VERY IMPORTANT, NOTE THE FOLLOWING:

#1. These slides are the property of Ina Frost (Varsity College Sandton).
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These slides are the property of Ina Frost (Varsity College Sandton). They MAY NOT be copied,
shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
 These slides are the property of Ina Frost (Varsity College Sandton).
They MAY NOT be copied, shared (electronically or otherwise), distributed or
uploaded to any web site, or WhatsApp group.

EXAM – TIPS
LU 1 to LU 9
References:
J Maritz, Accounting 1A Textbook 2022 10th
edition 1st impression – Edge Learning Media

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
 Accounting 1A Module Outline
The Independent Institute of Education (Pty) Ltd 2022

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
Exam

 LU 1 to LU 9
 180 marks

 180 minutes

 WRITE IN PEN ONLY

 SHOW ALL CALCULATIONS

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Always show your workings, it makes a difference in
marks
For example: For example:
Student A with workings – Student B without workings –
but incorrect mark-up same mistake as Student A
 8 000✓ /1.15✓ /1.3   5 351.17 
= 5 351.17 (1M) = 0/5 marks
= 3/5 marks

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
Exam – How to prepare
 MAKE USE OF THE ACCOUNTING 1A TEXTBOOK
 Study all the theory

 Re-do:
 All textbook examples and questions (remember the answers are
at the back of the 2020/2021/2022 textbooks) – Annexure A
 All revision questions at the back of the textbook – Annexure B
 ICE TASKs
 Additional revision exercise uploaded to VCLearn

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
Exam preparation

 Do as many exercises as you are able

 Write out the exercises

 Be exam fit focus for 3 hours

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
LU1 to LU 9

 Check the lesson plans for the module outcomes – make

sure you can answer a question per outcome
 Use the Quick summaries per LU, uploaded on VCLearn
– More resources – Lecturer slides
 MAKE USE OF THE ACCOUNTING 1A TEXTBOOK

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
Important pages in the textbook:

LU 2
 Chart of accounts (Figure 2.2) p.53 (2020: p.50)
 An introduction to inventory systems (2.4) pp.69 to 72 (2020: pp.66 to 69)
LU 3
 VAT supply categories (Standard rated, Zero-rated, Exempt and Non-
allowable)
LU 4
 Introducing journals (4.2) p.107 to 108 (2020: p.103 to 104)
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Important examples in the textbook:
LU 4 – Cash journals
 Example 4.1 – Cashbooks

 Example 4.2 – General ledger

 Example 4.3 – Trial balance

LU 5 – Credit journals
 Example 5.1 – Cash and credit journals, general ledger and trial balance

 Example 5.2 – Correcting the trial balance

LU 6 – Inventory systems
 Example 6.2 (Illustration 1 to 10)

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
Important examples in the textbook:
LU 7 – Debtors and creditors
 Example 7.1 – Debtors ledger

 Example 7.2 – Creditors ledger

LU 8 – Salaries and wages

 8.8 Comprehensive example (salaries)

 8.9 Comprehensive example (wages)

 Example 8.9 – Completing the EMP201 form

LU 9 – Year-end procedures
 Question 9.4 – General journal, general ledger and post-closing trial balance

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
LU3: Gross Margin vs Mark-up

Gross Margin Mark-up

• Mark-up on selling price • Mark-up on cost
• profit / selling price • profit / cost price
• Gross margin not equal to mark-up • Mark-up not equal to gross margin
• Same as gross profit percentage • Same as gross profit
• Amount added to cost price to =
selling price

• Used to determine the ability of • Used to determine the cost price if

gross profit to cover overheads selling price is known and visa versa
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LU3: Helpful formula:

What you WANT

What you HAVE

Compiled by Ina Frost LU 3 pp76-105 – 2022 edition - Accounting 1A textbook - Edge Learning
Media - 10th edition
 LU3: Mark-up on cost price
14

 For example: Mark-up 25% on cost, selling price

R25 000

Cost price =
Selling price X (100/ (100 + mark-up))
20 000 = 25 000 X (100/ (100 + 25))
Compiled by Ina Frost LU 3 pp76-105 – 2022 edition - Accounting 1A textbook - Edge Learning
Media - 10th edition
 LU3: Gross margin (mark-up on selling price)
15

 For example: Gross margin 25% on selling price

and a selling price of R25 000

Cost price =
Selling price X ((100 gross margin)/100)
18 750 = 25 000 X ((100 – 25)/100)
Compiled by Ina Frost LU 3 pp76-105 – 2022 edition - Accounting 1A textbook - Edge Learning
Media - 10th edition
LU4 + 5: Cash and Credit journals
• Cashbook receipts (CBR) • All cash receipts
• Cashbook payments (CBP) • All cash payments
• Petty cash journal (PCJ) • Cash purchases from petty cash box
• Creditors journal (CJ) • All credit purchases
• Creditors allowance journal (CAJ) • Returns to creditors
• Debtors journal (DJ) • Credit sales of trading inventory
• Debtors allowance journal (DAJ) • Returns from debtors
• General journal (GJ) • Sundry transactions not in any other journal

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
LU6: Perpetual vs Periodic

Perpetual Periodic
 All purchases - inventory account  Purchases - separate account for
 All purchases returns - inventory purchases
account  Purchases returns - separate
 Custom duties, Import duties etc account
added to inventory  Custom duties, Import duties etc -
 Cost of sales = general ledger separate account
account (calculated with each sale  Cost of sales = calculation
or sales return)  Drawings against purchases
 Drawings - inventory account
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LU6: Perpetual vs Periodic

Perpetual Periodic
 Cost of sales = general ledger = Cost of sales
account (calculated with each + Opening inventory
sale or sales return) + Purchases (less returns)
+ Carriage/ railage/ freight
+ Import tariffs
+ Custom duties
Minus Closing inventory
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Remember to use the DEAD CLIC RULE for general
ledger accounts

DEAD CLIC
 Debit  Credit
 Expenses  Liabilities

 Assets  Income

 Drawings  Capital

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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
 DEAD CLIC RULE
DEAD Balance Increase Decrease
DEBIT
Expenses DR DR CR
Assets DR DR CR
Drawings DR DR CR

CLIC Balance Increase Decrease

CREDIT
Liabilities CR CR DR
Income CR CR DR
Capital CR CR DR
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shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
During the exam
 Read required first
 Don’t rush
 Stick to allocated time per question 1mark = 1minute
 Show all workings
 Write neatly – and in PEN
 Don’t round off – unless questions says so
 Don’t abbreviate
 REMEMBER TO BRING A CALCULATOR
These slides are the property of Ina Frost (Varsity College Sandton). They MAY NOT be copied,
shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.
Need help?

 Contact me via email

◼ifrost@iie.ac.za

These slides are the property of Ina Frost (Varsity College Sandton). They MAY NOT be copied,
shared (electronically or otherwise), distributed or uploaded to any web site, or WhatsApp group.