20
2020
MODULE NAME:
MODULE CODE:
ACCOUNTING A
ACCOx131
ACCOUNTING A
ACCOf131/p/d
ACCOUNTING A
ACCT5111/d
ASSESSMENT TYPE:
TEST (PAPER ONLY)
TOTAL MARK ALLOCATION:
60 MARKS
TOTAL HOURS:
1 HOUR (+5 minutes reading time)
INSTRUCTIONS:
1.
Please adhere to all instructions in the assessment booklet.
2.
Independent work is required.
3.
Five minutes per hour of the assessment to a maximum of 15 minutes is dedicated to reading
time before the start of the assessment. You may make notes on your question paper, but not
in your answer sheet. Calculators may not be used during reading time.
4.
You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5.
Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6.
Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7.
Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1.
This is a CLOSED BOOK assessment.
2.
Calculators are allowed.
3.
Answer all questions.
4.
For multiple-choice questions, give only one (1) response per question. The marker will ignore
any question with more than one answer, unless otherwise stated. You should, therefore, be
sure of your answer before committing it to paper.
5.
Ensure that you have received a special answer booklet (with forms drawn up) for entering
your answers. If you have not received an answer booklet, request one from the invigilator
before starting the assessment. Answer all questions in the answer booklet provided.
6.
Show all calculations, where applicable (marks may be awarded for this).
7.
DO NOT WORK IN PENCIL – USE BLACK OR BLUE PEN ONLY.
© The Independent Institute of Education (Pty) Ltd 2020
Page 1 of 6
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2020
Question 1
(Marks: 5)
Select one correct answer for each of the following. In your answer booklet, write down only the,
the letter of the correct answer next to the number of the question. Each question has only one
correct answer and the marker will ignore any question with more than one answer. You should,
therefore, be sure of your answer before committing it to paper.
Q.1.1 The two main branches of accounting are …
(A)
IFRS and GAAP.
(B)
Financial accounting and Management accounting.
(C)
Debit and credit.
(D)
Assets and liabilities.
(E)
Gross profit and Net Profit.
Q.1.2 The qualitative characteristics of financial statements are …
(A)
Understandability; IFRS; Materiality and Verifiability.
(B)
Understandability; Confidentiality; Relevance and Reliability.
(C)
Comparability; Verifiability; GAAP and Relevance.
(D)
Comparability; Understandability; Timeliness and Reliability.
(E)
Understandability; Relevance; Timeliness and Comparability.
Q.1.3 Which one of the following is not associated with financial accounting?
(A)
Reports to stakeholders outside the organisation.
(B)
Data must be relevant and flexible.
(C)
Precision of information is required.
(D)
Must follow IFRS.
(E)
Mandatory to report in the form of financial statements.
Q.1.4 Which of the following are examples of source documents?
(A)
Electronic Fund Transfer (EFT) confirmation slip.
(B)
Cheque Counterfoils.
(C)
Receipts.
(D)
(A) and (B) only.
(E)
(A); (B) and (C).
© The Independent Institute of Education (Pty) Ltd 2020
(1)
(1)
(1)
(1)
Page 2 of 6
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Q.1.5 Determine the mark-up on cost if an items that cost R50 is sold for R70:
(A)
40%.
(B)
71.43%
(C)
28.57%
(D)
20%.
(E)
25%.
Question 2
(1)
(Marks: 10)
Q.2.1 Investors are users of financial information. Explain how investors benefit from (3)
accounting information.
Q.2.2 Accounting plays an important role by providing answers to questions faced by the (4)
users of accounting information. List four questions to which accounting information
provides answers to (i.e. the uses of accounting information).
Q.2.3 The first two steps of the bookkeeping cycle are ‘Transactions’ and ‘Source (3)
Documents’. What are the three remaining items in the cycle?
© The Independent Institute of Education (Pty) Ltd 2020
Page 3 of 6
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2020
Question 3
(Marks: 20)
The following balances appeared in the books of ELO Traders as at 29 February 2020.
R
Debtors Control
82 540
Cost of Sales
35 600
SARS (Output VAT)
12 500
Mortgage Loan
120 000
Land & Buildings
700 000
Bank (favourable balance)
54 600
Sales
125 000
Rent Income
50 500
Interest on Mortgage Loan
7 800
Rent Expense
8 500
Commission income
2 900
Trading Inventory
38 400
Petty Cash
2 770
Creditors Control
23 455
Salaries and Wages
15 800
Q.3.1
Making use of the balances provided above and the tables provided in your answer
booklet, calculate each of the following:
Show all amounts and accounts as marks will not be awarded for the answer only.
Q.3.2
Q.3.1.1
Total liabilities
(3½)
Q.3.1.2
Total assets
(5½)
Q.3.1.3
Total income
(3½)
Q.3.1.4
Total expenses
(4½)
Calculate the profit or loss for the year ended 29 February 2020. Show your
(3)
calculations and state clearly whether a profit or a loss was made.
© The Independent Institute of Education (Pty) Ltd 2020
Page 4 of 6
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2020
Question 4
(Marks: 15)
The following transactions apply to Music Traders for February 2020. The business uses the
perpetual inventory system for the recording of transactions.
Transactions for February 2020
1.
The owner took R4 000 cash to pay for repairs to his private vehicle.
2.
Credit sales of R6 500 was recorded. Music Traders uses a mark-up of 25% on selling price.
3.
Purchased a new computer for the business for cash for R9 000.
4.
Paid BNF Bank R5 000, the first installment on the loan.
5.
Paid rent to the landlord: R2 500 cash.
6.
Purchased trading inventory for R14 500 on credit.
Required:
•
Analyse the transactions using the accounting equation.
•
Indicate clearly if the amount will be added (+) or subtracted (-).
•
You do not need to write down the account names.
•
Ignore VAT.
E.G. Music Traders bought furniture to the value of R35 000 on credit.
No.
E.g.
Assets
=
+35 000
© The Independent Institute of Education (Pty) Ltd 2020
Owner’s Equity
+
Liabilities
+35 000
Page 5 of 6
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Question 5
(Marks: 10)
REM Traders, a VAT vendor, buys and sells merchandise. REM Traders uses the perpetual
inventory system. Transactions include VAT at 15% where applicable, or unless stated otherwise.
Required:
For each of the transactions listed below to calculate the VAT and indicate whether it is INPUT
VAT, OUTPUT VAT, EXEMPT, ZERO-RATED or NON-ALLOWABLE.
Example: Paid water and electricity: R2 300.
No.
VAT Amount
INPUT VAT/OUTPUT VAT/EXEMPT/ZERORATED/NON-ALLOWABLE
E.G.
R300
Input VAT
Round to two decimals.
Q.5.1.1
Purchased trading inventory for cash, R12 650.
(2)
Q.5.1.2
Sold trading inventory on credit for R4 600.
(2)
Q.5.1.3
Purchased staff refreshments for R390 cash.
(2)
Q.5.1.4
Received interest on bank account, R700.
(2)
Q.5.1.5
Sold trading inventory for cash, R5 000 (VAT exclusive).
(2)
END OF PAPER
© The Independent Institute of Education (Pty) Ltd 2020
Page 6 of 6