FAC1502 Assignment 4 2024
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1. UNISA
2. 2024
3. FAC1502-24-S1
4. Welcome Message
5. Assessment 4
Assessment 4
Opened: Tuesday, 14 May 2024, 8:00 AM
Closes: Tuesday, 21 May 2024, 11:00 PM
218909
Attempts allowed: 1
Time limit: 2 hours
Grade to pass: 50.00 out of 100.00
Summary of your previous attempts
Marks / Grade /
State 85.00 100.00 Review Feedback
Finished Congratulations, you
Submitted Wednesday pass the assessment
5 May 4 , with a distinction.
AM
Your nal grade for this quiz is
Overall feedback
Congratulations, you pass the assessment.
No more attempts are allowed
Back to the course
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Question 1
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On 1 September 20.18 Mr Will Turner started a new blacksmith business called Iron Duke. Iron Duke manufactures and sells domestic
cast iron furniture. The following transactions took place during the first financial year of the entity ending 31 August 20.19.
- Interest incurred on the purchase of a CNC machine on credit from Big Traders was R660 for the year; no payments or
entries regarding this interest were made yet in the books of Iron Duke.
- Interest due on the long-term loan was R12 500 for the year ending 31 August 20.19 and was paid in cash on 2 September
20.19.
- On 31 August 20.19, Mr Will Turner, decided to trade-in the old delivery van for a new delivery van. The trade-in value was
R14 500, and the cost of the new delivery van was R60 000, with the difference settled in cash. (You only need to do the entry for
the acquisition of the new delivery van.)
Show the effect of each transaction on the basic accounting equation with a plus sign (+) for an increase and a minus sign (-) for a
decrease next to each amount under each element. Also indicate the account(s) that will be affected by each transaction next to
the affected elements for the financial year ended 31 August 20.19. (The business makes use of the perpetual inventory system.)
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 speci c questions please put N/A in the accounts column and a 0 in the
amounts column.
Keep the transactions strictly in the order they were given.
0 N/A -660 Interest expenses +660 Accrued expenses
0 N/A -12 500 Interest expenses +12 500 Accrued expenses
+45 500 Vehicles 0 N/A 0 N/A
-45 500 Bank 0 N/A 0 N/A
Big Traders/trade receivables control Interest income Accrued income
N/A Bank Interest expenses
Big Traders/trade payables control Vehicles Accrued expenses
0 +12 500 -660 -45 500 -60 000 +60 000 -12 500 +660 +45 500
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Question 2
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K Swa Traders which uses a perpetual inventory system and a mark-up of 35% on cost price had the following transactions during the
current nancial year:
(a) Bought inventory for R9 000 cash and also paid cash for the carriage on purchases of R1 500.
(b) Inventory with a cost price of R4 000 was sold on credit.
NOTE: Ignore any VAT implications
Record the given transactions under the appropriate columns below:
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. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has a increase as well as a decrease the net effect will be 0.
6. If an option has been provided that is not applicable to the question, please use N/A in the column to indicate that the option is not
applicable.
7. First do the sales entry, then the cost of sales entry.
8. Please make sure about the spelling of a term.
Subsidiary journal Account in the general ledger to be Net effect on Net effect on N
No assets = equity +
Debited Credited
(a) Cash Payments Journal Inventory Bank -9000 -9000 0
Cash Payments Journal Inventory Bank -1500 -1500 0
(b
Sales Journal Trade Receivables Sales 5400 5400 0
Cost of Sales Inventory -4000 -4000 0
Question 3
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Indicate whether the following statement is true or false regarding the statement of nancial position:
Equity is determined by deducting total liabilities from assets.
