FAC1503 Assignment 03 B Questions & Answers.

FAC1503 ASS 03 B Q AND A


SA Traders operates as a hardware store and is a registered VAT vendor. The
applicable tax rate is 15%. SA Traders makes use of the periodic inventory system,
as well as control accounts. The transaction amounts are VAT inclusive where
applicable.
On 4 February 2022, SA Traders purchased stationery for use in the office and paid
R1 120 in cash. The transaction will be entered into the .... as book of first entry.

• cash payments journal
Feedback
Refer to learning unit 4.4
The correct answer is: cash payments journal



Q2
On 1 March 2022, Mr A South made a direct deposit into the account of SA
Attorneys to the amount of R4 500. The deposit was made in full settlement of his
account. The account of Mrs AW South was erroneously credited with the R4 500.
The correction of this error will be recorded into the .... as book of first entry.

• general journal
Feedback
Refer to learning unit 4.8
The correct answer is: general journal



Q3.
On 1 April 2022, SA Attorneys made a payment of R4 600 (including VAT at 15%) to
Advocate South for services rendered in respect of a client, S Africa (with trust funds
of R10 000). Which option represents the entry of the transaction in the cash
payments journal?

• Trust cash payments journal
Trust
creditors control Bank
Date Details R R
1 April S Africa/Trust creditor (Adv South) 4 600 4 600

Feedback
Refer to learning unit 4.6
The correct answer is: Trust cash payments journal
Trust
creditors control Bank
Date Details R R
1 April S Africa/Trust creditor (Adv South) 4 600 4 600