UNIVERSITY OF LIMPOPO
TURFLOOP CAMPUS
FACULTY OF MANAGEMENT & LAW
SCHOOL OF ACCOUNTANCY (SoA)
DEPARTMENT OF ACCOUNTING
SEMESTER TEST 1
MEMORANDUM
MODULE:
CACA 002
AUGUST
:
2020
TIME:
2 HOURS
MARKS
:
80
INTERNAL EXAMINER
:
MR KM MOSWATSI
INTERNAL MODERATOR
:
A PARKER CA (SA)
THIS PAPER CONSISTS OF …7…PAGES INCLUDING COVER PAGE
INSTRUCTIONS:
1. Students should work through all questions in this memorandum after receipt of their
marked scripts and this memo.
2. For remarking procedures: To be done within 72 hours
ACCOUNTANCY DREAM @UL
1
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 1 - Suggested solution
(45 marks)
GENERAL JOURNALS
R
Date
28 Feb
2020
Account
R
Debit
Salaries and wages (P/L)
Credit
7 800
Accrued expenses (SFP)
1
7 800
1
Salaries and wages accrued
28 Feb
2020
Accrued income (SFP)
3 750
Rent income (P/L)
1
3 750
1
Being rent income accrued
28 Feb
2020
Credit loss (P/L)
5 000
Accounts receivables (SFP)
1
5 000
1
(Mr Poorley debt written off)
28 Feb
2020
Consumable stores on hand (SFP)
2 500
Stationery (P/L)
1
2 500
1
(Being unused stationery on hand)
28 Feb
2020
Sales (P/L)
19 000
Income received in advance (SFP)
1
19 000
1
(Being income received in advance)
28 Feb
2020
Bank charges (P/L)
870
Stationery (P/L)
1
870
1
Correcting posting errors
Advertising expenses (P/L)
1 700
Subscriptions expenses (P/L)
Correcting posting errors
1
1 700
1
14
Page 2
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
MIKE TRADERS
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 28 FEBRUARY 2020 0.5
R
Sales (399 000 – 19 000) 1
380 000
1
45 000
1
Salaries and wages (51 200 + 7 800) 1
59 000
1
Credit loss (9 000 + 5 000) 1
14 000
1
Stationery (10 000 – 2 500 - 870) 1
6 630
1
Advertising expenses (1 300 + 1 700) 1
3 000
1
Bank charges (930 + 870) 1
1 800
1
0
1
Operating income
Rent income (41 250 + 3 750) 1
Operating expenses
Subscription expenses (1 700 – 1 700) 1
16.5
MIKE TRADERS
STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2020 0.5
R
ASSETS
Current assets
Accrued income
3 750 0.5
Accounts receivables (55 000 – 5 000) 1
50 000
Consumable stores on hand
1
2 500 0.5
EQUITY AND LIABILITIES
Current liabilities
Accrued expenses
7 800 0.5
Income received in advance
19 000 0.5
4.5
Page 3
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 2 - Suggested solution
(30 Marks)
QUESTION 2 – (1 - a) – (3.5 Marks) – Suggested solution
Date:Tr.2
Dr
4/06/2020 Inventory - (SoFP - CA)
Bank - (SoFP)
Payable - (SoFP -CL)
R6 630*0.75
Recognizing the inventory purchased on 4/6/2020
0.5
0.5
0.5
0.5
6 630
CR
0.5
4 972.50 0.5
1 657.50 0.5
2
1.5
Total marks: 3.5
QUESTION 2 – (1 - b) – (6.5 Marks) – Suggested solution
Date; Tr 3
15/06/2020
Dr
Cr
Bank - (SoFP)
Receivable - (SoFP-CA)
Sales - (SoPL)
(80b * R15) = R1 200 *1.8 = R2 160
R2 160 *0.9 = R1 944
recording sale of 80 bottles
0.5
0.5
0.5
0.5
0.5
1 944
216
0.5
0.5
2 160 0.5
Cost of sales – (SoFP)
Inventory - (SoFP - CA)
80 bottles* R15 = R1 200
Derecognizing of the inventory sold
0.5
0.5
0.5
1 200
0.5
1 200 0.5
4
2.5
Total marks: 6.5
QUESTION 2 – (1 - c) – (5.5 Marks) – Suggested solution
Date; Tr 5
Dr
21/06/2020 Cost of sale - (SoPL)
Inventory - (SoFP- CA)
15 bottles*R15 = R225
Derecognizing 15 bottles on special sale
Bank - (SoFP)
Sales - (SoPL)
recording sale of 15 bottles sold on special sale
R225 *1.8 = R405
R405 * 0.75 = R162
0.5
0.5
0.5
225
0.5
225 0.5
0.5
0.5
304
0.5
304 0.5
0.5
0.5
3.5
Total marks: 5.5
Page 4
Cr
2
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 2 – (1 - d) – (3 Marks) – Suggested solution
Date: Tr 6
Dr
22/06/2020 Cost of sale - (SoPL)
Inventory - (SoFP - CA)
25 bottles - 15 bottles sold = 10 unsold bottles
10 unsold bottles * R15 = R150
Derecognizing 10 expired bottles
0.5
0.5
0.5
0.5
150
Cr
0.5
150 0.5
2
1
Total marks: 3
QUESTION 2 – (1 - e) – (6 Marks) – Suggested solution
Date: Tr 7
Dr
Cr
25/06/2020 Cost of sale - (SoPL)
Inventory - (SoFP- CA)
5 bottles * R15 =R75
145 bottles * R17 = R2 465
R75 + R2 465 = 2 540
Derecognizing 150 inventory sold
0.5
0.5
0.5
0.5
0.5
2 540
0.5
2 540 0.5
Bank - (SoFP)
Sales - (SoFP- CA)
2 540 * 1.8 = R4 572
or
(75*1.8) + (R2 465*1.8) = R4 572
0.5
0.5
0.5
4 572
0.5
4 572 0.5
4
2
Total marks: 6
QUESTION 2 – (1 - f) – (2 Marks) – Suggested solution
Date, Tr 8
Dr
29/06/2020 Payable - (SoFP - CL)
Bank - (SoFP)
payment of the outstanding balance
0.5 1 657.50
0.5
0.5
1 657.50 0.5
1
Total marks: 2
Page 5
Cr
1
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 2 – (2 - a) – (3 Marks) – Suggested solution
Closing inventory - (30 June 2020)
Units
110
390
(80)
(15)
(10)
(150)
245
Opening - (1 June 2020)
Add: purchases - ( 4June 2020)
Less: Sold - (15 June 2020)
Less : sold- special sale (21 June 2020)
Less :expired inventory (22 June 2020)
Less : sold - (25 June 2020)
Closing inventory - (30 June 2020)
Total marks :
0.5
0.5
0.5
0.5
0.5
0.5
3
QUESTION 1 – (2 - b) – (0.5 Mark) – Suggested solution
Value(R) of the closing inventory on 30 June 2020
245 * 17 = R4 165
Page 6
0.5
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 3 - Suggested solution
(15 marks)
RAINBOW TRADERS
LIST OF ACCOUNTS RECEIVABLE AS AT 31 MARCH 2020
Name
Fol.
Balance
R. Red (20 000 – 95) 1
AR1
19 905
O. Orange (78 215 – 185 -185) 1.5
AR2
77 845
Y. Yellow
AR3
30 000
G. Green (240 – 240) 1
AR4
0
R127 750
0.5
0.5
0.5
0.5
5.5
GENERAL LEDGER OF RAINBOW TRADERS
Accounts receivable
1 Mar Balance b/d
90 000 0.5 31 Mar Payment – R,
2020
2020
Red
31 Mar Total sales
48 455
2
Credit losses
2010 (48 545 – 90
(48 545 –
48 455)
Bank
Total sales
(returns)
Balance c/d
138 455
1 April Balance b/d
2020
127 750
95 0.5
5 482 0.5
5 000 0.5
128 0.5
127 750 0.5
138 455
0.5
5.5
Trade payable control account - A control account in the general ledger (liability) that shows a
summary of all credit purchases, returns and payments made. These entries will stem from the
