Bookkeeping

to Trial Balance
(BKTB)

ICB ASSIGNMENTS 1&2&3

QUESTION PAPER

Apr 2019 to Mar 2020

THIS PAPER CONSISTS OF 3 ASSIGNMENTS

ASSIGNMENT 1: 3 QUESTIONS
ASSIGNMENT 2: 1 QUESTION
ASSIGNMENT 3: 7 QUESTIONS

INSTRUCTIONS:

1. ICB Assignments form part of the formative mark and are to be completed in an open book environment.
2. This Question Paper Book contains all the questions for Assignments 1, 2 and 3.
3. All questions are to be completed in the Assignment Answer Book provided in your Portfolio of Evidence (PoE).
4. Check that you have the correct number of pages.
5. Please be neat, as illegible handwriting cannot be marked. You must write in blue or black ink. In practice it is
unacceptable for Bookkeepers to use correcting fluid (Tipp-ex). Marks will be deducted for the use of correction fluid.
6. All questions must be completed.
7. This question paper must NOT be returned to the ICB. You must retain this Assignment Question Paper Book.
8. Upon completion of your final exam:
(i) Paper PoE - include your Assignment Answer Book in your PoE. The entire PoE must be handed in for marking by the
ICB.
(ii) Digital PoE – your Tests and Assignments will be retrieved for marking directly off Macci.

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

ASSIGNMENT 1

QUESTION 1 ACCOUNT IDENTIFICATION & VAT CATEGORIES

PART A

Complete the following table as it appears in your Portfolio of Evidence (PoE), by completing the account names
and marking the appropriate column with an X.

Type of account
Name of account Non-current Non-current Proprietary
Current asset Current liability Income Expense
asset liability account
E.g. Equipment X
Rates and amenities
Commission received
Fixed deposit (maturity in
excess of 12 months)
Capital
Mortgage loan
Discount allowed
Drawings
Debtors control
Bank overdraft
Discount received

PART B

Complete the following table as it appears in your PoE, by marking the correct block at each supply listed.
Assume that a business acquires the considerations listed and that the business itself was invoiced in all
instances. Where applicable, assume that all parties dealt with are registered VAT vendors and that the VAT Act
has been adhered to in all instances.

Standard Zero-rated Exempt

Consideration Non-allowable item
rated supply supply supply
E.g. Trading inventory X
Staff microwave oven
Furniture and equipment
Life assurance
Entertainment expenditure
Interest received on fixed deposit
The purchase of another business as a going concern
Golf club fees
Brown bread and milk
Computer software
Passenger vehicle

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 2 BASIC VAT CALCULATIONS, MARK-UP & MARGINS

Complete the following table as it appears in your PoE. The scenarios listed should be interpreted from the point
of view of The Light Factory, a lighting and electrical retailer. Assume a standard VAT rate of 15 %. The following
information relates to one standing lamp:

VAT exclusive cost price R 2 104.00

VAT on the cost price
VAT inclusive cost price
Mark-up % on cost price 60%
VAT exclusive selling price
VAT on the selling price
VAT inclusive selling price
Gross profit earned (amount in Rands)
Gross margin attained (as a percentage; answer to two decimal
places)

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 3 ACCOUNTING EQUATION: VAT IGNORED

The following are miscellaneous transactions for Sliced Lemon for March 2019. Ignore VAT. The business uses
the perpetual inventory method with a mark-up of 25 % on cost.

Date Transaction Details

6 The owner took clothing from stock for personal use, selling price = R 775.00.
9 Paid the Kings Municipal Council the business water and electricity bill by cheque, R 1 450.00.
13 Purchased trading inventory on credit from Hidding CC, R 32 500.00.
14 Cash sales of trading inventory, selling price = R 925.00.
25 Credit sales of trading inventory, selling price = R 2 250.00.
28 A debtor returned some of the goods purchased from Sliced Lemon on 25 March. The cost price of the
goods was R 800.00.

