinery 125 250
Equipment (cost) 270 000
Accumulated depreciation: equipment 51 300
Land 200 000
Buildings (cost) 140 000
Fixed deposit (@ 7.5% p.a.) 500 000
Depreciation 115 101
Loss on sale of equipment 4 500
Interest on fixed deposit 37 500
How will non-current assets be disclosed in the statement of financial position of SLS Traders as at
30 September 20.20?
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153
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Balances at 1 April 2019 R
At the beginning of the financial year, 1 April 2019, Namgoong Plastics replaced its plastic shredding
The depreciation on the glass recycling equipment for the year ended 31 March 2020 amounted to:
Select one:
A.
R9 120
B.
R14 750
C.
R5 600
D.
R5 227
E.
R5 000
Clear my choice
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154
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Indicate which journal(s) will be used to record the transactions relating to the sale of the plastic shredding
equipment?
Select one:
A.
Cash receipts journal; Cash payments journal
B.
C.
Cash payments journal; Cash receipts journal; General journal
D.
General journal
E.
Cash receipts journal
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155
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156
157
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CK TRADERS
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
The total carrying amount for vehicles to be shown in the statement of financial position as at 31 October
20.9, will be …
NB: Instructions
158
101979
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NB: Instructions
86500
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Debentures may be secured by a mortgage.
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True
False
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159
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YO-YOLA TRADERS
Buildings
R
Carrying amount:
Cost 550 000
Additions -
Disposals 0
Cost 0
Carrying amount:
End of the year ?
Cost ?
What will the carrying amount for equipment be for Yo-Yola Traders for the year ended 28 February 20.21?
Instructions:
330000
Answer:
160
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a.
500 on 30 April 20.2.
b.
500 on 30 April 20.2.
c.
d.
with R59 500.
e.
with R59 500.
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ARCH TRADERS
161
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
R55 000 cash.

Use the information as extracted from the accounting records of Arch Traders to complete the asset
realisation account to calculate the profit/loss on the sale of the old equipment that will be disclosed in
the statement of profit of loss and other comprehensive income. The amount will be:
Instructions:
format.
162
163
VERSION 10
The cost price and the accumulated depreciation on equipment A are R70 000 and R35 000 respectively
on 1 March 20.1. Equipment A is sold on 1 March 20.1 for R40 000.
Which of the following is correct regarding the sale of equipment A?
Select one:
A.
B.
C.
D.
E.
Clear my choice
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Which of the following concepts represent possible assets whose existence will be confirmed by the
occurrence or non-occurrence of uncertain future events that are not wholly within the control of the
entity concerned?
Select one:
A.
Accrued income
164
B.
Contingent assets
C.
Income
D.
Expenses
E.
Contingent liabilities
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Equipment: 280 000
Cost………………………………………………………………
Equipment……………………………………..
How will the note to the financial statement: Property, plant and equipment be disclosed for the year ended
ended 31 October 20.10?
Instructions:
165
166
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NB: Instructions
243440
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Goodwill, that is the good name of an entity is an example of an property, plant and equipment.
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True
False
Question 6
167
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A physical inventory count revealed that the following was on hand on the premises of JFK Traders at the
financial year-end 30 June 20.20:
Trading inventory R6 500
Stationery R 500
How will these items be disclosed in the statement of financial position as at 30 June 20.20?
Select one:
A.
B.
Non-current assets: Inventory R9 500
C.
Current assets: Fixed Deposit R6 500
D.
Non-current assets: Inventory R6 500.
E.
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
168
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
33.33
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a.
with R59 500.
b.
500 on 30 April 20.2.
c.
d.
with R59 500.
e.
500 on 30 April 20.2.
Clear my choice
169
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R
Purchases 40 000
Stationery 5 597
Instructions:
8660
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ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
170
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750

realisation account to calculate the profit/loss on the sale of the old vehicle that will be disclosed in the
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171
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NNOSHI TRADERS
Vehicles
R
Carrying amount:
Cost 172
000
Additions 60 000
Disposals ?
Cost 45 000
172
Carrying amount:
End of year
Cost
NB: Instructions
-1438
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operational including the estimated costs of dismantling and removing the item and restoring the site on
which it is located.
Select one:
True
False
Question 13
173
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Indicate whether the following statement is true or false regarding investment in shares:
Dividends earned on investments in shares are only received if the company from whom the shares are
bought declares a dividend.
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True
False
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Income received in advance is classified as a current liability.
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True
False
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Purchases…………………………………………………………………… R29 760
174
Sales………………………………………………………………………… R130 600
Sales journal:
Purchases journal:
General journal:
journal.
Instructions:
175
format.
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The inventory controller at WR Wholesalers incorrectly calculated the inventory count at the end of the
financial year.
An incorrect inventory count will affect the current liabilities total in the statement of financial position.
Select one:
True
False
176
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30 June 20.2:
R
journal……………………………….
column……………………………….
column……………………................................
ledger……………………………
Credit 49 650
balances…………………………………………………………………… 6 000
Debit
balances…………………………………………………………………….

ledger:
18 000
DT 12 000
Traders…………………………………………………................................. 9 000
MM
Wholesalers…………………………………………………………………..
JJ
Traders………………………………………………………………………….
177
Instructions:
column.
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Thabo Stores sold inventory on credit for R6 750 on 1 June 20.1. The mark up percentage on cost price is
35%. (Ignore VAT) The cost price of the inventory sold is …
Select one:
A.
R2 363
B.
R5 000
C.
R1 750
D.
R6 750
178
E.
R9 112
179
VERSION 11
Equipment: Cost…………………………………………………………….. 280 000
NB: Instructions
168746
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Select one:
A.
Accrued income
180
B.
Trade receivables
C.
D.
Inventory
E.
Trade payables
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R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500
NB: Instructions
181
118500
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balances per trade payables ledger for Maxi Traders, the bookkeeper noted that an invoice of R2 185 (VAT
inclusive) has been incorrectly entered in the purchases journal as R230.
What will the correct general ledger entries in the books of Maxi Traders be to correct the given
error?
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182
If the debit side of the asset realisation account is bigger than the credit side of an asset realisation
account, the difference is a profit on sale of asset.
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True
False
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method.
Instructions:

183
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On 30 April 2020, ARK Traders purchased furniture to the value of R50 000 on credit from Value
Furnishers. The business uses the periodic inventory system.
Which one of the following represents the correct general ledger entries in the books of ARK Traders to
record the above transaction?
Select one:
A.
General ledger
Account debited Account credited
Value Furnishers/Trade payables Furniture
control
B.
General ledger
Furniture Purchases
C.
General ledger
184
Purchases Value Furnishers/Trade payables control
D.
General ledger
Value Furnishers/Trade payables Purchases
control
E.
General ledger
Furniture Value Furnishers/Trade payables control
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Select one:
A.
R220
B.
R55
C.
R68,75
D.
R275
E.
R206,25
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185
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The only difference between debentures and a long-term loan is that with debentures there are several
creditors, whereas with a long-term loan there is usually only one creditor which is usually a financial
institution.
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True
False
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
33.33
Answer:
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186
Question text
method.
Select one:
A.
R54 167
B.
R65 000
C.
R75 833
D.
R379 167
E.
R130 000
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R
Purchases 29 678
Stationery 3 500
May 20.21 is ...
187
Instructions:
9830
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method.
Instructions:

188
Question 14
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189
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Indicate which journal(s) will be used to record the transactions relating to the sale of the plastic shredding
equipment?
Select one:
A.
Cash receipts journal
B.
Cash payments journal; Cash receipts journal; General journal
C.
D.
General journal
E.
Cash receipts journal; Cash payments journal
Clear my choice
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190
When determining the historical cost of inventory, other costs that must be included are the cost of
transporting the goods from the point of sale to the premises of the purchaser.
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True
False
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Consumable stores on hand will be shown under inventory as a current asset in the statement of financial
position.
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True
False
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True
False
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191
Question text
R
Inventory (1 July 20.1)………………………………………………… 60 000
Sales……………………………………………………………………. 270 000
Net purchases…………………………………………………………. 75 000
Customs 1 500
duties…………………………………………………………
granted…………………………………………..
June 20.2 be?
Instructions:
format.
192
VERSION 12
30 June 20.2:
R
journal……………………………….
column……………………………….
column……………………................................
ledger……………………………
Credit 49 650
balances…………………………………………………………………… 6 000
Debit
balances…………………………………………………………………….

ledger:
18 000
DT 12 000
Traders…………………………………………………................................. 9 000
MM
Wholesalers…………………………………………………………………..
JJ
Traders………………………………………………………………………….
Instructions:
193
column.
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
33.33
Answer:
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194
Question text
A current asset will be scrapped when the asset is no longer useful and traded in as partial payment on
the purchase of a new asset.
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True
False
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financial position.
Select one:
A.
current liability
B.
current asset
C.
equity
D.
non-current asset
E.
Clear my choice
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195
35%
NB: Instructions
20000
Answer:
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Select one:
A.
Copyrights
B.
Patents
C.
D.
Franchises
E.
Fixed deposits
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196
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True
False
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ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
197

Instructions:
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198
Instructions:
format.
199
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
200
100
Answer:
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Select one:
A.
General ledger
control
B.
General ledger
control
C.
General ledger
Furniture Purchases
D.
General ledger
E.
General ledger
201
Furniture Value Furnishers/Trade payables control
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a.
500 on 30 April 20.2.
b.
with R59 500.
c.
d.
500 on 30 April 20.2.
e.
with R59 500.
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202
R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500
NB: Instructions
118500
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the cost price.
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True
False
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203
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True
False
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R
Inventory (1 July 20.1)………………………………………………… 60 000
Sales……………………………………………………………………. 270 000
Net purchases…………………………………………………………. 75 000
Customs 1 500
duties…………………………………………………………
granted…………………………………………..
June 20.2 be?
Instructions:
format.
204
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Suppliers.
R
Purchases 36 962
Stationery 4 597
ended 31 May 20.19?
Select one:
205
A.
R10 960
B.
R15 641
C.
R13 534
D.
R14 094
E.
R15 081
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Although cash investments are not always the most profitable type of investment, entities often have cash
temporarily available that they want to invest for a relatively short period.
Select one:
True
False
206
VERSION 13
31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
33.33
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207
Instructions:
format.
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
100
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Suppliers.
R
Purchases 36 962
Stationery 4 597
209
ended 31 May 20.19?
Select one:
A.
R13 534
B.
R10 960
C.
R15 081
D.
R15 641
E.
R14 094
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Select one:
A.
General ledger
Furniture Purchases
B.
General ledger
210
control
C.
General ledger
Furniture Value Furnishers/Trade payables
control
D.
General ledger
E.
General ledger
control
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Debentures only has one creditor.
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True
False
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Balances at 1 April 2019 R
211
At the beginning of the financial year, 1 April 2019, Namgoong Plastics replaced its plastic shredding
The depreciation on the glass recycling equipment for the year ended 31 March 2020 amounted to:
Select one:
A.
R5 600
B.
R9 120
C.
R5 000
D.
R14 750
E.
R5 227
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shredding machine was sold on credit for R8 000, it was the only piece of equipment in the books of
Namgoong prior to the purchase of the new glass recycling equipment. Depreciation is provided at 20%
p.a. on the straight-line method.
212
Assuming the plastic shredding equipment was sold at a profit of R5 250, the effect of the transaction on the
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False
213
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20.2:
R
20.2
journal……………………...
journal………………………………
column……………………………….
column.............................................................
ledger……………………………… 1 000
will be?
Instructions:
format.
214
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Select one:
A.
R2 363
B.
R9 112
C.
R6 750
D.
R5 000
E.
R1 750
215
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financial year.
An incorrect inventory count will affect the calculation of cost of sales.
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True
False
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Instructions:
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216
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NB: Instructions

400
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217
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243440
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financial year.
An incorrect inventory count will affect the calculation of the total comprehensive income in the
statement of profit or loss and other comprehensive income.
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True
False
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218
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Lethabo Stores incurred import duty costs of R11 000 when purchasing inventory from Mauritius. The
import duty cost of R11 000 will be disclosed as an income under distribution, administrative and other
expenses in the statement of profit and loss and other comprehensive income.
Select one:
True
False
219
VERSION 13
31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
100
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method.
220
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CK TRADERS
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
221
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
NB: Instructions
555567
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The total revenue and the cost of sales amount disclosed in the statement of profit or loss and other
comprehensive income for Thabo Stores for the year ended 30 June 20.1 is R870 000 and R600 000
respectively. The gross profit for the year is R270 000. The gross profit percentage on sales (rounded off to
the nearest whole number) is …
Select one:
A.
31%
222
B.
70%
C.
45%
D.
322%
E.
38%
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20.2:
R
20.2
journal……………………...
journal………………………………
column……………………………….
column.............................................................
ledger……………………………… 1 000
223
will be?
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made?
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224
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NB: Instructions
86500
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financial year.
An incorrect inventory count will affect the calculation of sales.
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Which one of the following would be classified as a current asset for a motor vehicle dealership?
227
Select one:
A.
Vehicles held for resale
B.
Furniture
C.
Shop fittings
D.
Opening inventory
E.
Vehicles held for delivery
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Select one:
A.
Trade receivables
B.
Inventory
C.
D.
Accrued income
E.
Trade payables
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228
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Equipment: Cost…………………………………………………………….. 280 000
NB: Instructions
168746
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229
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Select one:
A.
R9 112
B.
R1 750
C.
R5 000
D.
R2 363
E.
R6 750
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A.
230
B.
C.
D.
E.
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charged due to late payment of the account. No entry was made in the accounting records of Ronnie’s
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231
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operational.
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232
The classification inventory does not include consumable inventory which are consumed in the normal
business activities.
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False
233
VERSION 14
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A.
B.
C.
D.
E.
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234
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The interest on a mortgage is shown as an expense in the statement of profit or loss and other
comprehensive income
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A.
Trademarks
B.
Equipment
C.
Buildings
D.
Vehicles
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Inventory
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235
R
Purchases 29 678
Stationery 3 500
May 20.21 is ...
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9830
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236
ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750

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237
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Interest on a long-term loan will be disclosed as other income on the statement of profit and loss and
other comprehensive income.
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Equipment: 280 000
Cost………………………………………………………………
Equipment……………………………………..
238
31 October 20.10 is ...
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27247
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Matties Discount Store sells furniture. They bought a laptop for the receptionist for R7 590 (including VAT)
on credit from Diya Computers. The VAT rate is 15% and Matties Discount Store is a registered VAT
vendor.
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239
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NNOSHI TRADERS
Vehicles
R
Carrying amount:
Cost 172
000
Additions 60 000
Disposals ?
Cost 45 000
Carrying amount:
End of year
Cost
240
NB: Instructions
-1438
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243440
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241
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30 June 20.2:
R
journal……………………………….
column……………………………….
column……………………................................
ledger……………………………
Credit 49 650
balances…………………………………………………………………… 6 000
Debit
balances…………………………………………………………………….

ledger:
18 000
DT 12 000
Traders…………………………………………………................................. 9 000
MM
Wholesalers…………………………………………………………………..
JJ
Traders………………………………………………………………………….
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242
column.
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Select one:
A.
Trade receivables
B.
Accrued income
C.
D.
Inventory
E.
Trade payables
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243
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Depreciation on the straight-line method is when the cost price of the asset is written off on a different
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a.
b.
500 on 30 April 20.2.
c.
with R59 500.
d.
with R59 500.
244
e.
500 on 30 April 20.2.
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The total of the trade payables column in the cash payments journal will be posted to the …
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A.
debit side of the bank account in the general ledger.
B.
credit side of each individual creditors account in the trade payables ledger.
C.
credit side of the trade payables account in the general ledger.
D.
credit side of the trade and other payables account in the general ledger.
E.
debit side of the trade payables control account in the general ledger.
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ARCH TRADERS
Debit Credit
245
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750

Instructions:
246
247
VERSION 15

Select one:
A.
Vehicles
B.
Inventory
C.
Trademarks
D.
Buildings
E.
Equipment
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248
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Suppliers.
R
Purchases 36 962
Stationery 4 597
ended 31 May 20.19?
Select one:
A.
R15 081
B.
249
R14 094
C.
R10 960
D.
R13 534
E.
R15 641
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Instructions:
250
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NNOSHI TRADERS
Vehicles
R
Carrying amount:
Cost 172
000
Additions 60 000
Disposals ?
Cost 45 000
Carrying amount:
End of year
Cost
251
NB: Instructions
-1438
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financial year.
An incorrect inventory count will affect the calculation of gross profit.