purchases journal, purchases allowances journal and the cash payments journal. 2
Trade receivable control account - A control account in the general ledger (asset) that shows
a summary of all credit sales, returns and payments received. These entries will stem from the
sales journal, sales allowance journal, cash receipts journal and general journal. 2
Page 7
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
UNIVERSITY OF LIMPOPO
TURFLOOP CAMPUS
FACULTY OF MANAGEMENT & LAW
SCHOOL OF ACCOUNTANCY
SEMESTER TEST 2
MEMORANDUM
MODULE:
CACA 002
TIME:
2.38 HOURS
JANUARY
:
MARKS
INTERNAL EXAMINER:
MR KM MOSWATSI (MBA)
SECOND EXAMINER:
MS A PARKER CA (SA)
2021
:
80
THIS PAPER CONSISTS OF …7…PAGES INCLUDING COVER PAGE
INSTRUCTIONS:
1. Students should work through all questions in this memorandum after receipt of their
marked scripts and this memo.
2. For remarking procedures: To be done within 72 hours
ACCOUNTANCY DREAM @UL
Page 8
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 1
(12 Marks)
a)
MIKE TRADERS
Date
Details
Debit
16 Jan 19 Trade inventories (SFP) (R80 500 *
Credit
70 000
1
10 500
1
100/115) 1
VAT input (SFP) (R80 500 * 15/115)
1
Trade payable – Thabo Traders
80 500
1
Recognise credit purchases
12 Feb
Trade payable – Thabo Traders (SFP)
80 500
0.5
19
Bank (SFP)
80 500 0.5
Payment made to settle debts
6
b)
THABO TRADERS
Date
Details
16 Jan 19
Trade receivable (SFP)
Debit
Credit
80 500
1
VAT output (SFP)
10 500
1
Sales (P/L)
70 000
1
Recognise credit sale
Cost of sales (P/L)
30 000
Trade inventories (SFP)
1
30 000
1
Recognise cost of sales
12 Feb 19 Bank (SFP)
80 500
Trade receivable – Mike Traders
0.5
80 500 0.5
(SFP)
6
Page 9
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 2
Date
1 April 2020
15 April 2020
1 Sep 2020
1 Sep 2020
31 Dec 2020
(28 Marks)
Details
Machine C (SFP)
Bank (SFP)
Purchased machine c cash
Machine C (SFP)
Bank (SFP)
Paid for installation fees cash
Depreciation (P/L)
Accumulated depreciation (SFP)
10 000 × 20% × 8 ÷ 12
Depreciation before sale of Machine A
Bank (SFP)
Accumulated depreciation (SFP) (
Cost – Machine A (SFP)
Profit on sale of asset
10 000 × 20% × 11 ÷ 12 = 1 833.00 (2018)
10 000 × 20% = 2 000 (2019)
1 833 + 2 000 = 3 833 + 1 333 = 5 166
5 000 + 5 166 – 10 000 = 166
Derecognising Machine A after sale
Depreciation (P/L)
Accumulated depreciation (SFP)
Machine B
40 000.00 × 20% = 8 000.00
Machine C
65 000.00 × 20% × 8 ÷ 12 = 8 667.00
8 000.00 + 8 667.00 = 16 667.00
Depreciation for the current period for
machine B & C
Page
10
Debit
60 000
Credit
60 000
5 000
5 000
1 333
1 333
5 000
5 166
10 000
166
16 667
16 667
1
1
0.5
1
1
0.5
1
1
2
0.5
1
1
1
1
2
1
2
1
0.5
1
1
2
3
1
28
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 3
(40 Marks)
1. Cash received from customers (W1)
Trade receivable
Date
Details
1 Jan
Opening
Amount
Date
Details
3 100 000
0.5
Paid *
6 500 000
0.5
31 Dec Closing balance
Amount
5 800 000
1
balance
Credit sales
9 600 000
1 Jan
Balance c/f
3 800 000
3 800 000 0.5
9 600 000
0.5
4
Cash sales R27 250 000 + 5 800 000 = R33 050 000 1
2. Cash paid to suppliers and employees (W2)
Cash suppliers
R
Cash purchases
13 250 000
0.5
Distribution costs
1 550 000
0.5
Administrative expenses
2 000 000
0.5
550 000
0.5
2 500 000
0.5
19 850 000
2.5
Other expenses
Salaries paid
Trade payable
Date
Details
Amount
Paid *
11 890
Date
1
1 Jan
Details
Amount
Opening balance
1 270 000 0.5
31 Dec Credit purchases
12 120 000 0.5
000
31 Dec
Closing balance
1 500 000 0.5
13 390
13 390 000
000
1 Jan
R19 850 000 + 11 890 000 = R31 740 000 1
Page
11
Balance c/f
1 500 000 0.5
4
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
INCOME TAX PAYABLE (W3)
Date
Details
Amount
Date
1 Jan
Paid *
1 700 000
Closing balance
1 800 000 0.5
1
Details
1 Jan
31 Dec
Amount
Opening balance
1 600 000
Tax expense
1 900 000 0.5
3 500 000
1
3 500 000
1 Jan
Balance c/f
1 700 000
3
Shareholders for dividends (W4)
Date
Details
Amount
Date
1 Jan
Paid
3 550 000
0.5
Balance c/f
1 850 000
0.5
1 Jan
Details
Opening balance
31 Dec Dividend paid
5 400 000
Amount
1 400 000
1
4 000 000
0.5
5 400 000
1 Jan
Balance b/f
1 850 000
3
Trucks
Date
Details
1 Jan
Opening balance
Amount
5 000 000
Date
0.5
31 Dec
5 000 000
1 Jan
Balance c/f
3 000 000
Details
Amount
Disposal
2 000 000
1
Closing balance
3 000 000
0.5
5 000 000
0.5
Page
12
2.5
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Vehicle (W5)
Date
Details
Accumulated dep
Bank *
Amount
Date
Details
1 850 000
1
Cost
300 000
1
Profit from sale
2 150 000
Amount
2 000 000
1
150 000
1
2 150 000
4
Loan (ABSA) (W6)
Date
31 Dec
Details
Amount
Paid *
1 500 000
1
Closing balance
1 500 000
0.5
Date
Details
1 Jan
Opening balance
Absa
3 000 000
Amount
0
0.5
3 000 000
0.5
3 000 000
3
4 + 2.5 + 4 + 3 + 3 + 2.5 + 4 + 3 = 26
Page
13
1 Jan
Balance c/f
1 500 000
0.5
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
MIKE TRADERS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
R
Cash flow from operating activities
Cash receipts from all customers (W1)
Cash paid to all suppliers and employees (W2)
Cash generated from operations
33 050 000
1
(31 740 000)
1
1 310 000
Interest received
10 175 000
1
Finance cost
(1 650 000)
1
Drawings by owner*
(1 800 000)
1
Normal tax paid (W3)
(1 700 000)
1
Dividends paid (W4)
(3 550 000)
1
Net cash flow from operating activities
2 785 000
Cash flow from investing activities
Disposal of assets (W5)
300 000
Net cash flow from investing activities
300 000
1
Cash flow from financing activities
Proceeds from loan obtained
3 000 000
1
(1 500 000)
1
Proceeds from contribution by owner*
2 500 000
1
Net cash flow from financing activities
4 000 000
Cash and cash equivalents (opening balance)
10 000 000
1
Net change in cash flow (-190 000 + 200 000)
7 085 000
1
Cash and cash equivalents (closing balance)
17 085 000
1
Repayment of loan
14 + 26 = 40
Page
14
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
