Financial Accounting Principles Concepts and Procedures (FAC1502)
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Ntsu Stores is not a registered VAT vendor and applies the principles of the perpetual inventory system.
The business trades in small kitchen appliances.
On 30 September 2024, the end of the financial year of Ntsu Stores, the following balances appeared in
the trial balance:
R
The entity’s credit policy allows a settlement discount granted of 4% if an account is settled within 30
days after the sale took place. Over the years the entity established that 50% of its customers take up the
settlement discount granted.
Required:
Using the information given, show the disclosure of the fixed deposit in the financial statements of Ntsu
Stores for the year ended 30 September 2024.
Instructions for numeric responses:
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. Only show the amount, do not show the "R" (eg: 1000)
4. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")
NTSU STORES
STATEMENT OF FINANCIAL POSISTION AS AT 30 SEPTEMBER 2024
R
Current assets 186790.00
Inventory 62350.00
Trade receivables control 124440.00
Question 2 Princess Trading is a registered VAT vendor and makes use of the periodic inventory system. The
Answer saved following information relates to T Mdona, one of the debtors of Princess Trading.
Marked out of T Mdona's balance as per the trade receivables ledger as at 31 August 2024 was R22 050.
10.00
Flag
question The following information had not been considered in correcting of the trade receivables ledger:
Credit note for R155 (VAT inclusive) was recorded correctly in the sales returns journal but posted to the
wrong side of the personal account of the debtor in the trade receivables ledger.
Required:
Prepare the corrected account of the debtor in the trade receivables ledger.
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. Only show the amount, do not show the "R" (eg: 1000)
4. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")
T Mdona
, Debit Credit Balance
2024 R R R
Aug Invoice total b/d 22050.00 Dr
31
Sales SJ 0 310.00 22360.00 Dr
Question 3
Indicate whether the following statement is true or false:
Answer saved
Bookkeeping is part of management accounting that is concerned with the recording of transactions.
Marked out of
1.00
Flag
question Select one:
True
False
Question 4 Ms B Betty owns Betties Dealers. In which book of first entry (subsidiary journal) will the bookkeeper of
Answer saved Betties Dealers record the transactions that occurred on 1 March 20.1?
Marked out of
4.00 Date Transaction
Flag 20.1 Cash receipts journal
question March 1 Cash sales as per cash register roll 22 was, R3 000.
Date Transaction
20.1 Cash payments journal
March 1 Bought a new cash register for the business with the credit card of the business
Date Transaction
20.1 Cash payments journal
March 1 Paid the telephone account of R5 000 to Tellycoms via EFT.
Date Transaction
20.1
March 1
Cash receipts journal
The owner deposited R100 000 into Betties Dealers business as additional capital
contribution.
Question 5
The following information was obtained from the records of Lesedi Hairdressing Salon for February 20.1:
Answer saved
Lerato saved R500 000 to start her hairdressing salon in Midrand. On 1 February 20.1, Lerato opened a
Marked out of
15.00 business bank account, Lesedi Hairdressing Salon, at ABC Bank, and she deposited R400 000.
Flag The following transactions took place during February 20.1:
question
Day Transaction
2 Lesedi Hairdressing Salon bought equipment for R600 000 on credit,
which is repayable within a year.
3 Lesedi Hairdressing Salon purchased furniture via the business
banking app from Unique Salon Furnishers for R210 000.
14 Lerato used the business banking app to pay R21 000 for her father's
clothing account.
16 Lerato used the business debit card to pay R10 000 to rent the
business property.
27 Lesedi Hairdressing Salon obtained a loan of R300 000 from XYZ
Bank. The interest rate payable on the loan is 13% per annum. R50
000 is payable within 12 months, and the remainder of the loan is
repayable before 27 February 20.4. The loan amount was deposited
into the business bank account of Lesedi Hairdressing Salon on 28
February 20.1. Interest on the loan will accrue from 1 March 20.1.
28 During the first month of trading, the business rendered services to
clients for R48 000 cash and for R37 000 on credit. Lerato used the
business banking app to pay for the water and electricity R10 800.