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Majozi, the owner of MAJOZI Traders keep incomplete records of the business transactions. The following
information is available.
252
MAJOZI TRADERS
Balances as at 30 June 20.19:
20.18 20.19
R R
Vehicles at cost ………………………………………………. 28 800 28 800
Furniture and equipment at cost…………………………..... 26 500 26 500
Inventory……………………………………………................ 21 770 ?
Trade receivables control……..…………………………….. 8 870 12 350
Bank (favourable)…………………………………………..... 25 000 20 000
Long-term borrowings……….……………………………..... 30 000 15 000
Trade payables control………..…………………………….. 9 500 12 700
Accrued expenses……………………..…………………...... 3 400 2 300
Prepaid expenses……………………………………………. 360 365
A physical inventory count revealed that the following was on hand on 30 June 20.19:
Inventory R27 669
Stationery R625
Packing materials R150
The total amount of trading inventory for Majozi Traders as at 30 June 20.19 will be?
Select one:
A.
R21 770
B.
R27 819
C.
R26 894
D.
R27 669
E.
R28 294
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253
31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
33.33
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ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
254

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255
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256
Cost of goods purchased includes opening inventory.
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
100
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20.2:
R
20.2
257
journal……………………...
journal………………………………
column……………………………….
column.............................................................
ledger……………………………… 1 000
will be?
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format.
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258
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Select one:
A.
Inventory
B.
Trade payables
C.
D.
Accrued income
E.
Trade receivables
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259
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The cost of stationery used is included in the calculation of cost of sales.
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Equipment: Cost…………………………………………………………….. 280 000
NB: Instructions
168746
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260
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B.
C.
D.
E.
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There is no annual interest expenses on debentures.
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Finish attempt ...
261
VERSION 16
financial position.
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A.
non-current asset
B.
current liability
C.
D.
equity
E.
current asset
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The total cost to be disclosed in respect of the machine on the property, plant and equipment note at the
end of the financial year will be?
NB: Instructions
262
33000
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Consumable stores on hand will be shown as an expense in the statement of profit or loss and other
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B.
C.
D.
Fixed deposits
263
E.
Vehicles
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CK TRADERS
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
NB: Instructions
264
555576
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Select one:
A.
R1 750
B.
R2 363
C.
R5 000
D.
R9 112
E.
R6 750
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financial year.
265
An incorrect inventory count will affect the calculation of sales.
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The total revenue and the cost of sales amount disclosed in the statement of profit or loss and other
comprehensive income for Thabo Stores for the year ended 30 June 20.1 is R870 000 and R600 000
respectively. The gross profit for the year is R270 000. The gross profit percentage on sales (rounded off to
the nearest whole number) is …
Select one:
A.
31%
B.
70%
C.
38%
D.
45%
E.
322%
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266
20.2:
R
20.2
journal……………………...
journal………………………………
column……………………………….
column.............................................................
ledger……………………………… 1 000
will be?
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format.
267
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balances per trade payables ledger for Maxi Traders, the bookkeeper noted that an invoice of R2 185 (VAT
inclusive) has been incorrectly entered in the purchases journal as R230.
What will the correct general ledger entries in the books of Maxi Traders be to correct the given
error?
Instructions:
268
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That portion of a long-term loan or obligation to be repaid within the next 18 months, must be disclosed
as a non-current liability in the statement of financial position.
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R
Purchases 40 000
269
Stationery 5 597
Instructions:
8660
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B.
C.
D.
E.
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line method.
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271
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financial year.
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273
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Liabilities are classified into current liabilities and non-current liabilities.
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
33.33
Answer:
274
VERSION 17

comprehensive income for the year ended 31 January 20.21 will be …
NB: Instructions
157770
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Debentures that will be redeemed within the next 12 months will be considered as current liability in the
statement of financial position.
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275
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made?
The revised current assets amount will be R121 000.
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Indicate whether the following statement is true or false regarding the procedures that must be followed
at the end of the month regarding to posting from the subsidiary journals?
An error will be noticed at the end of the month if the balance on the trade payables control account in
the general ledger is not equal to the total of the creditors list.
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276
Membership fees received in advance at the beginning of a financial period will be entered on the credit
side of the membership fees account.
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operational.
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277
Instructions:
2500
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A loss on sale of a motor vehicle is recorded when the motor vehicle is sold for more than its carrying
value.
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278
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Cost of goods purchased includes transport costs.
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A profit on sale of a motor vehicle is recorded when the motor vehicle is sold for more than its carrying
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the cost price.
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279
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Answer 1
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280
method.
The correct property, plant and equipment note for equipment (total column excluded) for Kola
metals on 31 March 20.22 will be:
Instructions:
281
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A receipts and payments statement for non-profit entities shows only actual cash receipts and payments.
282
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Liabilities are classified into current liabilities and non-current liabilities.
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CK TRADERS
R
283
Capital……………………………………………………………………………....................……... 450 000
...……. 5 500
Drawings………………………………………………………………………………..................…. 180 560
......…. 129 875
Trade receivables control……………………………………………………………..................…… 50 000
Trade payable 23 722
control………………………………………………………………...........…...........… 1 075 30
Land ............................................................................................................................................... 8
Building…………………………………………………………………....................................…..... ?
...….. 125 900
Machinery (at 12 590
cost)……………………………………………………………………....................…… 4 800
Accumulated depreciation: Machinery (1 November 20.8)……………………………. 15 909
Vehicle (at 254
cost)………………………………………………………………….......................…………. 2 542
Accumulated depreciation: Vehicle (1 November 20.8)………………………...……….. 264 000
Inventory: Trading (1 November 20.8)……………………………………………...........……… 120 782
Bank 1 530
(Favourable)…………………………………………………………………….......................……. 20 928
Petty 7 247
cash……………………………………………………………………………..........................…… 23 580
… 8 910
Cash 3 540
float………………………………………………………………………………..........................… 650
… 98 000
Loan from ATM 20 257
Bank…………………………………………………………………....................……. 9 456
Fixed deposit: TB 1 984
Bank…………………………………………………………....................……….....
Allowances for credit
losses………………………………………………………….................…….
Rental
income……………………………………………………………………………......................…..
Interest on fixed
deposit………………………………………………………………….................…
Advertising………………………………………………………………………………....................
.....…..
Packaging
material………………………………………………………………………......................…
Stationery…………………………………………………………………………………..................
............
Credit
losses…………………………………………………………………………….........................…...
Salaries and
wages……………………………………………………………………......................……
Interest on loan from ATM Bank……………………………………………………..............……..
Water and
electricity…………………………………………………………………....................……..
Telephone
expenses……………………………………………………………………......................….
284
(a) CK Traders sublets part of its building to B Silver. B Silver paid R20 928 on the 1 November 20.8 for 15
months. The rental agreement stipulated that CK Traders will increase the rental amount to R1 688 from 1
August 20.9.
(b) CK Traders deposited R120 782 into a fixed deposit account with TB Bank on 1 February 20.9, at an
interest rate of 12% per annum. The interest is receivable twice per annum in June and December.
(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso advertising
agency for a period of 2 years for a total amount of R23 580. CK Traders paid R23 580 to Kgomotso
advertising agency on 1 November 20.8 to cover the full contracted period.
(d) A physical inventory count revealed that the following was on hand on 31 October 20.9:
Inventory R7 775
Stationery R260
(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at 11,5% per
annum. The loan repayment schedule indicate that the capital repayment of the loan would be made in four
equal instalments as follows:
Instalments Amount Repayment date
First instalment R66 000 30 April 20.10
Second instalment R66 000 31 October 20.10
Third instalment R66 000 30 April 20.11
Fourth instalment R66 000 31 October 20.11
(f) You may assume that the total comprehensive loss for the year, after all the
above adjustments have been considered, amounted to R229 519.
The total amount for non-current liabilities to be shown in the statement of

financial position as at 31 October 20.9 will be …
Instructions:
198000
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35%
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20000
Answer:
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R
Equipment: Cost………………………………………………………. 280 000
286
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33367
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balances per trade payables ledger for Mini Traders, the bookkeeper noted that an invoice for R1 600, had
been entered incorrectly in the purchases journal as R160.
The correct general ledger entries in the books of Mini Traders to rectify the error made will be ...
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287
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288
VERSION 18

Settlement discount granted is deducted from purchases in determining the cost of purchases.
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The amount for depreciation to be shown in the statement of profit or loss and other comprehensive
income for the year ended 28 February 20.22 will be …
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243440
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289
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R
Instructions:
5750
Answer:
290
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According to IFRS the annual depreciation calculated on an asset is credited to the asset account in the
general ledger.
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31 May 20.2; 31 May 20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
33.33
Answer:
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Examples of
Answer 1
non-current
liabilities are ...
The concept
that represents
possible assets
whose existence
will be
confirmed by
the occurrence
or non-
occurrence of Answer 2
contingent assets
uncertain future
events that are
not wholly
within the
control of the
entity
concerned is ...
An example of
Answer 3
a financial asset
fixed deposits
is ...
The cost price
and the
accumulated
depreciation on
equipment A
are R70 000 and
R35 000
respectively on
1 March 20.1.
Equipment A is Answer 4
sold on 1 March A profit of R5 000 was made on the sale of the equipment A.
20.1 for
R40 000.
The correct
statement
regarding the
sale of
equipment A is
...
292
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financial year.

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293
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When creditors are paid within a specific period according to an agreement, the entity may get a discount,
called settlement discount received, on the outstanding account.
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Accrued membership fees at the end of a financial period will be entered on the credit side of the
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Irrespective of how many entries there may be in the cash receipts journal, only the total of each column
will need to be posted to the relevant general ledger account except for the sundry accounts column
where entries will be posted individually.
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Consumable stores on hand will be shown as an expense in the statement of profit or loss and other
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Equipment: 280 000
Cost………………………………………………………………
Equipment……………………………………..
295
31 October 20.10 is ...
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27247
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R
Purchases 29 678
Stationery 3 500
The correct amount for inventory to be disclosed in the statement of financial position of Top Traders
as at 31 May 20.21 is ...
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296
9830
Answer:
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correct the error.
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The instalment of a long-term borrowing which is payable in twelve months will be shown as current
portion of long-term borrowings under current liabilities on the statement of financial position.
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A summary of all cash transactions for a non-profit entity is represented in the income and expenditure
statement.
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298
VERSION 19
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Equipment: 280 000
Cost………………………………………………………………
Equipment……………………………………..
31 October 20.10 is ...
Instructions:
27247
Answer:
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To determine the closing inventory amount when an entity uses the periodic inventory system, a physical
inventory count does not need to be performed at the end of the financial period
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Under a periodic inventory system, the cost of sales is determined at the time of recording of the sale.
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300
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The amount for interest payable to be shown in the statement of financial position for the year
ended 31 May 20.19 will be?
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32854.50
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A receipts and payments statement for non-profit entities shows only actual cash receipts and payments.
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301
Consumable stores on hand will be included in the calculation of revenue.
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Accrued membership fees at the end of a financial period will be entered on the credit side of the
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302
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The total cost to be disclosed in respect of the machine on the property, plant and equipment note
at the end of the financial year will be ...
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33000
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correct the error.
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303
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Instructions:
2500
Answer:
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304
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Debentures may be secured by a mortgage.
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305
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Settlement discount received will not be disclosed in statement of profit or loss and other comprehensive
income.
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The apportionment of depreciation is debited in the asset’s contra account, namely accumulated
depreciation.
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306
Betties Dealers obtained a loan of R1 000 000 from VL Bank on 1 September 20.1. The loan is secured by
mortgage over land and buildings and is redeemable in four equal annual instalments. The first instalment
on loan is payable on 31 August 20.2. The interest rate payable is 15%. Betties Dealers financial year end
28 February.
The amount of the interest expense to be disclosed in the statement of profit or loss and other
comprehensive income for the year ended 28 February 20.2 is …
Instructions:
75000
Answer:
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Refreshments:
307
R
Inventory (31 December 20.18)…………………………………… 1 500
Purchases…………………………………………………………………..... 10 980
Sales………………………………………………………………………........ 39 000
Inventory (31 December 20.19)……………………………………. 3 000
One of the club members took 2 cooldrinks @ R22 each as well as 2 pies @ R19 each and said he will pay
the next day (1 January 20.19). No entries were made in the books of All STARS Tennis club regarding this
transaction.
The club send back 5 pies @ R15 (cost price) to Nice Pies because the pies were passed there due date.
No entries regarding this transaction has been entered in the books of All STARS Tennis club.
The gross profit/loss amount for the small shop for refreshments of All Stars Tennis Club to be
shown in the income and expenditure statement for the year ended 31 December 20.19, will be:
Instructions:
308
309
VERSION 20
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R
Purchases 29 678
Stationery 3 500
The correct amount for inventory to be disclosed in the statement of financial position of Top Traders
as at 31 May 20.21 is ...
Instructions:
310
9830
Answer:
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Lethabo Stores incurred import duty costs of R11 000 when purchasing inventory from Mauritius. The
import duty cost of R11 000 will be disclosed as an income under distribution, administrative and other
expenses in the statement of profit or loss and other comprehensive income.
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Cost of goods purchased excludes opening inventory only.
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311
Non-current liabilities are long-term debts that have to be settled within one year of the date of the
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Answer 1
Answer 2
Answer 3
Answer 4
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CK TRADERS
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
312
The total accumulated depreciation for machinery CK002 to be transferred to asset realisation
account on the date of disposal, will be …
NB: Instructions
555576
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Accrued membership fees at the beginning of a financial period will be entered on the credit side of the
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Equipment: 280 000
Cost………………………………………………………………
Equipment……………………………………..
Use the information as extracted from the accounting records of Kumkani Traders to complete the
asset realisation account to calculate the profit/loss on the sale of the old printing equipment that
will be disclosed in the statement of profit of loss and other comprehensive income. The amount
will be:
Instructions:
format.
314
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operational.
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the cost price.
315
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The carrying value of a non-current asset is determined by subtracting accumulated depreciation of the
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financial position.
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Equipment: Cost…………………………………………………………….. 280 000
The correct amount that must be disclosed as the total carrying amount of equipment at the end of
the financial year, 31 October 20.10 will be ...
NB: Instructions
168746
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317
Membership fees – 15 810
received…………………………………………………………...............
Accrued membership fees (30/09/20.19)…………………………………………......…. 1 860
Membership fees received in advance (30/09/20.19)……………………………… 2 700
Advertising 2 200
expenses………………………………………………………………................…..
Thierry Henry fund - 24 000
(30/09/20.19)………………………………………………….......….
for to the next financial year amounted to R5 400. 50% of the accrued membership fees balance outstanding
at the beginning of the financial year should be written off.
condition for the donation is that the income from the investment should be used to advertise the club and
the capital amount can only be used after 10 year.
Use the information provided to calculate the entrance fees that should be recognised as income in
the statement of income and expenditure for the year ended 30 September 20.20:
Instructions:
2200
Answer:
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318
The only difference between debentures and a long-term loan is that with debentures there are several
creditors, whereas with a long-term loan there is usually only one creditor which is usually a financial
institution.
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An entity can use either a perpetual (continuous) inventory system or a periodic inventory system,
depending on the nature of the entity, the type of merchandise sold and the level of computerization in
the entity.
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The gross profit calculated in the trading statement of a non-profit entity is transferred to income and
expenditure statement and is disclosed under income.
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R
Inventory (1 July 20.1)……………………………………………… 60 000
Purchases…………………………………………………………… 80 000
Sales…………………………………………………………………. 270 000
Customs duties……………………………………………………… 1 500
The correct amount for the cost of purchases will be ...
NB: Instructions
320
78500
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There is no annual interest expenses on debentures.
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False
321
VERSION 21

