FAC1502
ASSIGNMENT 1
SECOND SEMSTER 2022
BY: MTHOMBENI : 0767297208
,Please note that questions are not the same and if you come across a question that is not on
this memo, send me a WhatsApp message or call me
VERSION 1
1.The inexperienced accounting clerk wrongfully entered the manager's salary of R11 000 into the insurance
account. The correcting double-entry would be ...
Select one:
A.
dr salaries, R11 000 and cr bank, R11 000.
B.
dr salaries, R22 000 and cr insurance, R22 000.
C.
dr capital, R11 000 and cr salaries, R11 000.
D.
dr insurance, R11 000 and cr salaries R11 000.
E.
dr salaries, R11 000 and cr insurance, R11 000.
Clear my choice
Question 2
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The financial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who
was immediately required to assist with the creation of an allowance for credit losses (current financial
year ends on 28 February 20.19). The auditors of Steven Traders raised an audit finding in the previous
financial period, stating that trade and other receivables were overstated since no allowances for credit
losses has been created although there was evidence that some of the debtors did not pay their accounts
in the previous financial periods. The financial manager wants to avoid this audit finding in the current
financial period.
The financial manager requested the bookkeeper to write a memo and indicate which accounts will be
affected when the allowance for credit losses is created? The bookkeeper has written the following
statement down and requires you to confirm whether the statement is true or false when the allowance
for credit losses is created.
When the allowance for credit losses is created, you will debit the credit losses account and credit the
allowance for credit losses account.
Select one:
, True
False
Question 3
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Indicate by choosing the correct option whether the following statement is true or false:
Trade discount is the discount offered to debtors to encourage quick settlement of their debts within the
stated credit term.
Select one:
True
False
Question 4
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Indicate by choosing the correct option whether the following statement is true or false:
It is acceptable accounting practice to write off credit losses as they occur against the allowance for credit
losses account if an allowance for credit losses exists.
Select one:
True
False
Question 5
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The following information relates to Fruit and Veggie Spaza Shop, who is registered as a VAT vendor
(The VAT rate applicable is 15%). The periodic inventory system and control accounts are in use: (The
VAT period of the business ends on equal months.)
FRUIT AND VEGGIES SPAZA SHOP
EXTRACT OF BALANCES AS AT 31 AUGUST 20.20
, R
VAT input 13 500
VAT output 67 500
Additional information that still needs to be taken into account:
On 4 August, an account was received from Strawberry Stationers for the printing of documents, R5
060.
What will the correct general journal entry regarding the printing of documents for Fruit and
Veggies be:
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once..
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.
ASSIGNMENT 1
SECOND SEMSTER 2022
BY: MTHOMBENI : 0767297208
,Please note that questions are not the same and if you come across a question that is not on
this memo, send me a WhatsApp message or call me
VERSION 1
1.The inexperienced accounting clerk wrongfully entered the manager's salary of R11 000 into the insurance
account. The correcting double-entry would be ...
Select one:
A.
dr salaries, R11 000 and cr bank, R11 000.
B.
dr salaries, R22 000 and cr insurance, R22 000.
C.
dr capital, R11 000 and cr salaries, R11 000.
D.
dr insurance, R11 000 and cr salaries R11 000.
E.
dr salaries, R11 000 and cr insurance, R11 000.
Clear my choice
Question 2
Answer saved
Marked out of 1.00
Flag question
Question text
The financial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who
was immediately required to assist with the creation of an allowance for credit losses (current financial
year ends on 28 February 20.19). The auditors of Steven Traders raised an audit finding in the previous
financial period, stating that trade and other receivables were overstated since no allowances for credit
losses has been created although there was evidence that some of the debtors did not pay their accounts
in the previous financial periods. The financial manager wants to avoid this audit finding in the current
financial period.
The financial manager requested the bookkeeper to write a memo and indicate which accounts will be
affected when the allowance for credit losses is created? The bookkeeper has written the following
statement down and requires you to confirm whether the statement is true or false when the allowance
for credit losses is created.
When the allowance for credit losses is created, you will debit the credit losses account and credit the
allowance for credit losses account.
Select one:
, True
False
Question 3
Answer saved
Marked out of 1.00
Flag question
Question text
Indicate by choosing the correct option whether the following statement is true or false:
Trade discount is the discount offered to debtors to encourage quick settlement of their debts within the
stated credit term.
Select one:
True
False
Question 4
Answer saved
Marked out of 1.00
Flag question
Question text
Indicate by choosing the correct option whether the following statement is true or false:
It is acceptable accounting practice to write off credit losses as they occur against the allowance for credit
losses account if an allowance for credit losses exists.
Select one:
True
False
Question 5
Answer saved
Marked out of 6.00
Flag question
Question text
The following information relates to Fruit and Veggie Spaza Shop, who is registered as a VAT vendor
(The VAT rate applicable is 15%). The periodic inventory system and control accounts are in use: (The
VAT period of the business ends on equal months.)
FRUIT AND VEGGIES SPAZA SHOP
EXTRACT OF BALANCES AS AT 31 AUGUST 20.20
, R
VAT input 13 500
VAT output 67 500
Additional information that still needs to be taken into account:
On 4 August, an account was received from Strawberry Stationers for the printing of documents, R5
060.
What will the correct general journal entry regarding the printing of documents for Fruit and
Veggies be:
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once..
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.
