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You have completed your studies as a qualified accountant. Your uncle owr business, BAKONE TRADERS, and he wants you to take over the administ section of the business. You have joined the business at the end of Decemt two months before the end of the financial year being 28 February 2018. January is normally the time when the business is at its slowest. You decide financial books ready so that the profit for the year can be determined. The administration clerk presented you with the asset register containing all assets that the business owned. The asset register revealed that the busine three vehicles. The information given below was taken from the accounting records of BAKONE TRADERS: BAKONE TRADERS CK67 BAKONE TRADERS 77224 CD a qualified accountant. Your uncle owns the ne wants you to take over the administration ned the business at the end of December 2017, ncial year being 28 February 2018. e business is at its slowest. You decided to get the t for the year can be determined. ou with the asset register containing all the fixed asset register revealed that the business owned BAKONE TRADERS CK67TR GP BAKONE TRADERS BB77BR GP FIXED ASSET REGISTER Vehicle 1 (ZZZ321GP) 1 Feb 2012 Vehicle 2 (BB77BRGP) 1 Feb 2016 Date purchased Cost price 180 000 460 000 179 999 184 000 Accumulated depreciation Carrying value ? ? INFORMATION FROM THE ACCOUNTING RECORDS Vehicle 1 Vehicle 2 B77BR GP FIXED ASSET REGISTER ehicle 1 EZZ321GP) Feb 2012 Vehicle 2 (BB77BRGP) 1 Feb 2016 Vehicle 3 (CK67TRGP) 1 Aug 2014 80 000 460 000 400 000 79 999 184 000 280 000 ? ? THE ACCOUNTING RECORDS Vehicle 1 Trevor 300 Vehicle 2 Brutus 280 Vehicle 3 Mooketsi 300 2790 1800 1860 INFORMATION FROM THE ACCOUNTING RECORDS Vehicle 1 Trevor 300 Vehicle 2 Brutus 280 2790 1800 R 558 000 R 200 000 R 72 000 R 72 000 Name of driver No of days worked No. of deliveries done Cash handed in by the driver Salaries paid to the drivers Fuel and maintenance costs Kilometers covered Repair costs due to maintenance R 384 000 R 58 000 80 000km 20 000km 2 ? ? UNTING RECORDS Vehicle 2 Brutus 280 Vehicle 3 Mooketsi 300 1800 1860 R 200 000 R 372 000 R 72 000 R 72 000 R 58 000 R 268 100 20 000km 78800 km R 42 320 . Note the following: Drivers are allowed to use the vehicles within 8 hour vehicles must be brought back to the premises at the The 3 drivers are allocated equal number of deliverie Mamelodi, Atteridgeville and Waterkloof areas. The business is located at Pretoria CBD. The repair cost of R42 320 in respect of vehicle 3 dri borne by the business as the insurance company ref The reason for non-payment is that the accident tool business day) . As the accountant you are not satisfied with the internal cor place in the business. Your investigation into the drivers an the year ended 31 January 2018 revealed the following: 1. The drivers take the vehicles home at the end of the busi weekends. 2. The details of the fixed asset register and the fixed asset drivers and the vehicles are listed above use the vehicles within 8 hours of their normal time. All ght back to the premises at the latest 16h45. ated equal number of deliveries. Their delivery points are: le and Waterkloof areas. d at Pretoria CBD. 320 in respect of vehicle 3 driven by Mooketsi had to be as the insurance company refused to pay for the repairs. yment is that the accident took place on a Sunday (not a t satisfied with the internal control measures that are in vestigation into the drivers and the delivery vehicles for 18 revealed the following: es home at the end of the business day and over the et register and the fixed assets records in respect of the sted above 2. The details of the fixed asset register and the fi drivers and the vehicles are listed above REQUIRED QUESTION 1 Study the above table showing the activities of the will present to the owner explaining: 1.1 The problems that existed with the activities of problems. 1.2 Indicate FOUR internal control measures that the problems that you have identified. 