DLA 122

A1 – Project 2023
Examiners
H Schoonwinkel | P Mulandana

Deadlines
Part A Quiz: Monday 24 April 2023 at 09:00
Part B Quiz: Monday 01 May 2023 at 09:00
You only have one attempt at each quiz. Each quiz has a time limit of 70 minutes each.
Ensure that you will have enough time to complete each quiz before starting the quiz.
Students are strongly encouraged to attend the practical classes in which lecturers will be
available for assistance. Lecturers will not give you the answers to formulas you should use
but will guide you in the right direction when you are experiencing difficulties as to how you
should solve the problem.
Students are welcome to assist each other in their problem-solving process but may not
provide formulas or final answers to their peers. Plagiarism is considered a serious violation
of the University’s regulations, and the infraction by a student/group can be referred to the
Central Disciplinary Committee.

Part A
1. Setup steps
1.1 Assign names to the database as follows [5. Additional video: range labels]

Name Sheet Cell reference

Comm Setup B19:D29
Salaries Setup B32:C34
Tax Setup B9:E15

1.2 The headings (rows 1 to 5) of the GL sheet should be locked in place so that they are
always visible when scrolling down [refer to Chapter 1].
1.3 Set up the tax table in the Setup sheet (B9:E15) by using the following information [refer
to Chapter 7 on how to complete such a table]:
 TAX TABLE:
Taxable income (R) Rates of tax
0 – 195 850 18% of each R1
195 851 – 305 850 35 253 + 26% of taxable income above 195 850
305 851 – 423 300 63 853 + 31% of taxable income above 305 850
423 301 – 555 600 100 263 + 36% of taxable income above 423 300
555 601 – 708 310 147 891 + 39% of taxable income above 555 600
708 311 – 1 500 000 207 448 + 41% of taxable income above 708 310
1 500 001 and above 532 041 + 45% of taxable income above 1 500 000

2. Sales representatives
2.1 Calculate sales representative salaries (Reps sheet)

2.1.1 Basic salary: Calculate the basic salary for each representative for each month in
cells B4:M6, by looking it up from the setup sheet (the basic salary
would be the same for every month). [6. Additional video: Partial
Absolute Referencing]
2.1.2 Commission Commission is earned by each sales rep based on the sales he/she
: generated each month.
First, create a summary of the sales generated by each sales rep for
each month, by creating a PivotTable in cell A13 (as there won’t be
space to start the PivotTable there, first create the PivotTable in cell
P13, and then drag the completed PivotTable to cell A13). The sales
generated by each sales rep for each day can be found in the ‘Sales
data per rep’ sheet. [Hint: first add a column determining the
month of each transaction, before creating a PivotTable on the
dataset].
Next calculate the commission per sales rep per month in cells
B23:M25, by looking up the values as found in the pivot table
created in step 1, in the commission table found in the setup sheet.
2.1.3 Total salary: Calculate the total salary per sales rep per month in cells B30:M32,
by adding their basic salary and commission together. Then
calculate the total for each month for all sales reps together in row
33.
2.1.4 Taxation: Calculate the employee tax payable on each sales rep for each
month in cells B38:M40, using the annual tax table as provided.
Then calculate the tax payable for each month for all sales reps
together in row 41. For the purposes of this exercise, primary
rebates are ignored. [refer to Chapter 7 sliding scales]. [8.
Additional video: Taxation calculation]
2.1.5 Net salary: Calculate the net salary per sales rep per month in cells B46:M48,
by deducting their taxation from their total salary. Then calculate
the total net salaries for each month for all sales reps together in
row 49.
2.2 Record the journal entry

In the GL sheet we are presented with all the transactions recorded for the 2019 financial
year. The salaries related to the sales reps for March 2019 have not been recorded yet
(salaries related to other employees have already been recorded). Complete the journal
entry related to the salaries of the sales reps for March 2019 in the GL sheet in cells
A463:E465. Use “Reps3” as reference in column B [9. Additional video: Accounting for
salaries and taxation].

3. General Ledger & Trial Balance

3.1 Check GL journal balances

Before we add our GL entries for the 2019 financial year to our TB, we should perform a control test
to ensure that each journal entry balances. Create a summary of the total journal amount (column E)
per journal reference (B), by creating a PivotTable and placing it under the “Check balance 1” section
in the GLSUM sheet. As debits are represented as positive figures, and the credit entry as the
corresponding negative, each journal entry (uniquely identified by its ref) should sum to zero.
Identify all journal entries that do not balance, as the journal entries which do not sum to zero (note:
some amounts may appear as scientific notation, making it seem they are not zero. Change the
format of all numbers in your pivot table to accounting). For all entries that do not sum to zero, refer
to its original source document (folder containing pdf documents) to determine the correct journal
entry. These errors should be corrected NOT by altering the original GL entry, but rather creating an
additional journal entries in cells A466:E477. Use the same journal ref number (column B) used in
the original incorrect entry. First, record an entry that will reverse the previous incorrect entry. Then
thereafter record an entry for the correct entry, based on its source document.

To ensure that the GL now balances, reperform the summary of the journal amounts per journal ref,
by creating a PivotTable and placing it under the “Check balance 2” section in the GLSUM sheet.

3.2 Create summary of GL movements per account

Should your GL balance, it is now time to create a summary of the total GL movement (column E) per
account (column D). Do this by creating a PivotTable and placing it under the “Summary” section in
the GLSUM sheet.

3.3 Generate trial balance

Next, we will complete the trial balance for the 2019 financial year. Refer to the TB sheet. The
figures for the 2018 financial year (PY) is already given in column C. You need to complete the figures
for the 2019 financial year in column D. The trial balance values for the income statement accounts
should equal the total movement for the year from the GL. The trial balance values for the balance
statement accounts (except Retained income) should be the value of the previous year, plus the
total movement for the year for that account as found in the GL. Retained income should be
calculated as the previous year balance plus the net profit of the current year. Add formulas in cell
C50 and D50 that tests whether the trial balance for the balance statement accounts balance. [ 10.
Additional video: IFERROR function]

3.4 Generate income statement

Complete the income statement template as found in the IS sheet, by looking up the respective
values for each account from the trial balance. Note that line items which increases profit should be
displayed as a positive figure, whilst items which decreases profit should be displayed as a negative
figure.

3.5 Generate balance sheet

Complete the balance sheet template as found in the BS sheet, by looking up the respective values
for each account from the trial balance. Note that all figures in the balance sheet should be
displayed as positive figures. Ensure that your total assets agree to your total equity plus liabilities.

Part B
Please refer to the video provided on SUNLearn.