FAC1503 EXAM PACK

FAC1503 EXAM PACK QUESTION PAPER AND SOLUTIONS 4 MAY 2008 EXAMINATION PAPER (For revision purposes) This paper consists of 10 (ten) pages. PLEASE NOTE: 1. Ensure that you are writing the correct examination paper. 2. Ensure that you are handed the correct examination answer book (BLUE) by the invigilator. 3. This paper consists of 6 (SIX) questions. 4. All questions must be answered. 5. Basic calculations, where applicable, must be shown. 6. Each question attempted must be commenced on a new (separate) page. 7. Please do not answer the paper in pencil. 8. PROPOSED TIMETABLE (try not to deviate from this) Question Subject Marks Time in minutes 1 Accounting equation 18 22 2 Journals and posting 29 35 3 Bank reconciliation 19 22 4 Creditors reconciliation 13 16 5 Ratio analysis 14 17 6 Theory 7 8 Total 100 120 Page 1 of 136 email: Tel: 9 5 ALP101G/103/2 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