FAC
exam pack from 2015 to 2017.pdf

The balancing figure represents the sales made during

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The balancing figure represents the sales made during the period. Creditors Control This is a liability; therefore the balance brought forward is on the credit side whilst the balance carried forward is on the debit side. Since the balances (opening and closing are given, the balancing figure represents purchases. 34 | P a g e
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FAC1502 2014 35 | P a g e
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FAC1502 2014 SOLUTION 5: NOTE; PROPERTY, PLANT AND EQUIPMENT GOOFY TRDERS NOTE ON PROPERTY PLANT & EQUIPMENT AS AT 31 DECEMBER 20.8 Carrying amount at the beginning of the year 285000 Cost price (balance b/d vehicles account) 460000 Accumulated depreciation 175000 Additions (120000+ 70000) 190000 Depreciation (5000 + 48000) (from accumulated depreciation account) (53000) Disposals at carrying amount (100000 – 65000) (35000) Carrying amount at end of year 387000 Cost 550000 Accumulated depreciation (163000) NOTES QUESTIONS, PROPERTY, PLANT AND EQUIPMENT (a) Additions a. These appear on the debit side of the vehicles account. Bank is the vehicles bought for cash whilst cc Garage represents vehicles bought on credit from CG Garage. (b) Disposals at carrying amount Cost of disposal 100 000 Accumulated depreciation on disposal 65 000 35 000 The disposals are recorded as realization in the vehicles and accumulated depreciation account. (c) Carrying amount at the beginning of the year. - This is made up of the balance brought forward at the beginning of the year in the vehicles account (1 Jan 2008) subtract the balance brought forward at the beginning of the year in the accumulated depreciation account (I Jan 2008). (d) Carrying out at the end of the year. - This is made up of the balance carried down at the end of the year in the vehicles account (31 Dec 2008) subtract the balance carried down in the accumulated depreciation of vehicles at the end of the year (31 December) 36 | P a g e
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FAC1502 2014 MAY-JUNE 2010 37 | P a g e
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FAC1502 2014 38 | P a g e
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FAC1502 2014 39 | P a g e
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FAC1502 2014 QUESTION 1 SOLUTION: CREDITORS RECONCILIATIONS 1. PRUDE TRADERS Creditors control account 2010 R 2010 April 30 Balance Purchases understated (5554-5455) b/d R 9841 90 April 30 Balance c/d 9940 9940 9940 May 1 Balance b/d 9940 HINTS You only include amendments in the creditors control account amounts that directly affect purchases journal. 2. Creditors statement as at 30 April 2010 Balance of creditors list R R 9674 Add : Debtor balance under cast (Ferrari (7890-7880) 10 Credit for repairs under cast: Tshwane garage (600 -60) 540 550 10224 Less: Payment to Debs Stationers (Stationery paid) (50) Purchases returns to Dennis cleaners not posted (34) Credit note from Dragon suppliers wrongly credited Instead of debited (R100X2) (200) (284) Balance as per creditors control account 9940 NOTES -Entries in the creditors control account are made from totals extracted from various books of original entry such as the cash payments journal (total of payments made to creditors), purchases journal (total of credit purchases), purchases returns (total of goods returned to suppliers).
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