This assignment contributes 30% towards the final mark. 3 Instructions to Student 1. Remember to keep a copy of all submitted assignments. 2. All answers, where applicable, must be typed in WORD tables. All work must be submitted through Turnitin and the full Originality Report should be attached to the final assignment. Negative marking will be applied if you are found guilty of plagiarism, poor writing skills or if you have applied incorrect or insufficient referencing. 4. Each assignment must include a cover page, table of contents and full bibliography, based on the referencing method applicable to your faculty as applied at Pearson Institute of Higher Education Use the cover sheet template for the assignment; this is available from your lecturer or on MyLMS 6. Students are not allowed to offer their work for sale or to purchase the work of other students. This includes the use of professional assignment writers and websites, such as Essay Box. If this should happen, Pearson Institute of Higher Education reserves the right not to accept future submissions from a student. 7. Show all the formulas and calculations used. 8. Where applicable, all calculations should be rounded off to the nearest rand. 5. Assignment Format Students must follow the requirements when writing and submitting assignments as follows: Use Arial, font size 10. Include page numbers. . Include a title page. Print submissions on both sides of the page. Ensure any diagrams, screenshots and PowerPoint presentations fit correctly on the page and are referenced. Include a table of contents. Use the accurate referencing method throughout the assignment. Include a bibliography based on the applicable referencing method at the end of the assignment Rokerto the PIHE Policy for Intellectual Property. Copyright and Plagiatom Iafringement, which is wariable on myths Avable on my Include the completed Assessment/Project Coversheet (available on myLMS). . Check spelling, grammar and punctuation. Run the assignment through Turnitin software Essential Embedded Knowledge and skills Required of Students Report-writing skills Ability to analyse scenarios/case studies Understanding of subject field concepts and definitions Ability to apply theoretical knowledge to propose solutions to real-world problems Referencing skills Resource Requirements A device with Internet access for research A desktop or personal computer for typing assignments Access to a library or resource centre Prescribed reading resources Delivery Requirements (evidence to be presented by students) A typed assignment A Turnitin Originality Report Note It is crucial that students reference all consulted information sources, by means of in-text referencing and a bibliography, according to the applicable referencing method. Negative marking will be applied if a student commits plagiarism i.e. using information from information sources without acknowledgement and reference to the original source. In such cases, negative marking, also known as 'penalty scoring', refers to the practice of subtracting marks for insufficient/incorrect referencing. Question 1 20 Marks Study the scenarios and complete the question(s) that follow: 1.1 Fruity Juicy is a sole trader of fruit juices. Fruity Juicy is NOT a registered VAT vendor. The following is an extract from the trial balance on 29 February 2020. R Inventory at cost (1 March 2019) 40 000 Purchases of fruit juices 592 440 Returns of spoiled fruit juices 3 500 Transport cost of fruit juices 3 115 Sales of fruit juices 594 235 Returns by clients of spoiled fruit juices 3850 Fruit juices taken by owner 7830 Source: Kopper. J (2020) Additional information: 1. Inventory on 29 February 2020 was R 51 875 at selling price 2. The business uses a perpetual stock system and goods are sold at cost plus 25% 3. The management has a suspicion that goods were misappropriated by the bookkeeper. Required: 1.1.1 Record the transactions in the inventory account in the general ledger of Fruity Juicy and close off the account on 31 March 2020. (11 Marks) 1.1.2 Provide comments on the management's remark that the bookkeeper has misappropriated the inventory (3 Marks) 1.2 A business is a registered VAT Vendor. The business buys goods at a total inclusive price of R 10 500 and sells the same goods at an exclusive price of R 15 200. Determine the amount that is payable to or receivable from SARS. VAT is charged at 15%. (6 Marks) End of Question 1 Question 2 25 Marks 01 05 Study the scenario and complete the question(s) that follow: Computers-for-you Computers-for-you is an entity that renders professional computer services to the public. Computers- for-you are NOT a registered VAT vendor. The following accounting events, among others, took place with regard to the entity during the month ended 28 February 2019: Date Accounting event Settled the account of Clean Green of R3 000 for cleaning services delivered by them earlier in the month, via electronic fund transfer Received a cheque for R7 360, after 8% discount had been deducted from a debtor Delfie CC, as payment of the amount owing by him. Purchased computers to the value of R80 000 on credit from Computers