Required:

Show how the above transactions will affect the accounting equation and enter how the accounts in the general
ledger will be affected. Example: Received a capital contribution of R 205 000.00 in the form of cash:

Date Assets (R) = Owner's equity (R) + Liabilities (R)

+ 205 000.00 + 205 000.00

Dr Bank Cr Capital

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

ASSIGNMENT 2

QUESTION 1 SUBSIDIARY JOURNALS

You are the bookkeeper of Pitso Industries. The business is a registered VAT vendor and trades only with
registered VAT vendors (unless otherwise specified). The business charges 15% VAT on all its sales. All
amounts are inclusive of VAT unless VAT is not applicable. As the bookkeeper you have been provided with the
source documents for the month of February 2019, which are necessary for the preparation of the journals
specified below. The business uses the periodic inventory system and trading inventory is marked up by 60 % on
cost price (before any given trade discounts) unless otherwise specified. ‘IV’, ‘OCT’, ‘CC’ and ‘JR’ are the source
document codes below for re-numbered original invoices, re-numbered original credit notes, cheque counterfoils
and journal vouchers respectively.

Source documents of Pitso Industries for the month of February 2019:

Source
Date Details Description Amount (R)
document no.
1 Polland Traders IV241 Trading inventory purchased. 29 750.00
4 Tall Fountain Mall CC536 Payment for business parking (Motor vehicle expenses). 612.50
5 Polland Traders OCT197 Trading inventory returned to the supplier. 2 677.50
8 Cash CC537 Drew a cash cheque for petty cash. 10 500.00
Payment on account to Polland Traders. No settlement discount was received
9 Polland Traders CC538 because the account was not paid in full. (Balance owing at the beginning of 25 228.00
the month: R 4 463.00).
11 Smackdown Traders CC539 Trading inventory purchased. 42 735.00
11 Tinderbox Pty Ltd IV242 Trading inventory purchased. 32 200.00
William Pitso contributed a delivery vehicle to the business. (All legislative
12 William Pitso (The owner) JR253 89 075.00
requirements have been met for the full VAT amount to be claimed).
13 V. Macmahon CC540 Trading inventory purchased: R 40 894.74 less a 5 % trade discount. ?
13 CDR Computers IV243 Purchase of office consumables. 1 190.00
14 Artline Stationers CC541 Cash purchase of files (Postage and stationery). 5 250.00
16 Tinderbox Pty Ltd OCT198 Trading inventory returned to the supplier. 3 220.00
Purchased a flat screen TV and DVD player for the staff room (Staff
16 RomRam Computers IV244 6 545.00
equipment).
16 RomRam Computers IV245 Purchased a laptop for the sales representative (Office equipment). 10 339.00
18 Game CC542 Purchased a microwave for staff room (Staff equipment). 7 350.00
Settlement of account with Tinderbox Pty Ltd, less 5 % settlement discount.
20 Tinderbox Pty Ltd CC543 ?
(Balance owing at the beginning of the month: R 5 796.00).
5 % settlement discount received from Tinderbox Pty Ltd for settlement of the
20 Tinderbox Pty Ltd JR254 ?
account. (Refer to cheque no. CC543).
21 Cash CC544 Drawings by the owner. 4 200.00
21 William Pitso JR255 Drawings of trading inventory with a selling price including VAT of R 1 750.00. ?
21 RomRam Computers OCT199 A rebate was granted on the TV purchased on 16 February. 167.55
21 Roundtrack Industries IV246 Trading inventory purchased: R 5 043.01 less a 7 % trade discount. ?
24 PRINT CC IV247 Printing costs charged on account. 7 549.15
25 Starfish Equipment CC545 Cash purchase of storeroom shelving (Furniture and fittings). 21 000.00

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

Source
Date Details Description Amount (R)
document no.
26 Linkin Park Industries CC546 Trading inventory purchased. 47 775.00

27 CDR Computers OCT200 Defective office consumables returned to the supplier. 261.80
28 Roundtrack Industries OCT201 Received for trading inventory returned to the supplier. 539.35
Sammy Jones (A Non-VAT
28 IV248 Repairs and maintenance charged on account. 1 435.00
vendor)
28 Silent Bob's Garage CC547 Payment for business petrol. 3 850.00
28 Cash CC548 Drew a cash cheque to pay the monthly wages. 8 960.00
Interest charged by Roundtrack Industries on the overdue account of Pitso
28 Roundtrack Industries JR256 350.00
Industries.
It was realised that office equipment purchased for R 7 854.00 during January
28 N/A JR257 2019 was erroneously debited to the office consumables account. Correct the ?
error.

