ACCRUALS : VRAAG DING DONG QUESTION DING DONG

DING DONG provides plumbing services to a number of large organisations in the

Sandton area. The bookkeeper is recording all transactions on the Cash basis and was
surprised to learn that he should have used the Accrual basis of Accounting. He
approached you to help him sort out the following transactions which took place in
January 2015:

DING DONG verskaf loodgieter dienste aan ‘n aantal groot ondernemings in die
Sandton gebied. Die Boekhouer verantwoord alle transaksies op die Kontant Basis en
was verras om uit te vind dat hy eintlik die Toevallings basis moet gebruik. Hy nader u
om hom te help om die volgende transaksies, wat in Januarie plaasgevind het, korrek
te boek te stel.
1. As gevolg van probleme wat DING DONG in die verlede ondervind
het met hulle rekenaars en sagte ware , het hulle Compra , ‘n
onderneming wat rekenaar ondersteuningsdiente lewer,
gekontrakteer. Compra hef ‘n maandelikse fooi van R 3 420 of ‘n
jaarlikse fooi van R 34 200, vooruit betaalbaar op 1 Januarie van
elke jaar. DING DONG het die laaste opsie verkies en het die
jaarlikse fooi op 1 Januarie 2015 betaal.
1. Due to problems experienced in the past with their computers,
they have entered into a contract with Compra , a company who
provides back – up and support services with regards to the
hardware and software maintenance of their machines. Compra
charges a monthly fee of R 3 420 . An alternative option exist to
pay an annual fee of R 34 200 in advance at 1 January of each
year. DING DONG selected this option and paid for the services on
1 January 2015.
2. DING DONG entered into a service contract with a large Hotel Group, whereby
maintenance and repair work will be done for a 3 month period, commencing on the 15th
of January, for an amount of R 30 780. The Hotel paid DING DONG in terms of the contract
50% up front. The rest of the money will be paid at the end of the contract. The required
amount was received at the commencement date of the contract.

2. DING DONG het ‘n diens- en instandhouding loodgieterskontrak vir 3

maande met ‘n groot Hotel Groep aangegaan op 15 Januarie 2015. Die volle
bedrag van die kontrak is R 30 780. In terme van die kontrak is 50%
betaalbaar by die aanvang van die kontrak ( 15 Januarie) en die res sal
gevorder word aan die einde van die kontrak. Die Hotelgroep het die
ooreengekome bedrag op die ooreengekome datum betaal.
3. DING DONG provided plumbing services to a Restaurant on the 30th of
January for R 6 270. The money was received on the 5th of February for
services rendered. At 31 January no invoice had been issued yet.

3. DING DONG het loodgieter dienste aan ‘n Restaurant gelewer op 30

Januarie 2015 ten bedrae van R 6 270. Die geld is op die 5e Februarie ontvang.
Geen faktuur is nog uitgereik op 31 Januarie nie.

4. On 31 January DING DONG received their Electricity Account for the month
of January for R17 100. The bill was settled on the 4th of February.

4. Op 31 Januarie ontvang DING DONG sy Elektrisiteitsrekening vir die maand

van Januarie vir R 17 100. Die rekening word op 4 Februarie vereffen.

GEVRA : REQUIRED : Journal Entries for above transactions. Joernaal

inskrywings vir bg. (DING DONG IS ‘N BTW ONDERNEMER, SO OOK SY
KLANTE EN VESKAFFERS) DING DONG IS A VAT VENDOR, AS WELL AS HIS
SUPPLIERS & CLIENTS)
 DING DONG PLUMBERS/ LOODGIETERS
JOERNAAL VIR JANUARIE 2015 / JOURNAL FOR JANUARY 2015

1. Rekenaar Uitgawes / Computer Expenses Dr 2 500

Vooruitbetaalde Uitgawes / Prepaid Expenses Dr 27 500
(34 200 / 1.14 = 30 000) (30 000 / 12 = 2 500) (30 000 – 2 500)
BTW INSET / VAT INPUT (34200÷1.14 x 0.14) Dr 4 200
Bank Cr 34 200

NEXT MONTH

Rekenaar Uitgawes / Computer Expenses Dr 2 500

Vooruitbetaalde Uitgawes / Prepaid Expenses Cr 2 500

34 200 / 1.14 = 30 000 30 000 / 12 = 2 500

2. Bank Dr 15 390
Diensfooie ontvang / Service Fee Income Cr 4 500
Vooruitontvangde Inkomste / Income received in Advance Cr 9 000
BTW Uitset Cr 1 890

NEXT MONTH
Vooruitontvangde Inkomste / Income received in Advance Dr 9 000
Diensfooie ontvang / Service Fee Income Cr 9 000

30 780 * 50% = 15 390 30 780 / 1.14 = 27 000 for 3 months

15 390 / 1.14 = 13 500 = 9 000 per month
Vat = 13 500* 14% = 1 890 = 4 500 for half month

27 000 * 50% = 13 500

13 500 – 4 500 = 9 000
3. Opgelope Inkomste /
Accrued Income Dr 5 500 6270/1.14 = 5 500
Diensfooi Inkomste /
Service fee income Cr 5 500

NEXT MONTH ( INVOICE WAS ISSUED)

Debiteurskontrole /
Debtorscontrol Dr 6 270
BTW Uitset /
VAT Output Cr 770
Opgelope Inkomste /
Accrued Income Cr 5 500
4. Elektrisiteitsuitgawe /
Electricity expense Dr 15 000
BTW Inset /
Vat Input Dr 2 100
Opgelope Elektrisiteitskoste/
Accrued Electricity Expense Cr 17 100

NEXT MONTH
Opgelope Elektrisiteitskoste/
Accrued Electricity Expense Dr 17 100
Bank Cr 17 100