Swift Construction, located in Gauteng, specializes in constructing tiny homes. The business is not a registered VAT vendor. In January 2024, Swift Construction had an unfavourable bank balance.
On 20 January 2024, Swift Construction received interest of R2 590 on a long-term fixed deposit from Rex Bank. The amount was deposited into the bank account of Swift Construction.
REQUIRED: OSCAR THE TUTOR
Analyse the transaction of Swift Construction that took place on 20 January 2024, in tabular format as follows:
+27737560989
Date
Account to be
Amount
Element Account to
Amount
Element for FAC MAC ECS DSC TAX QMI FIN INV BNU
debited debited be credited credited
STA tutorials
Example: May 2 Swift Construction purchased inventory for the amount of R5 000 and
paid cash. Swift Construction makes use of the periodic inventory system.
R R
May 2 Purchases 5 000 Expense Bank -5 000 Asset
Complete the table below by selecting the account to be debited, the account to be credited and the element affected on the financial statements (income, expense, assets, equity
and liabilities) from the dropdown menu and filling in the applicable amounts in the correct spaces.
Please indicate whether the transaction increases or decreases the affected element (income, expense, assets, equity and liabilities) in the amount column (see instruction 3 and 4 for
examples)
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. When an element decreases, use a negative sign in front of the amount (eg: -1000.01)
4. When an element increases, the amount will be without any sign (eg: 1000.01)
5. Only show the amount, do not show the R (eg: 1000)
Element Element
Date Account to be debited Amount Account to be credited Amount
debited credited
R R
Jan
Bank 2590.00 Liability 2590.00 Income
20
Interest received
Question 2
Answer saved
Africa Traders, which is not a registered VAT vendor, manufactures and sells face masks. The VAT rate is 15%. On 15 February 2021, Africa Traders issued a credit note to SA Traders,
Marked out of 3.00
a registered VAT vendor, for face masks of R4 600 (VAT exclusive). These face masks were returned to Africa Traders by SA Traders and were previously purchased on credit. All goods
are sold at a constant mark-up of 25% and Africa Traders uses the periodic inventory system. Flag question
How will the above transaction be recorded in the applicable subsidiary journal of Africa Traders?
a.
Africa Traders
Purchases Returns Journal – February 2021
PRJ02
Doc Purchases
no returns
Day Details Fol VAT input Trade payables
R R R
15 4 600 4 600
SA Traders
b.
Africa Traders
Sales Returns Journal – February 2021
SRJ02
Doc
no Trade
Day Details Fol VAT output Sales returns Cost of sales
receivables
R R R R
15 600 4 000 4 600 3 200
SA Traders
c.
Africa Traders
Purchases Returns Journal – February 2021
PRJ02
Doc
no
Day Details Fol VAT input Inventory Trade payables
R R R
15 SA Traders 600 4 000 4 600
, d.
Africa Traders
Sales Returns Journal – February 2021
SRJ02
Doc
no Trade
Day Details Fol VAT output Sales returns
receivables
R R R
15 4 600 4 600
SA Traders
Clear my choice
Question 3
Shabangu Suppliers (not a registered VAT vendor) is a retail entity situated in the Limpopo province. The perpetual inventory system is in use and merchandise are sold at a 20% mark-up on Answer saved
cost. The following transactions took place during May 2023: Marked out of 15.00
Date Transaction R Flag question
6 Purchased merchandise from Matsene Traders and paid cash 9 130
15 Sold merchandise to Mr Hall for cash 2 760
29 Purchased merchandise from Zittace Traders on account 13 250
31 Returned merchandise purchased on credit to Zittace Traders 3 300
The opening balance of the inventory account on 1 May 2023 was R6 250
Required:
Post the above transactions to the general ledger account provided below.