1.3 Identify the employees responsible for fraudule 1.4 What disciplinary measures need to be taken such actions are not being repeated? Name TWO gister and the fixed assets records in respect of the above activities of the 3 drivers. Prepare a report that you the activities of the three drivers. Identify FOUR (4) measures that need to be put in place to overcome ed. (4) ible for fraudulent activities. (2) ed to be taken for each driver in order to ensure that ? Name TWO measures for each worker. (4) (14MARKS) QUESTION 2 Information below is extracted from the accounting records o financial year ends on 28 February 2018 1. You are approached by Pam to assist in preparing th The ledger accounts must be updated for the financia 2018 Vehicles (8) Accumulated depreciation on vehicles (11) Asset disposal (10) Calculation of depreciation (12) 2. Prepare the tangible asset note to the Balance Shee INFORMATION: Balances on 1 March 2017: Vehicles R780 00 Accumulated depreciation on vehicles R420 00 Transactions in respect of vehicles during the year. 31 Aug 2017 Sold an old delivery vehicle costing 150 000 on crec 000. Accumulated depreciation on 1 March 2017 wa from the accounting records of Pam Traders. The uary 2018 Pam to assist in preparing the following ledger accounts. ust be updated for the financial year ending 28 February (8) vehicles (11) (10) (12) sset note to the Balance Sheet on 28 February 2014 (9) (50MARKS) 17: R780 000 on on vehicles R420 000 of vehicles during the year. micle costing 150 000 on credit to a trade debtor for R25 eciation on 1 March 2017 was R120 000. INFORMATION: Balances on 1 March 2017: Vehicles R7 Accumulated depreciation on vehicles R4 Transactions in respect of vehicles during the 31 Aug 2017: Sold an old delivery vehicle costing 150 000 000. Accumulated depreciation on 1 March 2 1 Dec 2017: Purchased a new vehicle on credit for R220 August 2017 Depreciation is provided on vehicles at 20% method. SECTION B: RECONCILIATION QUESTION 1 1. How does the business benefit from doing a FOUR points. (8) 2. How is a postdated cheque received differen paid/issued? (6) 3. When the March 2020 bank reconciliation wa discovered that ACB bank had no record of Asset disposal (10) Calculation of depreciation (12) 2 Prepare the tangible asset note to the Balance Sheet on 28 Februar L INFORMATION: Balances on 1 March 2017 Vehicles R780 000 Accumulated depreciation on vehicles R420 000 Transactions in respect of vehicles duning the year 31 Aug 2017 Sold an old delivery vehicle costing 150 000 on credit to a trade det 000 Accumulated depreciation on 1 March 2017 was R120 000 1 Dec 2017: Purchased a new vehicle on credit for R220 000 to replace the van August 2017 Depreciation is provided on vehicles at 20% p.a on the diminishing method SECTION B: RECONCILIATION QUESTION 1 1. How does the business benefit from doing a bank reconciliation sta FOUR points (8) 2. How is a postdated cheque received different from a postdated che paid/issued? (6) 3. When the March 2020 bank reconciliation was done by the bookke discovered that ACB bank had no record of this amount ever being n (12) ble asset note to the Balance Sheet on 28 February 2014 (9) (50MARKS) rch 2017 R780 000 eciation on vehicles R420 000 spect of vehicles during the year y vehicle costing 150 000 on credit to a trade debtor for R25 depreciation on 1 March 2017 was R120 000 vehicle on credit for R220 000 to replace the van sold on vided on vehicles at 20% p.a. on the diminishing balance CONCILIATION ness benefit from doing a bank reconciliation statement? State cheque received different from a postdated cheque 020 bank reconciliation was done by the bookkeeper, it was CB bank had no record of this amount ever being deposited into ne businesses bank account. Upon investigation, it was revealed that the owner idn't deposit the money in the bank at all, but choose to spend on new clothing or his family (a) Identify the GAAP principle that has been contravened by the owner (2) (b) As the bookkeeper, explain to the owner why this action is incorrect Mention what the correct accounting procedure should have been (4) Vrite a detailed report to management about the importance of the Creditors Reconciliation process. Use the following headings as a guide to write your report (a) The steps to be followed in the reconciliation process Name SIX steps. (12) (b) The importance of Creditors' Reconciliations as part of internal control Name TWO control measures (4) (36 MARKS) TOTAL: 100MARKS &&&&&&&&& &&&&GOODLUCK&&&&&&&&&&&&&&&&&&& BEL PRAG ' SECTION A: FIXED ASSETS You have completed your studies as a cualned secuuntanl. You unde who business