Required:
After taking into account all the information provided in the scenario above, please fill in the total equity
and liabilities section of the statement of financial position as at 28 February 20.1 of Lesedi’s
Hairdressing Salon.
NB: Instructions
1. Do not type the amount with any spaces as separators for thousands (eg: 12141)
, 2. Round off to the nearest Rand (eg: 50.56 is 51)
3. Only show the amount, do not show the R (eg: 12141)
4. If an option was given but is not applicable under the heading, please indicate it by choosing N/A from
the dropdown menu.
5. If an option is given to fill in an amount but is not applicable, please fill in a zero "0"
LESEDI HAIRDRESSING SALON
STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 20.1
R
EQUITY AND LIABILITIES
OWNERS CAPITAL 379000.00
Net profit 74200.00
NON CURRENT LIABILITY 250000.00
Long-term borrowings 250000.00
CURRENT LIABILITY 687000.00
Trade and other receivables 637000.00
Current portion of long-term borrowings 50000.00
TOTAL EQUITY AND LIABILITIES 1390200.00
Question 6 You are given the following transactions for an entity that uses the periodic inventory system:
Answer saved
Transaction Details
Marked out of
9.00 1 Sold inventory on credit to Gizmo Supermarket for R28 800 (VAT exclusive).
Flag 2 Electronic funds transfer (EFT) payment of R10 500 (VAT exclusive) for merchandise
question purchased from Luna Dealers.
3 Purchased inventory on credit from Angel Wholesalers for R51 750 (VAT inclusive)
Required:
Complete the table below for each of the three given transactions.
Indicate in which subsidiary journal the transaction will be entered.
Indicate whether the VAT Input account or the VAT Output account in the general ledger must be
debited or credited.
You must then calculate the VAT amount and enter it in the amount column.
Instructions:
Only show the amount, do not show the R (eg: 12141)
Round off to the nearest Rand (eg: 50.56 is 51)
Do not type the amount with any spaces as separators for thousands (eg: 12141)
Question 7 NM Stores will sublet part of its building to NS Technologies for R7 000 per month from 1 October 20.1. NS
Answer saved Technologies has an agreement with NM Stores in which the rental will be paid with an annual payment on
the first day of each new financial year. On 1 October 20.2 the beginning of the financial year, NS
Marked out of
6.00 Technologies made an EFT of R133 000 which included the one month’s rental as a deposit into the bank
account of NM Stores.
Flag
question
The correct general ledger entries in the rental income account of NM Stores on 30 September 20.3 are
...
Instructions:
1. First do the adjustment general ledger entries and then do your closing transfer general
ledger entries.
2. Use a full stop to indicate any decimals (eg: 1000.01)
3. Round off to the second decimal after the full stop (eg: 50.56)
4. Only show the amount, do not show the R (eg: 12141)
NM STORES
GENERAL LEDGER
Dr Rental income Cr
20.3 R 20.2 R
Sep Oct
Income received in advance 49000 Profit or loss account 84000.00
30 1
Bank 133000.00
Question 8
If the closing balance of the VAT input account and VAT output account for the month ended 31
Answer saved December 20.20 amount to R38 111 and R7 691, respectively. Is the following statement true of
Marked out of false about the VAT control account for the month ended 31 December 20.20.
1.00
The VAT control account will reflect a payment due to SAR of R30 420.
Flag
question
Select one:
True
False
Question 9 Sales is R75 000. Mark-up on selling price is 15%. What is the cost of sales amount?
Answer saved NB: Instructions
Marked out of
1.00 1. Do not type the amount with any spaces as separators for thousands (eg: 12141)
Flag 2. Round off to the nearest Rand (eg: 50.56 is 51)
question
3. Only show the amount, do not show the R (eg: 12141)
Answer: 9782.61
Question 10
The accountant of Naledi Traders paid the monthly telephone account of R2 000 via an electronic
Answer saved transfer. Naledi Traders maintained an unfavourable bank balance.
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