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. When no amount needs to be entered in a column, then indicate this by entering 0 in the column (eg: 0)
Dr Inventory
Cr
2023 R 2023 R
May 1 Balance b/d May 1 Balance b/d
6250.00 0
31 31
Bank CPJ 9130.00 Bank CRJ 2300.00
Trade payables PJ 13250.00 Trade payables PRJ 3300.00
Balance c/d Balance c/d
0 23030.00
28630.00 28630.0
Jun 1 Balance b/d Jun 1 Balance b/d
23030.00 0
Question 4
Tree Trimmers is a small business entity specialising in trimming and removing trees. The business is NOT a registered VAT vendor. Answer saved
At the beginning of the rainy season, the South African weather services indicated a high probability of several severe storms and regular flooding in the Durban area. On 1 August 2023, Tree Marked out of 15.00
Trimmers decided to buy a new laptop for the amount of R32 830 (VAT Inclusive) in anticipation of the probable increased workload to ensure the timely capturing of all accounting records. The
Flag question
purchase was financed through a loan obtained from KZN Bank. The loan is repayable in equal bi-annual instalments, over 7 years and bears interest at 9% per annum. All interest payable is
capitalised to the loan account. The contract stipulates that the first instalment is due on 1 June 2024.
It was decided to depreciate the chain saws over its anticipated economic life of 7 years using the straight-line method. The financial year of Tree Trimmers ends on 30 April 2024.
Required:
Record the following in the general journal of Tree Trimmers:
a) Purchase transaction of the vehicle on 1 August 2023
b) Depreciation on the trailer for the year ending 30 April 2024
c) Interest on the loan from ABC Bank for the year ending 30 April 2024
Instructions:
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. Do not type in R for Rand in the numeric block, only type the amount (eg: 1000.99)
, Tree Trimmers
General journal – 31 August 2023
Day Details Debit Credit
R R
1 Computer equipment 32830.00
Loan: KZN Bank 32830.00
Laptop purchased on credit
Tree Trimmers
General journal – 30 April 2024
Day Details Debit Credit
R R
30 Depreciation 3517.50
Accumulated depreciation 3517.50
Depreciation on laptop for the
period ending 30 April 2024
Interest expense 2216.03
Loan: KZN Bank 2216.03
Interest due on loan
Question 5
Answer saved
Africa Traders applies the principles of the periodic inventory system. When inventory is sold on credit, the transaction will be recorded in the cash receipts journal.
Marked out of 1.00
Flag question
Select one:
True
False
Question 6
Answer saved
The total of R32 535 of the list of individual debtor balances of Clayville Stores, differs from the balance of the trade receivables control account at 31 October 2022. Upon
Marked out of 4.00
investigation, the following were found:
Flag question
The list of debtor's balances had been overcast by R1 280.
Goods to the value of R3 709, bought by client N Nkosi, was inadvertently debited to the account of M Nkosi.
Sales invoice number 312 for R565 which was entered correctly in the sales journal, was entered as R2 565 in C North's account.
Required:
What is the closing balance of the trade receivables control account of Clayville Stores on 31 October 2022?
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)
Answer: 32535.00
Question 7
Answer saved
Africa Traders is a trading entity and makes use of the perpetual inventory system. When writing-up the closing transfers, the drawings account must be closed off to the capital account. Marked out of 1.00
Flag question
Select one:
True
False
Question 8
Answer saved
Please match the question in column A to the correct option. Each option provided may be selected more than once. You may assume that the entities mentioned in the transactions are not a
Marked out of 5.00
, registered VAT vendors unless explicitly mentioned otherwise. Flag question
The bookkeeper of SA Landscapers realised that invoice number 200 issued to Mrs A South (a client) for the sale of gardening products on credit was entered
twice in the applicable journal. The account debited for the transaction to correct the error in the books of SA Landscapers will be classified as …. Current liability
On 5 January 2022, Mr S Africa, the owner of SA Landscapers lend R100 000 to the business. SA Landscapers will repay the full amount before 31 December
2022. The full amount was deposited into the bank account of SA Landscapers on the same day. The account credited for this transaction in the books of SA Current liability
Landscapers will be classified as ….
On 30 January 2022, SA Landscapers wrote off the debt of Mrs C West as irrecoverable. The account debited for this transaction in the books of SA
Landscapers will be classified as …. Expense
During February 2022 SA Landscapers earned commission income to the amount of R6 500 from SA Garden supplies for the promotion of certain gardening
products to its clients. On 28 February 2022, the commission has not yet been paid. The account debited for the closing transfer on 28 February 2022 relating Current asset
to this transaction, in the books of SA Landscapers will be classified as ….
Mr S Africa, started a small service business, SA Landscapers on 1 January 2020. On 3 January 2021 SA Landscapers bought a laptop and printer from
SAComp (Pty) Ltd and paid for it with an internet banking transfer, R21 200. The account debited for this transaction in the books of SA Landscapers will be Non-current asset
classified as ….
