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FAC1502: Financial Accounting Prin-
ciples, Concepts and Procedures
OCT/NOV Examination 2026 — Revision Guide
Covering Oct/Nov 2023, Oct/Nov 2024 & Oct/Nov 2025 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Financial Accounting [
_ Exam Revision Guide
FAC1502
Module Code:
Financial Accounting Principles, Concepts & Procedures
Module Name:
Oct/Nov 2023, Oct/Nov 2024, Oct/Nov 2025
Papers Covered:
OCT/NOV Examination 2026
Prep For:
100 marks per paper
Total Marks:
2 Hours per paper
Duration:
Use this guide to revise thoroughly. Focus on understanding, not memorisation.
Work through every calculation step by step.
Exam Revision Notes | FAC1502 | 2023–2025 Exam Series
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
Question 1 [Oct/Nov 2023 & 2024 — approx. 20 marks]
Key Concept
The Basic Accounting Equation (BAE): Assets = Equity + Liabilities
Every transaction affects at least two elements, keeping the equation in balance at all
times.
(a) [6 marks]
Question: An entity has the following balances: Bank (Cr): R3 330; Vehicles: R12 570;
Trade payables: R2 380; Plant and equipment: R22 150. Calculate the equity of the entity
according to the basic accounting equation.
Answer: Step 1 – Identify Assets:
• Vehicles: R12 570
• Plant and equipment: R22 150
• Bank (unfavourable/Cr): this is a liability (bank overdraft), NOT an asset.
Total Assets = R12 570 + R22 150 = R34 720
Step 2 – Identify Liabilities:
• Trade payables: R2 380
• Bank overdraft: R3 330
Total Liabilities = R2 380 + R3 330 = R5 710
Step 3 – Calculate Equity using BAE:
Equity = Assets − Liabilities = R34 720 − R5 710 = R29 010
(b) [6 marks]
Question: Naledi Traders paid R1 500 for a monthly advertisement via electronic trans-
fer. Naledi Traders maintained an unfavourable bank balance. Prepare the BAE table
indicating the net effect, account debited and account credited.
Page 2 of 31
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
Answer: Analysis of transaction:
• An unfavourable bank balance means the bank account is already a liability (over-
draft).
• Paying more by EFT increases the bank overdraft (liability increases).
• Advertising is an expense which decreases equity.
Assets (R) Equity (R) Liabilities
Element (R)
0 −1 500 +1 500
Effect
• Account Debited: Advertising Expense (equity decreases)
• Account Credited: Bank (liability increases / overdraft increases)
⋆ Exam Tip
When the bank balance is unfavourable (Cr), the bank account sits under
Liabilities. An increase in the overdraft is a credit entry and an increase in the
liability. Assets column = 0 because assets are not affected.
(c) [8 marks]
Question: Victor Smith is the owner of Smith Electricians. On 28 February 20.2, the
following transactions occurred: (1) Services rendered to a client for R5 550, paid directly
into the business bank account. (2) Purchased equipment on credit from DEF Suppliers
for R18 000. (3) Owner withdrew R2 000 cash for personal use. (4) Paid trade payable of
R4 500 via EFT. Record the effect of each transaction on the BAE, showing the account
debited and credited.
Answer:
Page 3 of 31
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
# Transaction Assets (R) Equity Liabilities Dr Account Cr Account
(R) (R)
1 Services rendered for +5 550 +5 550 0 Bank Service Rev-
cash enue
2 Equipment on credit +18 000 0 +18 000 Equipment Trade Payables
3 Owner withdrawal −2 000 −2 000 0 Drawings Bank
4 Paid trade payable −4 500 0 −4 500 Trade Payables Bank
Page 4 of 31
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
Question 2 [Oct/Nov 2023 & 2025 — approx. 25 marks]
Key Concept
VAT at 15%: VAT-inclusive price = VAT-exclusive price × 1.15.
To extract VAT from VAT-inclusive amount: Amount × 115 .
15
Periodic inventory system: Purchases account used; no running inventory balance.
(a) [10 marks]
Question: Du Toit Traders, a registered VAT vendor, buys and sells hand sanitisers
(VAT rate 15%). They use the periodic inventory system and sell at a constant mark-
up of 35%. On 3 March 20.5, Du Toit Traders purchased inventory from Mfeketo Dealers
on credit, invoice R25 980 (VAT exclusive). Record this transaction in the applicable
subsidiary journal.