Warehouse Issued a debit note and returned half of the computers purchased on the 10 February 2019 to Computers Warehouse, due to it being damaged in transit. The bank informed Computers-for-you that the cheque of Delfie CC, received on the 5th of February has been dishonoured. The owner increased his capital contributions by making his own vehicle available to the entity for its exclusive use in its business activities. The original cost price of the motor vehicle was R50 000. The owner took R150 stationery for personal use. Source: Klopper, J. 2020 10 11 17 19 Required: Analyse the above transactions of Computers-for-you according the table provided: (25 Marks) Example 3 Paid water and electricity by cheque R3 000. Day Account debited Account credited Influence on the accounting equation Assets Liabilities Owners' equity -3000 Bank 3 000 0 3 Water and electricity End of Question COIA111 - Assignment S1 2020 V1.1 Page 5 of 11 35 Marks 6 of 11 Questions Study the scenario and complete the question(s) that follow: The Barby Shop Extract from Pre-adjustment Trial Balance of The Barby Shop as on 31 March 2019 Debit Credit 85 955 1 020 3 512 60 000 170 000 32 000 25 610 22 100 Capital Drawings Bank Motor Vehicles @ Cost Equipment Inventory 31 March 2019 Accounts Receivables Accounts Payables Petty Cash Loan: Lapitec bank Fixed deposit (expires 30 June 2019) Accumulated depreciation: motor vehicles Accumulated depreciation: Equipment Allowance for credit losses Sales Purchases Credit losses 500 80 000 10 000 15 000 40 000 500 194 316 150 000 120 20 000 Rent Received Interest on loan 2 000 Additional information: After the preparation of the statement of profit and loss, the profit for the year amounted to R250 250. The accountant, however, neglected to take into account the following adjustments in the Statement of Profit and Loss: 1. Depreciation on motor vehicles at 20% per annum on cost. An old motor vehicle of R10 000 was sold on 30 September 2018 Depreciation on equipment is at 25% on reducing balance method. 2 3. The interest on loan is 15% per annum. COIA111 - Assignment S1 2020 V1.1 Page 6 of 11 4 5. The fixed deposit is at 12% per annum. All interest will be paid on 30 June 2019, when the fixed deposit expires. The fixed deposit was made on 1 July 2017 The business has been informed on the last day that Mr Ken is insolvent. The Barby Shop are to receive a liquidation dividend of 50% next month, the remaining amount must be written off as irrecoverable. His account has a balance of R110. The allowance for credit losses must be adjusted to 2% of outstanding receivables on the 31st of 6. March 2019. Source: Klopper. 1.2020 Required: 3.1 Prepare a general journal for the adjustments that have not been recorded. No descriptions necessary. (19 Marks) 3.2 Calculate the correct profit or loss, after all the adjustments have been taken into account (6 Marks) 3.3 Prepare an extract from the statement of financial position, showing the equity and liabilities section", as on 31 March 2019 for The Barby Shop. (10 Marks) COIA111 - Assignment S1 2020 V1.1 Page 7 of 11 8 of 11 20 Marks 1 2 Study the scenario and complete the question(s) that follow. Bombay Services Bombay Services totaled their cash receipts joumal and cash payments journal for February 2017 and posted these totals to the ledger before they received their bank statement for the same month. The bank account had an unfavourable balance on 28 February 2020 of R26 500. The bank statement revealed an unfavourable balance of R3 450 on 28 February 2020. On comparing the bank statement with the cash receipts journal and the cash payments journal, the following differences arose: Number Description The cash receipts journal showed a deposit of R11 500 (a receipt from A Ramsamy. a debtor) while an incorrect figure of R16 000 appeared on the bank statement. The following cheques in the cash payments joumal have not yet been presented at the bank: #215 R11 000 #219: R13 000 #295: R9 000 #307: R16 000 A scrutiny of the cash receipts journal revealed that deposits totalling R24 000 had not yet gone through the current account at the bank. A cheque from R Naidoo in respect of rent for R21 000 was incorrectly entered in the cash receipts joumal as R25 800. The following charges appeared on the bank statement: - Bank charges: R400. - Interest on overdraft: R350. A cheque drawn by Bay Traders, another client of the bank, for R6 400 appeared on the bank statement. Cheque #307 is stale and must be cancelled. The bank statement showed a deposit of Rs 500 which was made by another client of the bank and erroneously entered on Bombay Services bank statement Cheque #295 in favor of R Ramsamy was issued, should be cancelled as it got lost in the post. The bookkeeper, however, recorded the payment in the cash payments journal. 3 4 5 6 7 8 9 Source: Klopper. J. 2020 COLA111 - Assignment S1 2020 V1.1 Page 8 of 11 nent S1 2020 V1.1 Page 8 of 11 9 of 11 Required: 4.1 Prepare the Bank account in the general ledger of Bombay Services for the month of February 2020 (8 Marks) 4.2 Prepare the bank reconciliation statement of Bombay Services as at 28 February 2020. (12 Marks) This assignment contributes 30% towards the final mark. 3 Instructions to Student 1. Remember to keep a copy of all submitted assignments. 