Required:

Use the relevant transactions from those given above to complete (a) to (d) for Pitso Industries for the month of
February 2019.

(a) Creditors journal (CJ2). Mark clearly how the different amounts or totals will be posted to the general ledger
at month-end.
(b) Creditors allowances journal (CAJ2). Mark clearly how the different amounts or totals will be posted to the
general ledger at month-end.
(c) Cashbook payments (CBP2). Mark clearly how the different amounts or totals will be posted to the general
ledger at month-end. Settlement discounts are recorded in the general journal.
(d) General journal (GJ2).

Note:
• Mark clearly on the creditors journal, creditors allowances journal and cashbook payments how the different
amounts or totals will be posted to the general ledger at the end of the month.
• Original invoices and original credit notes have been renumbered.
• All amounts are INCLUSIVE of VAT, unless VAT is not applicable.

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

ASSIGNMENT 3

QUESTION 1 ACCOUNTING EQUATION: INCLUDING VAT

The following are miscellaneous transactions for Inka Traders for April 2019. The business is a registered VAT
vendor and trades only with registered VAT vendors who can provide tax invoices. The business charges 15 %
VAT on all its sales. All amounts are inclusive of VAT unless VAT is not applicable. The business uses the
periodic inventory method. The business makes use of separate VAT input and VAT output accounts.

Date Details of transaction Amount (R)

6 Purchased trading inventory on credit from B. Ashwell. 11 303.88

Settled our account in full with G. Moira less a 10 % settlement discount. The creditors statement showed a balance of
10 ?
R 57 277.96 prior to this account settlement.
11 Cash sale of trading inventory with a selling price (marked price) of R 52 482.25. ?
15 Received the delivery income for the month in cash. 2 813.74
18 Sold trading inventory with a selling price (marked price) of R 9 043.10 on credit to D. Portman. ?
25 Paid for petrol out of the petty cash. 480.76

Required:

Show how the above transactions will affect the accounting equation and enter how the accounts in the general
ledger will be affected. See the example below. Example: Received a mortgage loan of R 500 000.00 in the form
of cash:

Date Assets (R) = Owner's equity (R) + Liabilities (R)

+ 500 000.00 + 500 000.00

Dr Bank Cr Mortgage loan

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 2 SUBSIDIARY JOURNALS AND GENERAL LEDGER

You are the bookkeeper of Letsin Industries. The business is a registered VAT vendor and trades only with
registered VAT vendors. The business charges 15 % VAT on all its sales. All amounts are inclusive of VAT
unless VAT is not applicable. As the bookkeeper, you have been provided with ONLY the source documents for
the month of January 2019 necessary for the preparation of the journals specified below. The business uses the
perpetual inventory system, and, unless otherwise stipulated, marks all their goods up at 55 % on cost before any
trade discounts (where applicable). ‘CINV’, ‘DCR’, ‘DS’, ‘DR’, ’JV’ and ‘PCV’ are the source document codes
below for duplicate invoices, duplicate credit notes, duplicate cash slips, duplicate receipts, journal vouchers and
petty cash vouchers respectively.

Source documents of Letsin Industries for the month of January 2019.

