⋆ ˆ ⋆
FAC1502: Financial Accounting Prin-
ciples, Concepts and Procedures
Comprehensive Exam Revision Guide
May/June Examination 2026
Based on May/June 2025 & May/June 2024 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Financial Accounting — Accounting Sciences
Exam Revision Guide
FAC1502
Module Code:
Financial Accounting Principles, Concepts and Procedures
Module Name:
May/June 2024 & May/June 2025
Papers Covered:
May/June Examination 2026
Target Exam:
100 marks (typical paper)
Total Marks:
University of South Africa (UNISA)
Institution:
Revise thoroughly. Understand concepts, not just formulas. Practice every calcula-
tion.
Exam Revision Notes | FAC1502 | 2026
,FAC1502 | Exam Revision May/June 2024 & 2025
Question 1 [20 marks]
(a) [8 marks]
Question: Naledi Traders is a registered VAT vendor. The VAT rate is 15%. The ac-
countant paid R1 500 for the placement of a monthly advertisement in a local newspaper
via an electronic transfer. Naledi Traders maintained an unfavourable bank balance.
Prepare the Balance Sheet Equation (BAE) incorporating the information from the above
transaction in the table below by indicating the net effect (amount) and the accounts deb-
ited and credited.
Instructions: Use a full stop for decimals. Round to two decimal places. Negative
amounts must have a negative sign. Do not show the “R” symbol.
Answer:
Key Concept
The Balance Sheet Equation (BAE) states: Assets = Equity + Liabili-
ties. Every transaction must keep this equation balanced. An unfavourable bank
balance means the bank account has a credit balance (i.e. the bank is a liability,
not an asset).
Analysis of the transaction:
• Advertising is an expense – it reduces equity (owner’s equity decreases).
• Payment made via EFT with an unfavourable bank balance – the bank overdraft (a
liability) increases.
• VAT is not separately claimable for advertising placed in local media – treat as an
inclusive cost. However, if VAT is applicable: R1 500 is inclusive of VAT. VAT =
R1 500 × 15/115 = R195.65 (input VAT); Net advertising = R1 304.35.
BAE Effect (VAT exclusive amount R1 304.35 + Input VAT R195.65):
Page 2 of 25
, FAC1502 | Exam Revision May/June 2024 & 2025
Assets Equity Liabilities
Element
0 -1 304.35 +1 304.35
Effect
— Advertising —
Account Debited
— — Bank (over-
Account Credited draft)
Exam Tip
When the bank balance is unfavourable (overdraft), the bank account sits on
the liabilities side, not assets. Paying via EFT increases the overdraft – so liabil-
ities increase. Common exam mistake: treating the bank as an asset regardless of
balance.
(b) [12 marks]
Question: Victor Smith is the owner of Smith Electricians. On 28 February 20.2, you
are given the following information for Smith Electricians:
• Equipment: R162 500
• Tools and machinery: R5 000
• Inventory: R12 500
• Trade receivables: R31 250
• Smith Electricians owes Salon Suppliers: R25 000
• Bank (favourable): R18 750
• Loan from ABC Bank: R85 000
Prepare the Statement of Financial Position of Smith Electricians as at 28 February 20.2.
Answer:
Page 3 of 25
FAC1502: Financial Accounting Prin-
ciples, Concepts and Procedures
Comprehensive Exam Revision Guide
May/June Examination 2026
Based on May/June 2025 & May/June 2024 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Financial Accounting — Accounting Sciences
Exam Revision Guide
FAC1502
Module Code:
Financial Accounting Principles, Concepts and Procedures
Module Name:
May/June 2024 & May/June 2025
Papers Covered:
May/June Examination 2026
Target Exam:
100 marks (typical paper)
Total Marks:
University of South Africa (UNISA)
Institution:
Revise thoroughly. Understand concepts, not just formulas. Practice every calcula-
tion.
Exam Revision Notes | FAC1502 | 2026
,FAC1502 | Exam Revision May/June 2024 & 2025
Question 1 [20 marks]
(a) [8 marks]
Question: Naledi Traders is a registered VAT vendor. The VAT rate is 15%. The ac-
countant paid R1 500 for the placement of a monthly advertisement in a local newspaper
via an electronic transfer. Naledi Traders maintained an unfavourable bank balance.
Prepare the Balance Sheet Equation (BAE) incorporating the information from the above
transaction in the table below by indicating the net effect (amount) and the accounts deb-
ited and credited.
Instructions: Use a full stop for decimals. Round to two decimal places. Negative
amounts must have a negative sign. Do not show the “R” symbol.
Answer:
Key Concept
The Balance Sheet Equation (BAE) states: Assets = Equity + Liabili-
ties. Every transaction must keep this equation balanced. An unfavourable bank
balance means the bank account has a credit balance (i.e. the bank is a liability,
not an asset).
Analysis of the transaction:
• Advertising is an expense – it reduces equity (owner’s equity decreases).
• Payment made via EFT with an unfavourable bank balance – the bank overdraft (a
liability) increases.
• VAT is not separately claimable for advertising placed in local media – treat as an
inclusive cost. However, if VAT is applicable: R1 500 is inclusive of VAT. VAT =
R1 500 × 15/115 = R195.65 (input VAT); Net advertising = R1 304.35.
BAE Effect (VAT exclusive amount R1 304.35 + Input VAT R195.65):
Page 2 of 25
, FAC1502 | Exam Revision May/June 2024 & 2025
Assets Equity Liabilities
Element
0 -1 304.35 +1 304.35
Effect
— Advertising —
Account Debited
— — Bank (over-
Account Credited draft)
Exam Tip
When the bank balance is unfavourable (overdraft), the bank account sits on
the liabilities side, not assets. Paying via EFT increases the overdraft – so liabil-
ities increase. Common exam mistake: treating the bank as an asset regardless of
balance.
(b) [12 marks]
Question: Victor Smith is the owner of Smith Electricians. On 28 February 20.2, you
are given the following information for Smith Electricians:
• Equipment: R162 500
• Tools and machinery: R5 000
• Inventory: R12 500
• Trade receivables: R31 250
• Smith Electricians owes Salon Suppliers: R25 000
• Bank (favourable): R18 750
• Loan from ABC Bank: R85 000
Prepare the Statement of Financial Position of Smith Electricians as at 28 February 20.2.
Answer:
Page 3 of 25
