20
2020
MODULE NAME:
MODULE CODE:
ACCOUNTING1A
ACBP5111/d/e/f/p
ACCOUNTING1A
ACBP5121
ASSESSMENT TYPE:
REVISED TEST (QUESTION PAPER)
TOTAL MARK ALLOCATION:
100 MARKS
TOTAL TIME:
The time given to students to complete this
assessment will be indicated on your module in Learn.
By submitting this assessment, you acknowledge that you have read and understood all the
rules as per the terms in the registration contract, in particular the assignment and assessment
rules in The IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism
rules in the Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in
the student portal.
INSTRUCTIONS:
1.
Please adhere to all instructions. These instructions are different from what is normally
present, so take time to go through these carefully.
2.
Independent work is required. Students are not allowed to work together on this
assessment. Any contraventions of this will be handled as per disciplinary procedures in
The IIE policy.
3.
No material may be copied from original sources, even if referenced correctly, unless it
is a direct quote indicated with quotation marks.
4.
This is an open‐book assessment.
5.
Assessments must be submitted in a format as detailed below.
6.
Ensure that you save a copy of your responses.
a.
The document name must be your name.student number.Module Code.
7.
Once completed the assessment, upload your document under the submission link in the
correct module in Learn.
Additional instructions:
 Calculators are allowed
 Answer All Questions .
 Show all calculations, where applicable (marks may be awarded for this).
 Tables have been created for you to complete
 Instructions for assessments including numerical calculations
 You will only be able to submit scanned/photo of handwritten document or Microsoft
word or excel documents.
 You may use Excel. If Excel is used, then all calculations must be shown in order to
receive method marks.
If you are using a Word Document:
 Please see the Word document included as part of this assessment
 Tables have been created for you to complete
 Use the following to reflect your calculations:
© The Independent Institute of Education (Pty) Ltd 2020
Page 1 of 7
20
2020















Multiple x – small letter x or *
Division / forward slash
Addition and substration + and ‐
Squareroots and equations – using the function insert ‐ equation.
Tables – using the function insert ‐ table
Working with tables – use merge and split cell functions through right click function.
Fitting tables to pages – Autofit to window/content through right click fuction.
Layout of table – Section breaks and landscape orientation through layout – breaks and
layour orientation in the ribbon.
If you are not familiar with all the functions in word it is recommended that you rather
do a hardcopy if possible.
If you are completing in a hardcopying/ by hand:
Use the word document supplied as a template for you to recreate by hand on a piece of
paper
Ensure that all your pages are numbered on the top right hand side of the page – e.g. 1
of 12
Perform your calculations as you normally would. Please work neatly so that you do not
lose marks because your lecturer cannot read your writing.
Either (i) Scan your pages OR (ii) photograph your pages. Ensure that the pages are in
the correct order.
Label your photographs as follows: name.student number.Module Code.Page 1; (for
each page
Once completed the assessment, upload your document under the submission link in
the correct module in Learn.
1.
© The Independent Institute of Education (Pty) Ltd 2020
Page 2 of 7
20
2020
Question 1
(Marks: 15)
Unemployment is one of the major macroeconomic problems facing South Africa.
Many workers who are unable to find employment in the formal sector hope to find some income
from work in the informal sector. John Mabusa has been unemployed for 2 years and has decided to
make home made toys to sell at a local flea market.
John Mabusa has come to you for some advice.
Required:
Q.1.1
Explain to John Mabusa what an Accounting system is?
(2)
Q.1.2
John Mabusa will be operating within the “informal business sector”. Give three
(3)
examples of other informal sector businesses?
Q.1.3
Draw a comparison between the formal accounting systems as applied in the
(10)
formal business sector and an accounting system as we may find in use for the
informal business system. Do this comparison in tabular form. You need only list
five comparisons.
Question 2
(Marks: 10)
Jaquer Traders incurred the following transactions in January 2020. The business uses the perpetual
inventory method and all goods are subject to a mark‐ up of 40% on cost.
Day
Transaction
3
Purchased inventory on credit for R5 000
9
Cash sale of trading inventory, sales price R11 200
22
Paid R3 000 to the creditor as partial settlement of the goods purchased on the 3rd.
Required:
Q.2.1
Show how the above transactions will affect the accounting equation and enter how (10)
the accounts in the general ledger will be affected. Clearly show debit and credit as
well as increases or decreases.
© The Independent Institute of Education (Pty) Ltd 2020
Page 3 of 7
20
2020
Example: Received a capital contribution of R100 000 in the form of cash:
Date
E.g.
Assets (R)
=
Owners’ Equity +
Liabilities
(R)
(R)
+
100 000
+
100 000
Dr
Bank
Cr
Capital
Ignore VAT.
Round all amounts to the nearest rand.
