⋆
FAC ⋆
]]
FAC1503: Financial Accounting Principles
for Law Practitioners
OCT/NOV Examination 2026
Covering Exam Papers: 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Financial Accounting for the Legal Profession
Exam Revision Guide
FAC1503
Module Code:
Financial Accounting Principles for Law
Module Name:
Practitioners
OCT/NOV 2023, OCT/NOV 2024,
Exam Coverage:
OCT/NOV 2025
OCT/NOV 2026
Target Exam:
Question & Detailed Answer
Format:
15% (standard throughout)
VAT Rate:
Work through every question. Do the calculations yourself before checking the an-
swer. Understanding beats memorising every single time.
Exam Revision Notes | FAC1503 | 2026
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Question 1 [20 marks] — Based on OCT/NOV 2023
Question: SA Attorneys is a registered VAT vendor (VAT rate: 15%). The following
transactions took place during March 2023. Analyse each transaction using the Account-
ing Equation (BAE) by showing the net effect on Assets, Liabilities and Owner’s Equity,
and name the accounts debited and credited.
Transactions:
1. The owner, Mr Dube, contributed R120 000 cash as capital. (2 marks)
2. SA Attorneys purchased office furniture for R46 000 (VAT inclusive) on credit from
Furniture World. (3 marks)
3. Legal fees of R57 500 (VAT inclusive) were rendered to client Adams and received in
cash. (3 marks)
4. Paid office rent of R9 200 cash. (2 marks)
5. A debtor, Mr Khumalo, who owed R18 400, was declared insolvent. The full amount
is written off as a credit loss. (3 marks)
6. SA Attorneys paid the creditor Furniture World R23 000 cash in partial settlement. (2
marks)
7. Received R3 450 interest on the business bank account. (2 marks)
8. The owner withdrew R8 000 for personal use. (3 marks)
Answer:
Key Concept
The Accounting Equation (BAE) states: Assets = Liabilities + Owner’s Eq-
uity. Every transaction affects at least two elements. When VAT is involved, remember
to split the VAT from the amount and allocate it to the VAT Control account (a liabil-
ity if output VAT, or an asset if input VAT).
VAT formula: VAT-inclusive amount ÷ 1.15 × 0.15 = VAT portion.
VAT Calculations where applicable:
• Transaction 2: R46 000 ÷ 1.15 = R40 000 (furniture) + R6 000 (input VAT)
• Transaction 3: R57 500 ÷ 1.15 = R50 000 (fees earned) + R7 500 (output VAT)
Page 2 of 31
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
# Transaction Assets Liabilities Equity (R) Account Account
(R) (R) Debited Credited
1 Capital contribution +120 000 — +120 000 Bank Capital
2 Furniture on credit +40 000 +46 000 — Furniture; Creditors
(VAT incl.) (furn.) VAT Input Control
+6 000
(VAT)
3 Fees earned cash (VAT +57 500 +7 500 (VAT) +50 000 Bank Fees
incl.) Earned;
VAT Out-
put
4 Rent paid −9 200 — −9 200 Rent Ex- Bank
pense
5 Credit loss – Khumalo −18 400 — −18 400 Credit Debtors
Losses Control
6 Payment to Furniture −23 000 −23 000 — Creditors Bank
World Control
7 Interest received +3 450 — +3 450 Bank Interest
Income
8 Owner withdrawal −8 000 — −8 000 Drawings Bank
(drawings)
Watch Out
Transaction 5 (credit loss): the debtors control account already includes VAT if the
original invoice was VAT-inclusive. Write off the full VAT-inclusive amount. Some
papers ask you to also reverse the VAT Output – check the specific question wording
carefully.
Exam Tip
Always verify: Assets = Liabilities + Equity after every transaction. If it does not bal-
ance, you have made an error somewhere. The examiner awards marks per row, so even
a partially correct row earns marks.
Page 3 of 31
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Question 2 [30 marks] — Based on OCT/NOV 2024
Question: Mahlaba Attorneys is a registered VAT vendor. The VAT rate is 15%. The
following transactions occurred during October 2024. Record each transaction in the cor-
rect subsidiary journal of Mahlaba Attorneys.