UNIVERSITY OF LIMPOPO
MEMORANDUM
STANDARD EXAMINATION
MODULE: CACA002
FEBRUARY 2021
(INTRODUCTION TO FINANCIAL ACCOUNTING)
Page
15
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 1
(32 MARKS)
a) Journal entries
Date
1 Jan
To
31 Dec
Details
Trade inventories – (SFP) (R1 104 000 * 100/115) 1
VAT input – (SFP) (R1 104 000 * 15/115) 1
Trade payable – (SFP)
Recognize purchase of inventories
Trade payables – (SFP)
Trade inventories – (SFP) (R36 800 * 100/115)
1
VAT input – (SFP) (R36 800 * 15/115) 1
Recognize returns (out) of inventories
Trade receivable – (SFP)
Sales – (P/L) (R1 642 200 * 100/115) 1
VAT output – (R1 642 200 * 15/115) 1
Recognize sale of inventories
Cost of sales – (P/L)
Trade inventories – (SFP)
Recognize the cost of the sale of inventories
Sales – (P/L) (R32 200 * 100/115) 1
VAT output – (SFP) (R32 200 * 15/115) 1
Trade receivables – (SFP)
Recognize returns by customers
Trade inventories – (SFP)
Cost of sales – (P/L)
Recognize returns by customers
Loss due to inventory shortage – (P/L)
Trade inventories – (SFP) (R340 000 –
220 000) 1
Recognize inventory shortage as an expense
Debit
960 000
144 000
Credit
1 104 000
1
1
1
32 000
1
1
4 800
1
1 428 000
214 200
1
1
1
816 000
1
1
32 200
1
1
1
16 000
1
1
20 000
1
1
36 800
1 642 200
816 000
28 000
4 200
16 000
20 000
27
Date
1 Jan
To
31 Dec
Details
Trade inventories
Loss of inventory
COST OF SALES ACCOUNT
Amount
Date
Details
816 000 0.5
1 Jan
Trade inventories
To
20 000 0.5 31 Dec Retained earnings
836 000
Page
16
Amount
16 000 0.5
820 000 0.5
836 000
2
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Date
31 Dec
VAT CONTROL ACCOUNT
Amount
Date
Details
144 000 0.5 31 Dec Input VAT return
Output VAT - return
4 200 0.5
Output VAT
Balance c/f
70 800 0.5
219 000
1 Jan
DUE TO SARS
Details
Input VAT
27 + 2 + 3 = 32 MARKS
Page
17
Amount
4 800 0.5
214 200 0.5
219 000
70 800 0.5
3
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 2
(23 MARKS)
3. Cash received from customers (W1)
Trade receivable
Date
Details
1 Jan
Opening balance
Credit sales
Amount
Date
Details
8 800 000
0.5
Paid *
25 200 000
1
26 000 000
0.5
31 Dec Closing balance
9 600 000
0.5
34 800 000
1 Jan
Balance c/f
Amount
34 800 000
3 800 000
4
0.5
Cash sales R25 200 000 + 63 000 000 = R88 200 000 1
4. Cash paid to suppliers and employees (W2)
Cash suppliers
R
Cash purchases
37 000 000
0.5
Distribution costs
120 000
0.5
Administrative expenses
600 000
0.5
Other expenses
580 000
0.5
9 800 000
0.5
48 100 000
2.5
Salaries paid
Trade payable
Date
Details
Paid *
Discount
31 Dec
Closing balance
Amount
Date
Details
Amount
21 200 000
1
1 Jan
Opening balance
10 000 000 0.5
150 000
1
31 Dec
Credit purchases
22 350 000 0.5
11 000 000 0.5
32 350 000
32 350 000
1 Jan
R48 100 000 + 21 200 000 = R69 300 000 1
Balance c/f
11 000 000 0.5
5
Page
18
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
SARS – INCOME TAX PAYABLE (W3)
Date
Details
Paid *
31 Dec
Balance c/f
Amount
Date
3 750 000
0.5
1 Jan
400 000
0.5
31 Dec
Details
Opening balance
Tax expense
4 150 000
Amount
150 000
4 000 000
1
0.5
4 150 000
1 Jan
Balance b/f
400 000
3
BRILLIANT TRADERS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019 0.5
R
Cash flow from operating activities
Cash receipts from all customers (W1)
Cash paid to all suppliers and employees (W2)
Cash generated from operations
88 200 000
1
(69 300 000)
1
18 900 000
Interest received
1 500 000
1
Finance cost
(2 650 000)
1
Drawings by owner*
(2 500 000)
1
Normal tax paid (W3)
(3 750 000)
1
Dividend paid
(3 000 000)
1
Dividend received
2 000 000
1
Net cash flow from operating activities
2 785 000
8.5
4 + 2.5 + 5 + 3 + 8.5 = 23
Page
19
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 3
DATE
(18 MARKS)
DETAILS
DEBIT
1 Feb 2020 Repair and maintenance (P/L)
CREDIT
20 000
Bank (SFP)
1
20 000
Vehicle service expense
1
0.5
1 July 2020 Depreciation (P/L)
34 375
Accumulated depreciation (SFP)
1
34 375
1
(300 000 × 25%) × 4/12 = R25 000 (2019) 3
(300 000 – 25 000) × 25% 6/12 = R34 375 (2020) 3.5
Depreciation for 6 months
0.5
1 July 2020 Account receivable (SFP)
Accumulated depreciations (SFP)
250 000
1
59 375
1
(25 000 + 34 375) 2
Cost – vehicle (SFP)
Profit on sale of asset (P/L)
Derecognising the vehicle sold
300 000
1
9 375
1
0.5
18
Page
20
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 4
(7 MARKS)
CALCULATIONS
1. R1 800 000/20 = R90 000 – BUILDINGS 0.5
2. R250 000/5 = R50 000 – VEHICLES 0.5
3. R450 000/10 = R45 000 – FURNITURE AND EQUIPMENT 0.5
4. ((1 800 000 – 90 000 – 90 000) + (250 000 – 50 000 – 50 000) + (450 000 – 45 000 – 45 000)
1.5
MOREFIRE TRADERS
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2019 0.5
R
Depreciation (90 000 + 50 000 + 45 000) W 1 – 3 1.5
(185 000) 0.5
4
MOREFIRE TRADERS
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 0.5
ASSETS
R
Non – current assets
Land
600 000 0.5
PPE W4
2 130 000 0.5
2 730 000
Page
21
3
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
UNIVERSITY OF LIMPOPO
MEMORANDUM
SUPPLEMENTARY/AEGROTAT EXAMINATION
MODULE: CACA002
FEBRUARY 2021
(INTRODUCTION TO FINANCIAL ACCOUNTING)
Page
22
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 1
(28 MARKS)
a) Journal entries – perpetual inventory system
Date
Details
Debit
1 Jun
Trade inventories (SFP) (R517 500 * 100/115) 1
450 000
1
67 500
1
VAT input (SFP) (R517 500 * 15/115) 1
Trade payable - Loan (SFP)
Credit
517 500
Recognise inventories purchased on credit
30 Jun
Trade payable - Loan (SFP)
0.5
65 000
Bank (SFP)
1
65 000
Derecognise payable due to settlement
30 Nov
Interest expense (P/L) (R465 000 – (R517 500 – 65 000) 1
12 500
1
12 500
Recognise accrued interest (1 Jun – 30 Nov 2019)
Trade payable – Loan
1
0.5
Trade payable – Loan (SFP)
30 Nov
1
1
0.5
465 000
Bank (SFP)
1
465 000
Derecognise loan due to settlement
1
0.5
14
b) Journal entries – periodic inventory system
Date
Details
Debit