SAKONE TRADERS and he wants you to take or the admirison etion of the You have the business at the end of December 2017 w months before the end of the financis yes berg 28 Feb 2018 January is normaly the time when I ass You logarth francisco any so that the prostor the year brennid The arratian cik presented you with the asset regste bortainny al tened sets that the bie nenad The assel regista thar the business the voces The information given below laken from the counting records cf BAKONE TRADERS BAKONE TRADERS CATTRGP BAKONE TRADERS 27321GP Filters BAKONE TRADERS BE77BR GP FIXED ASSET REGISTER Vehicle IZZZ321GPI 1 Feb 2012 Vehicle 2 (BB77BRGP) 1 Feb 2016 Vehicle 3 {CKBTROPI 1 Aug 2014 Dal purchased Coat price 180 DO 480 000 400 000 178988 134 DO3 280 000 Acumulator depreciation Carrying valon Moolai 1800 R 372 000 INFORMATION FROM THE ACCOUNTING RECORDS Vehicle 1 Vencia 2 Name of drunt Trevor Brutus Noot cays 300 280 watked Ne e deineres 2790 TUCO dere Cash Harded R008000 A 200 CCO by the die Salaries peld to R 72.000 R 12.000 the diners Fland F 384000 7.58000 interace Dos Kider 000km 20 cockm covered Regar oss due R 72000 F98 100 78902 TT H 42220 enice s driven by Maiosesi had to be bome by the business as the insurance company refused to pay for the repairs The reason for non payment is that the accident took place on a Sunday not a business day) As the accountant you are not satiated with the internal control measures that are in place in the business. Your investigation into the drivers and the delivery vehicles for the year ended 31 January 2018 revealed the following: 1 The drivers take the vehicles home at the end of the business day and over the Weekends. 2 The details of the fixed asset register and the fixed assets records in respect of the drivers and the vehicles are listed above REQUIRED QUESTION 1 Study the above table showing the activities of the a drivers Prepare a report that you will present to the owner explaining 1.1 The problems that existed with the clivies of the three drivers. Identity FOUR problems (4) 12 Indicale FOUR interal control measures that need to be put in place to overcome the problems that you have identified. 1.3 identify the employees responsible for fraudulent activities. 121 14 Whas disciplinary measures need to be taken for each driver in der to ensure that such actions are not being redeated? Name TWO measures for each worker (4) (14MARKS QUESTION 2 Wormation below is extracted from the accounting records of Pam Tradere. The francial year ends on 28 February 2018 1. You are approached by Par to assist in preparing the following leger accounts The ledger accounts must be updated for the financial year ending 28ary 2018 Vetices 18) Accumulated depreciation on vehiden (11 Aest disposa! (10) Calculation of depreciation 112) 2. Prepare the tangible et rote to the Balance Svetor 26 February 2014 ) 150MARKSI INFORMATION: Walance on March 2017: Vehicles RICO Accumulate depreciation on whe F420 000 Transactions in respect of whides dunng the year 21 Aug 2017 Sold and delivery wobec trg 1000 on credit to a rede debtor R25 000. Accumulated depreciation on 1 March 2017 was R120.000 1 Dec 2017 Purchased a new verde un credit for P220 600 lase the sold on August 2017 Depreciation is provided on volila at 2 p..on the dinin SECTION BRECONCILIATION QUESTION 1 FOUR How de bestenatehom doing sterk reconciation statement? State 2 How is a counted to received awant from now the unte March 200 orcionan en done by the best rad mat ACB Dark i ho record of the router their rodim 1 the businesses bank account Upon investigaton, it was revealed that the owner didn't doposit the money in the bank at all, but choose to spend on new clothing for his family al Identify the GAAP principle that has been contravered by the owner. (2) b) As the bookkeeper, explain to the owner why this action is incorrect Mention what the correct accounting procedure should have been (4) 4 Wide a detailed report to management about the importance of the creditors' Reconciliation process. Use the following headings as a guide to write your report: (a) The sleps to be followed in the reconciliation process Nama SIX steps. (12) ID) The importance of Creditors' Reconciliations as part of internal control. Name TWO control measures (4) (36 MARKS) TOTAL: 100MARKS &&&&&8.8.8.8.8.8.8.