2. All answers, where applicable, must be typed in WORD tables. All work must be submitted through Turnitin and the full Originality Report should be attached to the final assignment. Negative marking will be applied if you are found guilty of plagiarism, poor writing skills or if you have applied incorrect or insufficient referencing. 4. Each assignment must include a cover page, table of contents and full bibliography, based on the referencing method applicable to your faculty as applied at Pearson Institute of Higher Education Use the cover sheet template for the assignment; this is available from your lecturer or on MyLMS 6. Students are not allowed to offer their work for sale or to purchase the work of other students. This includes the use of professional assignment writers and websites, such as Essay Box. If this should happen, Pearson Institute of Higher Education reserves the right not to accept future submissions from a student. 7. Show all the formulas and calculations used. 8. Where applicable, all calculations should be rounded off to the nearest rand. 5. Assignment Format Students must follow the requirements when writing and submitting assignments as follows: Use Arial, font size 10. Include page numbers. . Include a title page. Print submissions on both sides of the page. Ensure any diagrams, screenshots and PowerPoint presentations fit correctly on the page and are referenced. Include a table of contents. Use the accurate referencing method throughout the assignment. Include a bibliography based on the applicable referencing method at the end of the assignment Rokerto the PIHE Policy for Intellectual Property. Copyright and Plagiatom Iafringement, which is wariable on myths Avable on my Include the completed Assessment/Project Coversheet (available on myLMS). . Check spelling, grammar and punctuation. Run the assignment through Turnitin software Essential Embedded Knowledge and skills Required of Students Report-writing skills Ability to analyse scenarios/case studies Understanding of subject field concepts and definitions Ability to apply theoretical knowledge to propose solutions to real-world problems Referencing skills Resource Requirements A device with Internet access for research A desktop or personal computer for typing assignments Access to a library or resource centre Prescribed reading resources Delivery Requirements (evidence to be presented by students) A typed assignment A Turnitin Originality Report Note It is crucial that students reference all consulted information sources, by means of in-text referencing and a bibliography, according to the applicable referencing method. Negative marking will be applied if a student commits plagiarism i.e. using information from information sources without acknowledgement and reference to the original source. In such cases, negative marking, also known as 'penalty scoring', refers to the practice of subtracting marks for insufficient/incorrect referencing. Question 1 20 Marks Study the scenarios and complete the question(s) that follow: 1.1 Fruity Juicy is a sole trader of fruit juices. Fruity Juicy is NOT a registered VAT vendor. The following is an extract from the trial balance on 29 February 2020. R Inventory at cost (1 March 2019) 40 000 Purchases of fruit juices 592 440 Returns of spoiled fruit juices 3 500 Transport cost of fruit juices 3 115 Sales of fruit juices 594 235 Returns by clients of spoiled fruit juices 3850 Fruit juices taken by owner 7830 Source: Kopper. J (2020) Additional information: 1. Inventory on 29 February 2020 was R 51 875 at selling price 2. The business uses a perpetual stock system and goods are sold at cost plus 25% 3. The management has a suspicion that goods were misappropriated by the bookkeeper. Required: 1.1.1 Record the transactions in the inventory account in the general ledger of Fruity Juicy and close off the account on 31 March 2020. (11 Marks) 1.1.2 Provide comments on the management's remark that the bookkeeper has misappropriated the inventory (3 Marks) 1.2 A business is a registered VAT Vendor. The business buys goods at a total inclusive price of R 10 500 and sells the same goods at an exclusive price of R 15 200. Determine the amount that is payable to or receivable from SARS. VAT is charged at 15%. (6 Marks) End of Question 1 Question 2 25 Marks 01 05 Study the scenario and complete the question(s) that follow: Computers-for-you Computers-for-you is an entity that renders professional computer services to the public. Computers- for-you are NOT a registered VAT vendor. The following accounting events, among others, took place with regard to the entity during the month ended 28 February 2019: Date Accounting event Settled the account of Clean Green of R3 000 for cleaning services delivered by them earlier in the month, via electronic fund transfer Received a cheque for R7 360, after 8% discount had been deducted from a debtor Delfie CC, as payment of the amount owing by him. Purchased computers to the value of R80 000 on credit from Computers