Calculators/Sakrekenaars: Yes/Ja

Requirements for this paper/Benodigdhede vir hierdie vraestel: Other resources/Ander hulpmiddels:
Answer scripts/ X Multi-choice cards (A5)/
Antwoordskrifte: Multikeusekaarte (A5):
Attendance slips (Fill-in paper)/ Multi-choice cards (A4)/
Presensiestrokies (Invulvraestel): Multikeusekaarte (A4):
Scrap paper/ Graph paper/
Rofwerkpapier: Grafiekpapier:

Type of assessment/Tipe assessering: CLASS TEST 3 Qualification/Kwalifikasie: B COM, and other

Module code/Modulekode: ACCF111 Duration/Tydsduur: 100 MINUTES

Module description/Modulebeskrywing: FINANCIAL ACCOUNTING Max/Maks: 50 MARKS

Examiner(s)/Eksaminator(e): MRS P MOYO Date/Datum: 22 May 2023
MRS H VORSTER
MRS M WEYERS
MR M SHAIKHNAG
Internal/Interne moderator(s): MR P BREESCHOTEN Time/Tyd: 16H00

Submission of answer scripts/Inhandiging van antwoordskrifte: Afrikaans and English papers seperately please.

Instructions:
1. Students are not allowed to handle cell phones during the test and cell phone accessories, including but
not limited to earpieces, are not allowed.
2. Students must put their bags in front of the venue.
3. Students are subject to disciplinary procedures should they:
 have books or notes in their possession (except during open book examinations);
 attempt to assist another student or attempt to obtain assistance from any student.
4. No student is allowed to leave the examination venue before half an hour of the examination session has elapsed.
5. No refreshments are allowed in the examination venue.
6. No pages may be removed from the answer scripts.
7. Before students leave the examination venue, answer scripts must be handed to the invigilators.
8. The attendance slip that also serves as proof of undertaking must be completed.
9. Notes may be made on the question papers.
10. All answers must be written in black or blue ink – pencil will not be marked.
11. All the questions must be answered.
12. Show all calculations and round off to the nearest Rand.
13. The number of marks indicated opposite the requirement(s) provides an indication of the length and
detail required for your answer.
14. Answer the questions by making use of:
 effective ordering and exposition,
 meaningful explanations,
 logical arguments, and
 non-dubious and concise language use
15. Start each section of a question on a new page.

CONTENTS MARKS MINUTES

Question 1 – PPE, debtors, creditors and inventory 41.0# 82
Question 2 – Bank reconciliation 9.0# 18
# Includes half marks
Disclaimer: All names of persons, places and business entities mentioned in this examination paper are fictitious
and any resemblance to real persons, living or dead, places and business entities is purely coincidental.

ACCF111 – CLASS TEST 3 - 2023 1/6

QUESTION 1 (41 Marks; 82 Minutes)

Assume a value-added tax (VAT) rate of 15%.

Xtra Large Technologies sells a variety of information technology gadgets to the public and has
a 31 December financial year end. The entity is a registered VAT vendor.

The following information is provided to you:

Xtra Large Technologies

Pre-adjustment trial balance
As at 31 December 2022
DR CR
R R
Capital 1 096 922
Drawings 79 500
Land and buildings 1 200 000
Fixed deposit: ABBA Bank 120 000
Motor vehicles (01/01/2022) 800 000
Machinery (01/01/2022) 750 000
Office equipment (Printer) 15 000
Accumulated depreciation: Motor vehicles (01/01/2022) 550 000
Accumulated depreciation: Machinery (01/01/2022) 205 000
Debtors 510 000
Allowance for credit losses 14 000
Creditors 725 000
Bank 15 022
Trading stock 280 000
Loan 800 000
Sales 2 512 000
Interest received on fixed deposit: ABBA Bank 3 000
Rent income 25 000
Administration expenses 110 900
Cost of sales 1 920 000
Salaries 120 000
Internet fees 4 500
Water and electricity 6 000
5 930 922 5 930 922

Additional information:

1. Trading stock amounting to R15 800 (VAT inclusive) was damaged by water due to a water
pipe that burst in the storeroom on 30 November 2022. The damaged trading stock had no
value and had to be discarded. This transaction has not yet been recorded.

The net realisable value of the trading stock on 31 December 2022 amounted to R270 000.

2. A debtor, Mr Khumalo owing R18 800 was declared insolvent. Xtra Large Technologies
received 35 cents in the rand as final payment and the remainder must be written off as
ACCF111 – CLASS TEST 3 - 2023 2/6
 irrecoverable. Neither the amount received, nor the amount written off as irrecoverable has
not yet been recorded.
3. It is the policy of Xtra Large Technologies to make use of an allowance for credit losses
account. The allowance for credit losses must be adjusted to 8,5% of outstanding debtors
at year end.

4. A tenant has been experiencing financial problems and as a result only 10 months of rent
was received for the year. The outstanding rent still needs to be recorded.