Irrespective of how many entries there may be in the cash receipts journal, only the total of each column
will need to be posted to the relevant general ledger account except for the sundry accounts column
where entries will be posted individually.
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False
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correct the error.
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GBV Club is a non- profit organisation that was started by 150 members on 1 January 20.7. The objective
of GBV Club is to address gender-based violence that is faced by South African citizens. The constitution
of GBV Club indicated the following:
(a) Membership fees amount to R1 600 per member per annum.
(b) Entrance fees to join the club amount to R180 per member and it should be capitalised.
(c) Membership fees needs to increase by 10% at the beginning of every year, starting from 1 January
20.8.
322
(d) Members can pay their membership fees in advance.
(e) Members who have not paid their previous’ years membership fees by 30 June of the following year,
are considered as irrecoverable and must be written off.
(f) GBV Club does not provide members with refunds if they leave the club.
In order to prepare the financial statements for the current financial period ended 31 December 20.8, the
bookkeeper presented the following information regarding the finances of the club to members at a
meeting held on 31 December 20.8:
Membership fees and entrance fees:
(1) 7 members paid their membership fees on 31 December 20.7 for the financial period ending 31
December 20.8
(2) Out of the 25 members who did not pay their membership fees for the previous financial period only
15 members have paid their outstanding membership fees by 30 June 20.8.
(3) 50 new members joined the club and each member paid their entrance fees of R180.
(4) Membership fees received of R389 200 for the current financial year ended 31 December 20.8.
(5) 15 members have paid their membership fees for the financial period ended 31 December 20.9.
(6) Only 9 members have not yet paid their membership fees for the current period.
The total amount for membership fees to be transferred to the income and expenditure statement
for the year ended 31 December 20.8, will be:
Instructions:
323
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Assuming the plastic shredding equipment was sold at a loss of R4 200, the effect of the transaction on
the accounting equation will be:
Instructions:
324
Equipment
Trade receivables control
Loss on sale of asset
N/A
-80 000
+36 000
+39 800
-4 200
0
N/A
Loss on sale of asset
Equipment
Bank
Depreciation
Trade payables control
-39 800
-80 000
0
-8 000
+80 000
+39 800
-36 000
+36 000
-4 200
+8 000
+4 200
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Question 6
325
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Interest on a long-term loan will be disclosed as distribution, administrative and other expenses on the
statement of profit and loss and other comprehensive income.
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Debentures usually have many creditors.
326
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Prepaid expenses should be included in the statement of profit or loss and other comprehensive income.
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amount of R31 050 (15% VAT inclusive). Furniture Traders makes use of a mark-up percentage on cost of
35%
NB: Instructions
27000
Answer:
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327
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An income and expenditure statement for non-profit entities is the same as a statement of profit or loss
and other comprehensive income for a sole trader.
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A receipts and payments statement for non-profit entities is the same as a bank account for a sole trader.
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328
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R
Instructions:
5750
Answer:
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329
The depreciation on the glass recycling equipment for the year ended 31 March 20.20 amounted to:
Instructions:
9120
Answer:
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discounted by 25%.
What is the discount amount?
Instructions:
2. Round off to the nearest cent (eg: 50.56)
330
68.75
Answer:
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What
will be
classified Answer 1
as a Trade payables
current
liability?
The total
of the
trade
payables
column
in the Answer 2
cash debit side of the trade payables control account in the general ledger.
payments
journal
will be
posted to
the …
Example
s of non-
current Answer 3
liabilities
are ...
Non-
current
liabilities Answer 4
are are expected to be settled beyond twelve months after the statement of financial position date.
liabilities
that …
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year will be subclassified as individual expense item in the statement of profit or loss and other
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332
True
False
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According to IFRS the annual depreciation calculated on an asset should not be credited to the asset
account in the general ledger.
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True
False
Finish attempt ...
333
Question 1
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GBV Club is a non- pro t organisation that was started by 130 members on 1 January
20.7. The objective of GBV Club is to address gender-based violence that is faced by
South African citizens.
On 1 January 20.8 GBV Club opened a small shop to raise additional funding. The shop
sells, printed T-shirts with messages addressing gender-based violence. No T-shirts
were on hand on 1 January 20.8.
In order to prepare the nancial statements for the current nancial period ended
31 December 20.8, the bookkeeper presented the following information regarding the
nances of the club to members at a meeting held on 31 December 20.8:
(1) GBV Club purchased 1 790 T-shirts during the current nancial period at a cost
price of R55.00 per T-shirt.
(2) GBV Club donated 110 T-shirts to citizens during the year to raise more awareness
about gender-based violence.
(3) 430 T-shirts were on hand on 31 December 20.8 (considered as nal inventory
count for the current nancial year).
(4) T-shirts that have not been donated or not on hand, were all sold at a mark-up of
50% on cost price.
The gross pro t/loss amount for the small shop for T-shirts of GBV Club to be shown
in the trading statement for the year ended 31 December 20.8, will be:
Instructions:

Keep the sequence of the transactions strictly according to the information given and
the correct format.
Sales
103 125
Cost of sales
(68 750)
Purchases 98 450
Donations (6 050)
Sales (Closing)
Inventory Revenue Cost of sales Inventory (Opening) (23 650)
Inventory (Closing) Donations Purchases Gross profit
Gross profit Gross income Net profit 34 375
1 790 98 450 110 6 050 430 23 650 103 125 21 970
1 250 1 470 80 850 121 275 40 425 98 450 (68 750) 29 700
(6 050) (23 650) 34 375

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Lunas Art Club provides you with the following information for the 20.2 nancial year.
Lunas Art Club had 50 members at the end of the 20.2 nancial year. Membership fees
amounts to R250 per month. During the current nancial year, ve new members joined
the club and paid an entrance fee of R100 each. The entrance fees received was
capitalised to the accumulated fund account. Membership fees received in advance on
31 December 20.1 was R6 000. The nancial year-end of Lunas Art Club is 31
December.
The amount for membership fees that will disclosed in the income and expenditure
statement on 31 December 20.2 will be …
Instructions:

Answer: 156500
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Betties Dealers has a loan of R1 000 000 from VL Bank. The loan is secured by
mortgage over land and buildings and is redeemable in four equal annual instalments.
The rst instalment on loan is payable on 31 August 20.2. The interest rate payable is
15% Betties Dealers nancial year end 28 February.
How will the given transaction be disclosed in the statement of nancial position for
the year ended 28 February 20.1?
Instructions:

Please keep the sequence of transactions strictly according the information given but
also in the correct format.
EQUITY AND LIABILITIES
Non-current liabilities 750 000
Long-term borrowings 750 000
CurrentASSETS
liabilities Non-current assets
Investments Current assets

Current portion of long-term borrowings 250 000
Current portion of investment EQUITY AND LIABILITIES
Non-current liabilities Long-term borrowings
Current liabilities Current portion of long-term borrowings
1 000 000 1 250 000 250 000 750 000

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During the physical inventory count conducted by Top Traders for the year ended 31
May 20.21, inventory on hand consists of trading inventory, R10 607, packaging
material R1 759, stationery R998 and cleaning material R550. Before Top Traders
signed off the inventory count sheets, the supervisor noticed that trading inventory on
hand included consignment inventory to the value of R1 947 that is owned by Bow
Suppliers.
R
Purchases 40 000
Stationery 5 597
The correct closing trading inventory amount for Top Traders for the year ended
31 May 20.21 is ...
Instructions:
Answer: 8660
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Lola has prepared his nancial statements for the year ended 30 April 2021, which
showed a pro t for the year of R150 000, current assets of R96 000, non-current assets
of R200 000 and a total assets gure of R296 000. He has since discovered that the
closing inventory amount, he used was overstated by R25 000.
Indicate whether the following statement is true or false regarding the correction of the
error that was made?
Select one:
True
False
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MADIJO Traders acquired machinery on 1 March 20.20 for an amount of R1 051 800.
This machinery was only available for use from 1 May 20.20 due to massive tests that
needed to be performed rst. MADIJO Traders’ current nancial period ends on 31
January 20.21. According to MADIJO Traders’ accounting policy, depreciation on
machinery is provided using the unit of production method over it’s the useful life of 5
years according to the following production schedule:
The amount for depreciation expenses to be shown in the statement of pro t or loss
and other comprehensive income for the year ended 31 January 20.21 will be …
NB: Instructions

Answer: 155770
Question 7
Not yet answered
Marked out of 7.00
The accountant of Mixed-up Traders requires your assistance to properly balance and
reconcile the trade receivables control and trade payable control accounts with the total
list of trade receivables and total list of trade payables for the month ended on 30
November 20.9.
The accountant provided you with the following information in respect of October and
November 20.9 which was obtained from the records of Mixed-up Traders:
Purchases…………………………………………………………………… R29 760
Trade payables column……………………………………………………. R 5 980
Settlement discount received column…………………………………….. R 786
VAT input column……………………………………………………………. R 4 464
VAT output column…………………………………………………………... R 118
Sales………………………………………………………………………… R130 600
Sales journal:
Purchases journal:
General journal:
In the process of reconciling the balance of trade payables control accounts with the list
of balances in the trade payables ledger, the following errors and omissions were
identified (all the following transactions are inclusive of 15% VAT):
(a) A debit note for R986 in respect of goods returned to S Hart was entered in the
sales return journal instead of purchases return journal and posted to the account of S
Haurt in the trade receivables ledger instead of S Hart in the trade payable ledger. No
correcting entries have been made in any journals.
(b) An invoice of R690 for goods purchased from B Smith, was erroneously omitted
(d) An invoice for R1 799 which had been correctly entered in the purchases journal
was entered against the account of Siyanqoba Ltd as R1 997.
Complete the trade payables control account for the month ended 30 November
20.9 to determine the balance of the trade payables control account.
Instructions:

Please keep the sequence of transactions strictly according to the information given but
Bank, settlement discount received and VAT input 5 980 Balance c/d 19 442
Purchases and VAT input 11 250

Purchases returns and VAT input 1 546
Trade receivables control 2 567

Balance b/d 25 733
Balance b/d
Balance c/d
33 259 33 259
Bank, settlement discount granted and VAT output
Bank, settlement discount received and VAT input
Bank, settlement discount received and VAT output
Bank, settlement discount granted and VAT input
Bank
Settlement discount received
Settlement discount granted
VAT input
VAT output
Purchases and VAT output
Purchases and VAT input
Purchases returns and VAT input
Purchases returns and VAT output
37 359
73 560 2 567 1 546 19 442 18 992 29 760 5 980 786
4 464 118 90 500 10 560 1 377 11 937 12 627 11 250 633
1 619 25 733 33 259 34 159

Question 8
Not yet answered
Marked out of 5.00

Accumulated depreciation: Equipment(32 000)
At the beginning of the nancial year, 1 April 20.21, Kola Metals replaced its metal
melting machine with a new metal melting machine that had a purchase price of
R64 600. The replaced metal melting machine was sold on credit for R10 000. It was the
only piece of equipment in the books of Kola Metals prior to the purchase of the new
metal melting equipment. Depreciation is provided at 20% p.a. on the straight-line
method.
Use the information as extracted from the accounting records of Kola Metals to
complete the asset realisation account to calculate the pro t/loss on the sale on the
metal melting machine that will be disclosed in the statement of pro t or loss and
other comprehensive income. The amount will be:
Instructions:
Equipment 40 000 Accumulated depreciation 32 000
Profit on sale of asset 2 000 Bank 10 000
Equipment Depreciation Accumulated depreciation
Trade payables control Trade receivables control Bank

42 000 42 000
Profit on sale of asset Loss on sale of asset
40 000 8 000 32 000 10 000 2 000 42 000 50 000

Question 9
Not yet answered
Marked out of 11.00
The following information was extracted from the accounting records of Lele
Plastics:
At the beginning of the financial year, 1 April 20.19, Lele Plastics replaced its plastic
shredding equipment with new glass recycling equipment that had a purchase price
of R250 000. The replaced plastic shredding machine was sold for R10 500 cash, it
was the only piece of equipment in the books of Lele Plastics prior to the purchase
of the new glass recycling equipment. Depreciation is provided at 15% p.a. on the
The correct property, plant and equipment note for equipment (total column
excluded) for Lele Plastics on 31 March 20.20 will be:
Instructions:

18 200
Carrying amount: Beginning of year
Cost 56 000
250 000
Additions
(18 200)
Disposals
56 000
Cost
Carrying amount: Beginning of year Cost (37 800)

Accumulated depreciation Additions

Disposals Depreciation for the year
Carrying amount: End of year
Carrying amount: End of year 212 500

56 000 (37 800) 18 200 93 800 250 000 (18 200) (8 400) (9 800)
(46 200) (37 500) (45 900) Cost (10 500)

212 500 287 500 257 700 7 700 250 000
Accumulated
275 depreciation
900 (37 500)
Question 10
Not yet answered
Marked out of 1.00
Depreciation on the straight-line method is when the cost price of the asset is written
off over the expected useful life of the asset.
Select one:
True
False
Question 11
Not yet answered
Marked out of 1.00
December.
Instructions:

Answer: 134900
Question 12
Not yet answered
Marked out of 1.00

Cash investments are usually invested at a xed rate or at a rate that does not change
often.
Select one:
True
False
Question 13
Not yet answered
Marked out of 1.00
An entity can use either a perpetual (continuous) inventory system or a periodic

inventory system, depending on the nature of the entity, the type of merchandise sold
and the level of computerization in the entity.
Select one:
True
False
Question 14
Not yet answered
Marked out of 1.00
December.
Instructions:

Answer: 140180
Question 15
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought two photocopiers for R84 000 each. BB Logistics
delivered both photocopiers to JJ Traders and charged R2 500. Installation costs was
R3 000 for both photocopiers. Joe Traders uses the diminishing balance method and
the photocopier will be depreciated at 25% per annum. Joe Traders also purchased 1
000 boxes of A4 copier paper on 1 July 20.1 for R130 000.
The nancial year-end of Joe Traders is 30 June.