1 Jun
Purchase (P/L) (R517 500 * 100/115) 1
450 000
1
VAT input (SFP) (R517 500 * 15/115) 1
67 500
1
Trade payable (SFP)
Credit
517 500
Recognise inventories purchased on credit
30 Jun
Trade payable - Loan (SFP)
0.5
65 000
Bank (SFP)
1
65 000
Derecognise payable due to settlement
30 Nov
Interest expense (P/L) (R465 000 – (R517 500 – 65 000) 1
12 500
1
12 500
Recognise accrued interest (1 Jun – 30 Nov 2019)
Trade payable – Loan
1
465 000
Derecognise loan due to settlement
1
0.5
465 000
Bank (SFP)
1
0.5
Trade payable – Loan (SFP)
30 Nov
1
1
0.5
14
Page
23
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 2
(25 MARKS)
1. CASH RECEIVED FROM CUSTOMERS
TRADE RECEIVABLE
Date
1 Jan
Details
Opening balance
Credit sales
Amount
28 000 0.5
160 000 0.5
Date
31
Dec
Details
Paid
Balance c/f
188 000
39 000 0.5
Amount
149 000 1
39 000 0.5
188 000
4
1 Jan
Balance b/f
20
R149 000 + 180 000 = R329 000 1
2. CASH PAID TO SUPPLIERS AND EMPLOYEES
R
Distribution costs
15 000 0.5
Administrative expenses
14 000 0.5
Other expenses
10 000 0.5
Salaries
18 000 0.5
Not recording directors remuneration
- 0.5
Separate calculation of Cash paid to suppliers and employees
57 000 2.5
TRADE PAYABLES
Date
31 Dec
Details
Paid
Balance c/f
Amount
88 000
15 000
1
0.5
Date
Details
Amount
1 Jan
Opening balance
Credit purchases
8 000 0.5
95 000 0.5
103 000
4
1 Jan
20
Balance b/f
103 000
15 000 0.5
R57 000 + 88 000 = R145 000 1
INCOME TAX PAYABLE
Date
1 Jan
31 Dec
Details
Paid
Balance c/f
Amount
13 000
4 000
1
0.5
Date
Details
Amount
1 Jan
Opening balance
Tax expense
5 000 0.5
12 000 0.5
17 000
17 000
3
1 Jan
Page
24
Balance b/f
4 000 0.5
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
SHAREHOLDERS FOR DIVIDEND
Date
Details
1 Jan
Paid
31 Dec
Balance c/f
Amount
15 000
1
6 000
0.5
Date
Details
Amount
1
Jan
Opening balance
7 000 0.5
Dividend distribution
21 000
14 000 0.5
21 000
3
1
Jan
Balance b/f
4 000 0.5
BOBI TRADERS
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019 0.5
R
Cash flow from operating activities
Cash receipts from customers
Cash paid to suppliers and employees
329 000
1
(145 000)
1
184 000
Cash generated from operations
Interest received
2 400
1
Dividends received
1 800
1
Finance cost
(11 000)
1
Income tax paid
(13 000)
1
Dividends paid
(15 000)
1
(8 000)
1
Drawings
141 200
Net cash inflow from operating activities
8.5
16.5 + 8.5 = 25 marks
Page
25
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 3
(20 MARKS)
Date
Details
1 Feb 15
Maintenance and repairs (P/L)
Debit
Credit
28 000
Bank (SFP)
1
28 000
Vehicle serviced
1 July 15
1
0.5
Depreciation (P/L) – W1
45 000
Accumulated depreciation (SFP)
1
45 000
Depreciation before sales
1
0.5
Accumulated depreciation (SFP) W2
Bank (SFP)
90 000
1
250 000
1
Cost – vehicle – (SFP)
450 000
Loss on sale of asset – (P/L) W3
Disposal of vehicle at a loss
110 000
1
1
0.5
9.5
Calculations
1. R517 500 * 100/115 = R450 000 2
R450 000 * 20% * 6/12 = R45 000 2
2. R45 000 + 45 000 = R90 000 1
3. R450 000 – 250 000 – 90 000 = R110 000 1.5
9.5 + 6.5 = 16 marks
Page
26
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 4
(7 MARKS)
NOKS TRADERS
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2019 0.5
R
Credit losses (R168 500 + 35 500 – 4 000) 3
(200 000) 0.5
4
NOKSTRADERS
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2019 0.5
ASSETS
R
Current assets
Trade receivables (R450 000 + 380 000 + 35 500 – 35 500) 2
830 000
0.5
3
4 + 3 = 7 marks
Page
27
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
UNIVERSITY OF LIMPOPO
TURFLOOP CAMPUS
FACULTY OF MANAGEMENT & LAW
SCHOOL OF ACCOUNTANCY (SoA)
DEPARTMENT OF ACCOUNTING
SEMESTER TEST 1
MEMORANDUM
MODULE:
CACA 002
TIME:
2 HOURS
SEPTEMBER
MARKS
INTERNAL EXAMINER
:
MR KM MOSWATSI
INTERNAL MODERATOR
:
MS PARKER CA (SA)
:
2021
:
80
THIS PAPER CONSISTS OF …6…PAGES INCLUDING COVER PAGE
INSTRUCTIONS:
3. Students should work through all questions in this memorandum after receipt of their
marked scripts and this memo.
4. For remarking procedures: To be done within 72 hours
ACCOUNTANCY DREAM @UL
Page
28
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 1
a)
(46 marks)
Michelle Traders
GENERAL JOURNAL FOR THE MONTH ENDING 31 DECEMBER 2020
Date Account
31
Debit
Accrued income (SOF)
Credit
3 000
Interest income (P/L)
1
3 000
1
(Year-end adjustment)
(9 000.00/9) = 1 000 * 3 = 3 000 1
Depreciation (P/L)
4 000
Furniture – Accumulated depreciation (SFP)
1
4 000
1
(Year-end adjustment)
(60 000 – 20 000) x 10% x 12/12) = 4 000 1
Depreciation (P/L)
7 500
Buildings – accumulated depreciation (SFP)
1
7 500
1
(Year-end adjustment)
150 000/20 = 7 500 1
Cleaning materials on hand (SFP)
3 000
Cleaning materials (P/L)
1
3 000
1
(Year-end adjustment)
Rent income (P/L)
5 400
Income received in advance (SFP)
1
5 400
1
(Year-end adjustment)
(27 000/15) = 1 800 * 3 = 5 400 1
Other receivables (SFP)
2 000
Wages and salaries (P/L)
1
2 000
Page
29
1
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
(Year-end adjustment)
Insurance expense (P/L)
500
1
Accrued expense (SFP)
500
1
(Year-end adjustment)
(4 500/11) = 500 x 1 = 500 1
Inventory (Ending)
47 500
0.5
Cost of goods sold
160 000
0.5
Inventory (Beginning)
50 000 0.5
Purchases
157 500 0.5
(Year-end adjustment) Closing inventory
19
b)
MICHELLE TRADERS
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2020
0.5
R
Sales (330 000 – 8 000) 1
R
322 000
Cost of sales
1
(160 000) 0.5
Opening inventory
50 000
1
Purchases
157 500
1
Closing inventory
(47 500)
1
Gross profit
162 000
Other income
33 600
Rent income (27 000 – 5 400) 1
21 600
0.5
Interest income (9 000 – 3 000) 1
12 000
0.5
Operating expenses
(135 500)
Cleaning materials (10 000 – 3 000) 1
7 000
0.5
Wages and salaries (96 000 – 2 000) 1
94 000
0.5
Page
30
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Sundry expense
Insurance expense (4 500 + 500) 1
Depreciation (4 000 + 7 500) 1