Source
Date Details document Description Amount (R)
no.
1 J. Gooseman (The owner) DR600 Additional capital contribution in cash. 73 200.00
Sale of trading inventory. The mark up on this trading inventory was 55 % on selling
2 O. Clark CINV479 72 590.00
price (i.e. the gross margin was 55 %).
8 W. Els DS334 Sale of trading inventory. 67 557.50
12 J. Hansel CINV480 Sale of trading inventory: R 21 317.20 less a 7 % trade discount. ?
J. Gooseman contributed a delivery vehicle to the business. (All legislative
12 J. Gooseman JV265 77 622.50
requirements have been met for the full VAT amount to be claimed).
13 J. Hansel DCR245 Trading inventory returned. 991.25
15 Computershare DS335 Received a dividend from Computershare Ltd. 7 930.00
18 Office Shop PCV125 Petty cash payment for filing trays (Office consumables). 2 610.80
19 V. Nelson CINV481 Sale of trading inventory. 59 932.50
5 % settlement discount received from Bowen Industries upon settlement of our
20 Bowen Industries JV266 ?
account in full with a cheque for R 28 789.56.
21 M. Lang DS336 Sale of trading inventory: R 17 080.00 less a 6.5 % trade discount. ?
21 J. Gooseman JV267 Drawings of trading inventory with a selling price including VAT of R 1 981.89. ?
22 CP Refreshment Store PCV126 Petty cash payment for coffee (Staff refreshments). 378.20
24 Tornado Transporters DS337 Received the delivery income from Tornado Transporters. 747.25
25 F. Oppel CINV482 Sale of trading inventory. 57 187.50
25 P & P Stationers PCV127 Petty cash payment for pens. 137.25
26 F. Oppel DCR246 Trading inventory returned. 3 717.19
Received a cheque from J. Hansel (No discount) - Payment on account.
26 J. Hansel DR601 6 203.63
(Balance owing at the beginning of the month: R 2 558.00).
Sale of trading inventory. The inventory was marked up by 55 % on selling price (i.e.
27 S. Gomes DS338 75 182.50
the gross margin was 55 %).
27 J. Gooseman PCV128 Drawings from petty cash by the owner. 6 100.00
28 V. Nelson DCR247 Trading inventory returned. 2 397.30
Received from V. Nelson less 8 % settlement discount.
30 V. Nelson DR602 ?
(Balance owing at the beginning of the month: R 13 185.00).
Credit loss - Amount owing by O. Clark written off as irrecoverable
30 O. Clark JV268 ?
Balance owing at the beginning of the month: R 11 620.76).
Interest charged by Candid Hardware Store on the overdue account of Letsin
30 Candid Hardware Store JV269 305.00
Industries.
30 F. Oppel JV270 Interest charged by Letsin Industries on the overdue account of F. Oppel. 671.00
8 % settlement discount allowed to V. Nelson for settlement of the account.
30 V. Nelson JV271 ?
(Refer to duplicate receipt no. DR602).
It was realised that office equipment purchased for R 6 844.20 during December
30 N/A JV272 ?
2018 was erroneously debited to the office consumables account. Correct the error.

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

Required:

Use the relevant transactions from those given above to complete (a) to (f) for the month of January 2019.

(a) Debtors journal (DJ1) with analysis columns for debtors control, VAT, sales and cost of sales. Mark clearly
how the different amounts or totals will be posted to the general ledger at month-end.

(b) Debtors allowances journal (DAJ1) with analysis columns for debtors control, VAT, sales returns and cost
of sales. Mark clearly how the different amounts or totals will be posted to the general ledger at month-end.

(c) Cashbook receipts (CBR1) with analysis columns for bank, debtors control, VAT output, sales, sundries
and cost of sales. Mark clearly how the different amounts or totals will be posted to the general ledger at
month-end. Settlement discounts are recorded in the general journal. Cash is banked on a daily basis.

(d) Petty cash journal (PCJ1) with analysis columns for petty cash, postage and stationery, staff refreshments
VAT and sundries. Mark clearly how the different amounts or totals will be posted to the general ledger at
month-end.

(e) General journal (GJ1).

(f) Open, post to and balance the following accounts in the general ledger:
• Sales account (N1): Opening balance on 1 January 2019 - R 503 250.00
• Sales returns account (N2): Opening balance on 1 January 2019 - R 60 390.00

Note:

• Mark clearly on the debtors’ journal, debtors’ allowances journal, cashbook receipts and the petty cash journal
how the different amounts or totals will be posted to the general ledger at the month-end. Clearly specify
whether the VAT column is VAT input or VAT output.
• All amounts are INCLUSIVE of VAT, unless VAT is not applicable.