The amount of accumulated depreciation of the photocopiers to be disclosed in the
property, plant and equipment note on 30 June 20.5 will be …
Answer: 165000
Question 16
Not yet answered
Marked out of 1.00

Liabilities are present obligations of the entity to transfer economic resources as a
result of past events.
Select one:
True
False
Question 17
Not yet answered
Marked out of 1.00
Membership fees received in advance at the end of a nancial period will be entered on
the debit side of the membership fees account.
Select one:
True
False
Question 18
Not yet answered
Marked out of 1.00

Income received in advance is classi ed as a current liability.
Select one:
True
False
Question 19
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought equipment for R84 000 from Qwerty Technologies
and was given a 10% cash discount. BB Logistics delivered the photocopier to JJ
Traders and charged R2 500. Joe Traders uses the xed instalment method and the
photocopier will be depreciated over 5 years. The nancial year-end of Joe Traders is 30
June.
The amount of accumulated depreciation of the equipment to be disclosed in the
property, plant and equipment note on 30 June 20.6 will be ...
Answer: 75600
Question 20
Not yet answered
Marked out of 3.00
In the process of reconciling the balance on the trade payables control account with the
list of balances as per trade payables ledger, it was noted that certain accounts with
credit balances of R1 000 need to be transferred from the trade receivables ledger to
the trade payables ledger.
The correct general ledger entries in the books of Pam Traders to record the given
transaction will be ...
Instructions:

Trade payables control Purchases Sales
0 2 000
Question 21
Not yet answered
Marked out of 4.00

extracted from the accounting
records of Namgoong Plastics:
Balances at 1 April
R
20.19
Accumulated
depreciation: (26 133)
Equipment
At the beginning of the nancial
year, 1 April 20.19, Namgoong
Plastics replaced its plastic
shredding equipment with new
glass recycling equipment that Cash receipts journal
had a purchase price of
R45 600. The replaced plastic
shredding machine was sold for
R5 000 cash, it was the only
piece of equipment in the books
of Namgoong prior to the
purchase of the new glass
Depreciation is provided at 20%

Indicate which journal(s) will be

used to record the transactions
relating to the sale of the
plastic shredding equipment?
Extract of the pre-closing trial
balance of THC Traders as at
30 September 2019
Debit Credit
R R
Plant and 120
machinery 000
(cost)
Accumulated 41
depreciation: 750
plant and
machinery
Equipment 90
(cost) 000
Accumulated 17
depreciation: 100
equipment
Land and 180
buildings 000
(cost) Depreciation R38 367; Loss on sale of equipment R1 500; Interest on xed deposit R7 500.
Fixed 100
deposit (@ 000
7.5% p.a.)
Depreciation 38
367
Loss on sale 1
of equipment 500
Interest on 7 500
fixed deposit
The amounts that will be

disclosed in the statement of
profit or loss and other
comprehensive income of
THC Traders for the year
ended 30 September 2019
relating to non-current assets
are:
Current liability are liabilities

that … are expected to be settled within twelve months after the statement of nancial position date.
An example that is not a current

Accrued income
liability?
QUIZ
Time left 1:02:28
Question 1
Not yet answered
Marked out of 1.00
Membership fees of Gizmo Soccer Club was R300 per year for 20.1 and R340 per year for 20.2. On 31 December 20.1, it was noted
that 8 members did not pay their membership fees for 20.1 and 3 members paid their membership fees for the 20.2 on 31
December. The membership fees of 7 members, which was in arrears on 31 December 20.1, must be written off as irrecoverable.
The nancial year-end of Gizmo Soccer Club is 31 December.
The membership fees account in the general ledger of Gizmo Soccer Club will be credited with credit losses of … on 31 December
20.2.
Instructions:

Answer: 5520
Question 2
Not yet answered
Marked out of 4.00
On 31 March 20.2, Ronnie’s Dealers received a statement from MM Wholesalers (a creditor). The bookkeeper noticed that Ronnie's
Dealers owe MM Wholesalers R2 400 and that interest of 5% was charged due to late payment of the account. No entry was made in
the accounting records of Ronnie Dealers for the interest amount charged.
Instructions:

Please keep the sequence of transactions strictly according the information given but also in the correct format.
Interest expenses
120
MM Wholesalers/Trade payables control 120
Interest income Interest expenses MM Wholesalers/Trade payables control
MM Wholesalers/trade receivables control Bank
1 200 2 400
Question 3
Not yet answered
Marked out of 3.00
In the process of reconciling the balance on the trade payables control account with the list of balances as per trade payables
ledger, it was noted that certain accounts with credit balances of R1 000 need to be transferred from the trade receivables ledger to
the trade payables ledger.
The correct general ledger entries in the books of Pam Traders to record the given transaction will be ...
Instructions:
Trade payables control Purchases Sales Trade receivables control
0 2 000
Question 4
Not yet answered
Marked out of 1.00
Lunas Art Club provides you with the following information for the 20.2 nancial year. Lunas Art Club had 45 members at the end of
the 20.2 nancial year. Membership fees amounts to R280 per month. During the current nancial year, ve new members joined the
club and paid an entrance fee of R100 each. The entrance fees received was capitalised to the accumulated fund account.
Membership fees received in advance on 31 December 20.1 was R20 160. The nancial year-end of Lunas Art Club is 31 December.
The amount for membership fees that will disclosed in the income and expenditure statement on 31 December 20.2 will be …
Instructions:

Answer: 151700
Question 5
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought three printers for R84 000 each from Qwerty Technologies and was given a 10% cash discount.
BB Logistics delivered all three printers to JJ Traders and charged R2 500. Joe Traders uses the diminishing balance method at a
depreciation rate of 20%.

The disposal (scrap) value of the printers at the end of year four will be …
NB: Instructions

3. Round off your nal answer to the nearest Rand
Answer: 93921.28
Question 6
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought equipment for R84 000 from Qwerty Technologies and was given a 10% cash discount. BB
Logistics delivered the photocopier to JJ Traders and charged R2 500. Joe Traders uses the xed instalment method and the
photocopier will be depreciated over 5 years. The nancial year-end of Joe Traders is 30 June.
What will be the carrying(book) value of the equipment on 30 June 20.4?
Answer: 47440
Question 7
Not yet answered
Marked out of 1.00

Goodwill, that is the good name of an entity is an example of property, plant and equipment.
Select one:
True
False
Question 8
Not yet answered
Marked out of 4.00
The total of the trade payables column in the

cash payments journal will be posted to the …
The total revenue and the cost of sales amount

disclosed in the statement of pro t or loss and
other comprehensive income for Thabo Stores
for the year ended 30 June 20.1 is R870 000 and
R600 000 respectively. The gross pro t for the 31%
year is R270 000.
The gross pro t percentage on sales (rounded

off to the nearest whole number) is …
Where in the statement of nancial position

would a business that trades in the sale of motor
vehicles disclose the eet truck it uses to deliver Non-current assets: Property, plant and equipment
sold vehicles to customers?
What will be classi ed as a current asset for a

motor vehicle dealership? Shop ttings
Question 9
Not yet answered
Marked out of 7.00
Matties Discount Store sells furniture. They bought a laptop for the receptionist for R7 590 (including VAT) on credit from Diya
Computers. The VAT rate is 15% and Matties Discount Store is a registered VAT vendor.
Instructions:

Equipment 6 600 Trade payables control 7 590 General journal
VAT input 990
Sales Purchases Equipment VAT output VAT input
Trade payables control Trade receivables control Bank
7 590 1 138.50 6 451.50 990 6 600 8 580 8 728.50
Purchases journal Sales journal Cash receipts journal Cash payments journal
Question 10
Not yet answered
Marked out of 1.00
The gross pro t calculated in the trading statement of a non-pro t entity is transferred to income and expenditure statement and is
disclosed under income.
Select one:
True
False
Question 11
Not yet answered
Marked out of 1.00
Lunas Art Club provides you with the following information for the 20.2 nancial year. Lunas Art Club had 12 members at the end of
the 20.2 nancial year. Membership fees amounts to R245 per month. During the current nancial year, ve new members joined the
club and paid an entrance fee of R100 each. The entrance fees received was capitalised to the accumulated fund account.
Membership fees received in advance on 31 December 20.1 was R17 640. The nancial year-end of Lunas Art Club is 31 December.
The amount for membership fees that will disclosed in the income and expenditure statement on 31 December 20.2 will be …
Instructions:
Answer: 35780
Question 12
Not yet answered
Marked out of 11.00
At the beginning of the financial year, 1 April 20.19, Namgoong Plastics replaced its plastic shredding equipment with new glass
recycling equipment that had a purchase price of R45 600. The replaced plastic shredding machine was sold for R5 000 cash, it
was the only piece of equipment in the books of Namgoong Plastics prior to the purchase of the new glass recycling equipment.
The correct property, plant and equipment note for equipment (total column excluded) for Namgoong Plastics on 31
March 20.20 will be:
Instructions:

1 867
Cost 28 000
Additions 45 600
Disposals (1 867)
Cost 28 000
36 480
45 600
Cost
(9 120)
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=13221511&cmid=623192 7/13
Carrying amount: Beginning of year Cost Accumulated depreciation
Additions Disposals Depreciation for the year
28 000 (26 133) 54 133 1 867 (1 867) 45 600 (5 600) (3 133) (9 120) (14 720) 36 480 73 600
(35 253) 38 347 54 720 36 480
Question 13
Not yet answered
Marked out of 1.00
The accountant for Gizmo Traders provides you with the following information for the financial years ended 31 May 20.2; 31 May
20.3 and 31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
Answer: 66.67
Question 14
Not yet answered
Marked out of 1.00
R
Equipment: Cost………………………………………………………. 280 000
(a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to upgrade some of its processes by selling
old printing equipment for R31 000 cash. The machine was bought on 1 November 20.4 for R180 000. Depreciated was provided for
at 15% p.a. on the straight-line method.
(b) On 1 December 20.9 Kumkani Traders bought 3D printing equipment for R145 600 on credit from Fourth Dimension.
Depreciation on the new machine must be provided for at 25% per annum on the diminishing balance method.
Instructions:

Answer: 33367
Question 15
Not yet answered
Marked out of 5.00
At the beginning of the financial year, 1 April 20.19, Lele Plastics replaced its plastic shredding equipment with new glass
recycling equipment that had a purchase price of R250 000. The replaced plastic shredding machine was sold for R10 500
cash, it was the only piece of equipment in the books of Lele Plastics prior to the purchase of the new glass recycling
equipment. Depreciation is provided at 15% p.a. on the straight-line method.
Use the information as extracted from the accounting records of Lele Plastics to complete the asset realisation account to
calculate the profit/loss on the sale of the plastic shredding equipment that will be disclosed in the statement of profit of
loss and other comprehensive income. The amount will be:
Instructions:

Bank 10 500
Profit on sale of asset 7 700
56 000 56 000
Equipment Depreciation Accumulated depreciation Trade receivables control Trade payables control
Bank Loss on sale of asset Profit on sale of asset
56 000 37 800 8 400 10 500 46 200 56 700 700 7 700

Question 16
Not yet answered
Marked out of 7.00
GBV Club is a non- pro t organisation that was started by 130 members on 1 January 20.7. The objective of GBV Club is to address
gender-based violence that is faced by South African citizens.
On 1 January 20.8 GBV Club opened a small shop to raise additional funding. The shop sells, printed T-shirts with messages
addressing gender-based violence. No T-shirts were on hand on 1 January 20.8.
In order to prepare the nancial statements for the current nancial period ended 31 December 20.8, the bookkeeper presented the
following information regarding the nances of the club to members at a meeting held on 31 December 20.8:
(1) GBV Club purchased 1 790 T-shirts during the current nancial period at a cost price of R55.00 per T-shirt.
(2) GBV Club donated 110 T-shirts to citizens during the year to raise more awareness about gender-based violence.
(3) 430 T-shirts were on hand on 31 December 20.8 (considered as nal inventory count for the current nancial year).
The gross pro t/loss amount for the small shop for T-shirts of GBV Club to be shown in the trading statement for the year ended
31 December 20.8, will be:
Instructions:
Sales
103 125
Cost of sales
(68 750)
Purchases 98 450
Donations (6 050)
Inventory (Closing) (23 650)
Gross profit 34 375
Sales Revenue Cost of sales Inventory (Opening) Inventory (Closing) Donations
Purchases Gross profit Gross income Net profit
1 790 98 450 110 6 050 430 23 650 103 125 21 970 1 250 1 470 80 850 121 275
40 425 98 450 (68 750) 29 700 (6 050) (23 650) 34 375

Question 17
Not yet answered
Marked out of 1.00

The only difference between debentures and a long-term loan is that with debentures there are several creditors, whereas with a
long-term loan there is usually only one creditor which is usually a nancial institution.
Select one:
True
False
Question 18
Not yet answered
Marked out of 1.00
Settlement discount received will not be disclosed in statement of pro t or loss and other comprehensive income.
Select one:
True
False
Question 19
Not yet answered
Marked out of 1.00
Depreciation on the straight-line method is when the cost price of the asset is written off over the expected useful life of the asset.
Select one:
True
False
Question 20
Not yet answered
Marked out of 1.00

When determining the historical cost of inventory, other costs that must be included are the cost of transporting the goods from the
point of sale to the premises of the purchaser.
Select one:
True
False
Question 21
Not yet answered
Marked out of 1.00

Select one:
True
False
QUIZ
Time left 0:49:48
Question 1
Not yet answered
Marked out of 1.00

A mistake in the inventory gure will affect the calculation of cost of sales, the gross
pro t and, subsequently, the pro t in the statement of pro t or loss and other
Select one:
True
False
Question 2
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought two photocopiers for R84 000 each. BB Logistics
delivered both photocopiers to JJ Traders and charged R2 500. Installation costs was
R3 000 for both photocopiers. Joe Traders uses the diminishing balance method and the
photocopier will be depreciated at 25% per annum. Joe Traders also purchased 1 000
boxes of A4 copier paper on 1 July 20.1 for R130 000.
What will be the carrying(book) value of the photocopiers on 30 June 20.3?
Answer: 94500
Question 3
Not yet answered
Marked out of 1.00
YO-YOLA TRADERS
Buildings
R
Carrying amount:
Cost 550 000
Additions -
Disposals 0
Cost 0
Carrying amount:
End of the year ?
Cost ?
What will the carrying amount for equipment be for Yo-Yola Traders for the year
ended 28 February 20.21?
Instructions:

Answer: 330000
Question 4
Not yet answered
Marked out of 11.00
You are given the following extract of the pre-adjustment trial balance for Arch Traders
for the financial year ended 30 September 20.2.
ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
a. On 1 July 20.2 Arch Traders bought new equipment to the value of R80 000.
b. On 30 June 20.2 old equipment with a cost price of R85 000, bought on 1 October
20.0, were sold for R55 000.
c. Depreciation for the year must be provided as follows:
The correct property, plant and equipment note for equipment (total column
excluded) for Arch Traders on 30 September 20.2 will be:
Instructions:

If an options has been provided and it is not applicable to the speci c questions please
put N/A in the accounts column and a 0 in the amounts column.
220 000
Cost 280 000
80 000
(70 125)
Disposals
Cost 85 000
Carrying amount: Beginning of year depreciation

Accumulated Cost (14 875)
Accumulated depreciation Disposals
(27 875)
Depreciation
Depreciationfor
forthe
theyear
year Carrying amount: End of year
280 000 (60 000) 220 000 340 000 60 000 (55 000) (8 500) (6 375)
202 000
(14 875) (70 125) amount:
Carrying (28 000)End of
(25year
875) 275 000 (2 000) (27 875) (21 500)
253 500 80 000 (8 000) 72 000 195 000 (73 000) 85 000
Cost 275 000

Question 5
Not yet answered
Marked out of 5.00
The following information was extracted from the accounting records of Namgoong
Plastics:
At the beginning of the financial year, 1 April 20.19, Namgoong Plastics replaced its
plastic shredding equipment with new glass recycling equipment that had a purchase
price of R48 700. The replaced plastic shredding machine was sold on credit for R8 000,
it was the only piece of equipment in the books of Namgoong prior to the purchase of the
new glass recycling equipment. Depreciation is provided at 20% p.a. on the straight-line
method.
Assuming the plastic shredding equipment was sold at a profit of R5 250, the effect
of the transaction on the accounting equation will be:
Instructions:

-35 000 Equipment +5 250 Profit on sale of equipment 0 N/A
+29 750 Accumulated depreciation
+8 000 Trade receivables control

Profit on sale of equipment Bank Trade payables control
Trade receivables control N/A
0 +35 000 -35 000 +29 750 -29 750 +7 000 -7 000 +5 250
-5 250 +8 000 -8 000

Question 6
Not yet answered
Marked out of 1.00
December.
The amount of membership fees received for the current nancial year is …
Instructions:

2. Only show the amount, do not show the R (eg: 12141)
Answer: 124580
Question 7
Not yet answered
Marked out of 1.00
Membership fees of Gizmo Soccer Club was R600 per year for 20.1 and R650 per year for
20.2. On 31 December 20.1, it was noted that 5 members did not pay their membership
fees for 20.1 and 6 members paid their membership fees for the 20.2 on 31 December.
The nancial year end of Gizmo Soccer Club is 31 December.
The membership fees account in the general ledger of Gizmo Soccer Club will be
credited with … on 31 December 20.1.
Instructions:

Answer: 900
Question 8
Not yet answered
Marked out of 1.00

Fixed deposits and savings accounts are types of cash investments.
Select one:
True
False
Question 9
Not yet answered
Marked out of 1.00
If entrance fees need to be capitalised, it means the full amount for entrance fees must
be disclosed as income in the income and expenditure statement.
Select one:
True
False
Question 10
Not yet answered
Marked out of 1.00
Indicate whether the following statement, regarding cost of goods purchased, is true or
false:
In calculating cost of goods purchased, you must subtract the settlement discount
received.
Select one:
True
False
Question 11
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought a photocopier for R84 000. BB Logistics delivered the
photocopier to JJ Traders and charged R2 500. RG IT Support installed the photocopier
for R1 500. Joe Traders uses the xed instalment method and the photocopier will be
depreciated at 25% per annum. Joe Traders also purchased 1 000 boxes of A4 copier
paper on 1 July 20.1 for R130 000. The nancial year-end of Joe Traders is 30 June.
What is the cost price of the photocopier?
Answer: 88000
Question 12
Not yet answered
Marked out of 1.00
Membership fees of Gizmo Soccer Club was R300 per year for 20.1 and R340 per year for
20.2. On 31 December 20.1, it was noted that 8 members did not pay their membership
fees for 20.1 and 3 members paid their membership fees for the 20.2 on 31 December.
The nancial year end of Gizmo Soccer Club is 31 December.
The membership fees account in the general ledger of Gizmo Soccer Club will be
credited with … on 31 December 20.1.
Instructions:
Answer: 1380
Question 13
Not yet answered
Marked out of 1.00
The property, plant and equipment note will provide more information such as
depreciation rates used for vehicles and equipment as this information is not presented
on the face of the statement of nancial position.
Select one:
True
False
Question 14
Not yet answered
Marked out of 1.00

The bookkeeper of HS Stores forgot to enter a credit purchases transaction of R10 000 in
the purchases journal, this omission will result in the trade payables control account
balance being overstated by R10 000.
Select one:
True
False
Question 15
Not yet answered
Marked out of 7.00
GBV Club is a non- pro t organisation that was started by 130 members on 1 January
20.7. The objective of GBV Club is to address gender-based violence that is faced by
South African citizens.
On 1 January 20.8 GBV Club opened a small shop to raise additional funding. The shop
sells, printed T-shirts with messages addressing gender-based violence. No T-shirts were
on hand on 1 January 20.8.
In order to prepare the nancial statements for the current nancial period ended
31 December 20.8, the bookkeeper presented the following information regarding the
nances of the club to members at a meeting held on 31 December 20.8:
(1) GBV Club purchased 1 790 T-shirts during the current nancial period at a cost price
of R55.00 per T-shirt.
(2) GBV Club donated 110 T-shirts to citizens during the year to raise more awareness
about gender-based violence.
(3) 430 T-shirts were on hand on 31 December 20.8 (considered as nal inventory
count for the current nancial year).
(4) T-shirts that have not been donated or not on hand, were all sold at a mark-up of
50% on cost price.
The gross pro t/loss amount for the small shop for T-shirts of GBV Club to be shown in
the trading statement for the year ended 31 December 20.8, will be:
Instructions:

Keep the sequence of the transactions strictly according to the information given and the
correct format.
Sales
103 125
Cost of sales
(68 750)
Purchases 98 450
Donations (6 050)
Inventory
Sales (Closing) Revenue Cost of sales Inventory (Opening) (23 650)
Inventory (Closing) Donations Purchases Gross profit
Gross profit 34 375

Gross income Net profit
1 790 98 450 110 6 050 430 23 650 103 125 21 970
1 250 1 470 80 850 121 275 40 425 98 450 (68 750) 29 700
(6 050) (23 650) 34 375

Question 16
Not yet answered
Marked out of 3.00
In the process of reconciling the balance on the trade payables control account with the
list of balances as per trade payables ledger, it was noted that certain accounts with
credit balances of R1 000 need to be transferred from the trade receivables ledger to the
trade payables ledger.
The correct general ledger entries in the books of Pam Traders to record the given
transaction will be ...
Instructions:

Trade payables control Purchases Sales
0 2 000
Question 17
Not yet answered
Marked out of 4.00
On 31 March 20.2, Ronnie’s Dealers received a statement from MM Wholesalers (a

creditor). The bookkeeper noticed that Ronnie's Dealers owe MM Wholesalers R2 400 and
that interest of 5% was charged due to late payment of the account. No entry was made
in the accounting records of Ronnie Dealers for the interest amount charged.
What will the correct general journal entry for the given transaction in the books of
Ronnie Dealers be?
Instructions:

Interest expenses
120
MM Wholesalers/Trade payables control 120

Interest income Interest expenses
MM Wholesalers/Trade payables control MM Wholesalers/trade receivables control
Bank
1 200 2 400
Question 18
Not yet answered
Marked out of 1.00
During the physical inventory count conducted by Nice Traders for the year ended 31
May 20.19, inventory on hand consists of trading inventory, R12 507, packaging material,
R1 596, stationery. R978 and cleaning material, R560. Before Nice Traders signed off the
inventory count sheets, the supervisor noticed that trading inventory on hand included
consignment inventory to the value of R1 547 that is owned by Besties Suppliers.
R
Purchases 36 962
Stationery 4 597
The correct closing trading inventory amount for Nice Traders for the year ended
31 May 20.19 will be ...
Instructions:

Answer: 10960
Question 19
Not yet answered
Marked out of 7.00
The following information was obtained from the records of Ronnie’s Dealers for the
month ended 30 June 20.2:
R
Balance of trade payables control account in general ledger on 31 May 20.2 40 000
Trade payables column in the purchases returns journal……………………... 5 000
Trade payables column in the purchases journal……………………………… 24 000
Cash payments journal: Trade payables column………………………………. 15 000
Settlement discount received column............................................................. 1 500
receivables ledger from the trade payables ledger……………………………… 1 000
(a) An invoice for R600 for merchandise purchased on credit from DT Traders was
erroneously omitted from the purchases journal.
(b) A credit note for R200 received from MM Wholesalers was incorrectly entered in
the sales returns journal but posted to the correct side of MM Wholesalers
account.
The correct trade payables control account in the general ledger of Ronnie’s Dealers
on 30 June 20.2 will be?
Instructions:

Bank, settlement discount granted and VAT input 16 500 Balance c/d 40 000
Purchases returns and VAT input 5 200 Purchases and VAT input 24 600
Balance b/d 44 400 Trade receivables control 1 000
Balance b/d
65 600 65 600
Balance c/d
41 000 40 000 24 000 24 600 1 000 5 200 5 000 15 000 45 400
1 500 36 000 65 600 44 400 64 600 4 800 59 000 64 000 16 500

Question 20
Not yet answered
Marked out of 4.00
The total of the

trade payables
column in the
cash payments
journal will be
posted to the …
The total
revenue and
the cost of
sales amount
disclosed in
the statement
of pro t or loss
and other
comprehensive
income for
Thabo Stores
for the year
ended 30 June
20.1 is R870
000 and 31%
R600 000
respectively.
The gross
pro t for the
year is
R270 000.
The gross
pro t
percentage on
sales (rounded
off to the
nearest whole
number) is …
Where in the
statement of
nancial
position would
a business that
trades in the
sale of motor Non-current assets: Property, plant and equipment
vehicles
disclose the
eet truck it
uses to deliver
sold vehicles
to customers?
What will be
classi ed as a
current asset
Shop ttings
for a motor
vehicle
dealership?
Question 21
Not yet answered
Marked out of 1.00

Select one:
True
False
FAC1502-23-S2  Welcome Message  Assessment 3
QUIZ
Time left 0:35:25
Question 1
Incomplete answer
Marked out of 7.00
Use the following information from the accounting records of NICE NETBALL CLUB on
31 December 20.19, the end of the accounting period.
Refreshments:
Inventory of refreshments on 1 January 20.19, R5 000 and there were R6 656

refreshments on hand on 31 December 20.19.
Refreshments bought for cash R5 804
Refreshments bought on credit R11 480.
Refreshments sold on credit R18 960.
Refreshments to the amount of R1 660 were donated to a shelter for homeless
children.
The gross pro t of refreshments for the nancial year ended 31 December 20.19 will
be:
Instructions:

Sales 18 960
Cost of sales (13 968)
Inventory (opening) 5 000
Purchases (cash) 5 804
Purchases (credit) 11 480
Donations (1 660)
Sales Revenue Cost of sales Inventory (opening)
Inventory (closing) (6 656)
Inventory (closing) Purchases (credit) Donations Purchases (cash)
Gross profit 4 992

Gross profit Gross income Net profit
5 000 (5 000) 18 960 6 656 (6 656) 1 656 (1 656) 11 480
1 660 (1 660) 4 992 (13 968) (18 960) (11 476) 7 484 2 492
(8 164) 5 804 15 788
Question 2
Not yet answered
Marked out of 4.00
The total of the

trade payables
column in the
cash payments debit side of the trade payables control account in the general ledger.
journal will be
posted to the …
The total
revenue and
the cost of
sales amount
disclosed in
the statement
of pro t or loss
and other
comprehensive
income for
Thabo Stores
for the year
ended 30 June
20.1 is R870
000 and 31%
R600 000
respectively.
The gross
pro t for the
year is
R270 000.
The gross
pro t
percentage on
sales (rounded
off to the
nearest whole
number) is …
Where in the
statement of
nancial
position would
a business that
trades in the
sale of motor Non-current assets: Property, plant and equipment
vehicles
disclose the
eet truck it
uses to deliver
sold vehicles
to customers?
What will be
classi ed as a
current asset
for a motor Shop ttings
vehicle
dealership?
Question 3
Not yet answered
Marked out of 7.00
R
Balance of trade payables control account in general ledger on 31 May 20.2 40 000
Trade payables column in the purchases returns journal……………………... 5 000
Cash payments journal: Trade payables column………………………………. 15 000
Settlement discount received column............................................................. 1 500
receivables ledger from the trade payables ledger……………………………… 1 000
(a) An invoice for R600 for merchandise purchased on credit from DT Traders was
erroneously omitted from the purchases journal.
(b) A credit note for R200 received from MM Wholesalers was incorrectly entered in
the sales returns journal but posted to the correct side of MM Wholesalers
account.
The correct trade payables control account in the general ledger of Ronnie’s Dealers
on 30 June 20.2 will be?
Instructions:

Bank, settlement discount received and VAT input 16 500 Balance c/d 40 000
Balance b/d 44 400 Trade receivables control 1 000
Balance b/d
65 600 65 600
Balance c/d
41 000 40 000 24 000 24 600 1 000 5 200 5 000 15 000 45 400
1 500 36 000 65 600 44 400 64 600 4 800 59 000 64 000 16 500
Question 4
Not yet answered
Marked out of 1.00
Indicate whether the following statement, regarding cost of goods purchased, is true or
false:
Cost of goods purchased includes opening inventory.
Select one:
True
False
Question 5
Not yet answered
Marked out of 3.00
In the process of reconciling the balances on the trade payables control account with the
list of individual balances per trade payables ledger for Mini Traders, the bookkeeper
noted that an invoice for R1 600, had been entered incorrectly in the purchases journal as
R160.
The correct general ledger entries in the books of Mini Traders to rectify the error made
will be ...
Instructions:

Trade payables control Purchases Trade receivables control
Sales
160 1 600
Question 6
Not yet answered
Marked out of 1.00

When creditors are paid within a speci c period according to an agreement, the entity
may get a discount, called settlement discount received, on the outstanding account.
Select one:
True
False
Question 7
Not yet answered
Marked out of 1.00
Furniture Traders sold three tables and six chairs to Beauty Traders, for their nail
technicians, for an amount of R31 050 (15% VAT inclusive). Furniture Traders makes use
of a mark-up percentage on sales of 35%
NB: Instructions
Answer: 20000
Question 8
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought two machines for R84 000 was given a 5% cash
discount.BB Logistics delivered the machinery to JJ Traders and charged R2 500. Both
machinery were installed for R4 500. Joe Traders uses the diminishing balance method
and the photocopier will be depreciated at 25% per annum. Joe Traders also purchased 1
000 boxes of A4 copier paper on 1 July 20.1 for R130 000.

What is the cost price of the machines?
Answer: 86450
Question 9
Not yet answered
Marked out of 1.00
Under a perpetual inventory system, the cost of goods sold is recorded as each
transaction takes place. When goods are sold for cash a column in the cash receipts
journal is added to collect the data regarding the cost price.
Select one:
True
False
Question 10
Not yet answered
Marked out of 1.00
YO-YOLA TRADERS
Buildings
R
Carrying amount:
Cost 550 000
Additions -
Disposals 0
Cost 0
Carrying amount:
End of the year ?
Cost ?
What will the carrying amount for equipment be for Yo-Yola Traders for the year
ended 28 February 20.21?
Instructions:

Answer: 330000
Question 11
Not yet answered
Marked out of 1.00
Select one:
True
False
Question 12
Not yet answered
Marked out of 1.00

Membership fees – received……………………………………………………................. 15 810
Accrued membership fees (30/09/20.21)………………………………………......... 1 860
Membership fees received in advance (30/09/20.21)………………………….. 2 700
Advertising expenses………………………………………………………………................. 3 500
TH fund - (30/09/20.21)…………………………………………………............................ 28 000
The following transactions must be taken into account for the year ended 30 September
20.22:
(a) During the current year 12 new members joined the club. The entrance fee per
member is R600 and 75% of the entrance fees received should be capitalised and the
balance recognised immediately.
(b) At year-end accrued membership fees amounted to R2 250 and membership fees
already received for to the next nancial year amounted to R5 400. 50% of the accrued
membership fees balance outstanding at the beginning of the nancial year should be
written off.
(c) On 1 October 20.19, Thomas Henry donated an amount R28 000 to the club, the
funds were then invested on the same day in a xed deposit account with Wenger Bank
at an interest rate of 9,5%. The condition for the donation is that the income from the
investment should be used to advertise the club and the capital amount can only be used
after 10 years.
(d) Advertising expenses incurred by the club were R3 500 for the 30 September 20.22
nancial year.
The advertising expenses that should be recognised as an expense in the statement of

income and expenditure for the year ended 30 September 20.22 will be ...
Instructions:

Answer: 3500
Question 13
Not yet answered
Marked out of 5.00
You are given the following extract of the pre-adjustment trial balance for Arch Traders
for the financial year ended 30 September 20.2.
ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
b. On 30 June 20.2 old equipment with a cost price of R85 000, bought on 1 October
20.0, were sold for R55 000 cash.
Use the information as extracted from the accounting records of Arch Traders to
complete the asset realisation account to calculate the pro t/loss on the sale of the old
equipment that will be disclosed in the statement of pro t or loss and other
comprehensive income. The amount will be:
Instructions:
Bank 55 000
Loss on sale of asset 15 125
Trade receivables control Trade payables control Profit on sale of asset

85 000 85 000
Loss on sale of asset Bank
280 000 60 000 85 000 14 875 15 125 17 000 13 000 30 000
55 000
Question 14
Not yet answered
Marked out of 4.00
R
Trade payables column in the purchases returns journal…………………….. 5 000
Cash payments journal: Trade payables column……………………………… 15 000
Settlement discount received column…………………................................... 1 500
receivables ledger from the trade payables ledger…………………………… 1 000
Credit balances…………………………………………………………………… 49 650

Debit balances……………………………………………………………………. 6 000
(a) An invoice for R2 100 which has been entered correctly in the purchases journal
was entered incorrectly against the account of MM Wholesalers as R1 200.
(c) The balance of the trade payables control account in the general ledger on 31
May 20.2 is R40 000 and on 1 July 20.2 it was R45 250.
What will the correct reconciliation of the creditors balances with the balance of the
trade payables account of Ronnie’s Dealers on 30 June 20.2 be?
Instructions:

Total of list of creditors balances

43 650
MM Wholesalers 900
Undercasting 700
Total of list of creditors balances Balance of trade payables control account 45 250
Balance of trade payables control account
MM Wholesalers Purchases and VAT input
Purchases returns and VAT input Purchases and VAT output
Purchases returns and VAT output Undercasting
42 050 45 250 49 650 2 100 (1 200) (900) (700) 900 700
43 650
Question 15
Not yet answered
Marked out of 1.00
Gizmo Soccer Club will be classi ed as a non-pro t entity.
Select one:
True
False
Question 16
Not yet answered
Marked out of 1.00
December.
Instructions:

Answer: 124340
Question 17
Not yet answered
Marked out of 1.00
31 December 20.1 was R6 000. The nancial year-end of Lunas Art Club is 31 December.
Instructions:

Answer: 150500
Question 18
Not yet answered
Marked out of 1.00

The carrying value of a non-current asset is determined by subtracting accumulated
depreciation of the non-current asset from the cost price of the non-current asset.
Select one:
True
False
Question 19
Not yet answered
Marked out of 1.00
Debentures cannot be secured by a mortgage.
Select one:
True
False
Question 20
Not yet answered
Marked out of 1.00
On 1 July 20.1, Joe Traders bought a photocopier for R84 000. BB Logistics delivered the
photocopier to JJ Traders and charged R2 500. RG IT Support installed the photocopier
for R1 500. Joe Traders uses the xed instalment method and the photocopier will be
depreciated at 25% per annum. Joe Traders also purchased 1 000 boxes of A4 copier
paper on 1 July 20.1 for R130 000. The nancial year-end of Joe Traders is 30 June.
What is the cost price of the photocopier?
Answer: 88000
Question 21
Not yet answered
Marked out of 11.00

Equipment: Cost……………………………………………………………… 280 000
Accumulated depreciation: Equipment…………………………………….. (164 800)
(a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to
upgrade some of its processes by selling old printing equipment for R35 000 cash. The
machine was bought on 1 November 20.4 for R195 000. Depreciated was provided for at
15% p.a. on the straight-line method.
(b) On 1 December 20.9 Kumkani Traders bought 3D printing equipment for R148 600
on credit from Fourth Dimension. Depreciation on the new machine must be provided for
at 20% per annum on the diminishing balance method.
How will the note to the financial statement: Property, plant and equipment be
disclosed for the year ended ended 31 October 20.10?
Instructions:

115 200
Cost 280 000
(164 800)
Additions 148 600
Disposals (48 750)
Cost 280 000

Accumulated depreciation Cost (146 250)
Accumulated depreciation Additions

Disposals Depreciation for the year
Carrying amount: End of year N/A

(35 000) 280 000 (164 800) 444 800 115 200 148 600 195 000
233 600
(29 250) (165 750) (42 000) Cost
(73 200) (71 720) (146 250) (39 993)
(42 750) (29 720) Accumulated

(27 243) depreciation
233 600 (58 543) 175 057 119 330 (58 543)
121 357 0 (48 750)

MENU 
Dashboard / My courses / FAC1502-23-S1 / Welcome Message / Assessment 3
Question 1
Not yet answered
Marked out of 1.00

Equipment: Cost……………………………………………………………… 280 000
(a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to upgrade some of its processes by selling old
printing equipment for R35 000 cash. The machine was bought on 1 November 20.4 for R195 000. Depreciated was provided for at 15%
(b) On 1 December 20.9 Kumkani Traders bought 3D printing equipment for R148 620 on credit from Fourth Dimension. Depreciation on
the new machine must be provided for at 20% per annum on the diminishing balance method.
The current amount to be disclosed as depreciation on the 3D printing equipment for the year ended 31 October 20.10 is ...
Instructions:

Answer: 27247

Question 2
Not yet answered
Marked out of 1.00
MENU

Membership fees – received………………………………………………………....................... 15 810
Accrued membership fees (30/09/20.21)…………………………………………............... 1 860
Membership fees received in advance (30/09/20.21)…………………………........... 2 700
Advertising expenses…………………………………………………………................................ 2 600
TH fund - (30/09/20.21)…………………………………………………..................................... 25 000
(a) During the current year 18 new members joined the club. The entrance fee per member is R850 and 60% of the entrance fees received
should be capitalised and the balance recognised immediately.
(b) At year-end accrued membership fees amounted to R2 250 and membership fees already received for to the next financial year
amounted to R5 400. 50% of the accrued membership fees balance outstanding at the beginning of the financial year should be written off.
(c) On 1 October 20.19, Thomas Henry donated an amount R25 000 to the club, the funds were then invested on the same day in a fixed
deposit account with Wenger Bank at an interest rate of 8,5%. The condition for the donation is that the income from the investment should
be used to advertise the club and the capital amount can only be used after 10 years.
Use the information provided to calculate the entrance fees that should be recognised as income in the statement of income and
expenditure for the year ended 30 September 20.20:
Instructions:

Answer: 6120

Question 3
Not yet answered
Marked out of 1.00
MENU
Gizmo Soccer Club can set aside money in a special fund when it wants to use the money for purchasing of specific training gear for its
members.
Select one:
True
False
Question 4
Not yet answered
Marked out of 1.00

If debentures are redeemable within the next 18 months the debentures will be shown as a current liability in the statement of financial
position.
Select one:
True
False

Question 5
Not yet answered
Marked out of 5.00
MENU
You are given the following extract of the pre-adjustment trial balance for Arch Traders for the financial year ended 30 September 20.2.
ARCH TRADERS
Debit Credit
R R
Capital ………………………………………………………… 525 000
Drawings……………………………………………………… 25 000
Buildings………………………………………………………. 150 000
Land................................................................................... 450 000
Vehicles………………………………………………………. 500 000
Equipment…………………………………………………….. 280 000
Inventory………………………………………………………. 250 000
Bank overdraft ……………………………………………….. 714 750
b. On 30 June 20.2 old equipment with a cost price of R85 000, bought on 1 October 20.0, were sold for R55 000 cash.
Use the information as extracted from the accounting records of Arch Traders to complete the asset realisation account to calculate
the profit/loss on the sale of the old equipment that will be disclosed in the statement of profit or loss and other comprehensive
income. The amount will be:
Instructions:

MENU

Bank 55 000
Loss on sale of asset 15 125
85 000 85 000
Trade payables control Equipment Trade receivables control Loss on sale of asset Profit on sale of asset
Accumulated depreciation Bank Depreciation
14 875 30 000 55 000 15 125 85 000 60 000 17 000 13 000 280 000
Question 6
Not yet answered
Marked out of 3.00
In the process of reconciling the balances on the trade payables control account with the list of individual balances per trade payables ledger
for Mini Traders, the bookkeeper noted that an invoice for R1 600, had been entered incorrectly in the purchases journal as R160.
Instructions:
Trade payables control Sales Purchases Trade receivables control
160 1 600

Question 7
Not yet answered
Marked out of 1.00
MENU

Select one:
True
False
Question 8
Not yet answered
Marked out of 1.00
A liability is a claim which a party other than the owner/s has on the assets of the entity. Indicate whether the following statement is true or
false regarding liabilities?
Liabilities are present economic resources controlled by the entity as a result of past events.
Select one:
True
False

Question 9
Not yet answered
Marked out of 11.00
MENU

Equipment: Cost……………………………………………………………… 280 000
How will the note to the financial statement: Property, plant and equipment be disclosed for the year ended ended 31 October
20.10?
Instructions:

If an options has been provided and it is not applicable to the specific questions please put N/A in the accounts column and a 0 in the
amounts column.

MENU
115 200
Cost 280 000
(164 800)
Additions 148 600
Disposals (48 750)
Cost 280 000
Cost 233 600
Carrying amount: Beginning of year Additions Carrying amount: End of year
Depreciation for the year Accumulated depreciation N/A
Disposals Cost
(35 000) (164 800) (71 720) 0 (165 750) (58 543) (42 000) 280 000 (42 750) 121 357 (29 720) 175 057
(48 750) 115 200 119 330 (146 250) 148 600 (27 243) (29 250) (39 993) (73 200) 444 800 233 600 195 000

Question 10
Not yet answered
Marked out of 1.00
MENU
The accounting policy note will provide information such as depreciation rates used for vehicles and equipment as this information is not
presented on the face of the statement of financial position.
Select one:
True
False
Question 11
Not yet answered
Marked out of 1.00
In calculating cost of goods purchased, you must subtract the settlement discount received.
Select one:
True
False
Question 12
Not yet answered
Marked out of 1.00
Select one:
True
False
Time left 0:59:07


Question 13
Not yet answered
Marked out of 1.00
MENU
During the physical inventory count conducted by Top Traders for the year ended 31 May 20.21, inventory on hand consists of trading
DashboardR11
inventory, / My
677,courses / FAC1502-23-S1
packaging material R2 959,/ Welcome
stationeryMessage
R868 and/ cleaning
Assessment 3
material R350. Before Top Traders signed off the inventory
count sheets, the supervisor noticed that trading inventory on hand included consignment inventory to the value of R1 847 that is owned by
Bow Suppliers.
R
Purchases 29 678
Stationery 3 500
The correct amount for inventory to be disclosed in the statement of financial position of Top Traders as at 31 May 20.21 is ...
Instructions:

Answer: 9830
Question 14
Not yet answered
Marked out of 1.00
According to the diminishing balance method depreciation is written off on a different percentage of cost price less accumulated
depreciation annually.
Select one:
True
False

Question 15
Not yet answered
Marked out of 1.00
MENU

Under a periodic inventory system, the cost of sales is determined at the time of recording of the sale.
Select one:
True
False
Question 16
Not yet answered
Marked out of 1.00
The cost price of property, plant and equipment includes any other expenses incurred in getting the asset operational excluding import
duties and non-refundable purchase taxes.
Select one:
True
False
Question 17
Not yet answered
Marked out of 1.00
B Traders bought laptops from SK Office Equipment for R22 000 (VAT exclusive) on credit. The VAT rate applicable is 15%.
What is the VAT amount applicable to the transaction?
NB: Instructions

Answer: 3300

Question 18
Not yet answered
Marked out of 4.00
MENU
The following information was obtained from the records of Ronnie’s Dealers for the month ended 30 June 20.2:
R
Trade payables column in the purchases returns journal…………………….. 5 000
Cash payments journal: Trade payables column……………………………… 15 000
Settlement discount received column…………………................................... 1 500
receivables ledger from the trade payables ledger…………………………… 1 000
Credit balances…………………………………………………………………… 49 650

Debit balances……………………………………………………………………. 6 000
(a) An invoice for R2 100 which has been entered correctly in the purchases journal was entered incorrectly against the account of MM
Wholesalers as R1 200.
(c) The balance of the trade payables control account in the general ledger on 31 May 20.2 is R40 000 and on 1 July 20.2 it was
R45 250.
What will the correct reconciliation of the creditors balances with the balance of the trade payables account of Ronnie’s Dealers on 30
June 20.2 be?
Instructions:

Total of list of creditors balances

43 650
MM Wholesalers 900
Undercasting 700
Balance of trade payables control account 45 250
MM Wholesalers Purchases and VAT output Purchases and VAT input
Purchases returns and VAT input Purchases returns and VAT output Balance of trade payables control account
Total of list of creditors balances Undercasting
(900) 49 650 700 45 250 2 100 (1 200) (700) 42 050 900 43 650

Question 19
Not yet answered
Marked out of 1.00
MENU
Mars Traders acquired machinery on 1 September 20.19 for an amount of R375 900. The current financial period of Mars Traders ends on
Dashboard
28 February /20.22.
My courses / FAC1502-23-S1
According to Mars Traders’ Welcome Message
/ accounting / Assessment
policy, the depreciation3on machinery is provided using the unit of production
method over the useful life of 5 years according to the following production schedule:
The amount for depreciation to be shown in the statement of profit or loss and other comprehensive income for the year ended 28
February 20.22 will be …
NB: Instructions

Answer: 103820
Question 20
Not yet answered
Marked out of 1.00
Lola has prepared his financial statements for the year ended 30 April 2021, which showed a profit for the year of R150 000, current assets of
R96 000, non-current assets of R200 000 and a total assets figure of R296 000. He has since discovered that the closing inventory amount, he
used was overstated by R25 000.
Indicate whether the following statement is true or false regarding the correction of the error that was made?
The revised current assets amount will be R121 000.
Select one:
True
False

Question 21
Not yet answered
Marked out of 7.00
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GBV Club is a non- profit organisation that was started by 130 members on 1 January 20.7. The objective of GBV Club is to address gender-
based violence that is faced by South African citizens.
On 1 January 20.8 GBV Club opened a small shop to raise additional funding. The shop sells, printed T-shirts with messages addressing
gender-based violence. No T-shirts were on hand on 1 January 20.8.
In order to prepare the financial statements for the current financial period ended 31 December 20.8, the bookkeeper presented the
following information regarding the finances of the club to members at a meeting held on 31 December 20.8:
(1) GBV Club purchased 1 790 T-shirts during the current financial period at a cost price of R55.00 per T-shirt.
(2) GBV Club donated 110 T-shirts to citizens during the year to raise more awareness about gender-based violence.
(3) 430 T-shirts were on hand on 31 December 20.8 (considered as final inventory count for the current financial year).
The gross profit/loss amount for the small shop for T-shirts of GBV Club to be shown in the trading statement for the year ended
31 December 20.8, will be:
Instructions:
Sales
103 125
Cost of sales
(68 750)
Purchases 98 450
Donations (6 050)
Inventory (Closing) (23 650)
Gross profit 34 375
Revenue Purchases Gross income Sales Cost of sales Inventory (Closing)
Net profit Inventory (Opening) Gross profit Donations
(6 050) 34 375 23 650 103 125 40 425 1 250 1 470 29 700 1 790 (23 650) 110 80 850 430
21 970 121 275 6 050 (68 750) 98 450 98 450

Question 22
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Packing material on hand, stationery on hand and cleaning materials on hand at the end of the financial year will be subclassified as trade
payables in the statement of financial position.
Select one:
True
False
Question 23
Not yet answered
Marked out of 1.00
The inventory controller at WR Wholesalers incorrectly calculated the inventory count at the end of the financial year.

