FAC
exam pack from 2015 to 2017.pdf

Thus equity is determined by deducting total

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Thus, equity is determined by deducting total liabilities from total assets. B. BULL Statement of assets and liabilities as at 31 March 2009 Assets Non Current Assets 38 500 Property, plant & equipment (155 00+23 000) 38 500 Current assets 15 950 Trade and other receivables (2 400 + 750) 3 150 Cash and cash equivalents 4 300 Inventory 8 500 Total assets 54 450 LIBILITIES Non- current liabilities CURRENT LIABILITIES 17 300 Trade and other payables 17 300 Total liabilities 17 300 Accounting equation Assets = Equity + Liabilities R54 450 =R? + R17 300 Equity = R54 450 – R17 300 = R37 150 (b) Bank ¾ A bank account is a financial account between a bank customer and a financial institution. A bank account can be a deposit account, a credit card, or any other type of account offered by a financial institution. ¾ The opening balance is favourable; therefore, it represents money in the bank, which is an asset. As a result it is banked in the bank account. ¾ All payments are credited in the bank account because they reduce an asset representing the amount in our bank account. ¾ All receipts are debited in the bank account as they represent an increase in an asset (the money in the bank). 46 | P a g e
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FAC1502 2014 B. BULL GENERAL LEDGER Date Details Folio Amount Date Details Folio Amount R R Bank Account 2010 March 31 Balance Receipts (48 670+7 700) Balance b/d crj c/d 4 300 56 370 580 2010 March 31 April 1 Payments (13 290+800+19 800+5 090+2 710+4 560+15 000) Balance cpj b/d 61 250 61 250 61 250 580 Debtors ¾ This is an asset and it is represented by a debit balance. The opening balance (31 March 2009) will be shown as a debit balance b/d whilst the closing balance (31 March 2010) will be credited as a balance C/D. ¾ All reductions in debtors are credited. Examples are payments by debtors, sales returns, settlement discounts granted, credit losses, e.t.c. The only credit in this particular question is the receipt from debtors. All the other deductions are assumed not to have taken place if they are not indicated on the question. ¾ Increases in debtors result from transactions such as sales, interest charged on overdue accounts, e.t.c are debited to the debtors account since these increases the asset debtors. The only debit in this question is sales as the existence of debtors automatically means that there were sales during the period. All the other debits are assumed not to have taken place as long as they do not appear on the particular question. The credit sales will therefore be the missing figure. ¾ Bills, especially bills of exchange, which are due to be paid by a company's debtors. These should be treated in the same way as opening and closing debtor balances. 47 | P a g e
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FAC1502 2014 Sources of information for the debtors control account Date Details Folio Amount Date Details Folio Amount R R Debtors Account 2010 March 31 April 1 Balance Bills Receivable Credit sales* Bills Receivable Balance b/d b/d s/j b/d b/d 2 400 750 7 650 2010 March 31 Bank Bills Receivable Balance Crj c/d c/d b/d 7 700 1 200 1 900 10 800 10 800 1 200 1 900 *Credit sales (balancing figure= 7 700+1 200+1 900)-(2 400+750) = 7 650 Creditors ¾
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