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 3 DEBTORS AND CREDITORS: INDIVIDUAL ACCOUNTS

Bubble Industries uses a periodic inventory system. The business is a registered VAT vendor, and it is the policy
of the business to buy only from other vendors who are able to provide tax invoices. June 2019 is the business’s
third month of trading and the following list of balances appeared on their books on 1 June 2019:

List of balances in the creditors ledger of Bubble Industries on 1 June 2019

Creditor Fol. Amount
Glassglow Industries C1 11 531.58
Branch Traders C2 11 007.41
Paper Maestro Shop C3 12 055.74
Redo Traders C4 19 336.35
53 931.08

Additional information:

The following transaction codes are used in the creditors ledger by Bubble Industries:

• Code no. 01: Credit purchases according to original credit invoices

• Code no. 02: Increases in a previously received credit invoice by means of an original debit note.
• Code no. 03: Returns/rebates according to original credit notes.
• Code no. 04: Cash payments to creditors (cheque counterfoils).
• Code no. 05: Electronic funds transfers
• Code no. 06: Interest charged by creditors on our overdue account.
• Code no. 07: Discount received on prompt settlements.
• Code no. 08: Creditors balance transferred to the debtors’ ledger

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Creditors journal of Bubble Industries - June 2019 CJ3

Sundries
Doc. no. Date Details Fol. Creditors control VAT input Purchases
Amount Fol. Details
INV550 1 Glassglow Industries C1 31 449.75 4 102.14 27 347.61
INV551 5 Branch Traders C2 28 828.94 3 760.30 25 068.64
INV552 9 Paper Maestro Shop C3 442.92 57.77 385.15 Stationery
INV553 13 Redo Traders C4 23 587.31 3 076.61 20 510.70
INV554 17 Lux Furniture C5 7 521.73 981.10 6 540.63 Office furniture
91 830.65 11 977.92 72 926.95 6 925.78

Creditors allowances journal of Bubble Industries - June 2019 CAJ3

Purchases Sundries
Doc. no. Date Details Fol. Creditors control VAT output
returns Amount Fol. Details
CNT104 5 Glassglow Industries C1 5 346.46 697.36 4 649.10
CNT105 9 Branch Traders C2 5 189.21 676.85 4 512.36
CNT106 13 Paper Maestro Shop C3 57.58 7.51 50.07 Stationery
CNT107 17 Redo Traders C4 2 830.48 369.19 2 461.29
CNT108 21 Lux Furniture C5 1 353.91 176.60 1 177.31 Office furniture
14 777.64 1 927.51 11 622.75 1 227.38

Cashbook payments of Bubble Industries - June 2019 CBP3

Creditors Sundries
Doc. no. Date Name of payee Fol. Bank VAT input Purchases
control Amount Fol. Details
CC541 1 Cash 629.00 629.00 Salary
CC542 5 Cell Q 1 237.02 161.35 1 075.67 Telephone
CC543 10 Glassglow Industries C1 33 871.38 33 871.38
CC544 20 Vivid Municipality 1 111.22 144.94 966.28 Electricity
CC545 25 Branch Traders C2 1 729.74 1 729.74
CC546 27 Triton Industries 23 823.19 3 107.37 20 715.82
62 401.55 35 601.12 3 413.66 20 715.82 2 670.95

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

General journal of Bubble Industries – June 2019 GJ3

Doc.
Date Details Fol. Debit Credit
no.
JV112 10 Creditors control (Glassglow Industries) C1 3 763.49
VAT output 490.89
Settlement discount received 3 272.60
(Settlement discount of 10 %)

JV113 25 Creditors control (Branch Traders) C2 32 917.40

Debtors control (Branch Traders) D5 32 917.40
(Balance transferred)

JV114 30 Interest expense 467.75

Creditors control (Redo Traders) C4 467.75
(Interest on overdue account at 14 % per annum)

Required:

(a) Open, post to and balance the creditors control account (B7) in the general ledger of Bubble Industries for
June 2019.

(b) Draft the creditors ledger of Bubble Industries.

(c) Draft the creditors list of Bubble Industries as at 30 June 2019.

