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My Modules FAC1502-21-S1-17E Online Assessment
Financial Accounting Principles (FAC1502)
University of South Africa
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- The total of the trade receivables column in the sales returns journal of Nelly Stores is R100 000. In the process of reconciling the balance on the trade receivables control account with the list of balances as per trade receivables ledger, it was noted that the sales returns journal was overcast by R1 000.Which one of the following represents the correct general ledger entries in the books of Nelly Stores to rectify the sales returns journal total?
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2 ASSIGNMENT 2.
RETURN TO ASSESSMENT LIST
Part 1 of 4 - 3/ 3 Points
Question 1 of 20 Indicate by choosing the correct option whether the following statement is true or false :
At the end of the financial year, an allowance for credit losses will be subtracted from the trade receivables balance and an allowance for settlement discount granted will be added to the trade receivable balance. Thereafter the net amount will be disclosed under trade and other receivables in the statement of financial position.
True False
Answer Key: False
Question 2 of 20 Indicate by choosing the correct option whether the following statement is true or false :
At the end of the financial year, an allowance for credit losses will be used to increase the trade receivables balance and the aggregate amount will be disclosed under trade and other receivables in the statement of financial position.
True False
Answer Key: False
Question 3 of 20 The total of the trade receivables control account in the cash receipts journal will be posted to the debit side of the trade receivable control account in the general ledger.
True False
Answer Key: False
Part 2 of 4 - 7/ 9 Points
Question 4 of 20 Which of the following will be considered as the source document for recording transactions in the cash receipts journal?
A. Original credit note
B. Duplicate credit note
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C. Duplicate debit note
D. Bank statement
E. Cheque counterfoils
Answer Key: D
Question 5 of 20 HS Stores purchased inventory for R6 000 on credit from PL Traders on 2 April 20. The inventory was delivered to HS Stores on 4 April however 80% of the inventory was damaged whilst being transported to HS Stores. The damaged inventory to the value of R4 800 was subsequently returned to PL Traders on 4 April 20. In which journal will the bookkeeper of HS Stores record the transaction that occurred on 4 April 20?
A. Purchases journal
B. Purchases returns journal
C. General journal
D. Sales journal
E. Sales returns journal
Answer Key: B
Question 6 of 20 The total of the settlement discount granted column in the cash receipts journal will posted to the ... in the general ledger.
A. credit side of the settlement discount granted account
B. credit side of the sales returns account
C. credit side of the credit losses account
D. debit side of the settlement discount granted account
E. debit side of the sales returns account
Answer Key: D
Question 7 of 20 The total of the sales returns column in the sales returns journal will be posted to the ... in the general ledger.
A. credit side of the credit losses account
B. credit side of the sales returns account
C. debit side of the sales returns account
D. debit side of the trade receivables control
E. debit side of the credit losses account
Answer Key: C
Question 8 of 20 The bookkeeper of HS Stores noticed that a deposit of R15 000 which appeared in April’s bank reconciliation statement as an outstanding deposit, did not appear in the bank statement of May. What will be the
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Question 12 of 20 The bookkeeper of HS Stores will enter the interest charged on an unfavourable bank balance in the ... of HS Stores.
A. bank reconciliation statement
B. cash receipts journal
C. cash payments journal
D. bank statement
E. petty cash journal
Answer Key: C
Part 3 of 4 - 10/ 10 Points
Question 13 of 20
In the process of reconciling the balance on the trade receivables control account with the list of balances as per the trade receivables ledger, it was noted that certain accounts with debit balances of R1 500 need to be transferred from the trade payables ledger to the trade receivables ledger.
Which one of the following represents the correct general ledger entries in the books of Jam Traders to record the above transaction?
A.
General ledger Account debited Account credited Amount
Sales Trade receivables control R1 500
B. General ledger Account debited Account credited Amount
Trade receivables control Sales R1 500
C.
General ledger Account debited Account credited Amount
Trade receivables control Trade payables control R1 500
D. General ledger
Amount
Account debited Account credited
Trade payables control Trade receivables control R1 500
E. General ledger Account debited Account credited Amount
Sales returns Trade receivables control R1 500
Answer Key: C
Question 14 of 20
Gizmo Enterprises provided you with the following information regarding the list of totals and balances on 28 February 20.