Transactions:
1. Oct 2: Received R34 500 cash from client Nkosi for services to be rendered (trust re-
ceipt). (3
marks)
2. Oct 5: Rendered legal services to client Adams for R23 000 (VAT inclusive) and is-
sued invoice 101. Services paid from Adams’s trust account. (4
marks)
3. Oct 8: Purchased stationery on credit from PaperCo for R2 300 (VAT inclusive). In-
voice 55. (3
marks)
4. Oct 12: Paid monthly office rent of R11 500 by EFT from the business account. (3
marks)
5. Oct 15: Received R8 050 from debtor Mokoena in full settlement of his account. (2
marks)
6. Oct 18: Paid Advocate Sibiya R5 750 (VAT inclusive) from the trust account for ser-
vices to client Nkosi. (3
marks)
7. Oct 22: Issued credit note CN10 to client Peters for R4 600 (VAT inclusive) for ser-
vices incorrectly invoiced. (3
marks)
8. Oct 25: The business purchased a new laptop for R17 250 (VAT inclusive) and paid
cash immediately. (3 marks)
9. Oct 29: Paid creditor PaperCo R2 300 in full settlement. (2 marks)
10. Oct 31: Drew a petty cash cheque for R500 to restore the petty cash float. (4 marks)
Note: Show amounts excluding VAT where applicable, with a separate VAT column.
Name the journal used for each transaction.
Answer:
Page 4 of 31
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Key Concept
Subsidiary Journals for a Law Firm:
• Trust Cash Receipts Journal (TCRJ): money received into the trust account
from clients.
• Trust Cash Payments Journal (TCPJ): payments made from the trust ac-
count on behalf of clients.
• Business Cash Receipts Journal (BCRJ): all cash/EFT received into the
business account.
• Business Cash Payments Journal (BCPJ): all cash/EFT paid from the busi-
ness account.
• Services Rendered Journal (SRJ): credit invoices for services rendered to
clients.
• Creditors Journal (CJ): credit purchases from suppliers.
• Debtors Credit Notes Journal (DCNJ): credit notes issued to clients.
• Petty Cash Journal (PCJ): small cash payments from petty cash float.
VAT calculations (VAT inclusive ÷ 1.15):
• Tr.2: R23 000 ÷ 1.15 = R20 000 service + R3 000 VAT output
• Tr.3: R2 300 ÷ 1.15 = R2 000 stationery + R300 VAT input
• Tr.6: R5 750 ÷ 1.15 = R5 000 advocate fee + R750 VAT input
• Tr.7: R4 600 ÷ 1.15 = R4 000 credit + R600 VAT output credit
• Tr.8: R17 250 ÷ 1.15 = R15 000 laptop + R2 250 VAT input
Transaction-by-transaction journal allocation:
Tr.1 – Trust Cash Receipts Journal (TCRJ)
Client Nkosi pays R34 500 trust deposit. No VAT on trust receipts.
Date Details Fol Trust Bank
(R)
Oct 2
Nkosi TL 34 500
– trust
deposit
Tr.2 – Services Rendered Journal (SRJ) (then payment from trust via TCPJ)
Invoice raised; fees earned credited; then trust funds used to pay invoice.
Page 5 of 31
, FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Date Client Debtors VAT Fees Earned
Control Output (R) (R)
(R) Oct 5
Adams 23 000 3 000 20 000
(Inv 101)
Payment from Adams’s trust account (Trust Cash Payments Journal):
Date Details Trust Bank Debtors
(R) Control (R)
Oct 5
Adams – 23 000 23 000
settle Inv
101
Tr.3 – Creditors Journal (CJ)
Date Creditor Creditors VAT Input Stationery
Control (R) (R) (R)
Oct 8
PaperCo 2 300 300 2 000
(Inv 55)
Tr.4 – Business Cash Payments Journal (BCPJ) – Rent R11 500 (no VAT on rent).
Tr.5 – Business Cash Receipts Journal (BCRJ) – Mokoena R8 050.
Tr.6 – Trust Cash Payments Journal (TCPJ) – Advocate Sibiya R5 750 from trust.
