accounting help
21 2021 © The Independent Institute of Education (Pty) Ltd 2021 Page 1 of 8 MODULE NAME: MODULE CODE: BOOKKEEPING 1A BOOK5111/d/p INTRODUCTION TO ACCOUNTING 1A INAC5111/d/w BOOKEEPING AND FUNDAMENTALS OF ACCOUNTING BKKA018 ASSESSMENT TYPE: TAKE-HOME ASSESSMENT (COVID Regulation dependant) ASSESSMENT TYPE: EXAMINATION (PAPER ONLY) TOTAL MARK ALLOCATION: 120 MARKS TOTAL HOURS: 2 HOURS (+10 minutes reading time) TOTAL TIME: This assessment should take you 2 Hours to complete, however you have 21 Hours (midnight to 9PM on the same day) to submit. This additional time has been allocated to allow for the download, completion and upload of your submission. GENERAL INSTRUCTIONS: 1. Please adhere to all instructions. Refer to the instructions which are applicable to you. 2. If you are writing this assessment on campus, refer to POINT 1 below. 3. If you are writing this assessment at home, refer to POINT 2 below. 4. 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 IIE015 policy. 5. 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. a) ASSESSMENTS WRITTEN ON CAMPUS: b) Five 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. c) You may not leave the assessment venue during reading time, or during the first hour or during the last 15 minutes of the assessment. d) 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. e) 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. f) 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. g) Calculators are allowed 21 2021 © The Independent Institute of Education (Pty) Ltd 2021 Page 2 of 8 h) For multiple-choice questions, give only one (1) response per question. The marker will ignore any question with more than one answer, unless otherwise stated. You should, therefore, be sure of your answer before committing it to paper. i) Answer All Questions. j) Show all calculations, where applicable (marks may be awarded for this). 1. ASSESSMENTS WRITTEN AT HOME: a) No material may be copied from original sources, even if referenced correctly, unless it is a direct quote indicated with quotation marks. b) All work must be adequately and correctly referenced. c) You should paraphrase (use your own words) the concepts that you are referencing, rather than quoting directly. d) This is an open-book assessment. e) Assessments must be typed unless otherwise specified. f) Ensure that you save a copy of your responses. i. Complete your responses in a Word document. ii. The document name must be your.student number.Module Code. iii. Once you have completed the assessment, upload your document under the submission link in the correct module in Learn. Additional instructions: If you are using a Word Document in specialised numeracy modules: o Please see the Word document included as part of this assessment. o Tables have been created for you to complete. o Use the following to reflect your calculations: o Multiple x – small letter x or *. o Division / forward slash. o Addition and subtraction + and -. o Square roots and equations – using the function insert - equation. o Tables – using the function insert – table. o Working with tables – use merge and split cell functions through right click function. o Fitting tables to pages – Autofit to window/content through right click function. o Layout of table – Section breaks and landscape orientation through layout – breaks and layout orientation in the ribbon. o If you are not familiar with all the functions in word it is recommended that you rather do a hardcopy if possible. o The document name must be your student number.Module Code. o Once completed the assessment, upload your document under the submission link in the correct module in Learn. 21 2021 © The Independent Institute of Education (Pty) Ltd 2021 Page 3 of 8 Question 1 (Marks: 10) Multiple-choice questions: Select one correct answer for each of the following. In your answer booklet, write down only the letter of the question and next to it, the number of the correct answer. Name of account: Q.1.1 If the Owners Equity of a certain business is equal to R70 000 and the assets of the same business are equal to R120 000, what would the total liabilities of the business be? (2) (a) 50 000; (b) 190 000; (c) 70 000; (d) 120 000. Q.1.2 A business that is a registered VAT vendor buys two products inclusive of VAT. Product A costs R18 and product B costs R55. What is the total VAT liability incurred by the business? (2) (a) R9.52; (b) R3.35; (c) R7.18; (d) R63.47. Q.1.3 Three accounts of a business have balances as follows: Sales – R 40 000 Sales Returns – R 5 000 Cost of Sales – R 20 000 Calculate the gross profit of the business. (2) (a) R25 000; (b) R20 000; (c) R15 000; (d) R35 000. 21 2021 © The Independent Institute of Education (Pty) Ltd 2021 Page 4 of 8 Q.1.4 The opening inventory of a business is R25 000, the carriage on purchases is R5 000 and the closing inventory is R7 000. Calculate what the cost of sales would be for this business. (2) (a) R12 000; (b) R18 000; (c) R20 000; (d) R23 000. Q.1.5 A non-VAT vendor sells an item that cost R570 for R1140. The sales transaction causes owners equity to… (2) (a) Decrease by R500; (b) Increase by R500; (c) Decrease by R570; (d) Increase by R570. Question 2 (Marks: 20) The following are transactions for Mcfly stores for March 2019. IGNORE VAT. The business uses the perpetual Inventory method with a mark-up of 30% on Cost. 1. On 5 January 2019, the owner took stock for personal use, the selling price of the stock was R2 000. 2. Credit Sales of trading inventory on 14 March 2019, selling price = R20 000. 3. A Debtor returned some of the goods they purchased from the business on 19 March 2019. The selling price was R6 000. Required: Show how the above transactions will affect the accounting equation and enter how the accounts in the general ledger will be affected by using the table in your answer book. Example: 21 2021 © The Independent Institute of Education (Pty) Ltd 2021 Page 5 of 8 Received a capital contribution of R100 000 in the form of cash on 1 January 2019. Date Assets = Owners Equity + Liabilities 1 January 2019 + 100 000 + 100 000 Debit Bank Credit Capital Question 3 (Marks: 55) Below are the transactions for Mentoes CC for April 2019: The applicable VAT rate is 15%. The business also marks all their goods up at a constant mark-up of 50% on Cost. 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 Document No Description Amount (R) 2 Menthol Stores PCV01 Purchased paint for repairs and maintenance from petty cash. R200 5 Minty Wholesalers RT01 Trading Inventory sold for cash. 40 000 7 Green Municipality CC01 Paid rates and taxes. 550 21 2021 © The Independent Institute of Education (Pty) Ltd 2021 Page 6 of 8 8 Reggie Retailers CC02 Trading Inventory Purchased for cash. 10 000 12 Johnson Stores RT02 Sold goods for R8 000 cash. 8 000 18 Casual Wages PCV02 Paid a casual worker wages for the day from Petty Cash. 500 21 Plantville RT03 Received a payment for services rendered. 6 000 22 M.Fresh RT04 The owner made a capital contribution