2/ 2 Points
R
TOTALS FOR JOURNALS
Total of the trade receivables column in the sales journal........................ 276 080
Total of the trade payables column in the purchases journal.................... 215 200
Total of the trade receivables column in the sales returns journal............. 4 000
Total of the trade payables column in the purchases returns journal......... 8 600
BALANCES OF GENERAL LEDGER ACCOUNTS
Balance of allowance for credit losses (1/03/20)........................................ 2 040
Balance of trade receivables control account (1/03/20)............................... 40 800
Additional information
A sales invoice of R750 was entered twice in the sales journal and posted twice to the personal account of a debtor, Mr T Maharaj.
Which of the following represents the correct ledger entries for the correction of the sales invoice of R750 that was entered twice in the sales journal and personal account of Mr T Maharaj?
A.
General ledger Subsidiary ledger Amount Account to be debited Account to be credited Debit Credit R Sales Trade receivables control Mr T Maharaj 750
B.
General ledger Subsidiary ledger Amount Account to be debited Account to be credited Debit Credit R Sales Trade receivables control Mr T Maharaj 1 500
C. General ledger Subsidiary ledger Amount Account to be debited Account to be credited Debit Credit R Trade receivables control Sales Mr T Maharaj 275 330
D. General ledger Subsidiary ledger Amount Account to be debited Account to be credited Debit Credit R Trade receivables control Sales Mr T Maharaj 750
E. General ledger Subsidiary ledger Amount Account to be debited Account to be credited Debit Credit R Trade receivables control Sales Mr T Maharaj 1 500
Answer Key: A
Question 15 of 20
Gizmo Enterprises provided you with the following information regarding the list of totals and balances on 28 February 20.
R
2/ 2 Points
A. BANK RECONCILIATION STATEMENT AS AT 30 JUNE 2020
Debit
R
Credit
R Debit error made by bank....................................... 25 000
B. BANK RECONCILIATION STATEMENT AS AT 30 JUNE 2020
Debit
R
Credit
R Credit error made by bank .................................... 25 000
C. BANK RECONCILIATION STATEMENT AS AT 30 JUNE 2020
Debit
R
Credit
R Credit error made by bank .................................... 2 500
D. BANK RECONCILIATION STATEMENT AS AT 30 JUNE 2020
Debit
R
Credit
R Debit error made by bank (25 000 – 2 500).................... 22 500
E. BANK RECONCILIATION STATEMENT AS AT 30 JUNE 2020
Debit
R
Credit
R Credit error made by bank (25 000 – 2 500)................ 22 500
Answer Key: E
Question 17 of 20
Gizmo Enterprises provided you with the following information regarding the list of totals and balances on 28 February 20.
R
TOTALS FOR JOURNALS
Cash receipts journal totals for the month
Trade receivables column....................................................................... 207 420
Settlement discount granted column......................................................... 12 000
Sales column....................................................................................... 404 000
Trade payables column.......................................................................... 5 600
Additional information
The trade receivable’s column in the cash receipts journal was undercast by R900.
Which one of the following represents the correct general ledger entries for bank and settlement discount granted?
A.
3/ 3 Points
General ledger Amount Account to be debited Account to be credited R Trade receivables control Bank and settlement discount granted 207 420
B. General ledger Amount Account to be debited Account to be credited R Bank and settlement discount granted Trade receivables control 206 520
C.
General ledger Amount Account to be debited Account to be credited R Bank and settlement discount granted Trade receivables control 207 420
D. General ledger Amount Account to be debited Account to be credited R Trade receivables control Bank and settlement discount granted 208 320
E.
General ledger Amount Account to be debited Account to be credited R Bank and settlement discount granted Trade receivables control 208 320
Answer Key: E
Part 4 of 4 - 6/ 9 Points
Question 18 of 20
The following information in respect of August 20 was obtained from the financial records of Mthembu Traders:
The balance of the list of individual debtors per trade receivables ledger, R14 402
In the process of reconciling the balance on the trade receivables control account in the general ledger with the list of balances per trade receivables ledger, the following errors were discovered:
An adding error in the trade receivables list resulted in the total being undercast by R240.
