Assessment 8 (page 2 of 2)

pdf

School

University of South Africa *

*We aren’t endorsed by this school

Course

1503

Subject

Accounting

Date

Nov 24, 2024

Type

pdf

Pages

Uploaded by CommodoreMosquitoMaster760

Question 2 Not yet answered Marked out of 1.00 Question 3 Not yet answered Marked out of 1.00 Question 4 Not yet answered Marked out of 1.00 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 The relevant source documents relating to the fees journal are the receipts, debit notes or invoices and the client files. Select one: True False Financial accounting is... Select one: a. the systematic recording of transactions. b. an action where money is paid and in return an item or service that the buyer needs is obtained. c. the orderly and systematic identification and recording of the monetary values of financial transactions of an individual or business entity, and the reporting of the results of these transactions. d. a process involving the selecting of those events that are evidence of an economic activity to the particular entity. e. a process involving only the calculation of the profit made by the entity. Clear my choice The key steps in the accounting cycle include preparing the accounting equation summary, recording journal entries, posting to the general ledger, preparing the trial balances, making adjusting entries, and creating financial statements. Select one: True False 5% of trust interest earned in terms of section 86(2) of the LPA, will be paid monthly to the Legal Practitioners Fidelity Fund as provided for by Rule 54.14.16.1 made under the authority of Section 95(1) of the Legal Practice Act 28 of 2014. Select one: True False Depreciation is provided in terms of the matching principle. Select one: True False Deposits are shown as credit entries in the bank account in the general ledger but as debit entries in the bank statement. Select one: True False  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8  Dashboard Calendar