18 000
0.5
5 000
0.5
11 500
0.5
Profit for the year
60 100
MICHELLE TRADERS
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 0.5
ASSETS
R
NON-CURRENT ASSETS
398 500
PPE 100 000 + (150 000 – 7 500) + (60 000 – 20 000 – 4 000) 3
278 500 0.5
Financial assets
120 000
CURRENT ASSETS
101 500
1
Inventories
47 500
Trade and other receivables (20 000 + 3 000 + 2 000 + 3 000) 2
28 000 0.5
Cash and cash equivalents
26 000 0.5
TOTAL ASSETS
500 000
EQUITY AND LIABILITIES
494 100
Profit for the year
60 100
capital
1
1
434 000 0.5
CURRENT LIABILITIES
5 900
Trade and other payables (5 400 + 500) 1
5 900 0.5
TOTAL EQUITY AND LIABILITIES
500 000
Page
31
12
15
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 2
(21 marks)
a) Journal entries – perpetual system
Date
15 April
Details
Debit
Trade inventories (SFP) (1 437 500 * 100/115) * 95% 1
VAT input (SFP) (1 437 500 * 15/115) * 95% 1
Credit
1 187 500
1
178 125
1
Trade payable (SFP) (1 437 500 * 95%) 0.5
1 365 625
Inventories purchase on credit
17 April
Trade inventories (SFP) (51 750 * 100/115) 1
VAT input (SFP) (51 750 * 15/115) 1
0.5
45 000
1
6 750
1
Bank (SFP)
51 750
Delivery cost in respect of inventories purchased
28 April
Trade payable (SFP) (1 437 500 * 95%)
1
1
0.5
1 365 625
Bank (SFP)
1
1 365 625
Derecognize trade payable Bongi Traders
1
0.5
13
b) Journal entries – periodic inventory system
Date
15 April 21
Details
Debit
Purchases (P/L) (1 437 500 * 100/115) * 95%
VAT input (SFP) (1 437 500 * 15/115) * 95%
1 187 500
1
178 125
1
Trade payable (SFP) (1 437 500 * 95%)
1 365 625
Inventories purchase on credit
17 April 21
Delivery cost (P/L) (51 750 * 100/115)
VAT input (SFP) (51 750 * 15/115)
1
0.5
45 000
1
6 750
1
Bank (SFP)
51 750 0.5
Delivery cost in respect of inventories purchased
28 April 21
Credit
Trade payable (SFP) (1 437 500 * 95%)
Bank (SFP)
0.5
1 365 625
0.5
1 365 625 0.5
Derecognize trade payable Bongi Traders
0.5
8
Page
32
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
QUESTION 3
a) Journal entries – Thabo Traders (Selling entity – A wholesaler)
Date
8 Dec 20
Details
Debit
Trade receivables (SFP)
(13 MARKS)
Credit
207 000
Sales (P/L)(207 000 * 100/115) 1
VAT output (SFP)(207 000 * 15/115) 1
1
180 000
1
27 000
1
Credit sale
Cost of sales (P/L)
80 000
Trade inventories (SFP)
1
80 000
1
Recognize cost of sale
17
Dec Sale returns (P/L) (28 750 * 100/115) 1
25 000
1
3 750
1
20
VAT output (SFP) (28 750 * 15/115) 1
Trade receivable (SFP)
Partially
derecognize
28 750
trade
1
receivable
(returns)
Trade inventories (SFP)
10 000
Cost of sales (P/L)
1
10 000
1
Recognize write back in cost of sales
14
14 marks available, limited to 13 marks
Page
33
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
UNIVERSITY OF LIMPOPO
TURFLOOP CAMPUS
FACULTY OF MANAGEMENT & LAW
SCHOOL OF ACCOUNTANCY (SoA)
DEPARTMENT OF ACCOUNTING
SEMESTER TEST 2
MEMORANDUM
MODULE:
CACA 002
OCTOBER
:
2021
TIME:
2 HOURS
MARKS
:
80
INTERNAL EXAMINER
:
MR KM MOSWATSI
INTERNAL MODERATOR
:
MS PARKER CA (SA)
THIS PAPER CONSISTS OF …6…PAGES INCLUDING COVER PAGE
INSTRUCTIONS:
5. Students should work through all questions in this memorandum after receipt of their
marks and this memo.
6. For remarking procedures: To be done within 72 hours
ACCOUNTANCY DREAM @UL
Page
34
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 1
(46 marks)
Part A
R
Purchase price (R1 462 719 * 100/115) 1
1 271 930 0.5
Delivery costs (R143 750 * 100/115) 1
125 000 0.5
Installation costs (R258 750 * 100/115) 1
225 000 0.5
Preparation costs
Material
85 000 0.5
Labour
90 000 0.5
Training costs (R14 250 + 8 000) – not directly attributable cost 1
Total cost
- 0.5
1 796 930
Part B
a) Deprecation
1 May 2019 – 31 December 2019
R1 380 000 * 100/115 = R1 200 000 1
(R1 200 000 * 20%) * 8/12 = R160 000 2
1 January 2020 – 31 December 2020
(R1 200 000 – 160 000) * 20% = R208 000 1
b) Carrying amount
31 December 2019
R1 200 000 – 160 000 = R1 040 000 1
31 December 2020
R1 200 000 – 160 000 – 208 000 = R832 000 2
Page
35
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Part C
General journals
Date
1 Feb 20
Details
Debit
Credit
Repairs and maintenance (P/L) (R23 000 * 100/115)
20 000
1
3 000
1
1
VAT input (R23 000 * 15/115) 1
Bank (SFP)
23 000
Car service
1 July 20
0.5
Depreciation (P/L) C1
34 375
Accumulated depreciation (SFP)
1
34 375
Depreciation before disposal
Accumulated
1
depreciation
1
0.5
(SFP)
(R25 000
+
59 375
1
287 500
1
34 375) 0.5
Account receivable (SFP)
Vehicle - cost
VAT output (287 500 * 15/115) 1
Profit on sale of vehicle (P/L)
Asset disposal
300 000
1
37 500
1
9 375
1
0.5
20
Calculations
1 September 2019 – 31 December 2019
C1 – R345 000 * 100/115 = R300 000 1
(R300 000 * 25%) * 4/12 = R25 000 2
1 January 2020 – 1 July 2020
(R300 000 – 25 000) * 25% * 6/12 = R34 375 2
Part D
1. Capitalised 1
2. Expensed 1
3. Expensed 1
4. Expensed 1
Page
36
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 2
(21 marks)
Scenario 1
500 000 1 + 250 000 1 – 35 000 1 – 65 000 1 + 140 000 1 = R790 000
Cash received from customers: R790 000
Scenario 2
Cash paid to employees: 140 000 1 + 120 000 1 = R260 000
Cash paid to suppliers: 205 000 1 + 310 000 1 – 108 000 1 = R407 000
Total cash outflow for cash paid to suppliers and employees: (R667 000) 1
Scenario 3
Cash paid for investing activities
Accumulated depreciation at year end is R70 000 1 + R20 000 1 = R90 000
Cost of machine at year end is net book value at year end of R550 000 1 + R90 000 1 closing
balance on accumulated depreciation = R640 000 1 – R450 0001 = cash paid for new machine
in the year: R190 000.
Cash outflow for purchase of machine: (R190 000) 1
Cash received from investing activities
Carrying amount R250 000 1 – R105 000 1 = R145 000
Selling price R145 000 1 + R20 000 1 = R165 000
Cash inflow for sales of vehicle: R165 000 1
Page
37
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
2.