5. Internet subscription was paid on 1 January 2022 for 13 months.

6. Xtra Large Technologies hired a marketing consultant, Tracy Mopane, on 1 December 2022
to work on their visibility, social media and market footprint campaign. On
31 December 2022, it was discovered that her salary for December month was omitted
from the payroll. Her gross salary is R4 200 per month and PAYE is levied at 18%. Her
medical aid deduction is R888 per month and she contributes 7,5% of her gross salary to a
pension fund and 1% to UIF. The employer contributes on a rand-to rand-basis on medical
aid, pension fund and UIF.

7. Water and electricity for December 2022 amounting to R1 350 (VAT inclusive) will be paid
on 7 January 2023.

8. On 1 September 2022, Xtra Large Technologies invested R120 000 in a fixed deposit
account at ABBA Bank at a rate of 10% per annum.

9. The following information still needs to be taken into account:

 Depreciation on vehicles must be provided for at a rate of 20% per annum using the
diminishing balance method.

On 1 June 2022, an old vehicle with a cost price of R75 000 (VAT inclusive) and an
accumulated depreciation of R38 000 on 1 January 2022, was traded in for a new
vehicle costing R150 000 (VAT inclusive).

 Depreciation on machinery must be provided for at a rate of 18% per annum on the
straight-line method to a residual value of R50 000.

 The entity bought a printer (office equipment) on 1 March 2022 for R15 000 from a non-
VAT vendor. The purchase of the printer was correctly recorded in the accounting
records of Xtra Large Technology when it was bought. The entity makes use of the unit
of production method to calculate depreciation. The printer has a useful life of 200 000
pages it can print before it needs to be replaced. During the current financial year,
15 000 pages were printed. The machine has a residual value of R1 000 at the end of its
useful life.

10. The VAT control balance as at 31 December 2022 was correctly calculated as R8 400
(credit balance) after all the above transactions has been taken into account.

ACCF111 – CLASS TEST 3 - 2023 3/6

 MARKS
REQUIRED: QUESTION 1: Sub-
Total
total
1. Prepare the following notes to the financial statements of Xtra
1 Large Technology for the financial year ended 31 December 2022:

 Property, plant and equipment (Total column is not required) 22.5

 Inventory 3.0
 Trade and other receivables 7.0
 Trade and other payables 7.5

Communication skills – presentation and layout 1.0 41.0

Comparative figures are not required.

TOTAL MARKS 41.0

ACCF111 – CLASS TEST 3 - 2023 4/6

QUESTION 2 (9 Marks; 18 Minutes)

Happy Accessories is a small store that sells bracelets, earrings and charms to customers. The
owner Jess is also doing the bookkeeping of the business herself and was struggling with the
bank reconciliation for the month of June. She called you in as an accountant to assist her with
reconciling the bank account in the general ledger with the business bank statement.

The bank reconciliation as at 31 May 2022 has been correctly prepared as follows:

R
Balance per bank statement (Unfavourable) (3 500)

Less: EFT’s not appearing on the bank statement:

EFT payment date: 22/05/2022 (510)
EFT payment date: 28/05/2022 (750)
EFT payment date: 30/05/2022 (650)
Add: Outstanding deposits not appearing on bank statement 4 500
Balance per bank account in general ledger (910)

The following differences were discovered when reconciling the bank account in the general
ledger with the bank statement received from the bank for June 2022:

1. With regards to the outstanding EFT’s on 31 May 2022, only the EFT payment dated
22/05/2022 and EFT payment dated 28/05/2022 appeared on the June bank statement.
Regarding the EFT payment dated 30/05/2022, it was discovered that the payment that was
made to a supplier, has closed their business operations and their bank account, and
therefore the EFT payment did not appear on the bank statement of Happy Accessories.

2. The following EFT’s were made in June and are not appearing on the bank statement:
 Payment for R6 013 (payment date: 25/06/2022)
 Payment for R5 536 (payment date: 27/06/2022)

3. The following entries appeared on the June bank statement but have not yet been
processed in the bank account in the general ledger of Happy Accessories:
 A debit order for an insurance premium of R1 300 on 7 June 2022.
 An amount of R910 that was previously received from a customer in payment of his
account which was returned by the bank as unpaid.
 Interest on overdraft R101.
 Service fees R88.

4. A deposit in respect of an amount received from a debtor is correctly appearing on the bank
statement as R9 681 but was recorded in the cash receipts journal as R9 861.

5. An EFT payment made by the owner from his personal bank account for R3 100, was
erroneously debited by the bank to the business bank account.

6. The bank statement received for June month shows a credit balance of R13 610 on
30 June 2022. The bank statement for June also shows a deposit of R8 000 received from
a tenant on 29 June 2022 regarding rental income which has not been recorded in the
accounting records of Happy Accessories.

ACCF111 – CLASS TEST 3 - 2023 5/6

 MARKS
REQUIRED: QUESTION 2: Sub-
Total
total
2.1 Prepare the bank account in the general ledger of Happy Accessories
for the month ended 30 June 2022. 5.5

Communication skills – presentation and layout 0.5 6.0

2.2 Prepare the bank reconciliation statement in the accounting records of
Happy Accessories for the month ended 30 June 2022. 2.5

Communication skills – presentation and layout 0.5 3.0

TOTAL MARKS 9.0

TOTAL: 50 MARKS

***END OF PAPER***

ACCF111 – CLASS TEST 3 - 2023 6/6