Question 8 Not yet answered Marked out of 1.00 Question 9 Not yet answered Marked out of 1.00 Which of the following statements is incorrect ? Select one: a. The practice of transferring rounded amounts is acceptable. b. If a law firm uses electronic banking (EFT’s) in respect of payments from the trust account to the business account the law firm shall keep a proper audit trail, which shall include verification of the payee’s banking account details. c. The exact amount owing on the business account of the client should be transferred. d. The law firm must ensure that adequate internal controls are implemented in order to ensure compliance with the rules as well as to ensure that trust funds are safeguarded. Clear my choice Investors uses the accounting information contained in the financial statements to: Select one: a. regulate the activities of the entity b. assess the risk and return of an investment in the entity c. assess the ability of the entity to continue as a going concern d. plan and determine future actions to be taken Clear my choice  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 10 Not yet answered Marked out of 2.00 On 2 August 2021, Africa Traders bought a new delivery vehicle of R350 000 from SA Dealers, which was financed through a secured loan from ZZZ Bank, for the use of delivering the goods sold to customers. 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 Vehicles Cr 2021 R 2021 R Aug 2 Bank 350 000 Aug Dr Bank Cr 2021 R 2021 R Aug Aug 2 Vehicles 350 000 b. Dr Vehicles Cr 2021 R 2021 R Aug Aug 2 Bank 350 000 Dr Bank Cr 2021 R 2021 R Aug 2 Vehicles 350 000 Aug c. Dr Vehicles Cr 2021 R 2021 R Aug 2 Loan: ZZZ Bank 350 000 Aug Dr Loan: ZZZ Bank Cr 2021 R 2021 R Aug Aug 2 Vehicles 350 000 d. Dr Vehicles Cr 2021 R 2021 R Aug Aug 2 Loan: ZZZ Bank 350 000 Dr Loan: ZZZ Bank Cr 2021 R 2021 R Aug 2 Vehicles 350 000 Aug Clear my choice  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Question 11 Not yet answered Marked out of 2.00 Question 12 Not yet answered Marked out of 2.00 Question 13 Not yet answered Marked out of 2.00 R Land and buildings 2 904 000 Debtors control 264 656 Creditors control 601 880 Mortgage loan 1 000 000 Inventories 437 540 Vehicles at carrying amount 1 645 076 Cash 215 636 Accrued expenses 24 980 Equipment at carrying amount 363 364 Investment in a fixed deposit 562 984 Income received in advance 9 140 Prepaid expenses 8 000 What is the total amount for current liabilities? Select one: a. R601 880 b. R644 000 c. R619 020 d. R636 000 Clear my choice Which one of the following current tax fractions represents the correct VAT charged if the consideration of supply is given? Select one: a. 14/100 b. 14/114 c. 15/100 d. 15/115 Clear my choice On 1 April 2022, SA Attorneys made a payment of R4 600 (including VAT at 15%) to Advocate South for services rendered in respect of a client, S Africa (with trust funds of R10 000). Which option represents the entry of the transaction in the cash payments journal? Select one: a. Business cash payments journal Date Details VAT input R Trust creditors control R Bank R 1 April S Africa/Trust creditor (Adv South) 600 4 000 4 600 b. Business cash payments journal Date Details Trust creditors control R Bank R 1 April S Africa/Trust creditor (Adv South) 4 600 4 600 c. Trust cash payments journal Date Details VAT input R Trust creditors control R Bank R 1 April S Africa/Trust creditor (Adv South) 600 4 000 4 600 d. Trust cash payments journal Date Details Trust creditors control R Bank R 1 April S Africa/Trust creditor (Adv South) 4 600 4 600 Clear my choice  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 14 Not yet answered Marked out of 1.00 Question 15 Not yet answered Marked out of 1.00 Question 16 Not yet answered Marked out of 1.00 Question 17 Not yet answered Marked out of 1.00 Question 18 Not yet answered Marked out of 1.00 SA Attorneys instructed Africa Attorneys to collect child maintenance money on behalf of a client, Mrs A South. On 11 March 2021 the amount collected were deposited into the Trust bank account of Africa Attorneys. The total amount deposited was R11 500. Which one of the following statements regarding the records of Africa Attorneys is incorrect ? Select one: a. The Trust creditors account in the general ledger will be credited with R11 500 b. The client’s account in the Trust creditors ledger of Mrs A South will be credited with R11 500 c. The Trust bank account in the general ledger will be debited with R11 500 d. The collection commission calculated on the amount will be included in the calculation of the correspondence allowance. Clear my choice The standardised accounting rules of the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS) are approved by the International Accounting Standards Board (IASB) for use in South Africa. Select one: True False What from the following is NOT a capital expense? Select one: a. Repair of a vehicle b. Purchase of office equipment c. Purchase of property d. Replacement of a vehicle, Clear my choice Applying the perpetual inventory system, reduces the need for physical inventory counts. Select one: True False SA Traders, who is not registered as a VAT vendor, purchased office inventory worth R18 000, on credit from SA Stationers. Assume that SA Traders uses the periodic inventory system. Which option reflects the effect of the above transaction on the basic accounting equation of SA Traders? Select one: a. Assets Equity Liabilities R R R - 18 000 - 18 000 0 b. Assets Equity Liabilities R R R - 18 000 + 18 000 c. Assets Equity Liabilities R R R - 18 000 - 18 000 0 0 d. Assets Equity Liabilities R R R + 18 000 + 18 000 0 Clear my choice  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 19 Not yet answered Marked out of 1.00 Question 20 Not yet answered Marked out of 1.00 Question 21 Not yet answered Marked out of 3.00 Question 22 Not yet answered Marked out of 1.00 Question 23 Not yet answered Marked out of 1.00 The total of the trust creditors’ account must be equal to or greater than the total debit balance of the individual trust creditors. Select one: True False On 18 February 2022, SA Attorneys received a statement from the Sheriff's office to the amount of R50 for the delivery of a summons to Mr A South. This transaction will be entered in the .... as book of first entry. Select one: a. sheriff's journal b. business cash payments journal c. trust cash payments journal d. transfer journal Clear my choice The following balances are before the attorney’s fees were posted to the clients’ and trust creditors’ ledgers, and relate to SA Attorneys on 30 November 2021: Client Balance in clients ledger R Balance in trust creditors ledger R Attorney’s fees to be charged R A South Nil 5 000 Cr 3 000 S Africa Nil 8 000 Cr 