FAC 1502 MOCK COMPREHENSIVE SCRIPT
2026 FULL ANSWERS GRADED A+
⩥ RECONCILIATION OF THE BANK STATEMENT.
Answer: The process of verifying that the bank statement and the
checkbook balances are in agreement. As you reconcile the bank
statement with your accounts, be aware of outstanding checks,
outstanding deposits, and any service fees the bank may have charged.
⩥ SETTLEMENT DISCOUNT GRANTED.
Answer: Discount is often offered to debtors in order to encourage a
quick settlement of their debts within the stated credit term.
⩥ ALLOWANCE FOR SETTLEMENT DISCOUNT GRANTED.
Answer: The allowance for settlement discount granted will reduce the
sales amount that will be recorded.
⩥ CREDIT LOSSES : WRITITNG OFF OF CREDIT LOSSES.
Answer: The amount of the credit losses will be debited (Dr) to the
credit losses account and credited (Cr) to the personal account and the
trade receivables control account.
⩥ CREDIT LOSSES : ALLOWANCES.
,Answer: Deducted from trade receivables. Closed off to the profit and
loss account.
⩥ CREDIT LOSSES : INCREASING THE CREDIT LOSS.
Answer: The allowance for credit losses must be deducted from the trade
receivables control to determine the amount at which debtors must take
into account.
⩥ CREDIT LOSSES : DECREASING THE CREDIT LOSS.
Answer: Debit (Dr) the allowance for credit losses account and credit
(Cr) the credit losses account.
⩥ WRITING OFF CREDIT LOSSES WHEN AN ALLOWANCE FOR
CREDIT LOSSES.
Answer: 1. Credit Losses can be written off against the allowance
account
Dr - Allowance Account; Cr - Debtor's Personal Account; Cr - Trade
Receivables
2. Credit losses that occur during the year are written off against the
credit losses account
⩥ CREDIT LOSSES : RECOVERY WRITTEN OFF.
Answer: Dr - Bank Account; Cr - Credit Losses Recovered; Added to
other operating income in the statement of profit or loss and other
comprehensive income.
, ⩥ CREDIT LOSSES : VAT; CREDIT LOSSES; CREDIT LOSSES
RECOVERED.
Answer: The amount owned by the debtor includes VAT. The seller is
entilted to claim the VAt portion back from SARS *vice versa
⩥ TRADE RECEIVABLES CONTROL ACCOUNT.
Answer: Contains a summary of all the entries made in the individual
debtors accounts. Posting to the trade receivables control account takes
place once a month. *From the totals of all the subsidiary journals
⩥ THE IMPORTANCE OF CORRECT INVENTORY VALUATION.
Answer: A mistake in the inventory figure will affect the calculation of
cost of sales; gross profit; and profit in the statement of profit or loss.
⩥ VALUATION OF INVENTORY AT HISTORICAL COST.
Answer: Import duty; cost of transporting goods; insurance; railage.
⩥ METHODS OF ESTIMATING AT THE VALUE OF INVENTORY :
GROSS PROFIT METHOD.
Answer: The difference between sales and the cost of sales.
⩥ CONSISTENCY IN THE APPLICAION O PROCEDURES.
2026 FULL ANSWERS GRADED A+
⩥ RECONCILIATION OF THE BANK STATEMENT.
Answer: The process of verifying that the bank statement and the
checkbook balances are in agreement. As you reconcile the bank
statement with your accounts, be aware of outstanding checks,
outstanding deposits, and any service fees the bank may have charged.
⩥ SETTLEMENT DISCOUNT GRANTED.
Answer: Discount is often offered to debtors in order to encourage a
quick settlement of their debts within the stated credit term.
⩥ ALLOWANCE FOR SETTLEMENT DISCOUNT GRANTED.
Answer: The allowance for settlement discount granted will reduce the
sales amount that will be recorded.
⩥ CREDIT LOSSES : WRITITNG OFF OF CREDIT LOSSES.
Answer: The amount of the credit losses will be debited (Dr) to the
credit losses account and credited (Cr) to the personal account and the
trade receivables control account.
⩥ CREDIT LOSSES : ALLOWANCES.
,Answer: Deducted from trade receivables. Closed off to the profit and
loss account.
⩥ CREDIT LOSSES : INCREASING THE CREDIT LOSS.
Answer: The allowance for credit losses must be deducted from the trade
receivables control to determine the amount at which debtors must take
into account.
⩥ CREDIT LOSSES : DECREASING THE CREDIT LOSS.
Answer: Debit (Dr) the allowance for credit losses account and credit
(Cr) the credit losses account.
⩥ WRITING OFF CREDIT LOSSES WHEN AN ALLOWANCE FOR
CREDIT LOSSES.
Answer: 1. Credit Losses can be written off against the allowance
account
Dr - Allowance Account; Cr - Debtor's Personal Account; Cr - Trade
Receivables
2. Credit losses that occur during the year are written off against the
credit losses account
⩥ CREDIT LOSSES : RECOVERY WRITTEN OFF.
Answer: Dr - Bank Account; Cr - Credit Losses Recovered; Added to
other operating income in the statement of profit or loss and other
comprehensive income.
, ⩥ CREDIT LOSSES : VAT; CREDIT LOSSES; CREDIT LOSSES
RECOVERED.
Answer: The amount owned by the debtor includes VAT. The seller is
entilted to claim the VAt portion back from SARS *vice versa
⩥ TRADE RECEIVABLES CONTROL ACCOUNT.
Answer: Contains a summary of all the entries made in the individual
debtors accounts. Posting to the trade receivables control account takes
place once a month. *From the totals of all the subsidiary journals
⩥ THE IMPORTANCE OF CORRECT INVENTORY VALUATION.
Answer: A mistake in the inventory figure will affect the calculation of
cost of sales; gross profit; and profit in the statement of profit or loss.
⩥ VALUATION OF INVENTORY AT HISTORICAL COST.
Answer: Import duty; cost of transporting goods; insurance; railage.
⩥ METHODS OF ESTIMATING AT THE VALUE OF INVENTORY :
GROSS PROFIT METHOD.
Answer: The difference between sales and the cost of sales.
⩥ CONSISTENCY IN THE APPLICAION O PROCEDURES.