One of the main goals of the statement of cash flows is to help users predict the type of
cash flows that the entity may produce in future, their value and when they may occur. 1

The statement of cash flows achieves this goal by providing users with historic cash flow
information, which is easier and more reliable to use for predicting future cash flows than
income and expenses, which have been adjusted for accrual accounting and the specific
accounting policies of the business. 1

The second important goal of the statement of cash flows is to help the users assess the
risk of the business. 1

A business needs cash to operate and to continue to exist in the future. The statement
shows users whether the business has enough cash to pay its short-term obligations as
they become due, and also indicates whether the business will have enough cash to pay
all of its debts in future. 1

It helps users to assess a business’s liquidity and solvency risk, which is one of the key
risks impacting the ability of the business to produce cash flows in future. 1

Users need information about risk and the business’s ability to make cash flows in future
when they decide whether to provide resources and assets to the business. 1
3.

A statement of cash flows is prepared on the cash basis of accounting (where
transactions are recorded only when cash is received, or when cash is paid by the
business). 1

A statement of profit or loss is prepared on the accrual basis of accounting (where
transactions are recorded when the business event meets the definition and recognition
criteria for an asset and/or a liability, no matter whether cash is received or paid before,
at the same time as, or after the event. 1
4.

The chance that a business has enough assets to meet its long-term obligations when
they are due in the future is known as its solvency risk. 1

The chance that a business will be unable to meet its short-term obligations when they
are due in the future is called its liquidity risk. 1
Page
38
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
5. Ways in which a company’s statement of cash flows warns investors, creditors and lenders
that the company has a high liquidity and/or solvency risk:

It has low or negative bank balances or few or no cash resources; 1

It receives insufficient cash from customers to pay suppliers and employees; 1

It uses money from new loans and share issues (financing activities) or from selling
assets (investing activities) to pay suppliers and employees; 1

It has large cash inflows from new loans (financing activities) showing high future debt
repayments; and 1

