Requirements for this paper/Benodigdhede vir hierdie vraestel: Calculators: Yes/Ja

Answer scripts/ X Multi-choice cards (A5)/

Antwoordskrifte: Multikeusekaarte (A5):

Attendance slips (Fill-in paper)/ Multi-choice cards (A4)/

Presensiestrokies (Invulvraestel): Multikeusekaarte (A4):

Scrap paper/ Graph paper/

Rofwerkpapier: Grafiekpapier:

Type of assessment/Tipe assessering: ASIGNMENT 1 Qualification/Kwalifikasie: LLB EXTENDED

Module code/Modulekode: ACCX 171 Duration/Tydsduur: 100 minutes
Module description/Modulebeskrywing: FINANCIAL ACCOUNTING Max/Maks: 50 marks
Examiner(s)/Eksaminator(e): MR PETER TAWANA Date/Datum: 16/03/2023

Internal/Interne moderator(s): Due Date: 27/042023

Submission of answer scripts/Inhandiging van antwoordskrifte: Afrikaans and English papers seperately please.
Instructions:

AS COMMUNICATED IN CLASS

1. Start each section of a question on a new page.

CONTENTS MARKS MINUTES

Question 1 – Theory 22 44
Question 2 – Journal entries 11 22
Question 3 – Multiple Choice 17 34

Disclaimer: All names of persons, places and business entities mentioned in this examination paper are fictitious and
any resemblance to real persons, living or dead, places and business entities is purely coincidental.

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QUESTION 1 (22 MARKS; 44 MINUTES)

The primary purpose of accounting is to provide financial information of an entity to enable the users
of financial statements to make decisions. The information contained in the reports of the financial
statements must possess certain characteristics to be useful to the users.

MARKS
REQUIRED – QUESTION 1: Sub-
Total
total
Name and briefly discuss the fundamental qualitative characteristics of
1.1 3.0 3.0
financial statements.
Name and briefly discuss the enhancing qualitative characteristics of
1.2 4.0 7.0
financial statements.

1.3 Briefly discuss the going concern concept. 1.0 8.0

1.4 Name all the elements of financial statements. 2.5 10.5

1.5 Name the different reports that make up the financial statements. 2.5 13.0

1.6 List the steps in the accounting process, in the correct order. 4.0 17.0

1.7 Supply the formula for the accounting equation. 0.5 17.5

1.8 What is meant by the “duality concept”? 1.5 19.0

1.9 Describe the term “journal”. 1.0 20.0

How is financial performance measured and in which financial statement is

1.10 1.0 21.0
it shown?
What does the financial position of an entity indicate and in which financial
1.11 1.0 22.0
statement is it shown?

TOTAL MARKS – QUESTION 1 22

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QUESTION 2 (11 MARKS; 22 MINUTES)

Ignore value-added tax (VAT).

Lolita decided to start a business called “Lollipop” on 1 February 2022. The entity provides caregiving
services to companies who make in-office day-care centres available to their employees. The
following transactions took place during the month of February 2022:

1. Lolita opened a bank account and deposited R100 000 into the account.
2. Purchased furniture for the office from Wooden Solutions for R30 000 and paid via EFT.
3. Purchased a computer for the office to the value of R5 000 on credit from Computer Specialists.
4. Purchased stationery to the amount of R400 and paid via EFT.
5. Rendered caregiving services to clients for cash, R25 000.
6. Paid Telkom for the telephone account for February 2022 via EFT, R250.
7. Paid the municipal water and electricity account for February 2022, R750, via EFT.
8. Rendered caregiving services to clients on credit, R3 000.
9. Paid salaries to caregivers via EFT, R20 000.
10. Paid half of the amount owing to Computer Specialists.

MARKS
REQUIRED – QUESTION 2: Sub-
Total
total
2.1 Record the above transactions in the general journal of Lollipop for the
month of February 2022. 10 10

Communication skills: Presentation & layout 1 11

NB: Journal narrations are not required.

TOTAL MARKS – QUESTION 2 11

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QUESTION 3 (17 MARKS; 34 MINUTES)

Answer the following questions by writing down the correct letter next to the relevant number. Only
one answer per question is allowed.

1. What is a general journal?

a) A journal with two amount columns in which all kinds of entries can be recorded.
b) A journal that you right your thoughts in.
c) An accounting transaction.
d) A part of the financial statements.

2. What is an accounting entry?

a) A financial statement.
b) A financial report.
c) A source document.
d) Information recorded from a source document into a journal.

3. What is the document called from which information is obtained for a journal entry?
a) Journal.
b) Source document.
c) Invoice.
d) Receipt.

4. What is the first step in completing a journal entry?

a) Writing the journal narration.
b) Recording the date.
c) Indicating which accounts must be debited and credited.
d) Inserting the amounts in the debit and credit columns.

5. Entries in a general journal are in which order?

a) Alphabetical order according to the debit account name.
b) According to the grouping of the general ledger accounts.
c) In chronological order.
d) According to the order of the account codes in the chart of accounts.

6. In which order is an individual journal entry in the general journal recorded?

a) The debit entry in the general journal appears before the credit entry in the general journal.
b) The credit entry in the general journal appears before the debit entry in the general journal.
c) The journal narration appears on the first line of the journal entry.
d) In any order.

7. Which one of the following is the correct format for a general journal?
a)

ACCX 171 ASSIGNMENT 1 - 2023 4/6

 b)

c)

d)

8. The amount invested by the owner of a business should be credited to:

a) Creditors.
b) Bank.
c) Drawings.
d) Capital.

9. Transactions are first recorded in which book/account?

a) Book of prime entry.
b) T-accounts.
c) Accounting equation.
d) General ledger.

10. Which account is debited and which account is credited when wages are paid to the owner?
a) Dr Bank, Cr Wages.
b) Dr Wages, Cr Bank.
c) Dr Bank, Cr Drawings.
d) Dr Drawings, Cr Bank.

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11. What is the minimum number of accounts affected by any financial transaction?
a) One.
b) Two.
c) Three.
d) Four.

12. If services are rendered on account, then:

a) Assets will decrease.
b) Liabilities will decrease.
c) Equity will increase.
d) Liabilities will increase.

13. Debits:
a) Increase both assets and liabilities.
b) Decrease both assets and liabilities.
c) Increase assets and decrease liabilities.
d) Decrease assets and increase liabilities.

14. A debit is NOT the normal balance for which account listed below?
a) Income.
b) Bank.
c) Debtors Control.
d) Rent expense.

15. When a entity performs a service but has not yet received payment, it:
a) Debits Services Rendered and credits Debtors Control.
b) Debits Debtors Control and credits Services Rendered.
c) Debits Services Rendered and credits Creditors Control.
d) Makes no entry until cash is received.

16. On 28 February 2022, Shurman Enterprises received cash of R1 400 for interest received on an
investment. The entry to record this transaction will include:
a) Debit Bank with R1 400.
b) Debit Interest Income with R1 400.
c) Credit Debtors Control with R1 400.
d) Credit Creditors Control with R1 400.

17. Which of the following accounts increase on the credit side?

a) Equipment.
b) Bank.
c) Stationery expense.
d) Creditors Control.

TOTAL: 50 MARKS

***END OF PAPER***

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