Assessment 8 (page 2 of 2)d

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University of South Africa *

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1503

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Accounting

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Nov 24, 2024

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Question 2 Not yet answered Marked out of 3.00 Question 3 Not yet answered Marked out of 1.00 Question 4 Not yet answered Marked out of 1.00 South Attorneys (registered VAT vendor) sent the following account statement to the instructing attorneys, Africa Attorneys (registered VAT vendor). Account statement South Attorneys Africa Attorneys PO Box 12124 Tshwane PO Box 555 Stanger 31 May 2022 Collection – A South v S West Sheriff costs Fee for receiving instruction Fee for preparation of summons Correspondence fee Fee for drafting of admission of guilt Collection commission Your ⅓ share of fees VAT @ 15% Electronic fund transfer to yourselves R 285 520 210 49 70 1 000 ? ? R 24 500 616 ? The Bookkeeper of South Attorneys has recorded the above in the fees journal of South Attorneys as follows: Fees journal for May 2020 FJ5 Date Details Fol. Clients R Fees R 31/05 Africa Attorneys (client) VAT Fees D9 1 849 277 2 126 Which one of the following statements are correct regarding the recording of the transaction in the fees journal of South Attorneys? Select one: a. The recording is incorrect because it should have been recorded as follows; R2 126 in the Clients column, R1 849 for fees in the Fees column and R277 for VAT in the Fees column. b. The recording is incorrect because VAT was calculated incorrectly. c. The recording is incorrect because the amount recorded in the Fees column should be R2 134. d. The recording is correct. Clear my choice With the perpetual inventory system the cost of sales and inventories accounts do not have to be adjusted at the end of the financial year as it has been done throughout the year. Select one: True False An e-mail to set up debt collection arrangements is an example of a hard collection. Select one: True False  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8  Dashboard Calendar

Question 5 Not yet answered Marked out of 1.00 Question 6 Not yet answered Marked out of 1.00 Question 7 Not yet answered Marked out of 1.00 Question 8 Not yet answered Marked out of 2.00 Question 9 Not yet answered Marked out of 1.00 Luca Pacioli introduced the rules of the double-entry system in 1494. Select one: True False The third step in the accounting cycle refers to the financial statements being drawn up. Select one: True False Which option below reflects only inventory valuation methods? Select one: a. Last-in, first-out and weighted average b. Periodic inventory system and First-in, first-out c. Perpetual inventory system and Last-in, first-out d. Perpetual inventory system and periodic inventory system Clear my choice The following account balances are from the accounting records of SA Dealers: R Buildings at cost 100 000 Equipment at cost 25 000 Inventory 18 000 Income received in advance 5 700 Trade payables 12 000 Short-term loan 20 000 Long-term loan 80 000 Prepaid expenses 6 000 Accrued expenses 5 400 What is the amount for total assets in the accounting records of SA Dealers? Select one: a. R154 700 b. R155 000 c. R154 100 d. R149 000 Clear my choice Mr South made an electronic funds transfer from his personal bank account to pay for a motor vehicle for his brick manufacturing business. The cost price of the vehicle was R99 000. Which two accounts in the general ledger of the business will be affected by this transaction? Select one: a. motor vehicles account and capital account b. capital account and drawings account c. motor vehicle account and loan account d. capital account and bank account Clear my choice  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 10 Not yet answered Marked out of 1.00 Question 11 Not yet answered Marked out of 1.00 Question 12 Not yet answered Marked out of 1.00 According to the reducing balance method, depreciation is calculated on the cost of the asset using a pre-determined depreciation rate. Select one: True False South Attorneys instructed SA Attorneys to collect child maintenance money on behalf of a client, Mrs E North. SA Attorneys incurred the following expenses in collection the money from E North, namely tracing cost of R300 and sheriff cost of R600. On 11 April 2022 the amount collected were deposited into the Trust bank account of South Attorneys. The total amount deposited was R7 500. Which one of the following entries are not relevant to the distribution of the original collection amount? Select one: a. To record the fees earned by South Attorneys. b. To transfer the original collection of R7 500 to the trust creditors account of E North. c. To credit the total expenses incurred and fees levied by SA Attorneys in respect of E North, to the latter’s account. d. To examine the ledger accounts to ensure that they reflect the true state of affairs. Clear my choice SA Traders operates as a hardware store and is a registered VAT vendor. The applicable tax rate is 15%. SA Traders makes use of the periodic inventory system, as well as control accounts. The transaction amounts are VAT inclusive where applicable. On 4 February 2022, SA Traders purchased stationery for use in the office and paid R1 120 in cash. The transaction will be entered into the .... as book of first entry. Select one: a. cash receipts journal b. purchases journal c. cash payments journal d. general journal Clear my choice  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