It appears likely that it will make too little cash from its operations to pay the future debt
instalments. 1
Page
39
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
UNIVERSITY OF LIMPOPO
MEMORANDUM
STANDARD EXAMINATION
MODULE: CACA002
OCT/NOV 2021
(INTRODUCTION TO FINANCIAL ACCOUNTING)
Page
40
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 1 – Suggested solution
(18 Marks – 27 Minutes)
To: The owner of Manoko Traders
From: Accountant
Date: 14 December 2020
Subject: Comments on ratio fluctuations from 2019 to 2020
1) Trade receivables collection period:
a) Fluctuations: There was thus a slight improvement in the collection period (the number
of days it took for receivables to pay their account reduced from 58 days to 43 days). (1)
b) Possible reason/s: The business gave credit for credit worthy customers (strict credit
policies and credit checks). Encouraged customers to pay by giving discount on early
payments. (1)
c) To improve or sustain: The must encourage customers to adhere to 30 days normal
credit terms by providing early settlement discount and must also give credit to deserving
customers.(1)
2) Current ratio:
a) Fluctuations: The current ration decreased from 1.42:1 in 2019 to 1.22:1 in 2020. (1)
b) Possible reason/s: The decrease in the ratio shows that Manoko Traders has fewer
current assets to meet current liabilities. In this case the assets of Manoko Traders still
exceed the liabilities. (1)
c) To improve or sustain: A value of 2.00 is usually regarded as a standard for this ratio,
and this means that the liabilities are covered twice by the assets. A value of less than
1.00 means that the current liabilities of Manoko Traders exceeds its current assets. To
improve the ratio Manoko traders should increase its current assets. (1)
3) Quick ratio:
a) Fluctuations: The quick ratio decreased from 0.5:1 in 2019 to 0.3:1 in 2020. (1)
b) Possible reason/s: The ratio of Manoko Traders is below 1 which means that liabilities
are not covered by “quick” assets and it has in fact deteriorated from 2019 to 2020.The
reason for the decrease is that Manoko Traders has fewer quick assets to cover liabilities
in 2020 than in 2019.(1)
c) To improve or sustain: Manoko Trader should increase its assets which are either cash
or quickly convertible into cash. (1)
Page
41
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
4) Trade payable period:
a) Fluctuations: in 2019 it took Manoko Traders 243 days to pay their payables and in 2020
it took the business 235 days to pay their payables, this is a slight improvement in the
sense that it is taking Manoko Traders a shorter time to pay their creditors. (1)
b) Possible reason/s: Manoko Traders had financial relief to settle their debts or the
suppliers offered early settlement discount. (1)
c) To improve or Sustain: Manoko Traders should not rely much on credit purchases or
should take opt for credit purchases provided they have enough cash to settle on time.
(1)
Page
42
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
(37 Marks – 55.5 Minutes)
Question 2
Cash received from customers (W1)
Trade receivables
R
Opening balance
525 000
1
Credit sales
2 680 000
1
Closing balance
(735 000)
1
Cash received from receivables
2 470 000
Cash sales
2 000 000
1
Cash received from customers
4 470 000
4
Cash paid to suppliers and employees (W2)
Inventory
R
Opening balance
275 000
1
(2 340 000)
1
Closing balance
(441 000)
1
Purchases*(payables)
2 506 000
Cost of sales
Trade payables
R
Opening balance
140 000
1
Purchases*
2 506 000
1
Closing balance
(250 000)
1
Cash paid to suppliers (trade payables)
2 396 000
Distribution expenses
320 000
1
Administration expenses
460 000
1
Other expenses
500 000
1
Depreciation
(35 000)
1
Cash paid to suppliers and employees
3 641 000 10
Normal tax expense (SARS) (W3)
R
Opening balance
25 000 1
Current tax expense
350 000 1
Closing balance
(30 000) 1
Income tax paid
345 000 3
Page
43
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Dividends payable (W4)
R
Opening balance
50 000
1
Dividends declared
200 000
1
Closing balance
(25 000)
1
Dividends paid
225 000
3
Asset disposal (W5)
R
Cost price
200 000
1
(120 000)
1
Profit on sale of asset
115 000
1
Bank
195 000
3
Accumulated depreciation
Page
44
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
ITALIANS ICE CREAM TRADERS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
R
Cash flow from operating activities
Cash receipts from all customers (W1)
Cash paid to all suppliers and employees (W2)
4 470 000
1
(3 641 000)
1
Cash generated from operations
829 000
Finance cost
(85 000)
1
Normal tax paid (W3)
(345 000)
1
Dividends paid (W4)
(225 000)
1
Net cash flow from operating activities
174 000
Cash flow from investing activities
Purchases of property, plant and equipment (R1 100 000 + 200 000 +
(235 000)
1
Disposal of assets (W5)
195 000
1
Net cash flow from investing activities
(40 000)
35 000 – 980 000 – 120 000) 5
Cash flow from financing activities
Proceeds from loan obtained
Repayment of loan
1 000 000
1
(300 000)
1
Net cash flow from financing activities
700 000
Cash and cash equivalents (opening balance)
602 000
1
Net change in cash flow (174 000 – 40 000 + 700 000)
834 000
1
1 436 000
1
Cash and cash equivalents (closing balance)
14
Page
45
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
(22 Marks – 33 Minutes)
Question 3
Part A
(12 Marks)
The relationship between cost price, gross profit and selling price
Cost price
60% 0.5
Gross profit
40% 0.5
Selling price
100% 0.5
Calculation of gross profit
R
R
Sales (R166 000 – 16 000) 1
150 000
1
Cost of sales (R150 000 * (60/100) 1
(90 000)
1
Opening inventories
20 000
1
Purchases (R90 000 + 6 000 – 4 000) 1.5
92 000
1
Goods available for sale
112 000
Closing inventories (balancing figure)
(22 000)
Gross profit (R150 000 * 40/100) 1
1
R60 000
Part B
1
(10 Marks)
1. False – when inventory is returned by a customer (perpetual inventory system), sales
account will be debited and cost of sales will be credited. 2
2. False – the purchases account can be regarded as an expense. 2
3. False – when inventory is bought on credit from a supplier (periodic inventory system),
the purchases account will be debited and trade payables will be credited. 2
4. False – when inventory is sold to a customer (periodic inventory system), the
purchases account will not be affected until the end of financial year. 2
5. False – The formula for calculating cost of sales (periodic inventory system) is:
Opening inventory + Purchases + Purchases costs – Purchases returns – closing
inventory. 2
Page
46
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
(23 Marks – 34.5 Minutes)
Question 4
Calculations
1. Sale of furniture
R
Cost (R23 000 * 100/115)
20 000
Accumulated depreciation: 31 December 2020
1
(12 000)
Depreciation (R20 000 * 10% * 3/12) 31 March 2021
(500) 1
Carrying amount
7 500
Proceeds (R6 900 * 100/115)
(6 000) 1
Loss on sale of furniture
R1 500
1
2. Depreciation
Furniture: Other