Question 9
Answer saved
The following information reflected in the accounting records of Africa Traders as at 28 February 2022:
Marked out of 3.00
(1). On 28 February 2022, the balance of Africa Traders’ bank statement was R1 956 (favourable). Flag question
(2). At the same date, outstanding payments amounted to R5 207.
(3). A deposit in favour of SA Traders to the amount of R4 268 appeared incorrectly in Africa Traders’ bank statement.
(4). Payment no 2: R6 215 made by SA Traders appeared incorrectly in Africa Traders’ bank statement as payment made.
Calculate the balance of the bank account in the general ledger in the Bank reconciliation statement of Africa Traders as at 28 February 2022?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Only show the amount, do not show the R (eg: 12141.72)
3. If the total amount calculated is a favourable bank balance, please enter the amount as a positive (eg: 12141.72), if the total amount calculated is an unfavourable bank balance, please enter
the amount as a negative (eg: -12141.72)
Answer: 7232.00
Question 10
Answer saved
Africa Cleaners (Not a registered VAT vendor) entered into a service contract with SA Builders. In terms of the contract SA Builders will pay a monthly fee of R23 450 from 1 March 2021 to 28 Marked out of 1.00
February 2022 for cleaning services of office buildings. On 28 February 2022 and amount of R257 950 was recorded in the fees received account relating to the contract with SA Builders. The Flag question
entry to adjust the fees received on 28 February 2022 will be:
Debit: Income received in advance - R23 450
Credit: Fees received - R23 450
Select one:
True
False
Question 11
Answer saved
Stokvel Traders (a registered VAT vendor) manufactures and sells luxury goods. Stokvel Traders further provides certain marketing and advertising services to clients in the tourism industry. The Marked out of 3.00
periodic inventory system and control accounts are in use. Flag question
The following balances and totals were extracted from the financial records of Stokvel Traders for the year ended 31 March 2022:
R
Sales 1 230 045
Services rendered 230 000
Rent received 95 000
Insurance 67 500
Advertising 43 700
Water and electricity 36 800
Telephone expenses 25 350
Additional information:
1. Stokvel Traders sublets a portion of its office space to Tourists International for a monthly fee of R10 925 (VAT inclusive).
On 20 January 2024, Swift Construction received interest of R2 590 on a long-term fixed deposit from Rex Bank. The amount was deposited into the bank account of Swift Construction.
REQUIRED: OSCAR THE TUTOR
Analyse the transaction of Swift Construction that took place on 20 January 2024, in tabular format as follows:
+27737560989
Date
Account to be
Amount
Element Account to
Amount
Element for FAC MAC ECS DSC TAX QMI FIN INV BNU
debited debited be credited credited
STA tutorials
Example: May 2 Swift Construction purchased inventory for the amount of R5 000 and
paid cash. Swift Construction makes use of the periodic inventory system.
R R
May 2 Purchases 5 000 Expense Bank -5 000 Asset
Complete the table below by selecting the account to be debited, the account to be credited and the element affected on the financial statements (income, expense, assets, equity
and liabilities) from the dropdown menu and filling in the applicable amounts in the correct spaces.
Please indicate whether the transaction increases or decreases the affected element (income, expense, assets, equity and liabilities) in the amount column (see instruction 3 and 4 for
examples)
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. When an element decreases, use a negative sign in front of the amount (eg: -1000.01)
4. When an element increases, the amount will be without any sign (eg: 1000.01)
5. Only show the amount, do not show the R (eg: 1000)
Element Element
Date Account to be debited Amount Account to be credited Amount
debited credited
R R
Jan
Bank 2590.00 Liability 2590.00 Income
20
Interest received
Question 2
Answer saved
Africa Traders, which is not a registered VAT vendor, manufactures and sells face masks. The VAT rate is 15%. On 15 February 2021, Africa Traders issued a credit note to SA Traders,
Marked out of 3.00
a registered VAT vendor, for face masks of R4 600 (VAT exclusive). These face masks were returned to Africa Traders by SA Traders and were previously purchased on credit. All goods
are sold at a constant mark-up of 25% and Africa Traders uses the periodic inventory system. Flag question
How will the above transaction be recorded in the applicable subsidiary journal of Africa Traders?
a.
