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MODULE NAME: MODULE CODE:

BOOKKEEPING A BOOK5111/d/p
BOOKKEEPING A BKKA018
INTRODUCTION TO ACCOUNTING 1A INAC5111/d/p/w

ASSESSMENT TYPE: REVISED EXAMINATION‐PAPER ONLY

TOTAL MARK ALLOCATION: 120 MARKS
TOTAL TIME: The time given to students to complete this assessment will be
indicated on your module in Learn.
By submitting this assessment, you acknowledge that you have read and understood all the rules as
per the terms in the registration contract, in particular the assignment and assessment rules in The
IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism rules in the
Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in the student
portal.

INSTRUCTIONS:
1. Please adhere to all instructions. These instructions are different from what is normally
present, so take time to go through these carefully.
2. Independent work is required. Students are not allowed to work together on this assessment.
Any contraventions of this will be handled as per disciplinary procedures in The IIE policy.
3. No material may be copied from original sources, even if referenced correctly, unless it is a
direct quote indicated with quotation marks.
4. This is an open‐book assessment.
5. Assessments must be typed unless otherwise specified.
6. Ensure that you save a copy of your responses.
6.1 Complete your responses in a Word document unless otherwise specified.
6.2 The document name must be your name.student number.Module Code.
6.3 Once you have completed the assessment, upload your document under the
submission link in the correct module in Learn.
Additional instructions:
 Calculators are allowed.
 Answer All Questions.
 Show all calculations, where applicable (marks may be awarded for this).

 You will only be able to submit scanned/photo of handwritten document or Microsoft word
documents.
 You may use Excel. If Excel is used, then all calculations must be shown in order to receive
method marks.

7.1. If you are using a Word Document:

 Please see the answer booklet included as part of this assessment.
 Tables have been created for you to complete.

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 Use the following to reflect your calculations:

 Multiply x – small letter x or *.
 Division/forward slash.
 Addition and subtraction + and ‐.
 Square roots and equations – using the function insert ‐ equation.
 Tables – using the function insert – table.
 Working with tables – use merge and split cell functions through right click function.
 Fitting tables to pages – Autofit to window/content through right click function.
 Layout of table – Section breaks and landscape orientation through layout – breaks and
layout orientation in the ribbon.
 If you are not familiar with all the functions in Word, it is recommended that you rather do a
hardcopy if possible.
 The document name must be your name.student number.Module Code.
 Once you have completed the assessment, upload your document under the submission link
in the correct module in Learn.

7.2. If you are completing in a hardcopy/by hand:

 You need to create the answer booklet on your piece of paper.
 Ensure that all your pages are numbered on the top right hand side of the page – e.g. 1 of 12.
 Perform your calculations as you normally would. Please work neatly so that you do not lose
marks because your lecturer cannot read your writing.
 Either (i) Scan your pages OR (ii) photograph your pages. Ensure that the pages are in the
correct order.
 Label your photographs as follows: name.student number.Module Code.Page 1; (for each
page).
 Once you have completed the assessment, upload your document under the submission link
in the correct module in Learn.

© The Independent Institute of Education (Pty) Ltd 2020

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Question 1 (Marks: 10)

Q.1.1 For each of the following independent scenarios, indicate whether or not the item (5)
will be included in the cost of inventory for the vendor selling the goods in question
by placing an X in the correct column:
Scenario Yes No
Salaries of Sales staff
Salaries of Factory staff
The cost of storing our product before it gets
sold
The fuel of a vehicle which a delivery person
uses to deliver food to customers
Import tariffs paid on the imported raw
material used in the manufacture of the
business’s product

Q.1.2 Complete the following table by calculating the missing values. (5)
Mark‐up on cost Cost price Profit Selling Price
(excluding VAT) (excluding VAT) (excluding VAT)
20% R80
R150 R45 R195
140% R168

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Question 2 (Marks: 25)

The following balances appeared in the books of Tamashi Foods as at 31 March 2020, the last day
of the financial year of the business:
R
Capital ‐ 1 April 2019 ?
Equipment 300 000
Bank 150 000
Fixed Deposit (Matures on 31 December 2021) 30 000
Petty Cash 5 000
Trading Inventory 10 000
Cash Float 2 000
Credit Card Account 38 000
SARS (UIF/SDL/PAYE) 12 000
Sales 400 000
Sales Returns 12 500
Cost of Sales 215 000
Service Income 30 000
Credit Losses 6 000
Insurance 6 500
Bank Charges 1 200
Electricity 8 000
Postage and Stationery 800
Creditors Control 14 000
Debtors Control 20 000
Drawings 1 500
Rent Income 25 000
Mortgage Loan 60 000

