Calculators/Sakrekenaars:
Requirements for this paper/Benodigdhede vir hierdie vraestel:
Answer scripts/
Antwoordskrifte:
X
Yes/Ja
Other resources/Ander hulpmiddels:
Multi-choice cards (A5)/
Multikeusekaarte (A5):
Attendance slips (Fill-in paper)/
Presensiestrokies (Invulvraestel):
Multi-choice cards (A4)/
Multikeusekaarte (A4):
Scrap paper/
Rofwerkpapier:
Graph paper/
Grafiekpapier:
Type of assessment/
Tipe assessering:
Online test 1
Qualification/ B COM, and other
Kwalifikasie:
Module code/
Modulekode:
ACCF111
Duration/
Tydsduur:
110 min
(including upload time)
Module description/
Modulebeskrywing:
FINANCIAL ACCOUNTING
Max/
Maks:
50 marks
Examiner(s)/
Eksaminator(e):
MRS H VORSTER
MRS M WEYERS
MRS J MANYAAPELO
MRS B VAN DER NIET
MR P BREESCHOTEN
Date/
Datum:
16/04/2021
Time/
Tyd:
08:00
Internal/Interne
moderator(s):
Submission of answer scripts/Inhandiging van
antwoordskrifte:
Electronic submission in PDF Format via email
& eFundi
Instructions:
1. This is a time-based assessment; you have a total of 110 minutes to prepare and submit your answers via
email AND on eFundi. Note, the allocated time (of 110 minutes) includes 20 minutes to allow for submission.
2. The time guidelines per question provided in the question paper are based on the 1.8 minutes per mark
allocated during ordinary sit-down assessments.
3. Document your answers in hand-written format ONLY.
4. Remember to include the cover page before converting to pdf.
5. Convert your answer script to a SINGLE electronic PDF document and submit BEFORE the allotted time has
expired. Images/pictures taken of handwritten scripts can be converted to PDF using an appropriate phone
scanner application or similar converter. Submissions other than PDF cannot be marked with the electronic
marking tool used.
6. Remember to email your submission to your lecturer before submitting on eFundi.
7. The PDF document submitted on eFundi should not exceed 20 Mb in size.
8. Successful, timely and complete submission remains your responsibility.
9. Students are not allowed to handle cell phones during the test and cell phone accessories, including but not
limited to earpieces, are not allowed.
10. Students are subject to disciplinary procedures should they:
•
have books or notes in their possession (except during open book examinations);
•
attempt to assist another student or attempt to obtain assistance from any student.
11. All the questions must be answered.
12. Show all calculations and round off to the nearest Rand.
13. Start each question on a new page.
CONTENTS:
Question 1 – Accounting equation and VAT
Question 2 – Conceptual framework
Question 3 – Conceptual framework
Email and upload onto eFundi
MARKS
28
12
10
MINUTES
50.4
21.6
18.0
20.0
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ACCF 111 2021 ONLINE TEST 1
Page 1 of 7
QUESTION 1
(28 Marks; 50 Minutes)
Value-added tax (VAT) of 15% is applicable.
Feni Khumalo started a bakery, Kumalo Bakery, during the Covid-19 pandemic in August 2020
and is a registered VAT Vendor. The entity make use of a perpetual inventory system and
maintains a profit margin of 50% on cost price.
The following transactions took place during February 2021:
1.
A delivery vehicle was bought from WildTrac Motors for an invoice price of R120 130 on
credit. WildTrac Motors will only be paid in March 2021.
2.
An invoice for R7 980 was received from EquipCo for equipment bought. EquipCo is not
registered for VAT. (Non-VAT vendor).
3.
Mr Kumalo decided to increase his capital contribution and deposited an additional
R50 000 in Kumalo’s Bakery’s bank account.
4.
Kumalo Bakery bought merchandise from ZooCookies for an invoice amount of R24 175.
Kumalo Bakery paid immediately by means of an electronic funds transfer (EFT).
5.
The owner, Mr Kumalo took goods with a selling price (VAT inclusive) of R1 200 for his
own use at home.
6.
Sold trading stock for R4 215 (invoice price) on credit to WhirlMar Holdings.
7.
Kumalo Bakery decided to print flyers and has already been handed out to advertise the
promotion that they will run in March 2021. The total cost was R2 222 and the account will
be settled in March 2021.
8.
EetSumMore Trading, a customer of Kumalo Bakery, was declared insolvent and his
outstanding debt of R1 540 was written off as irrecoverable.
9.
Kumalo Bakery bought goods from WhirlCo on credit and received an invoice totalling
R21 150.
10.
Feni borrowed R20 000 from NFB Bank for the business at an interest rate of 10% per
annum. The money was deposited in the bank account of Kumalo Bakery.
Sub- Total
total
Analyse the abovementioned transactions of Kumalo Bakery for
28
28
February 2021 in terms of the accounting equation by making use of
the following format:
Assets
Equity
Liabilities
Account name
Calculations
DR
CR
DR
CR
DR
CR
REQUIRED – QUESTION 1
1.