Africa Traders
Purchases Returns Journal – February 2021
PRJ02
Doc Purchases
no returns
Day Details Fol VAT input Trade payables
R R R
15 4 600 4 600
SA Traders
b.
Africa Traders
Sales Returns Journal – February 2021
SRJ02
Doc
no Trade
Day Details Fol VAT output Sales returns Cost of sales
receivables
R R R R
15 600 4 000 4 600 3 200
SA Traders
c.
Africa Traders
Purchases Returns Journal – February 2021
PRJ02
Doc
no
Day Details Fol VAT input Inventory Trade payables
R R R
15 SA Traders 600 4 000 4 600
, d.
Africa Traders
Sales Returns Journal – February 2021
SRJ02
Doc
no Trade
Day Details Fol VAT output Sales returns
receivables
R R R
15 4 600 4 600
SA Traders
Clear my choice
Question 3
Shabangu Suppliers (not a registered VAT vendor) is a retail entity situated in the Limpopo province. The perpetual inventory system is in use and merchandise are sold at a 20% mark-up on Answer saved
cost. The following transactions took place during May 2023: Marked out of 15.00
Date Transaction R Flag question
6 Purchased merchandise from Matsene Traders and paid cash 9 130
15 Sold merchandise to Mr Hall for cash 2 760
29 Purchased merchandise from Zittace Traders on account 13 250
31 Returned merchandise purchased on credit to Zittace Traders 3 300
The opening balance of the inventory account on 1 May 2023 was R6 250
Required:
Post the above transactions to the general ledger account provided below.
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. When no amount needs to be entered in a column, then indicate this by entering 0 in the column (eg: 0)
Dr Inventory
Cr
2023 R 2023 R
May 1 Balance b/d May 1 Balance b/d
6250.00 0
31 31
Bank CPJ 9130.00 Bank CRJ 2300.00
Trade payables PJ 13250.00 Trade payables PRJ 3300.00
Balance c/d Balance c/d
0 23030.00
28630.00 28630.0
Jun 1 Balance b/d Jun 1 Balance b/d
23030.00 0
Question 4
Tree Trimmers is a small business entity specialising in trimming and removing trees. The business is NOT a registered VAT vendor. Answer saved
At the beginning of the rainy season, the South African weather services indicated a high probability of several severe storms and regular flooding in the Durban area. On 1 August 2023, Tree Marked out of 15.00
Trimmers decided to buy a new laptop for the amount of R32 830 (VAT Inclusive) in anticipation of the probable increased workload to ensure the timely capturing of all accounting records. The
Flag question
purchase was financed through a loan obtained from KZN Bank. The loan is repayable in equal bi-annual instalments, over 7 years and bears interest at 9% per annum. All interest payable is
capitalised to the loan account. The contract stipulates that the first instalment is due on 1 June 2024.
It was decided to depreciate the chain saws over its anticipated economic life of 7 years using the straight-line method. The financial year of Tree Trimmers ends on 30 April 2024.
Required:
Record the following in the general journal of Tree Trimmers:
a) Purchase transaction of the vehicle on 1 August 2023
b) Depreciation on the trailer for the year ending 30 April 2024
c) Interest on the loan from ABC Bank for the year ending 30 April 2024
Instructions:
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. Do not type in R for Rand in the numeric block, only type the amount (eg: 1000.99)
, Tree Trimmers
General journal – 31 August 2023
Day Details Debit Credit
R R
1 Computer equipment 32830.00
Loan: KZN Bank 32830.00
Laptop purchased on credit
Tree Trimmers
General journal – 30 April 2024
Day Details Debit Credit
R R
30 Depreciation 3517.50
Accumulated depreciation 3517.50
Depreciation on laptop for the
period ending 30 April 2024
Interest expense 2216.03
Loan: KZN Bank 2216.03
Interest due on loan
Question 5
Answer saved
Africa Traders applies the principles of the periodic inventory system. When inventory is sold on credit, the transaction will be recorded in the cash receipts journal.
Marked out of 1.00
Flag question
Select one:
True
False
Question 6
Answer saved
The total of R32 535 of the list of individual debtor balances of Clayville Stores, differs from the balance of the trade receivables control account at 31 October 2022. Upon
Marked out of 4.00
investigation, the following were found:
Flag question
The list of debtor's balances had been overcast by R1 280.
Goods to the value of R3 709, bought by client N Nkosi, was inadvertently debited to the account of M Nkosi.