Select one:
True
False
Question 24
Not yet answered
Marked out of 1.00
The gross profit calculated in the trading statement of a non-profit entity is transferred to income and expenditure statement and is
Select one:
True
False

Question 25
Not yet answered
Marked out of 4.00
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
Question 26
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Marked out of 7.00
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The accountant of Mixed-up Traders requires your assistance to properly balance and reconcile the trade receivables control and trade
Dashboard
payable / My
control courseswith
accounts / FAC1502-23-S1 / Welcome
the total list of trade Message
receivables / Assessment
and total 3
list of trade payables for the month ended on 30 November 20.9.
The accountant provided you with the following information in respect of October and November 20.9 which was obtained from the records
of Mixed-up Traders:
Purchases…………………………………………………………………… R29 760
Sales………………………………………………………………………… R130 600
Sales journal:
Purchases journal:
General journal:
In the process of reconciling the balance of trade payables control accounts with the list of balances in the trade payables ledger, the
following errors and omissions were identified (all the following transactions are inclusive of 15% VAT):
(a) A debit note for R986 in respect of goods returned to S Hart was entered in the sales return journal instead of purchases return journal
and posted to the account of S Haurt in the trade receivables ledger instead of S Hart in the trade payable ledger. No correcting entries have
been made in any journals.
(b) An invoice of R690 for goods purchased from B Smith, was erroneously omitted from the purchases journal.
(d) An invoice for R1 799 which had been correctly entered in the purchases journal was entered against the account of Siyanqoba Ltd as
R1 997.
Complete the trade payables control account for the month ended 30 November 20.9 to determine the balance of the trade
payables control account.
Instructions:

Please keep the sequence of transactions strictly according to the information given but also in the correct format.
MENU
Bank, settlement discount granted and VAT input 5 980 Balance 19 442
Balance 25 733 Trade receivables control 2 567
33 259 33 259
Bank, settlement discount received and VAT output VAT input
Purchases returns and VAT input Settlement discount granted
Balance Bank, settlement discount granted and VAT input
Purchases returns and VAT output Bank, settlement discount granted and VAT output
Trade receivables control Settlement discount received
Purchases and VAT input Bank
VAT output Purchases and VAT output
1 377 1 619 633 18 992 11 250 2 567 37 359 560 1 546 11 937 90 500 33 259 19 442 5 980 786
73 29 760 25 733 10 560 4 464 34 159 12 627 118
◄ Assessment 2
Jump to...
Assessment 4 ►
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Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 3
Question 1
Not yet answered
Marked out of 1.00
The accountant for Gizmo Traders provides you with the following information for the financial years ended 31 May 20.2; 31 May 20.3 and
31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
Answer: 100
Question 2
Not yet answered
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MENU
based violence that is faced by South African citizens. The constitution of GBV Club indicated the following:
(c) Membership fees needs to increase by 10% at the beginning of every year, starting from 1 January 20.8.
(d) GBV Club does not provide members with refunds if they leave the club.
(2) Membership fees received of R306 480 for the current financial year ended 31 December 20.9
The amount for entrance fees paid by the new members in the current financial period that will form part of the accumulated fund
will be:
Instructions:

Answer: 14400
Question 3
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Marked out of 3.00
MENU
Instructions:

Trade receivables control Purchases Sales Trade payables control
1 600 160
Question 4
Not yet answered
Marked out of 1.00

According to IFRS the annual depreciation calculated on an asset is credited to the asset account in the general ledger.
Select one:
True
False
Question 5
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MENU
Equipment: Cost…………………………………………………………….. 280 000

printing equipment for R38 000 cash. The machine was bought on 1 November 20.4 for R190 000. Depreciated was provided for at 15% p.a.
Use the information as extracted from the accounting records of Kumkani Traders and assume the accumulated depreciation on the sold
equipment was R142 500 at the date of sale and that the total depreciation for the year was R47 554.
The correct amount that must be disclosed as the total carrying amount of equipment at the end of the financial year, 31 October
20.10 will be ...
NB: Instructions
Answer: 168746
Question 6
Not yet answered
Marked out of 1.00
Select one:
True
False
Question 7
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Marked out of 1.00
MENU
CK TRADERS
Dashboard
AN EXTRACT/ OF
Courses / UNISA / 2023 / TRIAL
THE PRE-ADJUSTMENT Semester 1 / FAC1502-23-S1
BALANCE / Welcome
AS AT 31 OCTOBER 20.9Message / Assessment 3
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
(a) CK Traders acquired machinery CK002 on 1 November 20.6 for an amount R1 075 308 and machinery CK002 was only available for
use from 1 February 20.7 due to site preparation and installation that needed to be performed. On 31 August 20.9, machinery CK002 was
taken out of production and was auctioned on the same day for a cash amount of R455 040. Depreciation on machinery CK002 must be
provided at a rate of 20% using the straight-line method.
(b) CK Traders has only one vehicle which was purchased on 1 November 20.7 for an amount of R125 900 and the accounting policy
indicate that depreciation on vehicles must be provided at a rate of 10% using the reducing balance method.
The total carrying amount for vehicles to be shown in the statement of financial position as at 31 October 20.9, will be …
NB: Instructions

Answer: 101979
Question 8
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MENU
Select one:
True
False
Question 9
Not yet answered
Marked out of 1.00

Select one:
True
False
Question 10
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Marked out of 1.00
Select one:
True
False

Question 11
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Gizmo Soccer Club will be classified as a non-profit entity.
Select one:
True
False
Question 12
Not yet answered
Marked out of 1.00

The cost price of property, plant and equipment includes any other expenses incurred in getting the asset operational.
Select one:
True
False
Question 13
Not yet answered
Marked out of 1.00

The interest on a mortgage is shown as other income in the statement of profit or loss and other comprehensive income.
Select one:
True
False
Question 14
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Marked out of 7.00
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Dashboard
payable / Courses
control accounts/ with
UNISA / 2023
the total list of/ trade
Semester 1 / FAC1502-23-S1
receivables / Welcome
and total list of trade Message
payables / Assessment
for the month 3 30 November 20.9.
ended on
Purchases…………………………………………………………………… R29 760
Sales………………………………………………………………………… R130 600
Sales journal:
Purchases journal:
General journal:
R1 997.
Instructions:

MENU
33 259 33 259
Bank, settlement discount granted and VAT input Bank, settlement discount received and VAT input
VAT input Settlement discount received
Purchases returns and VAT output Settlement discount granted
Bank, settlement discount granted and VAT output Purchases returns and VAT input
Balance Purchases and VAT output
VAT output Trade receivables control
Bank Bank, settlement discount received and VAT output
10 560 25 733 1 546 560 5 980 37 359 90 500 1 619 18 992 2 567 786 34 159 73 19 442 12 627
118 29 760 11 250 33 259 1 377 4 464 11 937 633
Question 15
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position.
Select one:
True
False 
Question 16
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Indicate whether the following statement is true or false regarding consumable stores on hand at the end of the financial year:
Select one:
True
False
Question 17
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Marked out of 11.00
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Equipment: Cost……………………………………………………………… 280 000
20.10?
Instructions:

amounts column.
MENU
115 200
Cost 280 000
(164 800)
Additions 148 600
Additions (48 750)
Cost 280 000
Cost 233 600
Carrying amount: End of year Disposals Depreciation for the year
Carrying amount: Beginning of year N/A Additions
Cost Accumulated depreciation
(164 800) 195 000 444 800 (29 250) 115 200 148 600 0 (42 000) (27 243) (39 993) (29 720) 175 057
(42 750) (73 200) (48 750) (58 543) 233 600 (71 720) (165 750) 121 357 (146 250) (35 000) 280 000 119 330
Question 18
Not yet answered
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An entity can use either a perpetual (continuous) inventory system or a periodic inventory system, depending on the nature of the entity, the
type of merchandise sold and the level of computerization in the entity.
Select one:
True
False
Question 19
Not yet answered
Marked out of 1.00
Under a perpetual inventory system, the cost of goods sold is recorded as each transaction takes place. When goods are sold for cash a
column in the cash receipts journal is added to collect the data regarding the cost price.
Select one:
True
False

Question 20
Not yet answered
Marked out of 7.00
MENU


R
Time left 0:57:45
Fixed deposit………………………………………………………... 80 000
Entrance fees……………………………………………………….. 5 000
Instructions:

If an options has been provided and it is not applicable to the specific questions please put N/A in the accounts column and a 0 in
the amounts column.
Income and expenditure account 2 988 Balance 19 320
Balance 37 440 Entrance fees 5 000
Donations received 38 600
N/A 0
61 760 61 760
Income and expenditure account Membership fees Balance N/A
Entrance fees Donations received


1 250 61 760 20 082 37 440 23 070 17 582 19 320 3 750 5 000 0 26 058 38 600 2 988 20 570
Question 21
Not yet answered
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Current liability are liabilities that … are expected to be settled within twelve months after the statement of financial position date.
Extract of the pre-closing trial balance

of THC Traders as at 30 September
2019
Debit Credit
R R
Plant and 120
machinery (cost) 000
Accumulated 41 750
depreciation: plant
and machinery
Equipment (cost) 90
000
Accumulated 17 100
depreciation:
equipment
Land and buildings 180
(cost) 000 Depreciation R38 367; Loss on sale of equipment R1 500; Interest on fixed deposit R7 500.
Fixed deposit (@ 100
7.5% p.a.) 000
Depreciation 38
367
Loss on sale of 1 500
equipment
Interest on fixed 7 500
deposit
The amounts that will be disclosed in

the statement of profit or loss and
other comprehensive income of THC
Traders for the year ended 30
September 2019 relating to non-
current assets are:

extracted from the accounting records
of Namgoong Plastics:

MENU
Accumulated
Dashboard / depreciation:
Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 3
(26 133)
Equipment
At the beginning of the financial year, 1

April 20.19, Namgoong Plastics
replaced its plastic shredding
equipment with new glass recycling
equipment that had a purchase price Cash receipts journal
of R45 600. The replaced plastic
shredding machine was sold for R5 000
cash, it was the only piece of
equipment in the books of Namgoong
prior to the purchase of the new glass
Depreciation is provided at 20% p.a. on

the straight-line method.

relating to the sale of the plastic
shredding equipment?

Accrued income
liability?

Question 22
Not yet answered
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MENU
On 1 June 20.20, Lesogo Traders obtained a loan of R800 000 from Petty Bank to purchase equipment. Interest on loan is calculated at 15%
per annum. The loan repayment schedule indicated that capital repayments on the loan will be made in five annual equal instalments
beginning on 31 May 20.21.
How will the loan be disclosed in the statement of financial position of Lesogo Traders as at 31 July 20.20?
Instructions:

Current liabilities
Non-current assets Investments Non-current liabilities
EQUITY AND LIABILITIES Current portion of long-term borrowings Current liabilities
Current assets Long-term borrowings Current portion of investments
ASSETS
10 000 800 000 160 000 640 000 120 000 960 000

Question 23
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CK TRADERS
Dashboard
AN EXTRACT/ OF
BALANCE / Welcome
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………..... 2 542
Rent income…………………………………………………………………………. 20 928
Interest on fixed deposit……………………………………………………………. 7 247
Advertising…………………………………………………………………………… 23 580
Packaging material………………………………………………………………….. 8 910
Stationery…………………………………………………………………………….. 3 540
Credit losses…………………………………………………………………………. 650
Salaries and wages…………………………………………………………………. 98 000
Interest on loan from ATM Bank…………………………………………………… 20 257
Water and electricity………………………………………………………………… 9 456
Telephone expenses………………………………………………………………... 1 984
(a) CK Traders sublets part of its building to B Silver. B Silver paid R20 928 on the 1 November 20.8 for 15 months. The rental agreement
stipulated that CK Traders will increase the rental amount to R1 688 from 1 August 20.9.
(b) CK Traders deposited R120 782 into a fixed deposit account with TB Bank on 1 February 20.9, at an interest rate of 12% per annum.
The interest is receivable twice per annum in June and December.
(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso advertising agency for a period of 2 years for a
total amount of R23 580. CK Traders paid R23 580 to Kgomotso advertising agency on 1 November 20.8 to cover the full contracted period.
Inventory R7 775
Stationery R260
(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at 11,5% per annum. The loan repayment
schedule indicate that the capital repayment of the loan would be made in four equal instalments as follows:
The total amount for trade and other payables to be shown in the statement of financial position as at 31 October 20.9 will be …
Instructions:

Answer: 136875

Question 24
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MENU

position.
Select one:
True
False
Question 25
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The cost price of property, plant and equipment includes any other expenses incurred in getting the asset operational including the
estimated costs of dismantling and removing the item and restoring the site on which it is located.
Select one:
True
False

Question 26
Not yet answered
Marked out of 5.00
MENU
At the beginning of the financial year, 1 April 20.19, Namgoong Plastics replaced its plastic shredding equipment with new glass recycling
equipment that had a purchase price of R48 700. The replaced plastic shredding machine was sold on credit for R8 000, it was the only
piece of equipment in the books of Namgoong prior to the purchase of the new glass recycling equipment. Depreciation is provided at 20%
Assuming the plastic shredding equipment was sold at a profit of R5 250, the effect of the transaction on the accounting equation
will be:
Instructions:

amounts column.
N/A Profit on sale of equipment Accumulated depreciation Trade receivables control Trade payables control
Equipment Depreciation Bank
-7 000 +5 250 0 +7 000 +8 000 -5 250 +29 750 -29 750 -35 000 -8 000 +35 000
◄ Assessment 2
Jump to...
Assessment 4 ►

MENU 
Question 1
Not yet answered
Marked out of 1.00
The accountant for Gizmo Traders provides you with the following information for the financial years ended 31 May 20.2; 31 May 20.3 and
31 May 20.4:
20.4 20.3 20.2

Revenue 800 000 500 000 400 000
Cost of sales (400 000) (300 000) (300 000)
Gross profit 400 000 200 000 100 000
Instructions:
Answer: 100

Question 2
Not yet answered
Marked out of 1.00
MENU
based violence that is faced by South African citizens. The constitution of GBV Club indicated the following:

(c) Membership fees needs to increase by 10% at the beginning of every year, starting from 1 January 20.8.
(d) GBV Club does not provide members with refunds if they leave the club.
(2) Membership fees received of R306 480 for the current financial year ended 31 December 20.9
The amount for entrance fees paid by the new members in the current financial period that will form part of the accumulated fund
will be:
Instructions:

Answer: 14400

Question 3
Not yet answered
Marked out of 3.00
MENU
Instructions:

Trade receivables control Purchases Sales Trade payables control
1 600 160
Question 4
Not yet answered
Marked out of 1.00

According to IFRS the annual depreciation calculated on an asset is credited to the asset account in the general ledger.
Select one:
True
False

Question 5
Not yet answered
Marked out of 1.00
MENU
Equipment: Cost…………………………………………………………….. 280 000
printing equipment for R38 000 cash. The machine was bought on 1 November 20.4 for R190 000. Depreciated was provided for at 15% p.a.
Use the information as extracted from the accounting records of Kumkani Traders and assume the accumulated depreciation on the sold
equipment was R142 500 at the date of sale and that the total depreciation for the year was R47 554.
The correct amount that must be disclosed as the total carrying amount of equipment at the end of the financial year, 31 October
20.10 will be ...
NB: Instructions
Answer: 168746
Question 6
Not yet answered
Marked out of 1.00
Select one:
True
False

Question 7
Not yet answered
Marked out of 1.00
MENU
CK TRADERS
Dashboard
AN EXTRACT/ OF
BALANCE / Welcome
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………….. 2 542
Land………………………………………………………………………………….. 60 000
Buildings……………………………………………………………………………… 13 722
Vehicle (at cost)……………………………………………………………………... 125 900
(a) CK Traders acquired machinery CK002 on 1 November 20.6 for an amount R1 075 308 and machinery CK002 was only available for
use from 1 February 20.7 due to site preparation and installation that needed to be performed. On 31 August 20.9, machinery CK002 was
taken out of production and was auctioned on the same day for a cash amount of R455 040. Depreciation on machinery CK002 must be
provided at a rate of 20% using the straight-line method.
(b) CK Traders has only one vehicle which was purchased on 1 November 20.7 for an amount of R125 900 and the accounting policy
indicate that depreciation on vehicles must be provided at a rate of 10% using the reducing balance method.
The total carrying amount for vehicles to be shown in the statement of financial position as at 31 October 20.9, will be …
NB: Instructions

Answer: 101979

Question 8
Not yet answered
Marked out of 1.00
MENU
Select one:
True
False
Question 9
Not yet answered
Marked out of 1.00

Select one:
True
False
Question 10
Not yet answered
Marked out of 1.00
Select one:
True
False

Question 11
Not yet answered
Marked out of 1.00
MENU
Gizmo Soccer Club will be classified as a non-profit entity.
Select one:
True
False
Question 12
Not yet answered
Marked out of 1.00

The cost price of property, plant and equipment includes any other expenses incurred in getting the asset operational.
Select one:
True
False
Question 13
Not yet answered
Marked out of 1.00

The interest on a mortgage is shown as other income in the statement of profit or loss and other comprehensive income.
Select one:
True
False

Question 14
Not yet answered
Marked out of 7.00
MENU
Dashboard
payable / Courses
control accounts/ with
UNISA / 2023
the total list of/ trade
Semester 1 / FAC1502-23-S1
receivables / Welcome
and total list of trade Message
payables / Assessment
for the month 3 30 November 20.9.
ended on
Purchases…………………………………………………………………… R29 760
Sales………………………………………………………………………… R130 600
Sales journal:
Purchases journal:
General journal:
R1 997.
Instructions:


MENU
33 259 33 259
Bank, settlement discount granted and VAT input Bank, settlement discount received and VAT input
VAT input Settlement discount received
Purchases returns and VAT output Settlement discount granted
Bank, settlement discount granted and VAT output Purchases returns and VAT input
Balance Purchases and VAT output
VAT output Trade receivables control
Bank Bank, settlement discount received and VAT output
10 560 25 733 1 546 560 5 980 37 359 90 500 1 619 18 992 2 567 786 34 159 73 19 442 12 627
118 29 760 11 250 33 259 1 377 4 464 11 937 633
Question 15
Not yet answered
Marked out of 1.00
position.
Select one:
True
False 
Question 16
Not yet answered
Marked out of 1.00
MENU
Indicate whether the following statement is true or false regarding consumable stores on hand at the end of the financial year:
Select one:
True
False
Question 17
Not yet answered
Marked out of 11.00
MENU

Equipment: Cost……………………………………………………………… 280 000
20.10?
Instructions:

amounts column.
MENU
115 200
Cost 280 000
(164 800)
Additions 148 600
Additions (48 750)
Cost 280 000
Cost 233 600
Carrying amount: End of year Disposals Depreciation for the year
Carrying amount: Beginning of year N/A Additions
Cost Accumulated depreciation
(164 800) 195 000 444 800 (29 250) 115 200 148 600 0 (42 000) (27 243) (39 993) (29 720) 175 057
(42 750) (73 200) (48 750) (58 543) 233 600 (71 720) (165 750) 121 357 (146 250) (35 000) 280 000 119 330
Question 18
Not yet answered
Marked out of 1.00
MENU

An entity can use either a perpetual (continuous) inventory system or a periodic inventory system, depending on the nature of the entity, the
type of merchandise sold and the level of computerization in the entity.
Select one:
True
False
Question 19
Not yet answered
Marked out of 1.00
Under a perpetual inventory system, the cost of goods sold is recorded as each transaction takes place. When goods are sold for cash a
column in the cash receipts journal is added to collect the data regarding the cost price.
Select one:
True
False

Question 20
Not yet answered
Marked out of 7.00
MENU


R
Time left 0:57:45
Fixed deposit………………………………………………………... 80 000
Entrance fees……………………………………………………….. 5 000
Instructions:
If an options has been provided and it is not applicable to the specific questions please put N/A in the accounts column and a 0 in
the amounts column.
Income and expenditure account 2 988 Balance 19 320
Balance 37 440 Entrance fees 5 000
Donations received 38 600
N/A 0
61 760 61 760
Income and expenditure account Membership fees Balance N/A
Entrance fees Donations received


1 250 61 760 20 082 37 440 23 070 17 582 19 320 3 750 5 000 0 26 058 38 600 2 988 20 570
Question 21
Not yet answered
Marked out of 4.00
MENU

Current liability are liabilities that … are expected to be settled within twelve months after the statement of financial position date.
Extract of the pre-closing trial balance

of THC Traders as at 30 September
2019
Debit Credit
R R
Plant and 120
machinery (cost) 000
Accumulated 41 750
depreciation: plant
and machinery
Equipment (cost) 90
000
Accumulated 17 100
depreciation:
equipment
Land and buildings 180
(cost) 000 Depreciation R38 367; Loss on sale of equipment R1 500; Interest on fixed deposit R7 500.
Fixed deposit (@ 100
7.5% p.a.) 000
Depreciation 38
367
Loss on sale of 1 500
equipment
Interest on fixed 7 500
deposit
The amounts that will be disclosed in

the statement of profit or loss and
other comprehensive income of THC
Traders for the year ended 30
September 2019 relating to non-
current assets are:
extracted from the accounting records
of Namgoong Plastics:

MENU
Accumulated
Dashboard / depreciation:
Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 3
(26 133)
Equipment
At the beginning of the financial year, 1

April 20.19, Namgoong Plastics
replaced its plastic shredding
equipment with new glass recycling
equipment that had a purchase price Cash receipts journal
of R45 600. The replaced plastic
shredding machine was sold for R5 000
cash, it was the only piece of
equipment in the books of Namgoong
prior to the purchase of the new glass
Depreciation is provided at 20% p.a. on

the straight-line method.

relating to the sale of the plastic
shredding equipment?

Accrued income
liability?
Question 22
Not yet answered
Marked out of 4.00
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On 1 June 20.20, Lesogo Traders obtained a loan of R800 000 from Petty Bank to purchase equipment. Interest on loan is calculated at 15%
per annum. The loan repayment schedule indicated that capital repayments on the loan will be made in five annual equal instalments
beginning on 31 May 20.21.
How will the loan be disclosed in the statement of financial position of Lesogo Traders as at 31 July 20.20?
Instructions:
Current liabilities
Non-current assets Investments Non-current liabilities
EQUITY AND LIABILITIES Current portion of long-term borrowings Current liabilities
Current assets Long-term borrowings Current portion of investments
ASSETS
10 000 800 000 160 000 640 000 120 000 960 000

Question 23
Not yet answered
Marked out of 1.00
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CK TRADERS
Dashboard
AN EXTRACT/ OF
BALANCE / Welcome
R
Capital………………………………………………………………………………… 350 000
Drawings……………………………………………………………………………… 2 500
Bank (Favourable)…………………………………………………………………... 15 909
Petty cash……………………………………………………………………………. 254
Cash float…………………………………………………………………………..... 2 542
Rent income…………………………………………………………………………. 20 928
Interest on fixed deposit……………………………………………………………. 7 247
Advertising…………………………………………………………………………… 23 580
Packaging material………………………………………………………………….. 8 910
Stationery…………………………………………………………………………….. 3 540
Credit losses…………………………………………………………………………. 650
Salaries and wages…………………………………………………………………. 98 000
Interest on loan from ATM Bank…………………………………………………… 20 257
Water and electricity………………………………………………………………… 9 456
Telephone expenses………………………………………………………………... 1 984
(a) CK Traders sublets part of its building to B Silver. B Silver paid R20 928 on the 1 November 20.8 for 15 months. The rental agreement
stipulated that CK Traders will increase the rental amount to R1 688 from 1 August 20.9.
(b) CK Traders deposited R120 782 into a fixed deposit account with TB Bank on 1 February 20.9, at an interest rate of 12% per annum.
The interest is receivable twice per annum in June and December.
(c) On 1 November 20.8, CK Traders entered into an advertising contract with Kgomotso advertising agency for a period of 2 years for a
total amount of R23 580. CK Traders paid R23 580 to Kgomotso advertising agency on 1 November 20.8 to cover the full contracted period.
Inventory R7 775
Stationery R260
(e) On 1 December 20.8 CK Traders obtained a loan from ATM Bank. Interest is calculated at 11,5% per annum. The loan repayment
schedule indicate that the capital repayment of the loan would be made in four equal instalments as follows:
The total amount for trade and other payables to be shown in the statement of financial position as at 31 October 20.9 will be …
Instructions:
Answer: 136875

Question 24
Not yet answered
Marked out of 1.00
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position.
Select one:
True
False
Question 25
Not yet answered
Marked out of 1.00
The cost price of property, plant and equipment includes any other expenses incurred in getting the asset operational including the
estimated costs of dismantling and removing the item and restoring the site on which it is located.
Select one:
True
False
Question 26
Not yet answered
Marked out of 5.00
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At the beginning of the financial year, 1 April 20.19, Namgoong Plastics replaced its plastic shredding equipment with new glass recycling
equipment that had a purchase price of R48 700. The replaced plastic shredding machine was sold on credit for R8 000, it was the only
piece of equipment in the books of Namgoong prior to the purchase of the new glass recycling equipment. Depreciation is provided at 20%
Assuming the plastic shredding equipment was sold at a profit of R5 250, the effect of the transaction on the accounting equation
will be:
Instructions:

amounts column.
N/A Profit on sale of equipment Accumulated depreciation Trade receivables control Trade payables control
Equipment Depreciation Bank
-7 000 +5 250 0 +7 000 +8 000 -5 250 +29 750 -29 750 -35 000 -8 000 +35 000
◄ Assessment 2
Jump to...
Assessment 4 ►
Stuvia.com - The Marketplace to Buy and Sell your Study Material
MENU 
Started on
/ WELCOME Thursday,
TO FAC1502 28 April 2022,
FINANCIAL 3:01 AM 1: FINANCIAL ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES
ACCOUNTING
State Finished
/ Assessment 3
Completed on Thursday, 28 April 2022, 3:17 AM
Time taken 16 mins 9 secs
Marks 38.00/41.00
Grade 92.68 out of 100.00
Feedback Congratulations, you pass the assessment with a distinction.
Question 1
Correct

An asset shall be classified as a non-current asset when it is held primarily for the purpose of being traded.
Select one:
True
False 
The correct answer is 'False'.
Question 2
Correct

Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market
participants at the measurement date.
Select one:
True 
False
The correct answer is 'True'.
Question 3
Correct
MENU 
If the closing balance of the VAT input account and VAT output account for the month ended 28 February 20.21 amount to R8 978 and R21
Dashboard
780, / MyIscourses
respectively. / FAC1502-22-S1
the following statement true or false about the VAT control account for the month ended 28 February 20.21.
/ VAT
The WELCOME
controlTO FAC1502
account will FINANCIAL ACCOUNTING
reflect a refund of R12 802.1: FINANCIAL ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES
/ Assessment 3
Select one:
True
False 
Question 4
Correct
Expenses for the year are disclosed in the statement of financial position.
Select one:
True
False 
Question 5
Incorrect

The interest on a mortgage is shown as an expense in the statement of profit or loss and other comprehensive income
Select one:
True
False 

Question 6
Correct
MENU 

When determining the historical cost of inventory, other costs that must be included are the cost of transporting the goods from the point
/ WELCOME TO FAC1502 FINANCIAL ACCOUNTING 1: FINANCIAL ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES
of sale to the premises of the purchaser.
/ Assessment 3
Select one:
True
False 
Question 7
Correct

Fixed deposits are an example of an intangible asset.
Select one:
True
False 
Question 8
Correct
MENU 

The instalment of a long-term borrowing which is payable in twelve months will be shown as current portion of long-term borrowings under
/ WELCOME
current liabilitiesTO
onFAC1502 FINANCIAL
the statement ACCOUNTING
of financial position.1: FINANCIAL ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES
/ Assessment 3
Select one:
True 
False
Question 9
Correct
When an entity uses a periodic inventory system the totals of the purchases journal will be posted to the general ledger as follows:
Select one:
A. Credit the trade payables control account; debit the VAT input account and the purchases account. 
B. Credit the trade payables control account and the VAT input account; debit the purchases account.
C. Debit the trade receivables control account; credit the VAT output account and the purchases account.
D. Debit the trade payables control account and the VAT input account; credit the purchases account.
E. Debit the trade payables control account; credit the VAT input account and the purchases account.
The correct answer is:

Credit the trade payables control account; debit the VAT input account and the purchases account.

Question 10
Correct
MENU 

Select one:
/ Assessment 3
A. Patents
B. Trade and other payables
C. Franchises
D. Copyrights
E. Fixed deposits 

Fixed deposits
Question 11
Correct
Select one:
A. are expected to be settled within twelve months after the statement of financial position date. 
B. are expected to be converted into money in the entities normal operating cycle.
C. refers to the wealth of the owner.
D. are present economic resources used by the entity because of past events.
E. have a useful life longer than one year.


Question 12
Correct
MENU 
/ Assessment 3
Select one:
A. credit side of the trade payables account in the general ledger.
B. credit side of the trade and other payables account in the general ledger.
C. debit side of the trade payables control account in the general ledger. 
D. debit side of the bank account in the general ledger.
E. credit side of each individual creditors account in the trade payables ledger.

Question 13
Correct
Candace buys a pair of shoes from Unique Heels for R275 (before discount). The pair of shoes was discounted by 25%. What is the discount
amount?
Select one:
A. R68,75 
B. R206,25
C. R55
D. R220
E. R275

R68,75

Question 14
Incorrect
MENU 
The following information relates to Babu Services, who is registered as a VAT vendor, for August 20.19 (The VAT rate applicable is
15%):
/ WELCOME
The bookkeeper FAC1502 FINANCIAL
TO received ACCOUNTING
the bank statement 1: FINANCIAL
for August after ACCOUNTING CONCEPTS,
the August cash journalsPRINCIPLES AND On
were totalled. PROCEDURES
comparing it with the
August cash journals the following items did not appear in the cash journals:
/ Assessment 3
BANK STATEMENT FOR AUGUST 20.19
Details Date Debit Credit
R R
Deposit ………….……………………………………………… 01/08 16 720
P Lazarus……....……………………..…...…………………… 06/08 18 250
Stop order - Insurance………………………………………… 12/08 2 250
K Letima .……………………………………………………….. 17/08 3 600
Service fees……………………….……………………………. 26/08 700
Interest………………………………………………………….. 26/08 105
I Moloi ….……………………………………………………….. 26/08 675
Debit order – City Council……………………………………… 27/08 2 550
Additional information regarding the bank statement received on 31 August 20.19.
1. On 17 August 20.19 Ms K Letima deposited R3 600 directly into the bank account of Babu Services in full settlement of her
account of R4 060.
Which one of the following options represents the correct general journal entry in the books of Babu Services for the settlement
discount granted:
Select one:
A. BABU SERVICES
GENERAL JOURNAL – AUGUST 20.19
Date Details Fol Debit Credit
R R
31 Settlement discount granted 460
K Letima/Trade receivables control 460
Ms K Letima paid R3 600 in full settlement of her
account of R4 060
B. BABU SERVICES
R R
VAT input 60
account of R4 060
C. BABU SERVICES 
R R
VAT output 60
account of R4 060
D. BABU SERVICES 

FAC1502 Assignment 3 Semester 2 2023

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FAC1502 Assignment 3 Semester 2 2023

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SEMESTER 2

Opened: Friday, 8 September 2023, 8:00 PM

Summary of your previous attempts

Finished 95 67 2 00 Congratulations, you pass

Your nal grade for this quiz is

No more attempts are allowed

Back to the course

Dashboard / My courses / FAC1502-22-S2

Mark 1.00 out of 1.00

What is included in the statement of financial position of a business?

B. Assets, discounts and liabilities.

C. Income, expenses, assets and liabilities.

D. Equity, assets and liabilities. 

E. Assets, liabilities, profit on disposal of non-current assets.

Mark 1.00 out of 1.00

Indicate whether the following statement is true or false:

20.4 20.3 20.2

Indicate which journal(s) will

Extract of the pre-closing

The amounts that will be

Current liability are liabilities Answer 4

20.4 20.3 20.2

Depreciation for the year must be provided as follows:

- Equipment: 10% per annum on the straight-line method

What is the estimated closing inventory amount on 31 May 20.2?

1. Use a full stop to indicate any decimals (eg: 1000.01)

Depreciation for the year must be provided as follows:

- Equipment: 10% per annum on the straight-line method

What is the discount amount?

Year 1 Year 2 Year 3 Year 4 Year 5

- Equipment: 10% per annum on the straight-line method

Refreshments bought for cash R5 804

Refreshments bought on credit R11 480.

Refreshments sold on credit R18 960.

Drag the correct answer into the correct space.

20.4 20.3 20.2

Year 1 Year 2 Year 3 Year 4 Year 5

Depreciation for the year must be provided as follows:

- Equipment: 10% per annum on the straight-line method

20.4 20.3 20.2

The revised total assets amount will be R321 000.

Depreciation for the year must be provided as follows:

- Equipment: 10% per annum on the straight-line method

20.4 20.3 20.2

State whether the following statement is true or false:

Drag the correct answer into the correct space.

Inventory on hand on 30 June 20.2 is R20 000.

20.4 20.3 20.2

1. Use a full stop to indicate any decimals (eg: 1000.01)

State whether the following statement is true or false:

Drag the correct answer into the correct space.

Inventory on hand on 30 June 20.2 is R20 000.

What is the estimated closing inventory amount on 31 May 20.2?

1. Use a full stop to indicate any decimals (eg: 1000.01)

20.4 20.3 20.2

Inventory on hand on 30 June 20.2 is R20 000.

Equipment are depreciated at 5% per annum on the straight-line method.

Indicate whether the following statement is true or false:

List of individual creditors per trade payables ledger: