Professional Documents
Culture Documents
Q.1.1 Two disciplines of accounting that exist are management accounting and financial (5)
accounting. Contrast these two main disciplines (branches) of accounting.
Q.1.2 Qualitative characteristics of financial statements prepared in accordance with IFRS (5)
include understandability and reliability. Briefly discuss these two characteristics.
Q.1.3 Various users of accounting information use it for different purposes. The general (5)
public is one such user of a business’s accounting information; name five (5) other
users of accounting information.
R
SARS (Output VAT) 21 230
Furniture 55 320
Interest on fixed deposit 3 540
Fixed deposit 99 430
Stationery (consumed) 19 910
Bank loan (short-term) 22 540
Bank overdraft 33 220
Dividends received 24 540
Creditors control 29 430
Cost of sales 221 120
Sales 321 590
Land and building 345 670
Drawings 11 900
Capital 144 230
Trading inventory 11 440
Cash float 21 120
Postage 29 910
Q.2.1 Calculate the total liabilities as at 28 February 2015. Show all account names and (5)
figures in your calculations.
Q.2.2 Calculate the total assets as at 28 February 2015. Show all account names and (6)
figures in your calculations.
Q.2.3 Calculate the total income as at 28 February 2015. Show all account names and (4)
figures in your calculations.
Required:
Show the double-entry (debit and credit general ledger account names), as well as the effect on the
accounting equation, for each transaction in the columns provided. Ensure that you use the + and –
signs to show the effect on the equation.
Your business purchases products from various suppliers, including ZB Stores. Your business has
various customers, including Joe Smith. Consider the following scenario for the month from a
perspective of your own business:
Q.4.1 Would ABC Stores record the VAT that applies to ZB Stores as input or output? (1)
Q.4.2 Would ABC Stores record the VAT that applies to Joe Smith as input or output? (1)
Q.4.3 What is the total output VAT for your business? (2)
Q.4.4 VAT categories include standard-rate, zero-rated, exempt and non-allowable VAT (1)
items. What would petrol categorise as?
Q.4.5 What is the total input VAT for ABC Stores? (3)
Required:
Write up the Cashbook Receipts (Cash Receipts Journal) and Cashbook Payments (Cash Payments
Journal) for May 2015, using the appropriate transactions for the journals provided. You may use the
names of people/ companies you are paying in the details column. You do not need to total the
journals at the end of the month, and you do not need to enter document numbers.
The journal totals (selected totals and columns) appeared as follows as at 31 May 2015:
Debtors
Bank Sales Sundry Fol Sundry Details Cost of sales
Control
15 000 Capital
Trading
Bank Creditors Control Sundry Fol Details
Stock
6 000 Stationery
? 10 000 5 000
Required:
Post to the following accounts in the General Ledger, using the opening balances provided and
information from the journals. Balance the ledger accounts at the end of the month (where
applicable). Folios are required when posting to the ledger accounts.
Bank;
Stationery;
Creditors control;
Debtors control;
Trading inventory;
Petty cash.
Journal
Source Inclusive
Date for folio Description
document no. Amount (R)
reference:
1. Balance outstanding from previous month 14 000
Required:
Use the information, and prepare the individual account of Moss Stores as it would appear in the
books of Cloud Stores. The business is registered for VAT.
The work week comprises 40 hours of normal time. Time worked above 40 hours is considered
overtime.
Employees contribute 6.5% of their gross wage/ salary to the Mutual Pension Fund (the entire
pension contribution is tax deductible for the calculation of the SDL remuneration).
The company makes no contribution to the pension fund, only the employee does.
Assume a maximum UIF funding salary of R12 478 applies (maximum level at which UIF will
apply).
SDL (Skills Development Levy) contributions amount to 1% of gross salary (after pension
deduction) for the employer only.
UIF (Unemployment Insurance Fund) contributions amount to 1% of total gross remuneration
(before pension deduction) for the employer/ employee.
Name of Hours worked for a Normal Rate per Rate per hour in Rand for
Employee: week hour in Rand overtime
R. Collins 45 R200 Double the normal rate
B. Marks 36 R190 1.5 times the normal rate
W. Parker 52 R220 Double the normal rate
B. Green 43 R150 1.5 times the normal rate
Required:
Complete the Wages journal worksheet, for the week, provided in your answer book based on the
information provided. Note: This is not a complete wages worksheet (you are only required to
calculate the amounts for the columns provided).
Required:
Prepare the Profit and Loss account at the year-end (28 February 2015) using the information
provided.
END OF PAPER