&&&&&&GOODLUCK&&&&&&&88.8&&&&&&&& You have completed your studies as a qualified accountant. Your uncle owr business, BAKONE TRADERS, and he wants you to take over the administ section of the business. You have joined the business at the end of Decemt two months before the end of the financial year being 28 February 2018. January is normally the time when the business is at its slowest. You decide financial books ready so that the profit for the year can be determined. The administration clerk presented you with the asset register containing all assets that the business owned. The asset register revealed that the busine three vehicles. The information given below was taken from the accounting records of BAKONE TRADERS: BAKONE TRADERS CK67 BAKONE TRADERS 77224 CD a qualified accountant. Your uncle owns the ne wants you to take over the administration ned the business at the end of December 2017, ncial year being 28 February 2018. e business is at its slowest. You decided to get the t for the year can be determined. ou with the asset register containing all the fixed asset register revealed that the business owned BAKONE TRADERS CK67TR GP BAKONE TRADERS BB77BR GP FIXED ASSET REGISTER Vehicle 1 (ZZZ321GP) 1 Feb 2012 Vehicle 2 (BB77BRGP) 1 Feb 2016 Date purchased Cost price 180 000 460 000 179 999 184 000 Accumulated depreciation Carrying value ? ? INFORMATION FROM THE ACCOUNTING RECORDS Vehicle 1 Vehicle 2 B77BR GP FIXED ASSET REGISTER ehicle 1 EZZ321GP) Feb 2012 Vehicle 2 (BB77BRGP) 1 Feb 2016 Vehicle 3 (CK67TRGP) 1 Aug 2014 80 000 460 000 400 000 79 999 184 000 280 000 ? ? THE ACCOUNTING RECORDS Vehicle 1 Trevor 300 Vehicle 2 Brutus 280 Vehicle 3 Mooketsi 300 2790 1800 1860 INFORMATION FROM THE ACCOUNTING RECORDS Vehicle 1 Trevor 300 Vehicle 2 Brutus 280 2790 1800 R 558 000 R 200 000 R 72 000 R 72 000 Name of driver No of days worked No. of deliveries done Cash handed in by the driver Salaries paid to the drivers Fuel and maintenance costs Kilometers covered Repair costs due to maintenance R 384 000 R 58 000 80 000km 20 000km 2 ? ? UNTING RECORDS Vehicle 2 Brutus 280 Vehicle 3 Mooketsi 300 1800 1860 R 200 000 R 372 000 R 72 000 R 72 000 R 58 000 R 268 100 20 000km 78800 km R 42 320 . Note the following: Drivers are allowed to use the vehicles within 8 hour vehicles must be brought back to the premises at the The 3 drivers are allocated equal number of deliverie Mamelodi, Atteridgeville and Waterkloof areas. The business is located at Pretoria CBD. The repair cost of R42 320 in respect of vehicle 3 dri borne by the business as the insurance company ref The reason for non-payment is that the accident tool business day) . As the accountant you are not satisfied with the internal cor place in the business. Your investigation into the drivers an the year ended 31 January 2018 revealed the following: 1. The drivers take the vehicles home at the end of the busi weekends. 2. The details of the fixed asset register and the fixed asset drivers and the vehicles are listed above use the vehicles within 8 hours of their normal time. All ght back to the premises at the latest 16h45. ated equal number of deliveries. Their delivery points are: le and Waterkloof areas. d at Pretoria CBD. 320 in respect of vehicle 3 driven by Mooketsi had to be as the insurance company refused to pay for the repairs. yment is that the accident took place on a Sunday (not a t satisfied with the internal control measures that are in vestigation into the drivers and the delivery vehicles for 18 revealed the following: es home at the end of the business day and over the et register and the fixed assets records in respect of the sted above 2. The details of the fixed asset register and the fi drivers and the vehicles are listed above REQUIRED QUESTION 1 Study the above table showing the activities of the will present to the owner explaining: 1.1 The problems that existed with the activities of problems. 1.2 Indicate FOUR internal control measures that the problems that you have identified. 