The Independent Institute of Education 2015

MODULE NAME: MODULE CODE:

ACCOUNTING B ACCO132

ASSESSMENT TYPE: TEST (PAPER ONLY)

TOTAL MARK ALLOCATION: 60 MARKS
TOTAL HOURS: 1 HOUR (+5 minutes reading time)
STUDENT NAME:
STUDENT NUMBER:
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Five (5) minutes per hour of the assessment to a maximum of 15 minutes is dedicated to
reading time before the start of the assessment. You may make notes on your question
paper, but not in your answer sheet. Calculators may not be used during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are allowed
3. Answer All Questions.
4. Ensure that you have received a special answer booklet (with forms drawn up) for entering
your answers. If you have not received an answer booklet, request one from the invigilator
before starting the assessment. Answer all questions in the answer booklet provided.
5. Show all calculations, where applicable (marks may be awarded for this).
6. Present your answers in a NEAT and LEGIBLE format.

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Question 1 (Marks: 20)

The following was taken from the books of Mel Stores for April and May 2015:

BANK RECONCILIATION STATEMENT AS AT 30 APRIL 2015:

Details Amount
Balance as per bank statement 33 450

Less: Outstanding cheques:

Cheque no. 320 (2 250)
Cheque no. 321 (2 940)
Cheque no. 322 (3 920)

Add: Outstanding deposits

Deposit 31 4 140

Balance as per bank account (favourable) in general ledger 28 480

The following contains sections of the Cashbook Receipts/ Cash Receipts Journal and Cashbook
Payments/ Cash Payments Journal for May 2015 (Note: All columns are not shown, only the date,
document numbers and bank column amounts are shown):

CASHBOOK RECEIPTS/ CASH RECEIPTS JOURNAL FOR MAY 2015 (CBR/ CRJ)

Date: Document number: Bank amount

1 Deposit 32 12 120
2 Deposit 33 10 010
5 Deposit 34 4 630
7 Deposit 35 6 290
11 Deposit 36 3 930
24 Deposit 37 6 920
31 Deposit 38 10 020
TOTAL: 53 920

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CASHBOOK PAYMENTS/ CASH PAYMENTS JOURNAL FOR MAY 2015 (CBP/ CPJ)

Date: Document number: Bank amount

2 Cheque 323 3 125
4 Cheque 324 4 195
6 Cheque 325 4 685
10 Cheque 326 12 080
12 Cheque 327 11 035
TOTAL: 35 120

BANK STATEMENT FROM ZA BANK FOR MAY 2015

DATE DESCRIPTION/ DETAILS DEBIT CREDIT BALANCE

(PAYMENTS) (RECEIPTS)
1 Balance 33 450 Cr
1 Cheque 321 2 940 30 510
1 Deposit 31 4 140 34 650
2 Deposit 33 10 010 44 660
2 Cheque 322 3 920 40 740
5 Deposit 34 4 630 45 370
5 Cheque 323 3 125 42 245
6 Cheque 324 4 195 38 050
7 Deposit 35 6 290 44 340
11 Deposit 36 3 930 48 270
12 Cheque 325 4 685 43 585
23 Direct deposit (P. Hammond) 6 970 50 555
26 Monthly service fee 1 560 48 995
30 Stop order: AZ Insurance 6 920 42 075
31 Return to drawer (R/D) Deposit 31 4 140 37 935 Cr
(J. Jones)

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The Independent Institute of Education 2015

Additional Information:
1. Cheque number 320 is stale and must be cancelled. The cheque was made in favour of Coco
Suppliers, a creditor.
2. The direct deposit received on the 23rd May is from P. Hammond, for dividends received
from his company.
3. The stop order for the 30th May, for AZ Insurance, is for the insurance premium for the
business.
4. The R/D (dishonoured cheque) that appears on the bank statement on the 31st May is for J.
Jones, a debtor.

Compare the previous month’s bank reconciliation statement, the current month’s Cashbook
Receipts and Cashbook Payments with the current month’s bank statement provided. Once you
have established the reconciled items, use the information provided to complete the following for
the unreconciled items that should subsequently appear either in the general ledger account or
the bank reconciliation statement.

Q.1.1 Record any differences identified in your bank reconciliation process in a (7)
supplementary cashbook receipts and payments with columns provided in your
answer book only for details and bank amount (dates are not required).

Begin with the totals provided for each Cashbook before displaying any
amendments.

Q.1.2 Open, post to and balance the bank account in the general ledger. (6)

Q.1.3 Compile the bank reconciliation statement as at 31 May 2015. (7)

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The Independent Institute of Education 2015

Question 2 (Marks: 20)

The following information relates to Diva Traders for the month of May 2015.

INFORMATION:
1. Debtors control balance on 1 May: R31 120.
2. Partial list of Debtors on 1 May:
T. Jade R9 670
J. Norton R7 690
3. Parts of the Subsidiary Journals for the month of May:

DEBTORS JOURNAL DJ1

Doc no. Day Details (Debtor) Debtors Sales Output Cost of

control Vat sales
12 2 T. Jade 7 980 7 000 980 4 375
13 6 J. Norton 5 700 5 000 700 3 125
14 10 J. Norton 4 560 4 000 560 2 500
15 14 T. Jade 6 840 6 000 840 3 750
25 080 22 000 3 080 13 750

Ledger postings: ? ? ?

GENERAL JOURNAL GJ1

Doc no. Day Details DEBIT CREDIT

JV1 31 Debtors control (J. Norton) 90
Interest income 90
(Interest on overdue account charged to J.
Norton)

JV2 31 Credit losses/ bad debts 500

Input VAT 70
Debtors control (K. Smith) 570
(K. Smith, a debtor, written off as bad debt)

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DEBTORS ALLOWANCES JOURNAL DAJ1

Doc no. Day Details (Debtor) Debtors Sales Input Cost of

control returns Vat sales
90 3 J. Norton 2 280 2 000 280 1 250
91 9 T. Jade 3 420 3 000 420 1 875
5 700 5 000 700 3 125
Ledger Postings: ? ? ?

CASHBOOK RECEIPTS/ CASH RECEIPTS JOURNAL CBR1

Receipt Day Details Bank Debtors Sales Output Cost of

no. control Vat sales
35 13 T. Jade 10 000 10 000
36 14 J. Norton 12 000 12 000
22 000 22 000

Ledger postings: ? ?

Q.2.1 Take all the necessary information into account and complete the posting to the (9)
Debtors Control account in the General Ledger for May.

Q.2.2 Complete the Debtors Ledger account for J. Norton for May 2015. Debtors’ ledger (11)
codes are not required. Folios are required.

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Question 3 (Marks: 20)

Consider the following scenario with respect to asset disposal for Bella Stores. You are required to
draw up the specified accounts only for the financial year ending 28 February 2015 (all amounts
that apply before the current financial year must be reflected as balances brought forward).

On 1 March 2012, equipment was purchased for R560 000 cash. Depreciation is calculated at 10%
per annum, using the straight line method. On 28 February 2015 (end of the financial year), the
equipment was sold cash to John Williams (a client) for R380 000.

Prepare the following general ledger accounts in the books of Bella Stores for the financial year
ending 28 February 2015:
 Equipment (4);
 Accumulated depreciation (6);
 Depreciation (2);
 Asset disposal (8) (Note: A workings section is provided for this question. You may use this
for your workings, which will assist in allocating method marks for this question).

Note: You need not balance these accounts accept for the asset disposal account to calculate the
profit or loss on disposal.

END OF PAPER

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