Sales invoice number 312 for R565 which was entered correctly in the sales journal, was entered as R2 565 in C North's account.
Required:
What is the closing balance of the trade receivables control account of Clayville Stores on 31 October 2022?
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)
Answer: 32535.00
Question 7
Answer saved
Africa Traders is a trading entity and makes use of the perpetual inventory system. When writing-up the closing transfers, the drawings account must be closed off to the capital account. Marked out of 1.00
Flag question
Select one:
True
False
Question 8
Answer saved
Please match the question in column A to the correct option. Each option provided may be selected more than once. You may assume that the entities mentioned in the transactions are not a
Marked out of 5.00
, registered VAT vendors unless explicitly mentioned otherwise. Flag question
The bookkeeper of SA Landscapers realised that invoice number 200 issued to Mrs A South (a client) for the sale of gardening products on credit was entered
twice in the applicable journal. The account debited for the transaction to correct the error in the books of SA Landscapers will be classified as …. Current liability
On 5 January 2022, Mr S Africa, the owner of SA Landscapers lend R100 000 to the business. SA Landscapers will repay the full amount before 31 December
2022. The full amount was deposited into the bank account of SA Landscapers on the same day. The account credited for this transaction in the books of SA Current liability
Landscapers will be classified as ….
On 30 January 2022, SA Landscapers wrote off the debt of Mrs C West as irrecoverable. The account debited for this transaction in the books of SA
Landscapers will be classified as …. Expense
During February 2022 SA Landscapers earned commission income to the amount of R6 500 from SA Garden supplies for the promotion of certain gardening
products to its clients. On 28 February 2022, the commission has not yet been paid. The account debited for the closing transfer on 28 February 2022 relating Current asset
to this transaction, in the books of SA Landscapers will be classified as ….
Mr S Africa, started a small service business, SA Landscapers on 1 January 2020. On 3 January 2021 SA Landscapers bought a laptop and printer from
SAComp (Pty) Ltd and paid for it with an internet banking transfer, R21 200. The account debited for this transaction in the books of SA Landscapers will be Non-current asset
classified as ….
Question 9
Answer saved
The following information reflected in the accounting records of Africa Traders as at 28 February 2022:
Marked out of 3.00
(1). On 28 February 2022, the balance of Africa Traders’ bank statement was R1 956 (favourable). Flag question
(2). At the same date, outstanding payments amounted to R5 207.
(3). A deposit in favour of SA Traders to the amount of R4 268 appeared incorrectly in Africa Traders’ bank statement.
(4). Payment no 2: R6 215 made by SA Traders appeared incorrectly in Africa Traders’ bank statement as payment made.
Calculate the balance of the bank account in the general ledger in the Bank reconciliation statement of Africa Traders as at 28 February 2022?
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72)
2. Only show the amount, do not show the R (eg: 12141.72)
3. If the total amount calculated is a favourable bank balance, please enter the amount as a positive (eg: 12141.72), if the total amount calculated is an unfavourable bank balance, please enter
the amount as a negative (eg: -12141.72)
Answer: 7232.00
Question 10
Answer saved
Africa Cleaners (Not a registered VAT vendor) entered into a service contract with SA Builders. In terms of the contract SA Builders will pay a monthly fee of R23 450 from 1 March 2021 to 28 Marked out of 1.00
February 2022 for cleaning services of office buildings. On 28 February 2022 and amount of R257 950 was recorded in the fees received account relating to the contract with SA Builders. The Flag question
entry to adjust the fees received on 28 February 2022 will be:
Debit: Income received in advance - R23 450
Credit: Fees received - R23 450
Select one:
True
False
Question 11
Answer saved
Stokvel Traders (a registered VAT vendor) manufactures and sells luxury goods. Stokvel Traders further provides certain marketing and advertising services to clients in the tourism industry. The Marked out of 3.00
periodic inventory system and control accounts are in use. Flag question
The following balances and totals were extracted from the financial records of Stokvel Traders for the year ended 31 March 2022:
R
Sales 1 230 045
Services rendered 230 000
Rent received 95 000
Insurance 67 500
Advertising 43 700
Water and electricity 36 800
Telephone expenses 25 350
Additional information:
1. Stokvel Traders sublets a portion of its office space to Tourists International for a monthly fee of R10 925 (VAT inclusive).