A credit sale of R730 to S Naidoo was left out of all records in error.
A debtor, P Cele, who returned goods valued R178 on 24 August 20, was entered correctly in the sales returns journal but was posted as R196 in the personal account of P Cele.
An invoice for merchandise sold on credit to debtor B Themba, R136 was recorded twice in the sales journal and posted accordingly.
Which of the following options represent the correct option for the correction of these errors in the trade receivables list:
A. MTHEMBU TRADERS
RECONCILIATION OF TRADE RECEIVABLES LIST:
Debit Credit R R
Total of the list of trade receivables balances 14 402 Add total undercast in sales journal 240
0/ 3 Points
The pre-adjustment trial balance of Jupiter Traders reflected a trade receivables control account with a balance of R13 389 for the current financial year that ended on 28 February 20. The financial manager was shocked by this amount for the trade receivables control account because it was too high when compared to the balance of previous month. The bookkeeper was therefore, requested to provide a summary of how the balance for the trade receivables control account were calculated and to provide an age analysis for trade receivables. The following information was provided by the bookkeeper:
Trade receivable control account (previous month balance)........................ R6 120 Less: Cash receipts journal February 20 (trade receivables column).... (R3 000) Interest on overdue accounts....................................................................... R
Sales journal for the month of February 20 (Excluding VAT).............................................................................................................. R8 460
VAT @ 15%................................................................................................. R1 269
Total of trade receivables control account as per the pre-adjustment trial balance R13 389
Trade receivables age analysis:
90 Days + 60 Days 30 Days Current Total outstanding
R1 660 R563 R1 437 R9 729 R13 389
The financial manager noted that no credit losses were written off as yet and she insisted that uncollectable accounts must be written off in accordance with the accounting policy of Jupiter Traders. It is the accounting policy of Jupiter Traders to write off all outstanding debtors that are older than 90 days as they are considered irrecoverable. The financial manager also determined that the allowance for credit losses should amount to 17% of trade receivables at year-end after the necessary adjustments have been considered.
The amount for credit losses to be disclosed in the statement of profit or loss and other comprehensive income for the year ended 28 February 20 will be ...? (Round off your final answer to the nearest Rand)
A. R1 994
B. R3 314
C. R3 654
D. R2 276
E. R3 936
Answer Key: C
Question 20 of 20
The financial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20, who was immediately required to assist with the creation of an allowance for credit losses (current financial year ends on 28 February 20). The auditors of Steven Traders raised an audit finding in the previous financial period, stating that trade and other receivables were overstated since no allowances for credit losses has been created although there was evidence that some of the debtors did not pay their accounts in the previous financial periods. The financial manager wants to avoid this audit finding in the current financial period.
The financial manager requested the bookkeeper to write a memo and indicate which accounts will be affected when the allowance for credit losses is created? The bookkeeper has written the following statements down and requires you to confirm which of the statement/s is/are true when the allowance for credit losses is created.
a. When the allowance for credit losses is created, you will debit the credit losses account and credit the allowance for credit losses account.
b. The balance on the trade receivable control account in the general ledger will be affected by the allowance for credit losses.
c. The allowance for credit losses must be deducted from the trade receivables control account to determine the amount at which debtors must be disclosed under trade and other receivables in the statement of financial position.
d. When the allowance for credit losses is created, credit the credit losses account and debit the allowance for credit losses account.
e. Trade receivables control account balance in the general ledger will only be reduced when the actual credit losses are verified, by either; (i) debiting the allowance for credit losses and crediting trade receivable/control account, or by (ii) debiting the credit losses and crediting trade receivable/control account (while the allowance for credit losses remain unchanged).
A. c and d
B. b and c
C. a, b, c and e
D. a, c and e
E. b and e
Answer Key: D
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My Modules FAC1502-21-S1-17E Online Assessment
Course: Financial Accounting Principles (FAC1502)
University: University of South Africa
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