24 2024
MODULE NAME: MODULE CODE:
ACCOUNTING 1A ACBP5121/d
ASSESSMENT TYPE: TEST (PAPER ONLY)
TOTAL MARK ALLOCATION: 60 MARKS
TOTAL HOURS: 1 HOUR (+10 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Ten 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.
4. You may not leave the assessment venue during reading time, or during the first hour or during
the last 15 minutes of the assessment.
5. 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.
6. 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.
7. 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.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are allowed.
3. Answer all questions.
4. Ensure that you have received a special answer booklet (with forms drawn up) for entering
your answers. If you have not received an answer booklet, request one from the invigilator
before starting the assessment. Answer all questions in the answer booklet provided.
5. Show all calculations (workings), where applicable (marks may be awarded for this).
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Question 1 (Marks: 10)
Accounting information is prepared by bookkeepers and accountants and is used by a variety of
different stakeholders.
List five different users of accounting information and for each one you list, explain why/how they
would use the information.
Question 2 (Marks: 5)
State whether the following are true or false by indicating “T” or “F” only in your answer booklet.
You may only enter one answer per question. If you enter both a “T” and “F” for an answer to a
question, no marks will be awarded for that question:
Q.2.1 The General Ledger is a summary of the Trial Balance. (1)
Q.2.2 A paper-based or electronic record of a business transaction is a journal. (1)
Q.2.3 If you provide a debit for every credit in accounting, you are using the double entry (1)
system.
Q.2.4 Another name for ‘Trade and other payables’ is Debtors Control. (1)
Q.2.5 The International Financial Reporting Standards include qualitative characteristics (1)
of which relevance and faithful representation are considered fundamental.
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Question 3 (Marks: 15)
The following transactions relate to Sledgehammer, a sole trader and hardware store, for the month
of July 2024. The business uses the perpetual inventory system with a mark-up of 75% on the cost
price of goods sold.
Round figures to the nearest rand.
Ignore VAT.
DATE TRANSACTION
2 Owner took goods for personal use with a selling price of R1 610.
7 Sold loose tools (Trading inventory) to Joe’s Construction Company for cash: R148
750.
21 Bought merchandise for cash from Steelworx Incorporated: R89 000.
24 Joe’s Construction Company returned some tools bought on 7th May as they were not
to the specification per the order: R 1 050.
31 Sledgehammer paid staff cash wages for the last week of July: R32 000.
Required:
Show how the transactions above will affect the accounting equation and the impact on the general
ledger.
In your answer booklet complete the table as per the example below.
Remember to include +/- signs.
Example 1st July: Owner invests a further R 50 000 cash into the business:
Date Account to Account to Assets = Owner’s + Liability
Debit Credit Equity
1 Bank Capital +50 000 = +50 000 + 0
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Question 4 (Marks: 10)
Q.4.1 Explain why in the accounting equation, where an expense increases, the amount (3)
shown under Owner’s Equity, gets a negative (-) sign in front of it instead of a plus
(+) sign.
Q.4.2 When we do the ‘T’ Accounts of the general ledger we have a cross-referencing (1)
system of writing the corresponding name of the account to debit or credit. We
write this under “details” in the T account. By what name do we call this cross-
referenced account?
Q.4.3 Indicate into which of the following categories the six ledger accounts below would (6)
fall. Note – for assets and liabilities you must state whether they would be current
or non-current too.
Account categories: Assets: (current or non-current); Liabilities: (current or non-
current), Expenses, Income or Proprietary:
A. Staff refreshments
B. Machinery
C. Cost of sales
D. Drawings
E. Mortgage bond
F. Bank Overdraft
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Question 5 (Marks: 20)
Q.5.1 In your answer booklet enter the missing figures in each line of the table below. (8)
Round to 2 decimal places. Assume a VAT rate of 15%:
VAT exclusive amount VAT amount VAT inclusive amount
1 R 8 100
2 R248
3 R5 327
4 R94
Q.5.2 In your answer booklet complete the table by categorising the following supplies (7)
listed in terms of VAT:
Answer with an ‘X’ in the appropriate column. You may only enter an answer in one
column. If you enter an answer in more than one column no marks will be awarded.
Supply Standard Zero-rated Exempt No claiming of
rated supply supply supply input VAT allowed
A passenger vehicle
White bread purchased by a
restaurant with the purpose
of making toasted
sandwiches for re-sale
Brown bread for the year-
end office party snacks
Diesel for use in delivery
vehicles
Electricity portion of
municipal rates and taxes bill
Business subscription to the
local tennis club
Life assurance premiums
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Q.5.3 In your answer booklet enter the missing figures in each line of the table below: (5)
Mark-up on cost price Cost price Mark-up Selling price without VAT
% R R R
70% R R940.00 R ? R ?
800% R ? R180.00 R ?
Gross margin Cost price Mark-up Selling price without VAT
?% R R27 000.00 R ? R81 000.00
35% R ? R420.00 R ?
END OF PAPER
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