Select one:
True
False
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Question 4
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You are given the following information for United Tennis Club for the year ended 31 December 20.6.
a) Membership fees received for the year is R74 880.
b) Membership fees was R400 in 20.5, R480 in 20.6 and will be R560 in 20.7.
c) On 1 January 20.6, the membership fees of five members for 20.5 were still due.
d) On 31 December 20.5, six members prepaid their membership fees for 20.6.
e) On 31 December 20.6 four members paid their membership fees for 20.7.
f) Membership fees received during 20.6 included the membership fees of two members who did not pay in 20.5. The other three
members membership fee must be written off as irrecoverable.
g) On 31 December 20.6, three member’s membership fees for 20.6 were still outstanding.
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the
amount - also keep your cell phone horizontal when doing the question).
2. An option can be used more than once.
3. Keep the transactions strictly according to date sequence.
4. If an options has been provided and it is not applicable to the speci c questions please put N/A in the account column and a 0 in the
amount column.
The properly balanced membership fees for United Tennis Club as at 31 December 20.6 will be …
GENERAL LEDGER
UNITED TENNIS CLUB
Dr Membership fees Cr
20.6 20.6
Accrued income 2000 Income received in advance 2880
Jan 1 Jan 1
Dec 31 Dec 31
Income and expenditure 76160 Bank 74880
Income received in advance 2240 Credit losses 1200
Accrued income 1440
80 400 80 400
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Question 5
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On 9 June 20.23 KKY Traders purchased inventory, at a cost of R5 000, on credit. KKY Traders uses the perpetual inventory system.
The correct analysis of the given transaction in the general ledger and the accounting equation is ...
Instructions:
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. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has been provided that is not applicable to the speci c transaction, please use N/A for the option
6. First do the positive entry, then the negative entry and lastly the N/A entries.
General ledger
Liabilities Assets Equity
Account debited Account credited
R R R
0
Inventory Trade Payable 5000 -5000
0
Question 6
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Mandla Traders nancial year ends annually on 31 December. The business uses the perpetual inventory system. During the current
nancial year of 20.22, Mandla Traders had credit sales of R72 800. The company applies a 30% mark-up on cost price.
The correct recording of the transaction in the general ledger of Mandla Traders will be:
Dr Cost of sales Cr
20.22 20.22
Dec 31 SJ Dec 31 GJ
Inventory 56000 Trading Account 56000
56000 56000
Dr Sales C
20.22 20.22
Dec Trading Account GJ 72800 Dec Trade Receivables SJ 72800
31 31
72800 72800
.
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Question 7
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The following information was obtained from the books of Khulong Traders.
POST-ADJUSTMENT TRIAL BALANCE OF KHULONG TRADERS AS AT 30 JUNE 20.12
Debit Credit
R R
Capital (1 July 20.11).............................................................................................. - 100 000
Drawings..................................................................................................................... 2 695 -
Land at cost............................................................................................................... 140 000 -
Buildings at cost....................................................................................................... 60 000 -
Vehicles at cost......................................................................................................... 122 000 -
Furniture and ttings at cost .............................................................................. 65 000 -
Accumulated depreciation on vehicles (30 June 20.12)............................ - 54 700
Accumulated depreciation on furniture and ttings (30 June 20.12)... - 22 700
Trade receivables control control....................................................................... 9 280 -
Inventory: Trading (1 July 20.11)......................................................................... 13 800 -
Bank.............................................................................................................................. 8 025 -
Petty cash................................................................................................................... 750 -
Mortgage loan......................................................................................................... - 150 000
Loan from Africa Bank ( nal instalment on 28 February 20.13)........... - 50 000
Trade payables control......................................................................................... - 4 500
VAT control................................................................................................................ - 1 500
Sales............................................................................................................................. - 257 070
Carriage on purchases.......................................................................................... 760 -
Commission income.............................................................................................. - 15 000
Credit losses............................................................................................................. 349 -
Depreciation............................................................................................................ 15 400 -
Insurance................................................................................................................... 2 750 -
Packing materials................................................................................................... 4 300 -
Purchases.................................................................................................................. 155 130 -
Purchases returns.................................................................................................. - 1 130
Rent income............................................................................................................ - 3 800
Sales returns............................................................................................................ 1 338 -
Credit losses recovered....................................................................................... - 2 500
Loss on sale of an asset....................................................................................... 5 700 -
Settlement discount granted............................................................................ 303 -
Settlement discount received........................................................................... - 405
Wages......................................................................................................................... 51 325 -
Water and electricity............................................................................................. 4 400 -
663 305 663 305
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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 speci c questions please put N/A in the details column and a 0 in the
amount column.
Keep the sequence strictly according to the information given.
100 000
Balance: 1 July 20.11
(2 695)
Drawings
Total comprehensive income for the year 39 685
Balance: 30 June 20.12 136 990
Balance: 1 July 20.11 Total comprehensive loss for the year Loss for the year
Profit for the year Total comprehensive income for the year Drawings
Balance: 30 June 20.12
100 000 2 695 (2 695) 136 990 134 295 (134 295) 234 295 (234 295) 139 685 (139 685) 39 685
(39 685)
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Question 8
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The following information relates to Bi-Lock Traders for the year ended 28 February 20.19.
Bi-Lock Traders sells bicycles and bicycle equipment. The inexperienced accountant prepared the final accounts before taking most of
the adjustments into account and has made some errors in the determination of the profit.
BI-LOCK TRADERS
GENERAL LEDGER
Dr Trading account Cr
R R
20.19 20.19
Feb 28 Cost of sales 1 816 080 Feb 28 Sales 2 705 644
Profit or loss 889 564
2 705 644 2 705 644
Dr Profit or loss account Cr
R R
20.19 20.19
Feb 28 Accounting fees 15 000 Feb 28 Trading account 889 564
Credit losses 17 500 Credit losses recovered 8 830
Consumable stores 60 460 Settlement discount
Sales returns 24 500 received 18 669
Depreciation 80 840 Interest on current
Settlement discount account 122
granted 11 160 Interest income (on
Insurance 84 600 overdue trade
Interest on overdraft 5 125 receivables control
Interest expenses (on account) 465
overdue trade Rental income 66 500
payables 570
Salaries and wages 568 812
Sundry operating
expenses 116 143
984 710 984 710
BI-LOCK TRADERS
EXTRACT FROM PRE-ADJUSTMENT TRIAL BALANCE AT 28 FEBRUARY 2019
Debit Credit
R R
Loan: Watson Bank (8% p.a.) (1 March 20.18)……………………………… 300 000
Fixed deposit: Pedal Bank (6% p.a.)……………………………...………….. 60 000
Trading inventory..………………………………………………………………. 245 950
Trade receivables control .…………………………………………………….. 127 800
Allowance for credit losses…………………………………………….………. 6 400
Additional information
1. A debtor returned a bicycle sold to him for R14 000 because it was faulty. A mark-up of 75% on cost is used. It was immediately
returned to the supplier. No entries were made in the accounting records of Bi-Lock Traders in connection with these transactions.
2. A physical inventory count revealed that trading inventory on hand at the end of the financial year actually amounted to R228 500.
3. Consumable stores amount to only R35 000, the amount recorded in the profit or loss was incorrect.
4. An amount of R1 600 was received from a debtor who has been declared insolvent at year end and has been correctly recorded.
The amount received is 40% the total debt owed by the debtor. No entries have been made to record the credit loss.