Question 3
(Marks: 15)
Answer the following independent questions:
Q.3.1
Complete the following table stating whether the transaction affects input VAT or
(9)
output VAT by ticking the correct column, further calculate the amount of VAT
@15%. Round to two decimal places.
Transaction
E.g. Purchase inventory for R5 750 VAT inclusive
Input
Output
VAT
VAT
VAT
amount
X
R750
Cash sales of inventory for R25 000 excluding VAT
Credit sales of inventory for R24 150 including VAT
Purchase inventory on credit for R32 200 including
VAT
Purchase fruit for R280 excluding VAT
Purchase stationary for R149.50 including VAT
Receive a payment for rental income from a
tenant for R6 000 excluding VAT
© The Independent Institute of Education (Pty) Ltd 2020
Page 4 of 7
20
2020
Q.3.2
Complete the following table by calculating the missing numbers A to F. A VAT rate
(6)
of 15% applies.
Mark‐up on cost
Cost price
Profit (Excl. VAT)
(Excl. VAT)
Selling price
(Excl. VAT)
40%
R2 000.00
A
B
C
D
R5 000.00
R10 000.00
25%
E
F
R4 000.00
Question 4
(Marks: 50)
Neverland Traders, a children’s book retailer, entered into the transactions below during
February 2020. The business is a registered VAT vendor and trades only with other registered
vendors. All amounts include 15% VAT where applicable, except if otherwise indicated. They use a
periodic inventory system and all goods are marked up at 40% above cost, before taking into
account any trade discounts. The business does not expect to award any settlement discounts nor
to qualify for any settlement discounts. All occurrences of settlement discounts are therefore
incidental in nature.
The following payments were made from the bank account:
Day
Transaction
3
Purchased inventory from Suess traders and paid R13 800.
7
Paid R10 000 (excluding VAT) to W Landlords for monthly rental of premises.
9
Paid R4 000 towards settlement of a loan with BAC Bank.
17
Purchased inventory from M&M traders for R8 050. M&M traders has allowed a
trade discount of 5% on the transaction that still needs to be accounted for.
27
The bank statement from BAC bank showed bank charges of R57.50.
28
Restored the petty cash to its imprest amount R1 638.
28
Paid R14 000 to P. Pig towards settlement of an outstanding creditors account.
The following payments were made from the petty cash box:
Day
Transaction
4
R750 from Total for fuel for the delivery vehicle.
9
R500 for staff refreshments from the local bakery.
12
R138 for paper reams from N&N stationers.
23
Paid a casual worker R250 for the day.
© The Independent Institute of Education (Pty) Ltd 2020
Page 5 of 7
20
2020
The following transactions relate to debtors for the month.
Day
Transaction
2
Sold goods to Sophia traders on credit for R9 660.
4
Sophia traders returned 10% of the goods sold in the 2nd due to inferior quality, a
credit note was issued in this regard.
16
Sold goods to Olaf Traders on credit. The goods had an original cost price of
R13 000 (excluding VAT).
20
Sold goods to Elsa traders on credit with an original selling price of R3 542. A
trade discount of 5% was awarded and still needs to be taken into account.
21
Elsa traders returned all the goods purchased on the 20th due to the fact that it
was the wrong colour and a credit note was issued.
Required:
Q.4.1
Prepare the following subsidiary journals for Neverland Traders for February
2020:
Q.4.1.1
Cashbook Payments.
(21)
Q.4.1.2
Petty cash journal.
(9)
Q.4.1.3
Debtors journal.
(10½)
Q.4.1.4
Debtors allowances journal.
(5½)
Round to two decimal places.
Ignore all source document numbers.
You are not required to total the journals at the end of the month.
Q.4.2
Assuming the perpetual inventory system was used and all goods are marked
up at 40%
(4)
above cost, before taking into account any trade discounts,
calculate the cost of sales amount with respect to the entry relating to debtors
on the 2nd February 2020.
© The Independent Institute of Education (Pty) Ltd 2020
Page 6 of 7
20
2020
Question 5
(Marks: 10)
You are provided with the following extracts (totals) of the subsidiary journals for Fit Traders for
March 2020.
Cashbook payments
Bank
Creditors control
R126 500
VAT Input
R75 000
Sundry accounts
R16 500
R35 000
Creditors journal
Creditors control
VAT Input
R74 750
Trading inventory
R9 750
R60 000
Sundry accounts
R5 000
Creditors allowances journal
Creditors control
VAT Output
R25 300
Trading inventory
R3 300
R20 000
Sundry accounts
R2 000
The general journal reflects a transaction of R575 including 15% VAT that relates to a settlement
discount that was received from a creditor.
Required:
Q.5.1
Prepare the creditors control account in the general ledge of Fit traders for March (10)
2020. Assume an opening balance of R30 000.
Properly balance the account at the end of the month.
[TOTAL MARKS: 100]
© The Independent Institute of Education (Pty) Ltd 2020
Page 7 of 7