R
Cost (R100 000 – 20 000)
80 000 0.5
Accumulated depreciation (R40 000 – 12 000) = R28 000
(28 000) 0.5
Depreciation (R80 000 * 10%) 31 December 2021
(R8 000)
1
40 000
1
(R2000)
1
Vehicle purchased 30 September 2021
Cost (R46 000 * 100/115)
Depreciation (R40 000 * 20% * 3/12) 31 December 2021
Vehicle: Other
Cost
250 000
Accumulated depreciation: 31 December 2020
(80 000)
Carrying amount
170 000
1
34 000
1
Depreciation (R170 000 * 20%)
Buildings
Cost
200 000
Accumulated depreciation: 31 December 2020
(4 000)
Depreciation (R200 000 * 2%) 31 December 2021
(4 000)
1
R48 000
11
Total current depreciation (R8 000 + 2 000 + 34 000 + 4 000)
Page
47
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
General journals
Date
31 Mar 21
Details
Debit
Depreciation (P/L)
Credit
500
Accumulated depreciation (SFP)
1
500
1
Depreciation before sales of furniture
Accumulated depreciation (SFP) (R12 000 + 500)
12 500
1
6 900
1
1
Bank (SFP)
Cost – furniture (SFP)
20 000
Loss on sale of furniture (P/L)
1 500
VAT output (SFP) (R6 900 * 15/115) 1
1
1
900
1
De-recognition of furniture
30 Sep 21
Vehicle (SFP)
VAT input (SFP)
40 000
1
6 000
1
Bank (SFP)
46 000
1
Purchases of new vehicle
31 Dec 21
Depreciation (P/L)
48 000
Accumulated depreciation (SFP)
Depreciation for the year for all assets
Page
48
1
48 000
1
12
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
UNIVERSITY OF LIMPOPO
MEMORANDUM
SUPPLEMENTARY EXAMINATION
MODULE: CACA002
OCT/NOV 2021
(INTRODUCTION TO FINANCIAL ACCOUNTING)
Page
49
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Question 1 – Suggested solution
(19 Marks – 28.5 Minutes)
1. False – The financial statements are prepared using the post-adjustment trial balance. 2
2. False – An accrued expense will be recorded as a current liability in the statement of
financial position. 2
3. False – Expenses paid for during the current financial year, but which relate to the next
year, are referred to as prepaid expenses. 2
4. False – Income that is owed to the business and that relates to the current year is known
as accrued income. 2
5. False - A credit loss written off will decrease the accounts receivable. 2
6. False – Income that is due to be received in the current financial year, but was only
received in the next year, is regarded as accrued income. 2
7. False – The general ledger accounts closed off to the trading account determine the gross
profit/gross loss of the business. 2
8. False – The profit & loss account should include nominal accounts. 2
9. False – An allowance for expected credit losses can increase the credit losses in the
statement of profit or loss. 2
10. True 1
Page
50
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
(32 Marks – 48 Minutes)
Question 2
Perpetual inventory system
General journals
Date
22 Jan
Details
Debit
Inventory (SFP)
Credit
25 000
Bank (SFP)
1
25 000
1
Purchased inventory cash
23 Jan
Inventory (SFP)
250
Bank (SFP)
1
250
1
Inventory delivered
28 Jan
Accounts receivable (SFP)
3 360
Sales (P/L) (R2 100 * 160/100) 1
Cost of sales
1
3 360
2 100
Inventory
1
1
2 100
1
Sold inventory on credit
1 Feb
Drawings (SOCE)
900
Inventory (SFP)
1
900
1
The owner took stock for personal us
7 Feb
Sales (P/L)
1 200
Accounts receivable (SFP)
1
1 200
Inventory (SFP)
750
Cost of sales ((P/L) (R1 200 * 100/160) 1
1
1
750
1
Mr Thabo returned inventory
23 Mar
Inventory loss (P/L)
Insurance company (P/L)
Inventory (SFP)
800
1
1 200
1
2 000
Damaged inventory and insurance claim
Page
51
1
19
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Periodic inventory system
General journals
Date
22 Jan
Details
Debit
Purchases (P/L)
Credit
25 000
Bank (SFP)
1
25 000
1
Purchased inventory cash
23 Jan
Purchase costs (P/L)
250
Bank (SFP)
1
250
1
Inventory delivered
28 Jan
Accounts receivable (SFP)
3 360
Sales (P/L) (R2 100 * 160/100)
1
3 360
1
Sold inventory on credit
1 Feb
Drawings (SOCE)
900
Purchases (SFP)
1
900
1
The owner took stock for personal us
7 Feb
Returns inwards (P/L)
1 200
Accounts receivable (SFP)
1
1 200
1
Mr Thabo returned inventory
23 Mar
Inventory loss (P/L)
Insurance company (P/L)
Inventory (SFP)
800
1
1 200
1
2 000
Damaged inventory and insurance claim
Page
52
1
13
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
(25 Marks – 37.5 Minutes)
Question 3
General journals
Date
31 Mar 21
Details
Debit
Depreciation (P/L)
Credit
600
Accumulated depreciation (SFP)
1
600
1
Depreciation before sale
Accumulated depreciation (SFP) (R4 000 + 600) 1
4 600
1
Loss on sale of furniture (P/L)
1 400
1
Cost (SFP)
VAT output (R2 300 * 15/115) 1
Bank (SFP)
8 000
1
300
1
2 300
1
Furniture (SFP) (R13 800 * 100/115) 1
12 000
1
VAT input (SFP) (R13 800 * 15/115) 1
1 800
Disposal of furniture (De-recognition)
1 Jun 21
Trade payable (SFP)
13 800
1
Purchased new furniture
30 Jun 21
Depreciation (P/L)
2 600
Accumulated depreciation (SFP)
1
2 600
Depreciation for all assets for the year
1
14
Calculations
1. Sale
R
Cost (R9 200 * 100/115)
8 000 1
Accumulated depreciation 30 June 2020
(4 000) 1
Carrying amount 30 June 2020
4 000
Depreciation (R4 000 * 20% *9/12)
(600) 2
Carrying amount 31 March 2021
3 400
Proceeds (R2 300 * 100/115)
(2 000) 1
Loss on sale
R1 400 1
Page
53
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
2. Depreciation
Old furniture
R
Cost (R40 000 – 8 000)
Accumulated depreciation (R24 000 – 4 000)
Carrying amount
32 000
1
(20 000)
1
12 000
Current Depreciation
Old furniture (R12 000 * 20%)
New furniture (R13 800 * 100/115) * 20% * 1/12
2 400
1
200
2
R2 600 11
Page
54
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
(24 Marks – 36 Minutes)
Question 4
Cash received from customers (W1)
Trade receivables
R
Opening balance
Credit sales
Closing balance
Cash received from receivables
80 000
1
680 000
1
(120 000)
1
640 000
Cash sales
1 320 000
1
Cash received from customers
1 960 000
4
Cash paid to suppliers and employees (W2)
Inventory
R
Opening balance
180 000
1
(1 100 000)
1
Closing balance
(100 000)
1
Purchases*(payables)
1 020 000
Cost of sales
Trade payables
R
Opening balance
40 000
1
Purchases*
1 020 000
1
Closing balance
(160 000)
1
Cash paid to suppliers (trade payables)
900 000
Administration expenses
270 000
1
Other expenses
190 000
1
1 360 000
8
Cash paid to suppliers and employees
Normal tax expense (SARS) (W3)
R
Opening balance
80 000 1
Current tax expense
200 000 1
Closing balance
(130 000) 1
Income tax paid
150 000 3
Page
55
CACA 002 – 2ND SEMESTER QUESTION BANK- MEMORANDUM – 2022
Dividends payable (W4)
R
Opening balance
60 000
1
Dividends declared
200 000
1
Closing balance
(80 000)
1
Dividends paid
180 000
3
MOLELO TRADERS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
R
Cash flow from operating activities
Cash receipts from all customers (W1)
Cash paid to all suppliers and employees (W2)
1 960 000
1
(1 360 000)
1
Cash generated from operations
600 000
Finance cost
(40 000)
1
Normal tax paid (W3)
(150 000)
1
Dividends paid (W4)
(180 000)
1
230 000
5
Net cash flow from operating activities
Page
56