Answer: Identify the journal: Credit purchase of inventory ⇒ Purchases Journal
(PJ).
Calculate VAT:
VAT = R25 980 × 15% = R3 897
VAT-inclusive total = R25 980 + R3 897 = R29 877
Date Creditor Fol Purchases VAT Input Trade
(R) (R) Payables (R)
3 Mar Mfeketo Dealers CPJ 25 980.00 3 897.00 29 877.00
• Purchases Dr R25 980 (expense, periodic system)
• VAT Input Dr R3 897 (SARS owes us back)
• Trade Payables (Mfeketo Dealers) Cr R29 877
. Watch Out
In the periodic inventory system, use the “Purchases” account — not “Inven-
tory”. The Purchases Journal records credit purchases only. Cash purchases go
to the Cash Payments Journal (CPJ).
Page 5 of 31
, FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
(b) [8 marks]
Question: On 7 March 20.5, Du Toit Traders sold goods on credit to Lesedi Shop for
R15 000 (VAT exclusive). Record this transaction in the applicable subsidiary journal and
show the relevant ledger postings.
Answer: Identify the journal: Credit sale ⇒ Sales Journal (SJ).
Calculate amounts:
VAT Output = R15 000 × 15% = R2 250
VAT-inclusive invoice total = R15 000 + R2 250 = R17 250
Cost of sales (mark-up of 35% on cost):
R15 000
Selling price = Cost × 1.35 ⇒ Cost = = R11 111.11
1.35
Date Debtor Fol Sales (R) VAT Trade
Output Receivables
(R) (R)
7 Mar Lesedi Shop SJ 15 000.00 2 250.00 17 250.00
General Ledger postings:
• Trade Receivables Dr R17 250
• Sales Cr R15 000
• VAT Output Cr R2 250
(c) [7 marks]
Question: Sihle Medical Equipment, a registered VAT vendor (15%), had the following
provisional balances on 31 May 20.4 after all cash transactions: VAT Input R4 300; VAT
Output R5 500. Determine the VAT payable/refundable and show the closing entries.
Page 6 of 31
]]
⋆
FAC1502: Financial Accounting Prin-
ciples, Concepts and Procedures
OCT/NOV Examination 2026 — Revision Guide
Covering Oct/Nov 2023, Oct/Nov 2024 & Oct/Nov 2025 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Financial Accounting [
_ Exam Revision Guide
FAC1502
Module Code:
Financial Accounting Principles, Concepts & Procedures
Module Name:
Oct/Nov 2023, Oct/Nov 2024, Oct/Nov 2025
Papers Covered:
OCT/NOV Examination 2026
Prep For:
100 marks per paper
Total Marks:
2 Hours per paper
Duration:
Use this guide to revise thoroughly. Focus on understanding, not memorisation.
Work through every calculation step by step.
Exam Revision Notes | FAC1502 | 2023–2025 Exam Series
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
Question 1 [Oct/Nov 2023 & 2024 — approx. 20 marks]
Key Concept
The Basic Accounting Equation (BAE): Assets = Equity + Liabilities
Every transaction affects at least two elements, keeping the equation in balance at all
times.
(a) [6 marks]
Question: An entity has the following balances: Bank (Cr): R3 330; Vehicles: R12 570;
Trade payables: R2 380; Plant and equipment: R22 150. Calculate the equity of the entity
according to the basic accounting equation.
Answer: Step 1 – Identify Assets:
• Vehicles: R12 570
• Plant and equipment: R22 150
• Bank (unfavourable/Cr): this is a liability (bank overdraft), NOT an asset.
Total Assets = R12 570 + R22 150 = R34 720
Step 2 – Identify Liabilities:
• Trade payables: R2 380
• Bank overdraft: R3 330
Total Liabilities = R2 380 + R3 330 = R5 710
Step 3 – Calculate Equity using BAE:
Equity = Assets − Liabilities = R34 720 − R5 710 = R29 010
(b) [6 marks]
Question: Naledi Traders paid R1 500 for a monthly advertisement via electronic trans-
fer. Naledi Traders maintained an unfavourable bank balance. Prepare the BAE table
indicating the net effect, account debited and account credited.
Page 2 of 31
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
Answer: Analysis of transaction:
• An unfavourable bank balance means the bank account is already a liability (over-
draft).
