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MODULE NAME: MODULE CODE:
INTRODUCTION TO ACCOUNTING AND FINANCE FIMA5111/d/p
FINANCIAL MANAGEMENT FOR NON-FINANCIAL MANAGERS 1 FIMA112
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. For multiple-choice questions, give only one (1) response per question. The marker will
ignore any question with more than one answer, unless otherwise stated. You should,
therefore, be sure of your answer before committing it to paper.
4. Answer All Questions
5. 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.
6. Show all calculations, where applicable (marks may be awarded for this).
7. Write in black or blue pen only.
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Question 1 (Marks: 5)
Multiple-choice questions: Select one correct answer for each of the following. In your answer
booklet, write down only the number of the question and, next to it, the letter (alphabet) of the
correct answer.
Q.1.1 Which one of the following general ledger accounts decreases on the debit side? (1)
a. Purchases
b. Drawings
c. Mortgage loan
d. Bank
Q.1.2 Which one of the following source documents will be used to record a credit (1)
purchase of computer equipment:
a. Duplicate credit invoice
b. Original credit invoice
c. Original credit note
d. Duplicate credit note
Q.1.3 An organisation purchased equipment on credit for R5 000; during the first (1)
month after the purchase, R500 was repaid towards the equipment. What is the
double-entry for the R500?
a. Equipment will be decreased (credit) by R500, while creditors will be
decreased (debit) by R500.
b. Bank balance decreases (debit) by R500, while creditors will decrease
(credit) by R500.
c. Bank balance decreases (credit) by R500, while creditors will decrease
(debit) by R500.
d. Bank balance will decrease (debit) by R500, while creditors will increase
(credit) by R500.
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Q.1.4 It may, at times, be necessary to return damaged or faulty goods to a supplier; in (1)
such a case, the entity will issue the following document detailing the items
being returned:
a. Debit note
b. Credit note
c. Credit invoice
d. Receipt
Q.1.5 Which one of the following is usually kept for a period longer than a year? (1)
a. Expense
b. Current asset
c. Current liability
d. Non-current assets
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Question 2 (Marks: 20)
ACT Solutions had the following transactions take place during April 2024:
Day Transaction
9 The owner took an office desk valued at R690 for personal use.
15 Miss Hope Hype (one of ACT Solutions’ debtors) is declared bankrupt and is unable to
settle her outstanding debt of R1 350; this amount needs to be written off as
irrecoverable.
18 The owner makes an additional capital contribution of R35 000. The amount was
directly deposited into ACT Solutions’ bank account.
21 The owner gave some items of inventory to his friend as a gift; the items were valued
at R640.
30 Depreciation of R3 500 needs to be provided for vehicles.
Required:
Q.2.1 Draft the general journal of ACT Solutions for April 2024. The last journal voucher (15)
used was JV15; journal narrations are required.
Q.2.2 In which journal should the transaction on the 18th of April 2024 be recorded? (2)
Which source document will be used to record the transaction in the journal, and
will it be an original or duplicate?
Q.2.3 What is an “analysis column” used for in the cash journals, and will the transaction (3)
on the 18th of April be entered in the “analysis column”? Give a reason for your
answer.
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Question 3 (Marks: 20)
The Man-cave Company incurred the following transactions during March 2024. As their
accountant, you have been asked to present this information in the general ledger.
Day Transaction
1 Paid rent of R13 600 via EFT.
6 Purchased inventory on credit from The Cigar Bar received an invoice of R76 900.
7 Returned R900 of the inventory purchased from The Cigar Bar on the 6th as the items
were faulty.
9 Deposited R60 000 into the bank in respect of cash sales.
15 Paid the telephone and internet account via EFT, R1 040.
22 Received an invoice of R921 from Pop-up Paper Supplies for stationery purchased on
credit.
30 Purchased a microwave for the staff kitchen for R890 cash.
Paid The Cigar Bar R30 760 via EFT.
Required:
Q.3.1 The owner of The Man-cave Company, Mr. Man, has recently appointed you as the
accountant, as he has very limited accounting knowledge. He has asked you the
following questions:
Q.3.1.1 He understands that a creditor is a liability, but he is not sure what the (3)
accounting definition of a liability is. Provide Mr, Man with the
conceptual framework definition of a liability.
Q.3.1.2 He remembers from school that there were two categories of liabilities. (3)
Name and give a brief explanation of each category and tell him under
which of the two categories will creditors fall.
Q.3.1.3 Mr. Man was not sure which document to use to return the faulty (5)
inventory to The Cigar Bar see the transaction on the 7th above.
Explain to Mr. Man which document to use and the process that will be
followed by both The Man-cave Company and the supplier, The Cigar Bar.
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Q.3.2 Record the relevant transactions in the Creditors Control account in the general (9)
ledger account of The Man-cave Company for March 2024.ssume that the
creditor’s control account had an opening balance of R15 000 on 1 March 2024.
Close off and balance the account correctly.
Question 4 (Marks: 15)
You are presented with the following general ledger accounts of Forever Flowers at the end of
April 2024:
GENERAL LEDGER OF FOREVER FLOWERS
BANK (B2)
Date Details Folio Amount Date Details Folio Amount
01-Apr-24 Balance b/d 58 730 28-Apr-24 Salaries and Wages CPJ 16 000
18-Apr-24 Sales CRJ 4 365 Creditors Control CPJ 3 504
24-Apr-24 Sales CRJ 7 513 30-Apr-24 Balance c/d 51 104
70 608 70 608
01-May-24 Balance b/d 51 104
PETTY CASH (B3)
Date Details Folio Amount Date Details Folio Amount
01-Apr-24 Balance b/d 2 000 12-Apr-24 Staff Refreshments PCJ 521
30-Apr-24 Balance c/d 1 479
2 000 2 000
01-May-24 Balance b/d 1 479
STAFF REFRESHMENTS (N2)
Date Details Folio Amount Date Details Folio Amount
12-Apr-24 Petty Cash PCJ 521
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SALES (N1)
Date Details Folio Amount Date Details Folio Amount
18-Apr-24 Bank CRJ 4 365
24-Apr-24 Bank CRJ 7 513
11 878
CREDITORS CONTROL (B5)
Date Details Folio Amount Date Details Folio Amount
30-Apr-24 Balance b/d 3 504
EQUIPMENT (B4)
Date Details Folio Amount Date Details Folio Amount
20-Apr-24 Creditors Control CJ 7 008
SALARIES AND WAGES (N3)
Date Details Folio Amount Date Details Folio Amount
28-Apr-24 Salaries and Wages CPJ 16 000
Required:
Q.4.1 Prepare the trial balance of Forever Flowers on 30 April 2024 based on the above (12)
general ledger accounts.
Calculate the capital balance to complete the trial balance.
The trial balance must be divided into two sections with the appropriate section
headings.
The account balances must be correctly shown as either debit or credit.
Account names and folios must be given.
The trial balance must be totalled.
Q.4.2 Name any three (3) errors that a trial balance will not reveal. (3)
END OF PAPER
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