5. The allowance for credit losses must be adjusted to 4% of outstanding trade receivables.
6. Insurance includes an amount of R6 000 which has been paid for the period 1 May 20.18 to 30 April 20.19.
7. Rent has been received until 31 March 20.19. The rent was increased by R250 per month from 1 October 20.18.
8. The investment in a fixed deposit at Pedal Bank was made on 1 January 20.19. No interest has been received yet.
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1. UNISA
2. 2024
3. FAC1502-24-S1
4. Welcome Message
5. Assessment 4
Assessment 4
Opened: Tuesday, 14 May 2024, 8:00 AM
Closes: Tuesday, 21 May 2024, 11:00 PM
218909
Attempts allowed: 1
Time limit: 2 hours
Grade to pass: 50.00 out of 100.00
Summary of your previous attempts
Marks / Grade /
State 85.00 100.00 Review Feedback
Finished Congratulations, you
Submitted Wednesday pass the assessment
5 May 4 , with a distinction.
AM
Your nal grade for this quiz is
Overall feedback
Congratulations, you pass the assessment.
No more attempts are allowed
Back to the course
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Question 1
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Marked out of 9.00
On 1 September 20.18 Mr Will Turner started a new blacksmith business called Iron Duke. Iron Duke manufactures and sells domestic
cast iron furniture. The following transactions took place during the first financial year of the entity ending 31 August 20.19.
- Interest incurred on the purchase of a CNC machine on credit from Big Traders was R660 for the year; no payments or
entries regarding this interest were made yet in the books of Iron Duke.
- Interest due on the long-term loan was R12 500 for the year ending 31 August 20.19 and was paid in cash on 2 September
20.19.
- On 31 August 20.19, Mr Will Turner, decided to trade-in the old delivery van for a new delivery van. The trade-in value was
R14 500, and the cost of the new delivery van was R60 000, with the difference settled in cash. (You only need to do the entry for
the acquisition of the new delivery van.)
Show the effect of each transaction on the basic accounting equation with a plus sign (+) for an increase and a minus sign (-) for a
decrease next to each amount under each element. Also indicate the account(s) that will be affected by each transaction next to
the affected elements for the financial year ended 31 August 20.19. (The business makes use of the perpetual inventory system.)
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 speci c questions please put N/A in the accounts column and a 0 in the
amounts column.
Keep the transactions strictly in the order they were given.
0 N/A -660 Interest expenses +660 Accrued expenses
0 N/A -12 500 Interest expenses +12 500 Accrued expenses
+45 500 Vehicles 0 N/A 0 N/A
-45 500 Bank 0 N/A 0 N/A
Big Traders/trade receivables control Interest income Accrued income
N/A Bank Interest expenses
Big Traders/trade payables control Vehicles Accrued expenses
0 +12 500 -660 -45 500 -60 000 +60 000 -12 500 +660 +45 500
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Question 2
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K Swa Traders which uses a perpetual inventory system and a mark-up of 35% on cost price had the following transactions during the
current nancial year:
(a) Bought inventory for R9 000 cash and also paid cash for the carriage on purchases of R1 500.
(b) Inventory with a cost price of R4 000 was sold on credit.
NOTE: Ignore any VAT implications
Record the given transactions under the appropriate columns below:
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. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has a increase as well as a decrease the net effect will be 0.
6. If an option has been provided that is not applicable to the question, please use N/A in the column to indicate that the option is not
applicable.
7. First do the sales entry, then the cost of sales entry.
8. Please make sure about the spelling of a term.
Subsidiary journal Account in the general ledger to be Net effect on Net effect on N
No assets = equity +
Debited Credited
(a) Cash Payments Journal Inventory Bank -9000 -9000 0
Cash Payments Journal Inventory Bank -1500 -1500 0
(b
Sales Journal Trade Receivables Sales 5400 5400 0
Cost of Sales Inventory -4000 -4000 0
Question 3
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Indicate whether the following statement is true or false regarding the statement of nancial position:
Equity is determined by deducting total liabilities from assets.
Select one:
True
False
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Question 4
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You are given the following information for United Tennis Club for the year ended 31 December 20.6.
a) Membership fees received for the year is R74 880.
b) Membership fees was R400 in 20.5, R480 in 20.6 and will be R560 in 20.7.
c) On 1 January 20.6, the membership fees of five members for 20.5 were still due.
d) On 31 December 20.5, six members prepaid their membership fees for 20.6.
e) On 31 December 20.6 four members paid their membership fees for 20.7.
f) Membership fees received during 20.6 included the membership fees of two members who did not pay in 20.5. The other three
members membership fee must be written off as irrecoverable.
g) On 31 December 20.6, three member’s membership fees for 20.6 were still outstanding.