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 4 BANK RECONCILIATIONS

The following information was taken from the books of Maqwa Store for August and September 2019:

Table of items appearing on the bank reconciliation statement of Maqwa Store as at 31 August 2019
Details Amount (R)
Balance as per bank statement (unfavourable) (89 541.20)
Outstanding cheque: CC524 (1 959.78)
Outstanding cheque: CC810 (3 919.55)
Outstanding cheque: CC811 (5 879.33)
Outstanding deposit: DS732 (3 429.61)
Correction of bank error on cheque CC605 where Asterix Bank understated the amount of the cheque on the bank statement (4 899.44)
Balance as per bank account (unfavourable) (102 769.69)

Cheque counterfoils of Maqwa Store - September 2019

Date Cheque counterfoil no. Amount (R)
1 CC812 7 212.76
3 CC813 2 704.79
6 CC814 300.53
10 CC815 5 409.58
13 CC816 601.06
18 CC817 2 404.26
22 CC818 3 305.85
26 CC819 1 502.66
28 CC820 4 042.16
30 CC821 2 569.55
30 053.20

Deposit slips of Maqwa Store - September 2019

Date Deposit slip no. Amount (R)
1 DS733 27 411.62
6 DS734 30 022.25
12 DS735 10 442.52
19 DS736 22 190.36
27 DS737 11 747.84
30 DS738 28 716.94
130 531.53

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

Bank statement from Asterix Bank for Maqwa Store - September 2019
Date Description Debit (R) Credit (R) Balance (R)
1 Balance 89 541.20 Dr
1 CC811 5 879.33 95 420.53 Dr
1 Deposit 3 429.61 91 990.92 Dr
1 Correction of error on: CC605 4 899.44 96 890.36 Dr
1 Deposit 27 411.62 69 478.74 Dr
2 CC812 7 212.76 76 691.50 Dr
4 CC813 2 704.79 79 396.29 Dr
6 Deposit 30 022.25 49 374.04 Dr
7 CC814 200.53 49 574.57 Dr
7 Bank statement fees 455.65 50 030.22 Dr
7 Direct deposit - D. Haywood 3 930.53 46 099.69 Dr
11 CC815 5 409.58 51 509.27 Dr
12 Deposit 10 442.52 41 066.75 Dr
12 Transaction fees 187.35 41 254.10 Dr
14 CC816 601.06 41 855.16 Dr
14 CC816 601.06 42 456.22 Dr
15 R/D - V. Groove 10 442.52 52 898.74 Dr
19 CC817 2 404.26 55 303.00 Dr
19 Deposit 22 440.36 32 862.64 Dr
21 Direct deposit - E. Redford 7 839.11 25 023.53 Dr
23 CC818 3 305.85 28 329.38 Dr
23 Government levy 306.31 28 635.69 Dr
26 CRD120 2 841.68 31 477.37 Dr
27 CC819 1 502.66 32 980.03 Dr
28 Interest on overdraft 894.64 33 874.67 Dr
30 Debit order - Recall 4 899.44 38 774.11 Dr
30 Debit order - More Time Insurance 8 943.64 47 717.75 Dr

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Additional information:

i. Cheque no. CC524 is now stale and must be cancelled.

ii. The bank has recorded cheque no. CC814 at the incorrect amount.
iii. The deposit corresponding with DS736 was credited on the bank statement at the correct amount of
R 22 440.36.
iv. The deposit corresponding with DS735 was for a cheque received from a debtor, V. Groove. The cheque
was returned by the bank marked - ‘Return to drawer’.
v. The direct deposit on 7 September was from a debtor, D. Haywood, in settlement of his account.
vi. The direct deposit on 21 September was rent income from E. Redford.
vii. The debit order in favour of Recall is for the business cell phone.
viii. The debit order in favour of More Time Insurance is for the business insurance.
ix. Cheque no. CRD120 was incorrectly debited to the business’s account.
x. Cheque no. CC816 was erroneously debited twice on the bank statement.

Required:

Use the information taken from the books of Maqwa Store to complete the following for September 2019:

(a) Record any differences identified in the bank reconciliation process in a supplementary cashbook receipts
and payments with columns for details and amount. Begin with the totals before any amendments.
(b) Open, post to and balance the bank account (B10) in the general ledger.
(c) Compile the bank reconciliation statement as at 30 September 2019.

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 5 CREDITORS RECONCILIATION

Below is the remittance advice sent to Footwear Industries on 31 December 2018 and the account of Footwear
Industries in the creditors ledger of Rumari Suppliers, together with an account statement received from Footwear
Industries (the statement was received in the post on 7 February 2019, which is the day the reconciling entries
are to be made). Both businesses are registered VAT vendors.

