Financial Accounting Principles Concepts and Procedures (FAC1502)
Exam (elaborations)
FAC1502 Assignment 2 second semester due 28 August 2023
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Course
Financial Accounting Principles Concepts and Procedures (FAC1502)
Institution
University Of South Africa (Unisa)
This document contains the solution to FAC1502 assignment 2 due on 28 august 2023, using this document will ensure that you get 80% plus. Trusted solutions.
Financial Accounting Principles Concepts and Procedures (FAC1502)
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Started on Wednesday, 23 August 2023,
10:02 AM
State Finished
Completed on Wednesday, 23 August 2023,
12:02 PM
Time taken 2 hours
Grade 85.00 out of 100.00
Feedback Congratulations, you pass the
assessment with a distinction.
Question 1
Complete
Mark 1.00 out of 1.00
Indicate by choosing the correct option whether the following statement is true or false:
Prepaid expenses will be disclosed as a current liability in the statement of financial position at the end of a financial period.
Select one:
True
False
Question 2
Complete
Mark 0.00 out of 4.00
The telephone account in the pre-adjustment trial balance of HS Traders on 28 February 20.2 shows an amount of R19 980. HS Traders was unable
to pay the telephone account of R6 660. The accrued expenses amount which was disclosed under trade and other payables on 28 February 20.1
was R12 000.
The following general ledger entries represents the correct entries in the books of HS Traders on 1 March 20.1:
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. For embedded questions spelling is very important. If you spell the answer incorrect it will be marked incorrect. Please make sure that your spelling of the
words is correct.
6. If an option has been provided and it is not applicable to the specific question please put N/A in the column.
HS TRADERS
General ledger Assets Equity Liabilities
Account to be debited Account to be credited Debit Credit Debit Credit Debit Credit
R R R R R R
Use the information provided below to calculate the cost of sales:
R
Opening inventory 160 000
Purchases 240 000
Sales returns 39 000
Settlement discount granted 45 000
Import duties 52 000
Settlement discount received 63 000
Closing inventory 230 000
Answer: 159000.00
Question 4
Complete
Mark 0.00 out of 4.00
Extract of pre-adjustment trial balance of Kumkani Traders as at 30 September 20.20
Debit Credit
R R
Capital (1 October 20.19)………………………………………………….... 200 000
Drawings……………………………………………………………………............. ?
Inventory: Trading (1 October 20.19)…………………………………… 61 725
Allowance for credit losses………………………………………………..... 4 450
Mortgage: Ginsberg Bank ……………….............................................. 195 000
Fixed deposit (at 7.5% per annum)……………………………………... 50 000
Sales……………………………………………………………………...............…... 345 060
Carriage on purchases………………………………………………......…… 9 500
Sales returns……………………………………………………………...........…. 6 780
Rental income………………………………………………………….......…...... 20 800
Purchases……………………………………………………………….............….. 197 800
Purchases returns…………………………………………………….......…..… 2 890
Depreciation……………………………………………………………............. 38 367
Salaries and wages…………………………………………………….....….. 88 500
Insurance expenses…………………………………………………….....…. 27 300
Telephone expenses……………………………………………………....… 14 280
Water and electricity………………………………………………………... 23 450
Credit losses………………………………………………………………......... 1 600
After a year-end inventory count, the value of trading inventory on hand was R123 450.
Additional information
(a) On 30 January 20.20, Kumkani Traders decided to lease out the office space on the business’ premises for a monthly rental amount of R5 200. The rental amount is
paid in advance on the last day of each month.
Use the information in the pre-adjustment trial balance and the additional information to do the following journal entries correctly for the closing adjustment of
the lease rentals at year-end:
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
Rental income Rental expenses Prepaid expenses Accrued income Income received in advance
Rental income
Bank Profit or loss account
Profit or loss account
41 600 46 800 20 800 26 000 5 200 15 600
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