Financial Accounting Principles (FAC1503)

Mapungubwe Traders primary business is to buy and sell battery back-up systems and other items to be used during load shedding. Mapungubwe Traders is a registered VAT vendor and applies the principles of the perpetual inventory system. On 1 April 2022, Mapungubwe Traders purchased small solar lighting systems from a supplier (registered VAT vendor) to the amount of R13 900 (VAT inclusive) on account. Required a. Record the correct general ledger entries for the above transaction in the accounting records of Mapungubwe Traders. b. Indicate whether the VAT input or VAT output account was affected by the transaction or neither (N/A) as well as the amount the applicable

In which circumstance can a credit limit will be temporarily exceeded? a. As a result of a receipt or credit note not yet processed. b. When it is a sale to a long-standing customer who has never defaulted on previous payments c. When the customer has submitted proof of its solvency to the organisation’s accountant d. Never

The recording of price and trade discount differences as part of a “purchase variance” is incorrect. Select one: True False

Specialised warehouse information systems are required when an organisation has extensive warehouse and store locations. Select one: True False

You will seldom find Suppliers accounts on the Cashbook Receipts, as we expect to receive payments from Customers only and not Suppliers. Select one: True False

Which AIS database files is accessed, updated or modified by the production process a. Customer master file b. Inventory Master file c. Supplier master file d. Purchase transaction file