10 000 C Kwazulu Nil 1 000 Dr 6 000 Nil 14 000 19 000 What will be the total amount that must be transferred to the business bank account from the trust bank account after the fees have been posted to the different ledgers? Select one: a. R19 000 b. R17 000 c. R12 000 d. R10 000 Clear my choice Vendors making standard rated supplies are required to levy output VAT at the prescribed rate of 15% on the value of the supply which must then be paid over to SARS. Select one: True False A credit balance on a ledger account indicates: Select one: a. a liability or an expense b. an asset or an expense c. an amount owing to the organisation d. a liability or revenue Clear my choice  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Question 24 Not yet answered Marked out of 1.00 Question 25 Not yet answered Marked out of 3.00 Question 26 Not yet answered Marked out of 1.00 Question 27 Not yet answered Marked out of 1.00 Which of the following is not an example of property, plant, and equipment? Select one: a. Cash on hand b. Vehicles c. Trucks d. Buildings Clear my choice On 2 April 2022, SA Attorneys decided to invest R165 000 of trust money, not immediately needed, in a special savings account at SA Bank (An approved bank) to earn interest until the end of May 2022. All the investments were made in terms of section 86 of the Legal Practice Act 28 of 2014. The accountant recorded the transaction as follows: Business cash payments journal for Apr 2022 Date Details Trust creditors control Bank 2 Sec 86(3) - Trust investment – SA Bank (trust creditor) R 165 000 R 165 000 165 000 165 000 Which one of the following statements is correct relating to the recording of the above transaction? Select one: a. The transaction is recorded in the correct journal, but the description is incorrect because it should be indicated as a Sec 86(4) – Trust investment. b. The transaction is recorded correctly. c. The transaction is recorded incorrectly because it should have been recorded in the Trust cash payments journal. d. The transaction is recorded incorrectly because it should have been recorded in the Trust cash receipts journal as well as be indicated as a Sec 86(4) – Trust investment. Clear my choice An example of where instructions can be given to the instructed attorney where trust monies are involved is the collection of debts. Select one: True False A comparison of the bank statement of SA Law Practitioners as at 31 January 2022 with the business cash journals for the month ended 31 January 2022, revealed that a client has deposited an amount of R6 500 directly into the business bank account on 30 January 2022. The correct accounting procedure in the accounting records of SA Law Practitioners when preparing the bank reconciliation statement is the following: Select one: a. Make an entry in the cash payments journal on 30 January 2022 for, R6 500. b. Make an entry in the cash receipts journal on 30 January 2022 for, R6 500. c. Debit the bank reconciliation statement on 31 January 2022 with an outstanding deposit of R6 500. d. Credit the bank reconciliation statement on 31 January 2022 with an outstanding deposit of R6 500. Clear my choice  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Question 28 Not yet answered Marked out of 3.00 The senior partner in the legal firm, SA Attorneys, instructed A South from West Attorneys to act on his behalf in the matter between C Natal and E North. C Natal instituted a claim against E North for damages incurred in an accident due to negligent driving. However, before the case served before the court, the parties settled on an amount of R231 000 payable by E North to C Natal. E North immediately paid the amount into the trust bank account of West Attorneys. SA Attorneys received the following statement from West Attorneys at 31 May 2022: Account statement WEST ATTORNEYS SA ATTORNEYS PO Box 4000 PO Box 253 DURBAN MBOPANE 31 May 2022 R R Collection of settlement amount – C Natal vs E North 231 000 Fees for receiving instruction 12 900 Correspondence 920 Expert witness fees – Dr East 3 500 Medical records obtained 790 Subtotal 18 110 Collection fees 1 000 Your share of fees (allowance) 4 940 Electronic fund transfer to yourself 216 830 235 940 235 940 Which one of the following represents the correct recording of the above information in the general ledger of SA Attorneys for the trust creditors control account? Select one: a. Trust creditors control account 2022 R 2022 R 31/05 Trust journal debits GTJ 250 110 31/05 Payments TCPJ 216 830 Trust bank TCRJ 216 830 Trust journal credits GTJ 250 110 466 940 466 940 b. Trust creditors control account 2022 R 2022 R 31/05 Trust journal debits GTJ 250 110 31/05 Trust bank TCRJ 216 830 Payments TCPJ 216 830 Trust journal credits GTJ 250 110 466 940 466 940 c. Trust creditors control account 2022 R 2022 R 31/05 Trust journal debits GTJ 250 110 31/05 Trust bank TCRJ 216 830 West Attorneys (transfer) TJ1 4 940 Trust journal credits GTJ 250 110 Balance c/d 211 890 466 940 466 940 01/06 Balance b/d 211 890 d. Trust creditors control account 2022 R 2022 R 31/05 Trust bank TCRJ 216 830 31/05 Trust journal debits TCRJ 250 110 Trust journal credits TJ1 250 110 West Attorneys (transfer) TJ1 4 940 Balance c/d 211 890 466 940 466 940 01/06 Balance b/d 211 800 Clear my choice  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar Time left 0:45:21

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 The following information was obtained from the accounting records of SA Attorneys: On 1 April 2022, A South, a client of the practice, handed a cheque to the amount of R100 000 to Mr Africa and requested him to invest the money in a fixed deposit account at ABC Bank until the money is paid over for a property transaction. Which one of the following statements is incorrect for the above type of investment? Select one: a. The investment should be made with banks with which the Legal Practitioners Fidelity Fund has entered into an arrangement. b. 95% of the interest accrued on the above money must be paid over to A South. c. When the invested money is withdrawn from the trust investment account it is deposited back into the trust bank account. d. A percentage of the trust interest earned will be paid annually to the Legal Practitioners Fidelity Fund in terms of section 86(5) of the Legal Practice Act 28 of 2014. Clear my choice Petty cash refers to all payments made by a business that are not done through an EFT. Select one: True False If there is, only one entry entered in the account, that entry is the balance. Select one: True False ◄ Assessment 7 Jump to... Tshivenda TL101 ►  Dashboard / My courses / FAC1503-23-S1 / Welcome Message / Assessment 8 Dashboard Calendar

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version