FAC 1503 EXAM PACK TEST PREP (A Guaranteed)

QUESTION 1 (18 marks) (22 minutes) You are provided with the following transactions for My-Shop Traders, using the periodic inventory system. My-Shop Traders is not registered as a VAT vendor. 1. Sold goods on account to Mandi Thibadira for R4 400. 2. Mandi Thibadira returned damaged goods worth R300, being not according to the sample she ordered. 3. Purchased goods from Welcome Traders for R15 400 less 20% trade discount. 4. Paid Welcome Traders by cheque, less 5% settlement discount. (See no. 3) 5. Received a cheque for R3 900 from Mandi Thibadira in full payment of her account. (See no. 1 and 2) REQUIRED: Use the information to analyse the transactions according to the given example: Example: Paid for water and electricity by cheque, R2 800 General ledger Accounting equation Nr Source document Account debited Account credited A E L Ex Cheque counterfoil Water and electricity Bank - Page 2 of 136 email: Tel: 9 6 QUESTION 2 (29 marks) (36 minutes) At 1 April 2008 the following balances appeared in the general ledger of Ice Traders: R Capital 85 400 Debtors control 14 620 Creditors control 19 800 Bank (dr) 14 050 VAT input 3 140 VAT output 4 820 The journals of Ice Traders have been completed up to 30 April 2008 and the totals are as follows: Cash receipts journal Bank Sales Debtors control Settlement discount allowed Output VAT Sundry accounts R R R R R R 200 Cash payments journal Bank Purchases Creditors control Settlement discount received Input VAT Sundry accounts R R R R R R 400 Sales journal Total Output VAT Sales RR R 420 Sales returns journal Total Output VAT Sales returns RRR Purchases journal Total Input VAT Inventory RR R 800 Page 3 of 136 email: Tel: 9 7 ALP101G/103/2 QUESTION 2 (continued) Additional information The following transactions (VAT is included at 14%) for 30 April 2008 must still be recorded in the books of Ice Traders: - Sold goods on credit to R Rheeder for R1 596,00. - Purchased goods for R228,00 cash. - Purchased goods on credit from Henties Traders for R2 850,00. - R Rheeder returned goods worth R1 026,00 to Ice Traders. Issued a credit note. - J Jacobs paid Ice Traders R3 200,00 in full settlement of the entity’s account of R3 300,00. - Sold goods for R1 368,00 cash. - Paid JP Traders R1 800,00 in full settlement of the entity’s account of R1 850,00. REQUIRED: 2.1 Use the given journals (starting with the totals provided) and record the above additional transactions in these journals. Total only the following columns in the respective journals: Input VAT, Output VAT and Debtors control. (15½) 2.2 Post to the following accounts in the general ledger of Ice Traders: Input VAT Output VAT Debtors control Balance the accounts at 30 April 2008. (13½) Page 4 of 136