Instructions:
1. Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the
amount - also keep your cell phone horizontal when doing the question).
2. An option can be used more than once.
3. Keep the transactions strictly according to date sequence.
4. If an options has been provided and it is not applicable to the speci c questions please put N/A in the account column and a 0 in the
amount column.
The properly balanced membership fees for United Tennis Club as at 31 December 20.6 will be …
GENERAL LEDGER
UNITED TENNIS CLUB
Dr Membership fees Cr
20.6 20.6
Accrued income 2000 Income received in advance 2880
Jan 1 Jan 1
Dec 31 Dec 31
Income and expenditure 76160 Bank 74880
Income received in advance 2240 Credit losses 1200
Accrued income 1440
80 400 80 400
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Question 5
Answer saved
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On 9 June 20.23 KKY Traders purchased inventory, at a cost of R5 000, on credit. KKY Traders uses the perpetual inventory system.
The correct analysis of the given transaction in the general ledger and the accounting equation is ...
Instructions:
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. A decrease in an amount must be indicated by using a negative sign in front of the amount (eg: -1000.01)
4. An increase must be indicated by the amount without any sign (eg: 1000.01)
5. If an option has been provided that is not applicable to the speci c transaction, please use N/A for the option
6. First do the positive entry, then the negative entry and lastly the N/A entries.
General ledger
Liabilities Assets Equity
Account debited Account credited
R R R
0
Inventory Trade Payable 5000 -5000
0
Question 6
Answer saved
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Mandla Traders nancial year ends annually on 31 December. The business uses the perpetual inventory system. During the current
nancial year of 20.22, Mandla Traders had credit sales of R72 800. The company applies a 30% mark-up on cost price.
The correct recording of the transaction in the general ledger of Mandla Traders will be:
Dr Cost of sales Cr
20.22 20.22
Dec 31 SJ Dec 31 GJ
Inventory 56000 Trading Account 56000
56000 56000
Dr Sales C
20.22 20.22
Dec Trading Account GJ 72800 Dec Trade Receivables SJ 72800
31 31
72800 72800
.
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Question 7
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The following information was obtained from the books of Khulong Traders.
POST-ADJUSTMENT TRIAL BALANCE OF KHULONG TRADERS AS AT 30 JUNE 20.12
Debit Credit
R R
Capital (1 July 20.11).............................................................................................. - 100 000
Drawings..................................................................................................................... 2 695 -
Land at cost............................................................................................................... 140 000 -
Buildings at cost....................................................................................................... 60 000 -
Vehicles at cost......................................................................................................... 122 000 -
Furniture and ttings at cost .............................................................................. 65 000 -
Accumulated depreciation on vehicles (30 June 20.12)............................ - 54 700
Accumulated depreciation on furniture and ttings (30 June 20.12)... - 22 700
Trade receivables control control....................................................................... 9 280 -
Inventory: Trading (1 July 20.11)......................................................................... 13 800 -
Bank.............................................................................................................................. 8 025 -
Petty cash................................................................................................................... 750 -
Mortgage loan......................................................................................................... - 150 000
Loan from Africa Bank ( nal instalment on 28 February 20.13)........... - 50 000
Trade payables control......................................................................................... - 4 500
VAT control................................................................................................................ - 1 500
Sales............................................................................................................................. - 257 070
Carriage on purchases.......................................................................................... 760 -
Commission income.............................................................................................. - 15 000
Credit losses............................................................................................................. 349 -
Depreciation............................................................................................................ 15 400 -
Insurance................................................................................................................... 2 750 -
Packing materials................................................................................................... 4 300 -
Purchases.................................................................................................................. 155 130 -
Purchases returns.................................................................................................. - 1 130
Rent income............................................................................................................ - 3 800
Sales returns............................................................................................................ 1 338 -
Credit losses recovered....................................................................................... - 2 500
Loss on sale of an asset....................................................................................... 5 700 -
Settlement discount granted............................................................................ 303 -
Settlement discount received........................................................................... - 405
Wages......................................................................................................................... 51 325 -
Water and electricity............................................................................................. 4 400 -
663 305 663 305
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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 speci c questions please put N/A in the details column and a 0 in the
amount column.