Date Details Trust Bank VAT Input Advocate
(R) (R) Fees (R)
Oct 18
Sibiya 5 750 750 5 000
(on be-
half of
Nkosi)
Tr.7 – Debtors Credit Notes Journal (DCNJ)
Date Client Debtors VAT Fees Earned
Control (R) Output (R) (R)
Oct 22
Peters 4 600 600 4 000
CN10
Page 6 of 31
FAC ⋆
]]
FAC1503: Financial Accounting Principles
for Law Practitioners
OCT/NOV Examination 2026
Covering Exam Papers: 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Financial Accounting for the Legal Profession
Exam Revision Guide
FAC1503
Module Code:
Financial Accounting Principles for Law
Module Name:
Practitioners
OCT/NOV 2023, OCT/NOV 2024,
Exam Coverage:
OCT/NOV 2025
OCT/NOV 2026
Target Exam:
Question & Detailed Answer
Format:
15% (standard throughout)
VAT Rate:
Work through every question. Do the calculations yourself before checking the an-
swer. Understanding beats memorising every single time.
Exam Revision Notes | FAC1503 | 2026
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Question 1 [20 marks] — Based on OCT/NOV 2023
Question: SA Attorneys is a registered VAT vendor (VAT rate: 15%). The following
transactions took place during March 2023. Analyse each transaction using the Account-
ing Equation (BAE) by showing the net effect on Assets, Liabilities and Owner’s Equity,
and name the accounts debited and credited.
Transactions:
1. The owner, Mr Dube, contributed R120 000 cash as capital. (2 marks)
2. SA Attorneys purchased office furniture for R46 000 (VAT inclusive) on credit from
Furniture World. (3 marks)
3. Legal fees of R57 500 (VAT inclusive) were rendered to client Adams and received in
cash. (3 marks)
4. Paid office rent of R9 200 cash. (2 marks)
5. A debtor, Mr Khumalo, who owed R18 400, was declared insolvent. The full amount
is written off as a credit loss. (3 marks)
6. SA Attorneys paid the creditor Furniture World R23 000 cash in partial settlement. (2
marks)
7. Received R3 450 interest on the business bank account. (2 marks)
8. The owner withdrew R8 000 for personal use. (3 marks)
Answer:
Key Concept
The Accounting Equation (BAE) states: Assets = Liabilities + Owner’s Eq-
uity. Every transaction affects at least two elements. When VAT is involved, remember
to split the VAT from the amount and allocate it to the VAT Control account (a liabil-
ity if output VAT, or an asset if input VAT).
VAT formula: VAT-inclusive amount ÷ 1.15 × 0.15 = VAT portion.
VAT Calculations where applicable:
• Transaction 2: R46 000 ÷ 1.15 = R40 000 (furniture) + R6 000 (input VAT)
• Transaction 3: R57 500 ÷ 1.15 = R50 000 (fees earned) + R7 500 (output VAT)
Page 2 of 31
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
# Transaction Assets Liabilities Equity (R) Account Account
(R) (R) Debited Credited
1 Capital contribution +120 000 — +120 000 Bank Capital
2 Furniture on credit +40 000 +46 000 — Furniture; Creditors
(VAT incl.) (furn.) VAT Input Control
+6 000
(VAT)
3 Fees earned cash (VAT +57 500 +7 500 (VAT) +50 000 Bank Fees
incl.) Earned;
VAT Out-
put
4 Rent paid −9 200 — −9 200 Rent Ex- Bank
pense
5 Credit loss – Khumalo −18 400 — −18 400 Credit Debtors
Losses Control
6 Payment to Furniture −23 000 −23 000 — Creditors Bank
World Control
7 Interest received +3 450 — +3 450 Bank Interest
Income
8 Owner withdrawal −8 000 — −8 000 Drawings Bank
(drawings)
Watch Out
Transaction 5 (credit loss): the debtors control account already includes VAT if the
original invoice was VAT-inclusive. Write off the full VAT-inclusive amount. Some
papers ask you to also reverse the VAT Output – check the specific question wording
carefully.
Exam Tip
Always verify: Assets = Liabilities + Equity after every transaction. If it does not bal-
ance, you have made an error somewhere. The examiner awards marks per row, so even
a partially correct row earns marks.
Page 3 of 31
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Question 2 [30 marks] — Based on OCT/NOV 2024
Question: Mahlaba Attorneys is a registered VAT vendor. The VAT rate is 15%. The
following transactions occurred during October 2024. Record each transaction in the cor-
rect subsidiary journal of Mahlaba Attorneys.