1.3 Identify the employees responsible for fraudule 1.4 What disciplinary measures need to be taken such actions are not being repeated? Name TWO gister and the fixed assets records in respect of the above activities of the 3 drivers. Prepare a report that you the activities of the three drivers. Identify FOUR (4) measures that need to be put in place to overcome ed. (4) ible for fraudulent activities. (2) ed to be taken for each driver in order to ensure that ? Name TWO measures for each worker. (4) (14MARKS) QUESTION 2 Information below is extracted from the accounting records o financial year ends on 28 February 2018 1. You are approached by Pam to assist in preparing th The ledger accounts must be updated for the financia 2018 Vehicles (8) Accumulated depreciation on vehicles (11) Asset disposal (10) Calculation of depreciation (12) 2. Prepare the tangible asset note to the Balance Shee INFORMATION: Balances on 1 March 2017: Vehicles R780 00 Accumulated depreciation on vehicles R420 00 Transactions in respect of vehicles during the year. 31 Aug 2017 Sold an old delivery vehicle costing 150 000 on crec 000. Accumulated depreciation on 1 March 2017 wa from the accounting records of Pam Traders. The uary 2018 Pam to assist in preparing the following ledger accounts. ust be updated for the financial year ending 28 February (8) vehicles (11) (10) (12) sset note to the Balance Sheet on 28 February 2014 (9) (50MARKS) 17: R780 000 on on vehicles R420 000 of vehicles during the year. micle costing 150 000 on credit to a trade debtor for R25 eciation on 1 March 2017 was R120 000. INFORMATION: Balances on 1 March 2017: Vehicles R7 Accumulated depreciation on vehicles R4 Transactions in respect of vehicles during the 31 Aug 2017: Sold an old delivery vehicle costing 150 000 000. Accumulated depreciation on 1 March 2 1 Dec 2017: Purchased a new vehicle on credit for R220 August 2017 Depreciation is provided on vehicles at 20% method. SECTION B: RECONCILIATION QUESTION 1 1. How does the business benefit from doing a FOUR points. (8) 2. How is a postdated cheque received differen paid/issued? (6) 3. When the March 2020 bank reconciliation wa discovered that ACB bank had no record of Asset disposal (10) Calculation of depreciation (12) 2 Prepare the tangible asset note to the Balance Sheet on 28 Februar L INFORMATION: Balances on 1 March 2017 Vehicles R780 000 Accumulated depreciation on vehicles R420 000 Transactions in respect of vehicles duning the year 31 Aug 2017 Sold an old delivery vehicle costing 150 000 on credit to a trade det 000 Accumulated depreciation on 1 March 2017 was R120 000 1 Dec 2017: Purchased a new vehicle on credit for R220 000 to replace the van August 2017 Depreciation is provided on vehicles at 20% p.a on the diminishing method SECTION B: RECONCILIATION QUESTION 1 1. How does the business benefit from doing a bank reconciliation sta FOUR points (8) 2. How is a postdated cheque received different from a postdated che paid/issued? (6) 3. When the March 2020 bank reconciliation was done by the bookke discovered that ACB bank had no record of this amount ever being n (12) ble asset note to the Balance Sheet on 28 February 2014 (9) (50MARKS) rch 2017 R780 000 eciation on vehicles R420 000 spect of vehicles during the year y vehicle costing 150 000 on credit to a trade debtor for R25 depreciation on 1 March 2017 was R120 000 vehicle on credit for R220 000 to replace the van sold on vided on vehicles at 20% p.a. on the diminishing balance CONCILIATION ness benefit from doing a bank reconciliation statement? State cheque received different from a postdated cheque 020 bank reconciliation was done by the bookkeeper, it was CB bank had no record of this amount ever being deposited into ne businesses bank account. Upon investigation, it was revealed that the owner idn't deposit the money in the bank at all, but choose to spend on new clothing or his family (a) Identify the GAAP principle that has been contravened by the owner (2) (b) As the bookkeeper, explain to the owner why this action is incorrect Mention what the correct accounting procedure should have been (4) Vrite a detailed report to management about the importance of the Creditors Reconciliation process. Use the following headings as a guide to write your report (a) The steps to be followed in the reconciliation process Name SIX steps. (12) (b) The importance of Creditors' Reconciliations as part of internal control Name TWO control measures (4) (36 MARKS) TOTAL: 100MARKS &&&&&&&&& &&&&GOODLUCK&&&&&&&&&&&&&&&&&&& BEL PRAG ' SECTION A: FIXED ASSETS You have completed your studies as a cualned secuuntanl. You unde who business SAKONE TRADERS and he