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Question 13 Not yet answered Marked out of 3.00 Question 14 Not yet answered Marked out of 3.00 Question 15 Not yet answered Marked out of 1.00 Question 16 Not yet answered Marked out of 1.00 On 1 October 2021 the trust creditors ledger account of S Africa had an opening balance of R3 140 000. On the same day, S Africa instructed SA Attorneys to invest the total amount of R3 140 000 in an interest-bearing investment account at South Bank in terms of section 86 of the Legal Practice Act 28 of 2014 , until the finalisation of a contract funding a new housing project. On 30 October 2021, all parties involved signed the contract. SA Attorneys subsequently withdrew the investment of S Africa on 31 October 2021. An amount of 3 250 000 was paid into the trust bank account of SA Attorneys. The accountant recorded the transaction relating to the above transaction in the Trust creditors ledger in the S Africa sec 86(4) investment – South Bank account for the month ending 31 October 2021 as follows: Dr S Africa sec 86(4) investment – South Bank TCL1 Cr 2021 R 2021 R 01/10 Trust bank account TCPJ5 3 140 000 31/10 Trust bank account TCRJ5 3 250 000 31/10 S Africa/LPFF GJ5 110 000 3 250 000 3 250 000 Which one of the following statements is correct relating to the recording of the above ledger account? Select one: a. The amount of R110 000 representing the interest received on the investment is recorded incorrectly on the debit side. The amount should have been recorded on the credit side. b. The amount of R110 000 representing the interest received on the investment is recorded incorrectly. The amount should have been R104 500 which would lead to a closing balance of R3 244 500. c. The ledger account is drawn up incorrectly because the opening balance of R3 140 000 should be recorded on the credit side. d. The transaction is recorded correctly. Clear my choice The client account of A South, a client of SA Attorneys, reflects a debit balance of R3 500 at the end of September 2021, before any transfer of trust funds. Which amount has to be transferred to the business bank account from the trust bank account on 30 September 2021 if A South has a credit balance of R3 000 on the trust creditor account? Select one: a. R3 500 (transfer to business bank account) b. R500 (transfer to trust bank account) c. R3 000 (transfer to business bank account) d. R500 (transfer to business bank account) Clear my choice Which of the following statements are incorrect ? Select one: a. Financial accounting is concerned with the recording of transactions and the preparation of the financial statements for the entity as a whole. b. Management accounting provides financial information for no specific purpose. c. Financial accounting is concerned with the provision of financial information mainly to external parties. d. Management accounting is concerned with the provision of financial information to people within the entity. Clear my choice The trust cash receipts journal records the receipts of cash deposited in the business bank account and the trust cash payments journal records the payments made from the business bank account. Select one: True False  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 17 Not yet answered Marked out of 2.00 On 31 December 2021, Africa Traders did a direct deposit payment of R8 500 in the local municipality's bank account, for the monthly water and electricity account. Africa Traders is not a registered VAT vendor. Which account will be debited, and which account will be credited in the general ledger of Africa Traders? Select one: a. Dr Water and electricity Cr 2021 R 2021 R Dec 31 Creditors control 8 500 Dec Dr Creditors control Cr 2021 R 2021 R Dec Dec 31 Water and electricity 8 500 b. Dr Water and electricity Cr 2021 R 2021 R Dec Dec 31 Bank 8 500 Dr Bank Cr 2021 R 2021 R Dec 31 Water and electricity 8 500 Dec c. Dr Water and electricity Cr 2021 R 2021 R Dec 31 Bank 8 500 Dec Dr Bank Cr 2021 R 2021 R Dec Dec 31 Water and electricity 8 500 d. Dr Water and electricity Cr 2021 R 2021 R Dec Dec 31 Creditors control 8 500 Dr Creditors control Cr 2021 R 2021 R Dec 31 Water and electricity 8 500 Dec Clear my choice  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 18 Not yet answered Marked out of 2.00 Question 19 Not yet answered Marked out of 2.00 Question 20 Not yet answered Marked out of 1.00 Question 21 Not yet answered Marked out of 1.00 On 1 April 2022, A South a sole proprietor opened a computer shop, SA Computing. The entity is registered as a VAT vendor and the applicable VAT rate is 15%. The periodic inventory system and control accounts are in use. Analyse the following documents and transactions according to what is required and choose the correct option from the options that are given. The transaction amounts include VAT where applicable. SA Computing sub-let's a part of their office building to C West. On 17 April 2020, SA Computing issued a tax invoice for rent to the amount of R5 980. The amount was paid on the same date. Duplicate receipt No. 0004 Date: 17 April 2022 Received from: C West R c Amount: Rand Five thousand two hundred rand only Cent: None 5 980 00 For: Rental income (cash) SA Computing Signature: S Africa The entry in the journal with the following columns will be: Details Bank Input VAT (dr) Output VAT Sales Debtors Sundry accounts R R R R R R Select one: a. In the bank column – R5 980 and in the sundry accounts column – rental income of R5 980. b. In the bank column – R5 980, in the VAT input column – R780 and in the sundry accounts column – rental income of R5 200. c. In the bank column – R5 980, in the VAT output column – R780 and in the sundry accounts column – C West R5 200. d. In the bank column – R5 980, in the VAT output column – R780 and in the sundry accounts column – rental income of R5 200. Clear my choice Mr V Peterson received a cash invoice of R600 excluding VAT. What is the amount including VAT owed by Mr V Peterson? Select one: a. R673,68 b. R600,00 c. R684,00 d. R690,00 e. R526,32 Clear my choice All trust cash available (i.e. the trust bank account balance and any trust investments) must be compared with the total trust liability (total of the trust creditors’ balances). If the trust liabilities exceed the trust funds, a trust deficit exists. Select one: True False On comparing the cash journals of SA Traders for the month ending 31 January 2020 with the bank statement for the same period, it was noted that an amount of R520 for interest received appears on the banks statement but has not been recorded in the subsidiary journals. The correct entry in the accounting records of SA Traders should be the following: Select one: a. An entry of R520 in the cash payments journal of SA Traders for 31 January 2020. b. An entry of R520 in the credit column of the bank reconciliation statement of SA Traders as at 31 January 2020. c. An entry of R520 in the cash receipts journal of SA Traders for 31 January 2020. d. An entry for R520 in the debit column of the bank reconciliation statement of SA Traders as at 31 January 2020. Clear my choice  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

