HIGHER EDUCATION PROGRAMMES
Academic Year 2025:
January - June
Formative Assessment 2:
Financial Accounting (HFAC130-1)
NQF Level, Credits:
5, 20
Weighting:
20%
Assessment Type:
Open Book
Examiner:
A. Machava
Educator:
Arthur Botha
Due Date:
02 May 2025
Total:
100 marks
Instructions:
•
This paper consists of three (3) questions.
•
It is based upon Units 5 – 8 of your courseware (Chapters 1 – 5 of your
prescribed textbook).
•
All questions are compulsory.
•
If you choose to type your assessment use: Font: Arial; Font size: 12 and Line
spacing: 1.5.
1
•
Show all calculations and reference accordingly.
•
Where applicable, round off answers/workings to two (2) decimal places.
•
Copyleaks is not applicable for this assessment.
HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
The following learning outcomes are assessed in this assessment:
•
Write off bad debts/credit losses.
•
Make the necessary journal entries to clear a suspense account
•
Post the journal entries to the relevant ledger accounts.
•
Understand and explain the procedures to be followed when performing bank
reconciliation procedures.
•
Recognise and correct errors made by the bank.
•
Recognise and correct errors made by the business.
•
Prepare bank reconciliation statements.
•
Calculate output VAT in accordance with current VAT rules from gross
figures.
•
Calculate input VAT in accordance with current VAT rules from gross figures.
•
Record VAT transactions according to organisational and bookkeeping
practice.
2
HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
Question 1
[37 Marks]
A trial balance of Vuyo Limited for May 2024 was extracted. Upon investigation it was
discovered that the trial balance did not balance.
Upon further investigation, the following errors were discovered:
1.
The difference of R3 946.50 was entered on the debit side of a suspense
account.
2.
A payment in respect of rent had been posted to the Rent account as R5 828.10.
The electronic transfer was made out for R5 282.10 and entered correctly in the
cash payments journal.
3.
Stationery purchased from Uptown Traders for R1 430 was incorrectly posted
to the purchases account.
4.
An amount of R180 in respect of discount received has erroneously been posted
to the debit side of the discount allowed account but correctly recorded in the
cash payments journal.
5.
S Nandipha owes Vuyo Limited R3 750. His account has been outstanding for
6 months. Charge his account with interest at 15% per annum.
6.
An amount of R1 095 in respect of bad debts/credit losses was correctly posted
to the Trade receivables control account but was not posted to the bad debts/
credit losses account.
7.
An amount of R3 225 received for cash sales was entered in the cash receipts
journal but not posted to the sales account.
8.
Inkosana Stores charged the overdue account of Vuyo Limited with 12% interest
per annum for 4 months. The amount overdue is R7 800
9.
A payment of R6 900 in respect of telephone has been entered in the Cash
payment journal but has not been posted to the telephone account.
10. Bank charges amounting to R538.5 were posted as R456 in the general ledger.
The entry in the cash payments journal is correct.
REQUIRED:
1.1 Record the necessary journal entries of Vuyo Limited to correct all the errors.
Use the transaction number as the date. Journal narrations are not required.
(29)
3
HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
1.2 Post the relevant entries to the Suspense account in the general ledger and
balance the account as at 31 May 2024.
4
HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
(8)
Question 2
[23 Marks]
On 31 August 2024, a comparison of the bank statements with the cash journals of
Spencer Traders reflected the following:
1.
The bank account in the general ledger reflected a favourable balance of R30
500 on 1 August 2024.
2.
The bank statement showed a credit balance of R79 036 on 31 August 2024.
3.
Totals of the cash journals at 31 August 2024:
4.
•
Cash receipts journal
R64 200
•
Cash payments journal
R30 254
A Deposit amounting to R5 500 entered in the cash receipts journal on 31
August 2024 has not been credited on the bank statement.
5.
6.
The following cheques have not been presented for payment:
386
R4 200
387
R2 180
389
R3 000
249
R2 200
(This cheque was drawn on 31 January 2024)
A stop order of R500 for Motor Vehicle insurance appeared on the bank
statement but had not yet been entered in the Cash Journal.
7.
A Debtor, Mr Kemp, paid his account of R6 000 directly into the bank account,
but this amount had not yet been recorded in the cash journal.
8.
A cheque for R440 received from a debtor on his account of R480 and deposited
was marked R/D on the bank statement.
9.
There appeared a debit of R1 200 on the bank statement. This amount was
actually for Spender Traders.
10. Service charges of R100 and bank interest earned of R250 appeared on the
bank statement.
11. A deposit of R5 000, appearing on the bank statement, was reflected in the Cash
journal as R500.
5
HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
REQUIRED:
2.1 Prepare the adjusted bank account, as it would appear in the General Ledger of
Spencer Traders for the month ended 31 August 2024. (Your adjustments can be
made directly into the bank account).
2.2 Prepare the bank reconciliation statement at 31 August 2024.
6
HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
(13)
(10)
Question 3
[40 Marks]
Speed Services (Pty) Ltd had the following totals in their journals at the end of June
and July 2024:
Cash receipts journal
Details
June 2024
July 2024
(R)
(R)
Sundries
201 654.75
203 989.74
Sales
41 401.98
33 026.33
Sundry trade receivables
87 912.30
92 221.20
Output VAT
5 796.27
5 728.94
222.30
376.20
336 543.00
334 590.00
Discount Allowed
Bank
Cash payments journal
Details
June 2024
July 2024
(R)
(R)
Sundries
94 791.12
58 890.93
Purchases
21 167.76
5 263.16
Sundry trade payables
57 436.88
41 332.80
Input VAT
4 975.62
2 468.42
Discount Received
3 526.88
1 162.80
174 844.50
106 792.50
Bank
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HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
Sales journal
Details
Sales
Output VAT
Total
June 2024
July 2024
(R)
(R)
19 830.00
23 902.50
2 948.6
3 554.20
22 606.20
27 248.85
Sales returns journal
Details
June 2024
July 2024
(R)
(R)
Sales returns
541.50
600.00
Output VAT
80.50
102.60
Total
617.31
684.00
Purchases journal
Details
8
June 2024
July 2024
(R)
(R)
Purchases
30 691.50
8 724.00
Equipment
12 213.00
2 368.50
Stationery
2 170.50
2 115.00
Input VAT
6 702.50
1 963.90
Total
51 385.50
15 056.55
HFAC130-1-Jan-Jun2025-FA2-AM-V2-31012025
Purchases returns journal
Details
June 2024
July 2024
(R)
(R)
Purchase returns
2 170.50
480.00
Equipment
900.00
225.00
Stationery
1 632.00
52.50
Input VAT
699.20
112.60
5 360.85
863.55
Total
Petty cash journal
Details
June 2024
July 2024
(R)
(R)
Wages
675.00
1 020.00
Postage
153.00
318.00
Stationery
126.00
472.50
Input VATs
41.85
118.58
Total
993.06
1 921.17
REQUIRED:
3.1 Post the relevant entries to the Input VAT and Output VAT accounts in the
General Ledger of Speed Services for the two periods ending 30 June 2024 and
31 July 2024, respectively.
These entries include the VAT elements in discount allowed and received.
(30)
3.2 Close off the Input VAT and Output VAT accounts as at 31 July 2024 to the VAT
Control account.
9
(10)
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