wants you to take or the admirison etion of the You have the business at the end of December 2017 w months before the end of the financis yes berg 28 Feb 2018 January is normaly the time when I ass You logarth francisco any so that the prostor the year brennid The arratian cik presented you with the asset regste bortainny al tened sets that the bie nenad The assel regista thar the business the voces The information given below laken from the counting records cf BAKONE TRADERS BAKONE TRADERS CATTRGP BAKONE TRADERS 27321GP Filters BAKONE TRADERS BE77BR GP FIXED ASSET REGISTER Vehicle IZZZ321GPI 1 Feb 2012 Vehicle 2 (BB77BRGP) 1 Feb 2016 Vehicle 3 {CKBTROPI 1 Aug 2014 Dal purchased Coat price 180 DO 480 000 400 000 178988 134 DO3 280 000 Acumulator depreciation Carrying valon Moolai 1800 R 372 000 INFORMATION FROM THE ACCOUNTING RECORDS Vehicle 1 Vencia 2 Name of drunt Trevor Brutus Noot cays 300 280 watked Ne e deineres 2790 TUCO dere Cash Harded R008000 A 200 CCO by the die Salaries peld to R 72.000 R 12.000 the diners Fland F 384000 7.58000 interace Dos Kider 000km 20 cockm covered Regar oss due R 72000 F98 100 78902 TT H 42220 enice s driven by Maiosesi had to be bome by the business as the insurance company refused to pay for the repairs The reason for non payment is that the accident took place on a Sunday not a business day) As the accountant you are not satiated with the internal control measures that are in place in the business. Your investigation into the drivers and the delivery vehicles for the year ended 31 January 2018 revealed the following: 1 The drivers take the vehicles home at the end of the business day and over the Weekends. 2 The details of the fixed asset register and the fixed assets records in respect of the drivers and the vehicles are listed above REQUIRED QUESTION 1 Study the above table showing the activities of the a drivers Prepare a report that you will present to the owner explaining 1.1 The problems that existed with the clivies of the three drivers. Identity FOUR problems (4) 12 Indicale FOUR interal control measures that need to be put in place to overcome the problems that you have identified. 1.3 identify the employees responsible for fraudulent activities. 121 14 Whas disciplinary measures need to be taken for each driver in der to ensure that such actions are not being redeated? Name TWO measures for each worker (4) (14MARKS QUESTION 2 Wormation below is extracted from the accounting records of Pam Tradere. The francial year ends on 28 February 2018 1. You are approached by Par to assist in preparing the following leger accounts The ledger accounts must be updated for the financial year ending 28ary 2018 Vetices 18) Accumulated depreciation on vehiden (11 Aest disposa! (10) Calculation of depreciation 112) 2. Prepare the tangible et rote to the Balance Svetor 26 February 2014 ) 150MARKSI INFORMATION: Walance on March 2017: Vehicles RICO Accumulate depreciation on whe F420 000 Transactions in respect of whides dunng the year 21 Aug 2017 Sold and delivery wobec trg 1000 on credit to a rede debtor R25 000. Accumulated depreciation on 1 March 2017 was R120.000 1 Dec 2017 Purchased a new verde un credit for P220 600 lase the sold on August 2017 Depreciation is provided on volila at 2 p..on the dinin SECTION BRECONCILIATION QUESTION 1 FOUR How de bestenatehom doing sterk reconciation statement? State 2 How is a counted to received awant from now the unte March 200 orcionan en done by the best rad mat ACB Dark i ho record of the router their rodim 1 the businesses bank account Upon investigaton, it was revealed that the owner didn't doposit the money in the bank at all, but choose to spend on new clothing for his family al Identify the GAAP principle that has been contravered by the owner. (2) b) As the bookkeeper, explain to the owner why this action is incorrect Mention what the correct accounting procedure should have been (4) 4 Wide a detailed report to management about the importance of the creditors' Reconciliation process. Use the following headings as a guide to write your report: (a) The sleps to be followed in the reconciliation process Nama SIX steps. (12) ID) The importance of Creditors' Reconciliations as part of internal control. Name TWO control measures (4) (36 MARKS) TOTAL: 100MARKS &&&&&8.8.8.8.8.8.8.&&&&&&GOODLUCK&&&&&&&88.8&&&&&&&&