• Paying more by EFT increases the bank overdraft (liability increases).
• Advertising is an expense which decreases equity.
Assets (R) Equity (R) Liabilities
Element (R)
0 −1 500 +1 500
Effect
• Account Debited: Advertising Expense (equity decreases)
• Account Credited: Bank (liability increases / overdraft increases)
⋆ Exam Tip
When the bank balance is unfavourable (Cr), the bank account sits under
Liabilities. An increase in the overdraft is a credit entry and an increase in the
liability. Assets column = 0 because assets are not affected.
(c) [8 marks]
Question: Victor Smith is the owner of Smith Electricians. On 28 February 20.2, the
following transactions occurred: (1) Services rendered to a client for R5 550, paid directly
into the business bank account. (2) Purchased equipment on credit from DEF Suppliers
for R18 000. (3) Owner withdrew R2 000 cash for personal use. (4) Paid trade payable of
R4 500 via EFT. Record the effect of each transaction on the BAE, showing the account
debited and credited.
Answer:
Page 3 of 31
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
# Transaction Assets (R) Equity Liabilities Dr Account Cr Account
(R) (R)
1 Services rendered for +5 550 +5 550 0 Bank Service Rev-
cash enue
2 Equipment on credit +18 000 0 +18 000 Equipment Trade Payables
3 Owner withdrawal −2 000 −2 000 0 Drawings Bank
4 Paid trade payable −4 500 0 −4 500 Trade Payables Bank
Page 4 of 31
,FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
Question 2 [Oct/Nov 2023 & 2025 — approx. 25 marks]
Key Concept
VAT at 15%: VAT-inclusive price = VAT-exclusive price × 1.15.
To extract VAT from VAT-inclusive amount: Amount × 115 .
15
Periodic inventory system: Purchases account used; no running inventory balance.
(a) [10 marks]
Question: Du Toit Traders, a registered VAT vendor, buys and sells hand sanitisers
(VAT rate 15%). They use the periodic inventory system and sell at a constant mark-
up of 35%. On 3 March 20.5, Du Toit Traders purchased inventory from Mfeketo Dealers
on credit, invoice R25 980 (VAT exclusive). Record this transaction in the applicable
subsidiary journal.
Answer: Identify the journal: Credit purchase of inventory ⇒ Purchases Journal
(PJ).
Calculate VAT:
VAT = R25 980 × 15% = R3 897
VAT-inclusive total = R25 980 + R3 897 = R29 877
Date Creditor Fol Purchases VAT Input Trade
(R) (R) Payables (R)
3 Mar Mfeketo Dealers CPJ 25 980.00 3 897.00 29 877.00
• Purchases Dr R25 980 (expense, periodic system)
• VAT Input Dr R3 897 (SARS owes us back)
• Trade Payables (Mfeketo Dealers) Cr R29 877
. Watch Out
In the periodic inventory system, use the “Purchases” account — not “Inven-
tory”. The Purchases Journal records credit purchases only. Cash purchases go
to the Cash Payments Journal (CPJ).
Page 5 of 31
, FAC1502 | Exam Revision 2023–2025 Financial Accounting Principles
(b) [8 marks]
Question: On 7 March 20.5, Du Toit Traders sold goods on credit to Lesedi Shop for
R15 000 (VAT exclusive). Record this transaction in the applicable subsidiary journal and
show the relevant ledger postings.
Answer: Identify the journal: Credit sale ⇒ Sales Journal (SJ).
Calculate amounts:
VAT Output = R15 000 × 15% = R2 250
VAT-inclusive invoice total = R15 000 + R2 250 = R17 250
Cost of sales (mark-up of 35% on cost):
R15 000
Selling price = Cost × 1.35 ⇒ Cost = = R11 111.11
1.35
Date Debtor Fol Sales (R) VAT Trade
Output Receivables
(R) (R)
7 Mar Lesedi Shop SJ 15 000.00 2 250.00 17 250.00
General Ledger postings:
• Trade Receivables Dr R17 250
• Sales Cr R15 000
• VAT Output Cr R2 250
(c) [7 marks]
Question: Sihle Medical Equipment, a registered VAT vendor (15%), had the following
provisional balances on 31 May 20.4 after all cash transactions: VAT Input R4 300; VAT
Output R5 500. Determine the VAT payable/refundable and show the closing entries.
Page 6 of 31
