Ass 4 answers FAC1503-21-S1-10E Online Assessment PDF

Preview

Summary

1/ 1 Points0/ 1 Points1/ 1 Points0/ 1 Points4 Assignment 4RETURN TO ASSESSMENT LISTPart 1 of 10 - Part 5 5/ 9 PointsQuestion 1 of 28 To calculate the depreciation, the residual value must first be deducted from the cost of the asset before the depreciation rate is applied.True FalseAnswer Key: True...

Description

myModules myAdmin

FAC1503-21-S1-10E / Online Assessment

Online Assessment Online Assessment

4 Assignment 4 RETURN TO ASSESSMENT LIST

Part 1 of 10 - Part 5

5.0/ 9.0 Points

Question 1 of 28 To calculate the depreciation, the residual value must first be deducted from the cost of the asset before the depreciation rate is applied.

1.0/ 1.0 Points



True False

Answer Key: True Feedback: Refer to learning unit 3.3.2 Question 2 of 28 0.0/ 1.0 Points The information recorded in the subsidiary ledgers (debtors’ ledger and creditors’ ledger) and to relevant accounts in the general ledger is used to make postings to the cash receipts journal and cash payments journal.



True False

Answer Key: False Feedback: Refer learning unit 4.5.1 Question 3 of 28 Under the periodic inventory system, the purchase of inventory is recorded in a separate account known as the cost of sales account.



1.0/ 1.0 Points

True False

Answer Key: False Feedback: Refer to learning unit 3.2.2 Question 4 of 28 VAT is a tax added to the cost of a product or service and is levied for purposes of generating additional revenue for the business.



True False

0.0/ 1.0 Points

Answer Key: False Feedback: Refer to study unit 3.4.2 Question 5 of 28 A ledger account is a detailed record of all the transactions that relate to a specific item, for example 0.0/ 1.0 Points Computer Equipment, Fees, Advertising etc.



True False

Answer Key: False Feedback: Refer to learning unit 5.5 Question 6 of 28 When an asset loses value through wear and tear, the loss is called devaluation.



1.0/ 1.0 Points

True False

Answer Key: False Feedback: Refer to learning unit 3.3.2 Question 7 of 28 Income received in advance is shown as equity in the financial statements.



0.0/ 1.0 Points

True False

Answer Key: False Feedback: Refer learning unit 4.8 Question 8 of 28 The next step in the accounting cycle after drawing up the subsidiary journals is to post the transactions to the general ledger.



1.0/ 1.0 Points

True False

Answer Key: True Feedback: Refer to learning unit 5.6 Question 9 of 28 An accrued expense is classified as a liability in the financial statement.



True False

Answer Key: True Feedback: Refer learning unit 4.8

1.0/ 1.0 Points

Part 2 of 10 - Part 3

2.0/ 4.0 Points

Question 10 of 28 0.0/ 2.0 Points The year-end of SA Attorneys is 31 December. The company pays for its electricity by a debit order of R100 per month. On 1 January 2020, the statement from the electricity supplier showed that the company had overpaid by R25. SA Attorneys received electricity bills for the four quarters starting on 1 January 2020 and ending on 31 December 2020 for R350, R375, R275 and R300 respectively. Which of the following is the correct entry for electricity in SA Attorneys' statement of profit or loss and statement of financial position for the year ending 31 December 2020?

A. Statement of profit or loss Statement of financial position R1 200 R125 accrual



B. Statement of profit or loss Statement of financial position R1 300 R75 prepayment

C. Statement of profit or loss Statement of financial position R1 200 R125 prepayment D. Statement of profit or loss Statement of financial position R1 300 R75 accrual

Answer Key: D Feedback: Refer to learning unit 2.3 and learning units 1.5.4, 1.6 Question 11 of 28 2.0/ 2.0 Points The following balances were extracted from the accounting records of S Africa, a sole trader:

Land and buildings Trade payables control Water and electricity – deposit Bank (credit) Motor vehicles Loan SA Bank

R 107 000 42 000 4 750 750 79 000 58 000

Which option represents the amount of equity of S Africa?