Warehouse Issued a debit note and returned half of the computers purchased on the 10 February 2019 to Computers Warehouse, due to it being damaged in transit. The bank informed Computers-for-you that the cheque of Delfie CC, received on the 5th of February has been dishonoured. The owner increased his capital contributions by making his own vehicle available to the entity for its exclusive use in its business activities. The original cost price of the motor vehicle was R50 000. The owner took R150 stationery for personal use. Source: Klopper, J. 2020 10 11 17 19 Required: Analyse the above transactions of Computers-for-you according the table provided: (25 Marks) Example 3 Paid water and electricity by cheque R3 000. Day Account debited Account credited Influence on the accounting equation Assets Liabilities Owners' equity -3000 Bank 3 000 0 3 Water and electricity End of Question COIA111 - Assignment S1 2020 V1.1 Page 5 of 11 35 Marks 6 of 11 Questions Study the scenario and complete the question(s) that follow: The Barby Shop Extract from Pre-adjustment Trial Balance of The Barby Shop as on 31 March 2019 Debit Credit 85 955 1 020 3 512 60 000 170 000 32 000 25 610 22 100 Capital Drawings Bank Motor Vehicles @ Cost Equipment Inventory 31 March 2019 Accounts Receivables Accounts Payables Petty Cash Loan: Lapitec bank Fixed deposit (expires 30 June 2019) Accumulated depreciation: motor vehicles Accumulated depreciation: Equipment Allowance for credit losses Sales Purchases Credit losses 500 80 000 10 000 15 000 40 000 500 194 316 150 000 120 20 000 Rent Received Interest on loan 2 000 Additional information: After the preparation of the statement of profit and loss, the profit for the year amounted to R250 250. The accountant, however, neglected to take into account the following adjustments in the Statement of Profit and Loss: 1. Depreciation on motor vehicles at 20% per annum on cost. An old motor vehicle of R10 000 was sold on 30 September 2018 Depreciation on equipment is at 25% on reducing balance method. 2 3. The interest on loan is 15% per annum. COIA111 - Assignment S1 2020 V1.1 Page 6 of 11 4 5. The fixed deposit is at 12% per annum. All interest will be paid on 30 June 2019, when the fixed deposit expires. The fixed deposit was made on 1 July 2017 The business has been informed on the last day that Mr Ken is insolvent. The Barby Shop are to receive a liquidation dividend of 50% next month, the remaining amount must be written off as irrecoverable. His account has a balance of R110. The allowance for credit losses must be adjusted to 2% of outstanding receivables on the 31st of 6. March 2019. Source: Klopper. 1.2020 Required: 3.1 Prepare a general journal for the adjustments that have not been recorded. No descriptions necessary. (19 Marks) 3.2 Calculate the correct profit or loss, after all the adjustments have been taken into account (6 Marks) 3.3 Prepare an extract from the statement of financial position, showing the equity and liabilities section", as on 31 March 2019 for The Barby Shop. (10 Marks) COIA111 - Assignment S1 2020 V1.1 Page 7 of 11 8 of 11 20 Marks 1 2 Study the scenario and complete the question(s) that follow. Bombay Services Bombay Services totaled their cash receipts joumal and cash payments journal for February 2017 and posted these totals to the ledger before they received their bank statement for the same month. The bank account had an unfavourable balance on 28 February 2020 of R26 500. The bank statement revealed an unfavourable balance of R3 450 on 28 February 2020. On comparing the bank statement with the cash receipts journal and the cash payments journal, the following differences arose: Number Description The cash receipts journal showed a deposit of R11 500 (a receipt from A Ramsamy. a debtor) while an incorrect figure of R16 000 appeared on the bank statement. The following cheques in the cash payments joumal have not yet been presented at the bank: #215 R11 000 #219: R13 000 #295: R9 000 #307: R16 000 A scrutiny of the cash receipts journal revealed that deposits totalling R24 000 had not yet gone through the current account at the bank. A cheque from R Naidoo in respect of rent for R21 000 was incorrectly entered in the cash receipts joumal as R25 800. The following charges appeared on the bank statement: - Bank charges: R400. - Interest on overdraft: R350. A cheque drawn by Bay Traders, another client of the bank, for R6 400 appeared on the bank statement. Cheque #307 is stale and must be cancelled. The bank statement showed a deposit of Rs 500 which was made by another client of the bank and erroneously entered on Bombay Services bank statement Cheque #295 in favor of R Ramsamy was issued, should be cancelled as it got lost in the post. The bookkeeper, however, recorded the payment in the cash payments journal. 3 4 5 6 7 8 9 Source: Klopper. J. 2020 COLA111 - Assignment S1 2020 V1.1 Page 8 of 11 nent S1 2020 V1.1 Page 8 of 11 9 of 11 Required: 4.1 Prepare the Bank account in the general ledger of Bombay Services for the month of February 2020 (8 Marks) 4.2 Prepare the bank reconciliation statement of Bombay Services as at 28 February 2020. (12 Marks)