Date
TOTAL MARKS
28
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ACCF 111 2021 ONLINE TEST 1
Page 2 of 7
QUESTION 2
(12 Marks; 21.6 Minutes)
You may ignore value-added tax (VAT).
Suzie Mello, a friend of yours, who runs her own printing business, asked you to assist her with
the financial records of her business for the year ending 28 February 2021.
Suzie is renting a small office space from Mr Bee. On 25 February 2021 she paid R2 000 rent to
Mr Bee for her rent of February and March 2021. She does not know how to treat this transaction
in the financial records for February 2021, the year-end. She debited the full R2 000 to rent
expense and credited the bank.
REQUIRED
1.
Explain to Suzie, by referring to the Conceptual Framework, how she
must account for this transaction at year end. Your answer should
include:
•
•
•
•
Subtotal
Total
12
12
The definition of the applicable element,
the application to the definition,
the recognition criteria of the element, and
the conclusion.
(You need not to discuss the bank that was credited)
TOTAL MARKS
12
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ACCF 111 2021 ONLINE TEST 1
Page 3 of 7
QUESTION 3
(10 Marks; 18 Minutes)
Multiple choice
Write down only the correct letter in your answer sheet.
1. Financial statements are prepared in accordance to with the accrual concept. The accrual
concept implies that:
a. Transactions must be recorded in the accounting records when they occur and not
necessarily when cash are received or paid.
b. Only when the physical cash is paid or received.
c. None of the answers provided.
2. Faithful representation implies that the financial information should be:
a. Complete.
b. Neutral.
c. Free from errors.
d. All of the above.
3. What are the financial statement elements used to prepare the statement of profit or loss
and other comprehensive income?
a. Capital and liabilities.
b. Equity and expenses.
c. Income and expenses.
d. None of the answers provided.
4. The accounting equation is:
a. Liabilities = Assets - Equity.
b. Assets + Equity = Liabilities.
c. Assets + Liabilities = Equity.
d. None of the answers provided.
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ACCF 111 2021 ONLINE TEST 1
Page 4 of 7
5. Indicate in which statement rent paid will be reported:
a. Statement of profit or loss and other comprehensive income.
b. Statement of changes in equity.
c. Statement of financial position.
d. None of the answers provided.
6. Indicate in which statement drawings will be reported:
a. Statement of profit or loss and other comprehensive income.
b. Statement of changes in equity.
c. Statement of financial position.
d. None of the answers provided.
7. Indicate in which statement interest received will be reported:
a. Statement of profit or loss and other comprehensive income.
b. Statement of changes in equity.
c. Statement of financial position.
d. None of the answers provided.
8. Indicate in which statement Mortgage Bond will be reported:
a. Statement of profit or loss and other comprehensive income.
b. Statement of changes in equity.
c. Statement of financial position.
d. None of the answers provided.
9. Which one of the following is not part of the qualitative characteristics of a financial
statement?
a. Going concern.
b. Comparability.
c. Fair presentation.
d. Relevance.
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ACCF 111 2021 ONLINE TEST 1
Page 5 of 7
10. Identify the underlying assumption(s) mentioned in the Conceptual Framework for the
preparation of financial statements.
(i) Going concern.
(ii) Accrual basis.
(iii) Materiality.
(iv) Timeliness.
a. (ii) and (iii)
b. (iii) and (iv)
c. (i) and (ii)
d. None of the answers provided.
11. The following steps all form part of the accounting cycle:
(i) Completion of source documents.
(ii) Reporting in financial statements.
(iii) Recording of transactions in subsidiary journals and ledgers.
(iv) Transactions taking place.
The correct sequence in which the above steps usually take place in the accounting cycle
is:
a. (i), (iv), (iii), (ii)
b. (iv), (iii), (i), (ii)
c. (iv), (i), (iii), (ii)
d. None of the answers provided.
12. Which of the following are users to the financial statements of an entity:
a. Investors.
b. Employees.
c. Management.
d. All of the above.
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ACCF 111 2021 ONLINE TEST 1
Page 6 of 7
13. The going concern principle determines:
a. That the business has no indication to go into liquidation in the foreseeable future.
b. That the business expects to exist indefinitely.
c. That the financial statements are prepared on the assumption that the business will
continue to operate in the foreseeable future.
d. None of the answers provided.
14. The statement of financial position is:
a. A report that reports the two elements of financial performance namely: income and
expenses, to determine the profit or loss for a specific financial period.
b. A report that presents the financial position of the business on a specific date.
c. A report that reports the changes in equity from the beginning to the end of the relevant
financial period as a result of profits (or losses), distribution of profits to owners or
other applications of retained earnings.
d. None of the answers provided.
15. Income is defined as:
a. Increases in assets, or decreases in liabilities, that result in increases in equity, other
than those relating to contributions from holders of equity claims.
b. Decreases in assets, or increases in liabilities; that result in decreases in equity, other
than those relating to distributions to holders of equity claims.
c. A present economic resource, controlled by the entity, as a result of past events.
d. None of the answers provided.
TOTAL: 50
– END OF PAPER –
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ACCF 111 2021 ONLINE TEST 1
Page 7 of 7