Required:

Q.2.1 Calculate the total assets as at 31 March 2020. (8)

Q.2.2 Calculate the total Liabilities as at 31 March 2020. (5)

Q.2.3 Calculate the net profit/loss for the year ended 31 March 2020. (12)

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Question 3 (Marks: 50)

Below are the transactions for Snelkom LTD for December 2019. Snelkom is a registered VAT Vendor
and trades only with VAT Vendors. All amounts include VAT except if otherwise indicated. The
applicable VAT rate is 15%. The business makes use of a perpetual inventory system and applies
different mark‐ups on transactions. All discounts are incidental in nature.

Source document codes are:

 “OIN” ‐ Renumbered original Invoices
 “DIN” – Duplicate Invoices
 “OCN” – Renumbered Original credit Note
 “DCN” – Duplicate credit Notes
 “CC” – Renumbered cheque counterfoils
 “DCS” – Duplicate Cash Slips
 “RT” – Renumbered duplicate receipts
 “JV” – Journal vouchers
 “PCV” – Petty cash voucher
Date Details Source Description Amount
Document (R)
No
1 Cash CC01 Replenishment of monthly petty 1 000
cash.
4 Lewis Tech. CC02 Trading inventory purchased using 25 000
cash.
7 Vellis Repairs co. CC03 Repairs to the office door. 1 500
10 Tucker Connect. CC04 Trading inventory purchased. 12 000
13 Novacat. OIN01 Bought office furniture on credit to 20 000
the value of R20 000.
16 Tama Stores CC05 Bought four laptops for use by the 28 000
sales staff.
19 RATM CC. CC06 Bought birthday cakes for staff 550
birthday celebrations.
14 Walter Snell DCS01 The owner made a capital 40 000
contribution in cash to the business.

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The deposit was made directly into

the bank account.
25 Wuta labour brokers CC07 Paid wages for the month. 9 000
26 Courts Telecoms RT01 Goods sold for R10 000 cash, the ?
gross margin on the goods was 40%.
27 Kipmoge Phones RT02 Goods sold for R74 000 cash, the ?
mark up on cost of these goods was
10%.
29 B/S Interest earned on the positive bank 130
balance at XYZ Bank.

Cash is banked on a daily basis.

Required:

Prepare the following Journals for December 2019:

Round to two decimals.

Q.3.1 Cashbook Receipts. (19)

Q.3.2 Cashbook Payments. (27)

Q.3.3 Creditors Journal. (4)

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Question 4 (Marks: 10)

You are provided with opening balances for the following general ledger accounts for Snelkom Ltd.
Opening balance for the accounts on 1 December 2019:

Bank R 6 000
Creditors Control R 4 000

Required:

Use your answers in Question 3 to complete the following ledger accounts as they should appear
in the general ledger for December 2019:

Balance all accounts.

Q.4.1 Bank Account (6)

Q.4.2 Creditors Control Account (4)

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Question 5 (Marks: 25)

Provided below are transactions for On the Path LTD for June 2019. On the Path LTD is a registered
VAT vendor that trades only with other registered vendors that are able to supply them with valid
tax invoices. The business uses a periodic inventory system. The following information relates to
transactions that On the Path LTD entered into during June 2019, which affected the General
Journal. The most recent journal entry was JV87. All amounts include VAT, except if otherwise
noted. The VAT rate is 15%.

1. The owner, K Thomps, contributed machinery to the business to the value of R15 000 (All
legislative requirements have been met for the full VAT amount to be claimed).
2. 5% settlement discount received from Gocko traders a creditor for settlement of the
outstanding account of R20 000.
3. The owner took goods for personal use to the value of R2 500 including VAT. The mark up on
cost was 20%.
4. Path LTD was charged interest by a creditor on an overdue account, the interest amounted
to R550.
5. It was realised that a delivery vehicle purchased during June 2019 was erroneously debited
to the electricity account, the amount was R15 000. Correct the error. You can assume that
the VAT was correctly accounted for.

Required:

Prepare the general journal of On the Path LTD for June 2019 in order to record the transactions
where necessary.
You can assume that the transactions were correctly recorded in the other journal where applicable.
Journal narrations is not required.
Show all workings.
Round to two decimals.

END OF PAPER

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