Transactions:
1. Oct 2: Received R34 500 cash from client Nkosi for services to be rendered (trust re-
ceipt). (3
marks)
2. Oct 5: Rendered legal services to client Adams for R23 000 (VAT inclusive) and is-
sued invoice 101. Services paid from Adams’s trust account. (4
marks)
3. Oct 8: Purchased stationery on credit from PaperCo for R2 300 (VAT inclusive). In-
voice 55. (3
marks)
4. Oct 12: Paid monthly office rent of R11 500 by EFT from the business account. (3
marks)
5. Oct 15: Received R8 050 from debtor Mokoena in full settlement of his account. (2
marks)
6. Oct 18: Paid Advocate Sibiya R5 750 (VAT inclusive) from the trust account for ser-
vices to client Nkosi. (3
marks)
7. Oct 22: Issued credit note CN10 to client Peters for R4 600 (VAT inclusive) for ser-
vices incorrectly invoiced. (3
marks)
8. Oct 25: The business purchased a new laptop for R17 250 (VAT inclusive) and paid
cash immediately. (3 marks)
9. Oct 29: Paid creditor PaperCo R2 300 in full settlement. (2 marks)
10. Oct 31: Drew a petty cash cheque for R500 to restore the petty cash float. (4 marks)
Note: Show amounts excluding VAT where applicable, with a separate VAT column.
Name the journal used for each transaction.
Answer:
Page 4 of 31
,FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Key Concept
Subsidiary Journals for a Law Firm:
• Trust Cash Receipts Journal (TCRJ): money received into the trust account
from clients.
• Trust Cash Payments Journal (TCPJ): payments made from the trust ac-
count on behalf of clients.
• Business Cash Receipts Journal (BCRJ): all cash/EFT received into the
business account.
• Business Cash Payments Journal (BCPJ): all cash/EFT paid from the busi-
ness account.
• Services Rendered Journal (SRJ): credit invoices for services rendered to
clients.
• Creditors Journal (CJ): credit purchases from suppliers.
• Debtors Credit Notes Journal (DCNJ): credit notes issued to clients.
• Petty Cash Journal (PCJ): small cash payments from petty cash float.
VAT calculations (VAT inclusive ÷ 1.15):
• Tr.2: R23 000 ÷ 1.15 = R20 000 service + R3 000 VAT output
• Tr.3: R2 300 ÷ 1.15 = R2 000 stationery + R300 VAT input
• Tr.6: R5 750 ÷ 1.15 = R5 000 advocate fee + R750 VAT input
• Tr.7: R4 600 ÷ 1.15 = R4 000 credit + R600 VAT output credit
• Tr.8: R17 250 ÷ 1.15 = R15 000 laptop + R2 250 VAT input
Transaction-by-transaction journal allocation:
Tr.1 – Trust Cash Receipts Journal (TCRJ)
Client Nkosi pays R34 500 trust deposit. No VAT on trust receipts.
Date Details Fol Trust Bank
(R)
Oct 2
Nkosi TL 34 500
– trust
deposit
Tr.2 – Services Rendered Journal (SRJ) (then payment from trust via TCPJ)
Invoice raised; fees earned credited; then trust funds used to pay invoice.
Page 5 of 31
, FAC1503 | Exam Revision OCT/NOV Examinations 2023–2025
Date Client Debtors VAT Fees Earned
Control Output (R) (R)
(R) Oct 5
Adams 23 000 3 000 20 000
(Inv 101)
Payment from Adams’s trust account (Trust Cash Payments Journal):
Date Details Trust Bank Debtors
(R) Control (R)
Oct 5
Adams – 23 000 23 000
settle Inv
101
Tr.3 – Creditors Journal (CJ)
Date Creditor Creditors VAT Input Stationery
Control (R) (R) (R)
Oct 8
PaperCo 2 300 300 2 000
(Inv 55)
Tr.4 – Business Cash Payments Journal (BCPJ) – Rent R11 500 (no VAT on rent).
Tr.5 – Business Cash Receipts Journal (BCRJ) – Mokoena R8 050.
Tr.6 – Trust Cash Payments Journal (TCPJ) – Advocate Sibiya R5 750 from trust.
Date Details Trust Bank VAT Input Advocate
(R) (R) Fees (R)
Oct 18
Sibiya 5 750 750 5 000
(on be-
half of
Nkosi)
Tr.7 – Debtors Credit Notes Journal (DCNJ)
Date Client Debtors VAT Fees Earned
Control (R) Output (R) (R)
Oct 22
Peters 4 600 600 4 000
CN10
Page 6 of 31