Rumari Suppliers

Reconciliation statement (remittance advise) for Footwear Industries on 31 December 2018

Details Amount
Balance as per statement dated 31 December 2018 111 365.99
Less: Settlement omitted - Cheque CHQ499 (50 000.00)
Cheque herewith 61 365.99

Creditors ledger of Rumari Suppliers

Footwear Industries (C5)

Date Code: Document no. Fol. Debit Credit Balance
1 Jan. 2019 Balance brought forward 61 365.99
04 Cheque CHQ514 CBP1 61 365.99 0.00
11 Jan. 2019 01 Invoice INV214 CJ1 127 558.52 127 558.52
15 Jan. 2019 03 Credit note CRN80 CAJ1 15 307.02 112 251.50
21 Jan. 2019 01 Invoice INV268 CJ1 220 641.76 332 893.26
25 Jan. 2019 03 Credit note CRN96 CAJ1 24 270.59 308 622.67
26 Jan. 2019 04 Cheque CHQ529 CBP1 277 760.40 30 862.27
07 Journal voucher JV275 GJ1 30 862.27 0.00
30 Jan. 2019 01 Invoice INV295 CJ1 127 558.52 127 558.52

Footwear Industries
Statement for Debtor: Rumari Suppliers
Date Details Debit Credit Balance
1 Jan. 2019 Balance 111 365.99
Cheque CHQ499 - Payment, thank you 50 000.00 61 365.99
7 Jan. 2019 Cheque CHQ514 - Payment, thank you 61 365.99 0.00
11 Jan. 2019 Invoice INV214 137 763.20 137 763.20
21 Jan. 2019 Invoice INV268 220 641.76 358 404.96
25 Jan. 2019 Credit note CRN96 22 814.36 335 590.60
26 Jan. 2019 Cheque CHQ529 - Payment, thank you 277 760.40 57 830.20
30 Jan. 2019 Invoice INV295 123 731.76 181 561.96

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

Additional information:

• Footwear Industries is correct with respect to Invoice INV214 and Invoice INV295.
• Rumari Suppliers is correct with respect to Credit note CRN96.
• Credit note CRN80 has not been taken into account by Footwear Industries.
• Invoice INV268 was incorrectly recorded by both Rumari Suppliers and Footwear Industries. The purchase
was subject to an advertised trade discount of 14 %, but only 12 % was recorded on the invoice.
• The settlement discount on Cheque CHQ529 is in accordance with the terms and conditions as laid out by
Footwear Industries and thus should have been allowed.
• Rumari Suppliers uses the following codes in their creditors ledger:

▪ Code no. 01: Credit purchases according to original credit invoices

▪ Code no. 02: Increases in a previously received credit invoice by means of an original debit note.
▪ Code no. 03: Returns/rebates according to original credit notes.
▪ Code no. 04: Cash payments to creditors (cheque counterfoils).
▪ Code no. 05: Electronic funds transfers
▪ Code no. 06: Interest charged by creditors on our overdue account.
▪ Code no. 07: Discount received on prompt settlements.
▪ Code no. 08: Correction of errors

Note: Rumari Suppliers uses a perpetual inventory system. Start the general journal by issuing journal voucher
number JV288.

Required:

Complete the following in the books of Rumari Suppliers on 7 February 2019:

(a) General journal

(b) Footwear Industries’ individual account in the creditors ledger starting with the balance before
reconciliation.
(c) The creditors reconciliation statement (remittance advice) dated 7 February 2019.

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 BOOKKEEPING TO TRIAL BALANCE (BKTB)
ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 6 GENERAL LEDGER RECONCILIATIONS

The following incorrect trial balance appeared in the books of Mboya Traders on 31 January 2019. The business
makes use of a manual bookkeeping system and is a registered VAT vendor and deals only with other registered
VAT vendors. A standard VAT rate of 15 % applies. All amounts are inclusive of VAT unless indicated otherwise.
The business uses the perpetual method of inventory keeping and inventory is marked up by 50 % on cost price.