Keep the sequence strictly according to the information given.
100 000
Balance: 1 July 20.11
(2 695)
Drawings
Total comprehensive income for the year 39 685
Balance: 30 June 20.12 136 990
Balance: 1 July 20.11 Total comprehensive loss for the year Loss for the year
Profit for the year Total comprehensive income for the year Drawings
Balance: 30 June 20.12
100 000 2 695 (2 695) 136 990 134 295 (134 295) 234 295 (234 295) 139 685 (139 685) 39 685
(39 685)
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Question 8
Answer saved
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The following information relates to Bi-Lock Traders for the year ended 28 February 20.19.
Bi-Lock Traders sells bicycles and bicycle equipment. The inexperienced accountant prepared the final accounts before taking most of
the adjustments into account and has made some errors in the determination of the profit.
BI-LOCK TRADERS
GENERAL LEDGER
Dr Trading account Cr
R R
20.19 20.19
Feb 28 Cost of sales 1 816 080 Feb 28 Sales 2 705 644
Profit or loss 889 564
2 705 644 2 705 644
Dr Profit or loss account Cr
R R
20.19 20.19
Feb 28 Accounting fees 15 000 Feb 28 Trading account 889 564
Credit losses 17 500 Credit losses recovered 8 830
Consumable stores 60 460 Settlement discount
Sales returns 24 500 received 18 669
Depreciation 80 840 Interest on current
Settlement discount account 122
granted 11 160 Interest income (on
Insurance 84 600 overdue trade
Interest on overdraft 5 125 receivables control
Interest expenses (on account) 465
overdue trade Rental income 66 500
payables 570
Salaries and wages 568 812
Sundry operating
expenses 116 143
984 710 984 710
BI-LOCK TRADERS
EXTRACT FROM PRE-ADJUSTMENT TRIAL BALANCE AT 28 FEBRUARY 2019
Debit Credit
R R
Loan: Watson Bank (8% p.a.) (1 March 20.18)……………………………… 300 000
Fixed deposit: Pedal Bank (6% p.a.)……………………………...………….. 60 000
Trading inventory..………………………………………………………………. 245 950
Trade receivables control .…………………………………………………….. 127 800
Allowance for credit losses…………………………………………….………. 6 400
Additional information
1. A debtor returned a bicycle sold to him for R14 000 because it was faulty. A mark-up of 75% on cost is used. It was immediately
returned to the supplier. No entries were made in the accounting records of Bi-Lock Traders in connection with these transactions.
2. A physical inventory count revealed that trading inventory on hand at the end of the financial year actually amounted to R228 500.
3. Consumable stores amount to only R35 000, the amount recorded in the profit or loss was incorrect.
4. An amount of R1 600 was received from a debtor who has been declared insolvent at year end and has been correctly recorded.
The amount received is 40% the total debt owed by the debtor. No entries have been made to record the credit loss.
5. The allowance for credit losses must be adjusted to 4% of outstanding trade receivables.
6. Insurance includes an amount of R6 000 which has been paid for the period 1 May 20.18 to 30 April 20.19.
7. Rent has been received until 31 March 20.19. The rent was increased by R250 per month from 1 October 20.18.
8. The investment in a fixed deposit at Pedal Bank was made on 1 January 20.19. No interest has been received yet.
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