Main exam 2023 memo

Question 1

a)
Mabula Traders
Statement of profit or loss for the year ended 20.22
Sales 403,700 1
Cost of Sales 201,850 1
GROSS PROFIT 201,850
Other Income 26400 + 14000 41,250
Rent received 36900-(3*200)=36300/11=[3300 per month before increase x 8] + [4x 3500] 40,400 2
Allowances for credit losses adjustment [(49500-500)*5% -3300] R850 can also be deducted from credit losses under expenses 850 2
Expenses 150,460
Salaries (104258 + 200) 104,458 2
Insurance [4950 -(1500*4/12) 4,450 2
Stationery (792 -220) 572 2
Credit losses (1320 +500) -850 then final answer for 4 marks will be R970 1,820 2
Interest on bond (132 000*18%) 23,760 1
Depreciation (9900 +5500) 15,400 2

PROFIT FOR THE YEAR 92,640 17

b)
Mabula Traders
STATEMENT OF FINANCIAL POSITION AS AT
ASSETS

Current assets 162,420

Inventory 55,000 1
Trade and other receivables [(49500-500-2450)+3500+500+220 50,770 6
Cash and cash equivalents 56,650 1
#REF!

c) 8
Mabula Traders
Statement of changes in equity for the year ended 20.22
Balance on the last day of previous year 274,620
Profit (loss) for the year 92,640
Drawings for the year -44,000
Balance on the last day of the current year 323,260

d)
Assets are defined as a present economic resource, controlled by the entity as a results of past events.
For assets to be recognised in financial statements, they must have a cost or value which can be reliably measured;
and it must be probable that future economic benefits associated with the item will flow to the business.
The owner's mechanical knowledge and skills do not have a cost or value that can be reliably measured, and
consequently they do not qualify to be registered as an asset in accounting terms. 5

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EACC1614 2023 MAIN EXAM

Question 2

1 Inventory (SFP) 6,402,500 (100/115*7 362 875)

VAT input (SFP) 960,375 (15/115*7 362 875)
Payables control/ Payable/Creditors (SFP) 7,362,875 6.0 (1000*7 475)*98.5%

11 Receivables control/Receivable (SFP) 5,337,150

Sales (SPL) 4,455,360 (96%*5 337 150 *100/115)
Allowance for discount (SFP) 213,486 7.0 (4% * 5 337 150)
VAT output (SFP) 668,304 (15/100*4 455 360)or (15/115*96%*5 337 150)

11 Cost of Sales (SPL) 3,570,000 5337150*100/115*100/130

Inventory (SFP) 3,570,000 4.0

14 Drawings (SCE) 18,046 (11730*100/130)*2

Inventory (SFP) 15,692 6.0 (100/115*9023)*2
VAT input (SFP) 2,354 (15/115*9023) or 15% *7846*2

16 Bank (SFP) 5,175

Rent income (SPL) 4,500 (100/115*5175)
VAT output (SFP) 675 5.0 (15/115*5175)

25 Bank (SFP) 5,123,664 (5337150-213486)

Allowance for discount (SFP) 213,486 6.0
Receivables (SFP) 5,337,150

34.0
* If journals are switched around (crediting account that should be debited
etc.) then the mark is lost for the entry name, but calculations can still be
marked.

* If account names are given without an indication of the financial statement

or an incorrect indication of the financial statement, the marks are
awarded for the journal names but a penalty of 1 per transaction is given.

* if one indication ( ) is wrong or omitted per date/journal do not deduct 1

if two or more indications ( ) are omitted or wrong per date/journal deduct 1
* if ledger accounts and not journals mark and deduct one per date/journal
Main exam 2023 memo
Question 3

(a) Updated cash book

Balance c/f 53,800 Total payments 135,215
Total receipts 101200 Deposit corrected (19500-15500) 4000 if any of balance total receipts or
EFT 297 2700 Petrol 1400 total payments omitted, deduct 1
Interest 260 Bank charges 825
Balance 16,520
157,960 157,960
Balance 16,520 7

Bank reconciliation statement as at 31 July 20.22

(b) Debit Credit
Cr Balance as per Bank statement 67,020 mwe
Outstanding deposit: 29,500
Dr Outstanding EFT: No. 350 4,200
No. 351 3,800
Correction: Unic College 72,000
Dr Balance as per Cash Book 16,520 mwe if same as above
96,520 96,520
6

13

* contra account/ discriptions not important, only mark amounts