A. R91 500 B. R80 500 C. R166 000



D. R90 000

Answer Key: D Feedback: Refer to learning units 2.2 and 2.4.2

Part 3 of 10 - Part 4

0.0/ 4.0 Points

Question 12 of 28 Click to see additional instructions

0.0/ 4.0 Points

SA Attorneys is a registered VAT vendor. The following information was recorded in the accounting records of SA Attorneys as at 28 February 2021 (the financial year-end): R Computer equipment at cost (Purchased on 1 March 2017)

275 000

Vehicles at cost

780 000

Accumulated depreciation: Computer equipment

?

Accumulated depreciation: Vehicles (1 March 2020)

234 000

The computer equipment is depreciated at 10% per annum, using the straight-line method. Vehicles are depreciated at 20% per annum, using the reducing balance method. Calculate the following: Accumulated depreciation on computer equipment as at 28 February 2021 Depreciation on vehicles for the year ending 28 February 2021

NB: 1. Do not type the amount with any spaces as separators for thousands (eg: 12141,72) 2. Use a comma to indicate any decimals (eg: 1000,01) 3. You must enter cents even if it is 0 (eg ,00) 4. Round all amounts to the nearest cent

Solution: Accumulated depreciation on computer equipment: R

Depreciation on vehicles: R

112614,00

436800,00

Answer Key: 110000,00, 109200,00 Feedback: Accumulated depreciation on computer equipment: R275 000 x 10% x 4 = R110 000,00

Depreciation on vehicles: (R780 000 – R234 000) x 20% = R109 200,00 Part 4 of 10 - Part 6

2.0/ 2.0 Points

Question 13 of 28 2.0/ 2.0 Points

When preparing the bank reconciliation of SA Traders for the month ending 31 January 2020, a debit card payment that was made to a supplier whilst the system was offline does not appear on the bank statement and must be recorded in the …

A. adjusted cash receipts journal.



B. debit column of the bank reconciliation statement. C. adjusted cash payments journal. D. credit column of the bank reconciliation statement.

Answer Key: B Feedback: Refer to learning unit 3.5.1 & example 3.10 Part 5 of 10 - Part 8

2.0/ 4.0 Points

Question 14 of 28 2.0/ 2.0 Points On 1 April 2020, SA Attorneys made a payment of R4 600 (including VAT at 15%) to Advocate South for services rendered in respect of a client, S Africa (with trust funds of R10 000). Which option represents the entry of the transaction in the cash payments journal?

A. Business cash payments journal

Date 1 April

Details S Africa/Trust creditor (Adv South)

Trust creditors control R 4 600

Bank R 4 600

B. Business cash payments journal

Date 1 April

Details S Africa/Trust creditor (Adv South)

Trust VAT input creditors control R R 600 4 000

Bank R 4 600

C. Trust cash payments journal

Date 1 April

 Date 1 April

Details S Africa/Trust creditor (Adv South)

VAT input R 600

Trust creditors control R 4 000

D. Trust cash payments journal

Details S Africa/Trust creditor (Adv South)

Answer Key: D Feedback: Refer to learning unit 4.6 Question 15 of 28

Trust creditors control R 4 600

Bank R 4 600

Bank R 4 600

The following transactions relate to the accounting records of SA’s Legal Practice for April 2020. The legal practice is registered as a VAT vendor. VAT at 15% is included where applicable.

0.0/ 2.0 Points

On 5 April, one of the partners, Mr Africa, took a redundant desk and chair owned by the business and valued at R1 500 for his son to use at home during the Covid-19 crisis. He decided that his son should indefinitely be homeschooled and therefor the furniture will not be returned to the business. What will the general journal entry be for the above transaction in the records of SA's Legal Practice?

A. Date

Details

5 Apr

Drawings

Debit

Credit

1 500,00

VAT control

195,65

Furniture

1 304,35

B. Date

Details

5 Apr

Furniture

Debit

Credit

1 304,35

VAT control

195,65

Drawings

1 500,00

C. Date

Details

5 Apr

Furniture

Debit

Credit

1 500,00

Drawings

 Date

5 Apr

1 500,00

D. Details

Debit

Drawings

Credit

1 500,00

Furniture

1 500,00

Answer Key: A Feedback: Refer to learning unit 4.8 Part 6 of 10 - Part 9

2.0/ 4.0 Points

Question 16 of 28 At financial year end, 31 December 2020, the following appeared in the general ledger of SA Attorneys:

Dr

Insurance expense 2020 31/12

Additional information:

Bank

2.0/ 2.0 Points

N1

CPJ

Cr R 25 300

SA Attorneys entered into an insurance contract with Africa Insurance agency on 1 November 2019. The terms and conditions of the contract stipulates that SA Attorneys should pay an amount of R2 300 on a monthly basis for insurance. The payment is due on the seventh day of each month.

What is the amount for the insurance expense that should appear in the trial balance of SA Attorneys for the year ended 31 December 2020? A. R25 300 B. R2 300 C. R23 000



D. R27 600

Answer Key: D Feedback: Refer to learning unit 4.8.2 and learning unit 5.11 Question 17 of 28 0.0/ 2.0 Points Africa Traders, a registered VAT vendor, manufactures and sells casual clothing. Africa Traders also provides dry cleaning services. The VAT rate is 15%. Africa Traders Cash Receipts Journal – February 2020 CRJ02

Sundry accounts Doc no Day

Details

Fol

Analysis of receipts

Bank

Sales

Services rendered

VAT output

Amount

Details Fol

R

R

R

1

Mr A Africa

120 000

120 000

5

SA Traders

11 500

11 500

7

Cash

575

575

15 Mr A Africa

50 000

50 000

19 SA Traders

17 250

17 250

920

920

25 Cash

200 245

R

R

R 120 000

10 000

1 500 500

75 50 000

15 000

25 000

Capital

2 250 800

120

1 300

3 945

170 000

Capital

Which one of the following options is the most correct posting of the VAT output column in the cash receipts journal to the general ledger of Africa Traders at the end of the month?

A. Dr output

VAT Cr

2020 Feb

R

2020 Feb 28

Bank

R 3 945

B. Dr output

VAT Cr

2020 Feb 28



Bank

R 3 945

2020 Feb

R

C.

Dr output 2020 Feb

VAT Cr R

2020 Feb

Bank

R 1 500

7

Bank

75

19

Bank

2 250

25

Bank

120

5

D. Dr output 2020 Feb

VAT Cr Bank

R 1 500

7

Bank

75

19

Bank

2 250

25

Bank

120

5

Answer Key: A

2020 Feb

R

Feedback: Refer to learning unit 5.5, 5.6 and 5.7 Part 7 of 10 - Part 10

5.0/ 5.0 Points

Question 18 of 28 The legal practitioner can only levy relating to his obligation to the client based on the progress of the1.0/ 1.0 Points obligation.



True False

Answer Key: False Feedback: Refer to learning unit 6.1 Question 19 of 28 All expenses incurred and other payments regarding the matter should appear on the account statement of every client of the attorney’s practice.



1.0/ 1.0 Points

True False

Answer Key: True Feedback: Refer to learning unit 7.5.3 Question 20 of 28 By adhering to the Rules and requirements, it ensures that there is no deficit in the trust bank account, which prevents the obligations towards the remaining trust creditors from being met.



1.0/ 1.0 Points

True False

Answer Key: True Feedback: Refer to learning unit 6.3 Question 21 of 28 If there are trust funds available for a transfer to the business account to settle the fees levied, an 1.0/ 1.0 Points entry is made in the transfer journal. The trust creditor account is credited and the client account is debited.



True False

Answer Key: False Feedback: Refer to learning unit 6.2 Question 22 of 28 For section 86(4) of the LPA, the LPA do not require that the bank statements be endorsed. This is 1.0/ 1.0 Points one difference between section 86(3) and section 86(4) investments.



True False

Answer Key: False

Feedback: Refer to learning unit 7.3 Part 8 of 10 - Part 11

3.0/ 6.0 Points

Question 23 of 28 0.0/ 3.0 Points The following list of balances were obtained from the accounting records of SA Attorneys on 1 January 2020.

R

Business bank account

20 000 (debit)

Trust bank account

38 000 (debit)

Clients control account

36 000 (debit)

Trust creditors control account

38 000 (credit)

Client

Clients account

Trust creditors

R

account R

E West

10 000

10 000

S East

12 000

20 000

N South

14 000

8 000

What will be the closing balance of the business bank account after all obligations were fulfilled, and necessary transfers and payments were made in the accounting records of SA Attorneys on 31 January 2020?

A. R20 000 (debit) B. R10 000 (credit) C. R50 000 (debit)



D. R40 000 (debit)

Answer Key: C Feedback: Refer to learning unit 6.2 to 6.5

Question 24 of 28 The following balances were obtained from the accounting records of SA Attorneys on 1 February 2020: 3.0/ 3.0 Points Clients account Trust creditors

Client

R account R 2 000 Dr A South

3 000 Cr

S Africa

8 000 Cr

4 000 Dr

11 000 Cr

6 000 Dr

The following transactions took place and were accounted for on 28 February 2020:

Trust receipts bank

Fees charged at the end of the day

R

R

Client A South

5 000

4 420

S Africa

0

3 800

5 000

8 220

A pro-forma invoice was issued on 15 February 2020 to A South for R5 000. A South immediately paid the amount into the account of SA Attorneys.

What is the amount payable to A South by SA Attorneys after all obligations to A South were met in full and all transfers from the trust creditor account to the clients account of A South have been made on 28 February 2020?



A. R1 580 B. R8 000 C. R5 000 D. R0 because A South still owes money to SA Attorneys

Answer Key: A Feedback: Refer to learning unit 6.2 to 6.5 Part 9 of 10 - Part 12 Question 25 of 28

3.0/ 6.0 Points

The following information for the month ended 30 April 2020 relates to SA Attorneys:

3.0/ 3.0 Points

EXTRACT FROM THE TRIAL BALANCE OF SA ATTORNEYS ON 31 MARCH 2020 Debit

Credit

R

R

Business bank

287 400

Trust bank

266 200

Trust creditors control: A South sec 86(4) investment - SA Bank 100 000 A South 110 000 Clients control A South 23 400

On 30 April, Dr A South requested SA Attorneys to withdraw his investment with SA Bank. SA Bank deposited R108 000 in the trust bank account of SA Attorneys. No payments have been made to the beneficiaries yet.

Which one of the following general ledger accounts represent the correct recording of the above information in the Trust Creditors Ledger for A South sec 86(4) investment: SA BANK as at 30 April 2020. A. A South sec 86(4) investment: SA Bank

Cr

Dr 2020 Apr 1

Trust bank

R

2020

108 000

Apr 1

Balance

R 100 000

30

A South (Trust creditor)

7 600

Legal practitioners fidelity fund

400 108 000

108 000

B. Dr

A South sec 86(4) investment: SA Bank

2020 Apr 1 30

May 1

R Balance

c/d

116 600

A South sec 86(4) investment – SA Bank 7 600 117 600 Balance

b/d

117 600

2020 Apr 30

Cr R

Balance

116 000

117 600



C. A South sec 86(4) investment: SA Bank

Cr

Dr 2020

R

Apr 1

Balance

100 000

30

A South (Trust creditor)

7 600

Legal practitioners fidelity fund

400 108 000

2020 Apr 30

R Trust bank

108 000

108 000

D. Dr 2020 Apr 30

A South sec 86(4) investment: SA Bank R 2020 Balance

c/d

116 600

Cr R

Apr 1

Balance

30

A South sec 86(4) investment – SA Bank 7 600 117 600

May 1

Balance

117 600

110 000

b/d

117 600

Answer Key: C Feedback: Refer to learning unit 7.3 Question 26 of 28

The following information for the month ended 30 April 2020 relates to SA Attorneys:

0.0/ 3.0 Points

EXTRACT FROM THE TRIAL BALANCE OF SA ATTORNEYS ON 31 MARCH 2020 Debit Credit R R Business bank 287 400 Trust bank 266 200 Trust creditors control: T Zulu sec 86(4) investment - Africa Bank 100 000 T Zulu 110 000 Clients control T Zulu 23 400 On 2 March 2020, SA Attorneys decided to invest R90 000 of trust money, not immediately needed, in a special savings account at Africa Bank to earn interest until the end of May 2020. SA Attorneys redeemed the trust investment on 30 April 2020 and received R95 600, w...