FAC1502 - Financial Accounting Principles, Concepts And Procedures (FAC1502)
Exam (elaborations)
FAC1502 - Financial Accounting Principles, Concepts And Procedures EXAM PACK.
4 views 0 purchase
Course
FAC1502 - Financial Accounting Principles, Concepts And Procedures (FAC1502)
Institution
University Of South Africa
FAC1502 - Financial Accounting Principles, Concepts And Procedures EXAM PACK. QUESTION 1 SOLUTION
DR P HEAL
CASH RECEIPTS JOURNAL (CRJ)
Doc
Number
Date
MARETT
Details BANK Debtors
Control
Fees
earned
VAT
Output
VAT
Input
SUNDRIES
Amount Details
450 1 K. Kelly 275 275
451 1 J. Jail...
FAC1502 - Financial Accounting Principles, Concepts And Procedures (FAC1502)
All documents for this subject (74)
Seller
Follow
Tutorexpert01
Reviews received
Content preview
FAC1502
EXAM PACK
, FAC1502 EXAM PACK
Accounting Concepts, Principles and Procedures
Worked and compiled by Levison Kamanga
For And on behalf of
Only for UNISA students doing the module FAC1502
, 3
www.lucianotutorials.com
, 4
QUESTION 1 SOLUTION
DR P HEAL
CASH RECEIPTS JOURNAL (CRJ)
Doc Date Details BANK Debtors Fees VAT VAT SUNDRIES
Number MARETT Control earned Output Input
Amount Details
450 1 K. Kelly 275 275
451 1 J. Jail 1710 1500 210
452 9 Y. Old 383 440 (7) (50) Settlement
Discount
allowed
453&491 12 Deposit 9120 8000 1120
11488 715 9500 1330 (7) (50)
HINTS
a) Whenever you sell a good or offer a service, you are required to levy output VAT.
Any VAT paid out is recoverable from SARS if you are a registered vendor and any
VAT received is payable to SARS.
b) If goods are sold on credit, the transactions regarding VAT output would have been
recorded in the Sales journal. VAT is charged at the point of sale and not at the point
of payment. In the CRJ, the VAT is accounted for on cash sales.
c) When goods are sold at a discount, the VAT is debited to the VAT Input Account to
reduce the amount owing to SARS since the part that is relating to the discount will
no longer be received.
100 100
d) To remove VAT from a figure you multiply that figure by 114 e.g. 1710 x 114 =
1500.
e) Calculation of the discount and the VAT element in discount:
Discount= Amount Paid-Amount owed
= 440-383
= 57
VAT element= 14/114*57
=7
We use 14/114 because the discount is at selling price inclusive of VAT. If it was
exclusive of VAT, we could have used 14/100.
f) The transaction on 15 March is not entered in the CRJ as information is not given on
the payment of the consultation fees and unlike on other similar transactions
involving receipt of funds, the receipt number is not quoted.
CASH PAYMENTS JOURNAL (CPJ)
DOC DATE DETAILS BANK CREDITORS VAT SUNDRIES
NUMBER CONTROL INPUT
AMOUNT DETAILS
C114 1 Spacious 1254 154 1100 Rental
Properties paid
www.lucianotutorials.com
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Tutorexpert01. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.20. You're not tied to anything after your purchase.