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Question 22 Not yet answered Marked out of 1.00 Question 23 Not yet answered Marked out of 1.00 Question 24 Not yet answered Marked out of 1.00 Question 25 Not yet answered Marked out of 1.00 Question 26 Not yet answered Marked out of 1.00 Question 27 Not yet answered Marked out of 1.00 Which of the following statements is incorrect ? Select one: a. The Attorneys Fidelity Fund (AFF) became the Legal Practitioners Fidelity Fund (LPFF). b. In the case of a section 86(3) of the Legal Practice Act, 28 of 2014, 100% of trust interest earned will be paid on an annual basis to the LPFF. c. In the case of a section 86(4) of the Legal Practice Act, 28 of 2014, 5% of the trust interest earned will be paid annually to the LPFF. d. In the case of a section 86(2) investment of the Legal Practice Act, 28 of 2014, 100% of trust interest earned, less approved recoverable bank charges, will be paid monthly to the LPFF. Clear my choice An adjusting journal entry is an entry in a company's general ledger that occurs at the end of an accounting period to adjust the profit of the entity to align with the expectations of the owner. Select one: True False As from 8 January 2016 the serial number an of invoice and the date of issue must be reflected on a tax invoice where the consideration (price) is R5 000 or less for it to be considered valid. Select one: True False According to section 84(3) of the LPA, every trust account practice must keep a trust account at a bank with which the Legal Practitioners Fidelity Fund has made an arrangement as provided for in section 63(1)(g) and must deposit therein, as soon as possible after receipt thereof, money held by such practice on behalf of any person. Select one: True False Which of the following statements in terms of depreciation relates to current assets? Select one: a. Current assets are depreciated b. The assets are expected to be used for more than one financial period c. Current assets are treated similarly to non-current assets in terms of depreciation. d. Current assets are not depreciated Clear my choice The bank captured a deposit made by the business as R4 500 instead of R5 400. While preparing the bank reconciliation statement the business must make an entry on the credit side of the bank reconciliation statement. Select one: True False  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 28 Not yet answered Marked out of 1.00 Question 29 Not yet answered Marked out of 1.00 Question 30 Not yet answered Marked out of 1.00 Question 31 Not yet answered Marked out of 1.00 Which of the following is true for a liability in the context of the statement of financial position? Select one: a. Liabilities are money owed to the entity. b. Liabilities are money owed to other parties (debts). c. Liabilities are part of owner’s equity. d. Expenses are an example of a class of liabilities. Clear my choice In the financial statements, the bank overdraft will be classified as? Select one: a. Non-current liabilities b. Current assets c. Non-current assets d. Current liabilities Clear my choice Which one of the following statements regarding the recording process in the transfer journal is correct? Select one: a. It is recommended that the transfer is made as soon as possible, as the accumulation of the attorney’s own money in the business bank account may be seen as a failure to separate business and trust money properly. b. A transfer of funds must be made from the business bank account to the trust bank account. c. The transfer of trust funds to the trust bank account cannot take place on the same day as the date on which the attorney levies the fees. d. Trust money may not be used until the legal practice has earned them. Clear my choice In certain instances, the completeness of the information alone is sufficient to determine its relevance, for example, where information, irrespective of its materiality, can affect the decisions of the user. Select one: True False ◄ Assessment 7 Jump to... Tshivenda TL101 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar Time left 0:56:35