Trial balance of Mboya Traders on 31 January 2019

Folio Debit (R) Credit (R)
Balance sheet section
Capital B1 380 000.00
Drawings B2 11 586.84
Property B3 513 000.00
Machinery B4 165 300.00
Office equipment B5 184 300.00
10% preference shares in Beukes Ltd B6 45 600.00
Bank B7 9 880.00
Debtors control B8 17 789.30
Cash float B9 2 508.00
Trading inventory B10 10 450.00
Mortgage loan B11 190 000.00
Creditors control B12 20 140.00
Petty cash B13 5 130.00
Telephone deposit B14 1 710.00
Credit card account B15 54 530.00
SARS (UIF/SDL/PAYE) B16 13 870.00
VAT control B17 86 189.32
Nominal accounts section
Sales N1 701 138.00
Sales returns N2 30 894.00
Cost of sales N3 289 673.45
Commission income N4 42 750.00
Interest income N5 4 560.00
Rent income N6 28 739.40
Interest on debtors’ accounts N7 3 230.00
Rates and services N8 13 604.00
Credit losses N9 4 031.35
Travel and accommodation N10 13 452.00
Stationery N11 4 024.42
Printer consumables N12 8 968.00
Fuel expense N13 9 800.20
Telephone and fax N14 5 130.00
Interest on creditors accounts N15 3 306.00
Wages and salaries N16 32 809.20
Insurance expense N17 102 030.00
Office refreshments N18 21 591.98
Security expense N19 17 852.40
1 524 421.14 1 525 146.72

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ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

The following errors and omissions were detected.

i. Drawings by the owner of goods amounting to R 2 929.50 (selling price including VAT) was recorded by
debiting the cost of sales account and crediting the trading inventory account with the correct cost price
(exclusive of VAT). VAT output was correctly calculated and recorded.
ii. Office refreshments were purchased for R 229.77 from petty cash but VAT input was erroneously claimed
on the purchase. The transaction was also recorded in the cash book payments instead of the petty cash
journal.
iii. A payment for petrol (Fuel expense) out of cash float for R 418.00 has not been recorded as yet.
iv. The stationery column in the cashbook payments was undercast by R 725.58, and posted as such.
v. A new lathe (Machinery) purchased for R5 700.00 plus VAT was erroneously recorded in the office
equipment account. The VAT on this transaction was recorded correctly.
vi. The outstanding debt of a debtor must be written off as irrecoverable, R 689.30. Input VAT may be claimed
back from SARS on this credit loss.

Required:

Prepare a basic general ledger reconciliation statement for Mboya Traders as at 31 January 2019.

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 BOOKKEEPING TO TRIAL BALANCE (BKTB)
ICB ASSIGNMENTS 1&2&3 QUESTION PAPER - APR 2019 TO MAR 2020

QUESTION 7 FINAL ACCOUNTS AND STATEMENT OF FINANCIAL POSITION

The following balances were taken from the books of Radix on 28 February 2019, the last day of the financial
year of the business:

Account Balance/total (R)

Capital - 1 March 2018 321 500.00
Drawings 1 607.50
Land & buildings 392 152.84
Plant and machinery 144 675.00
Motor vehicles 151 105.00
R 1 Ordinary Shares in Witts Ltd 38 580.00
Bank (favourable) 8 359.00
Debtors control 14 467.50
Petty cash 1 768.25
Trading inventory 8 841.25
Mortgage loan 160 750.00
Creditors control 17 039.50
Cash float 4 340.25
Credit card account (unfavourable) 46 135.25
SARS (UIF/SDL/PAYE) (unfavourable) 11 734.75
Sales 593 199.65
Sales returns 26 137.95
Cost of sales 279 299.91
Rent income 36 168.75
Dividend income 8 841.25
Packing Income 53 304.70
Interest on debtors’ accounts 5 304.75
Credit losses recovered 2 732.75
Rates and services 11 509.70
Credit losses 3 922.30
Delivery expense 11 381.10
Shop consumables 4 018.75
Postage and stationery 1 736.10
Insurance 6 847.95
Repairs and maintenance 4 340.25
Interest on creditors accounts 2 797.05
Telephone and fax 9 580.70
Staff refreshments 3 954.45
Rent expense 40 669.75
Wages and salaries 84 618.80

Required:

(a) Prepare the trading and profit and loss accounts, clearly showing the gross profit and net profit
respectively.
(b) Draft a statement of financial position as at 28 February 2019. No notes are required.

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