US Central Banking System Assignment

ASSIGNMENT 01, SEMESTER 2 (continued) Question 3 (continued) (0) Capital and drawings increase on the debit side and decrease on the credit side of the account. (0) Assets and expenses increase on the debit side and decrease on the credit side of the account. Which one of the following combinations reflects the rules of the double-entry principle? 1. (b). (c) and (e) 2. (c) and (d) 3. (a), (b). (c): (d) and (e) 4. (a) and (d) 5. (c). (d) and (e) 4.

The following transactions relate to Ungerer Attorneys for May 2018: Account Account Transaction debited credited (a) The owner, Mr K Ungerer, contributed furniture for Office furniture Capital the office of the legal practice. (b) Paid the annual membership fees to the Law Society Fees Trust bank by way of an electronic fund transfer. (c) Issued a cheque to Pro-Advert, a business creditor, Trade payables Business bank for an advertisement placed in April 2018. control (d) Issued a receipt to Mrs M Mahoney, a client, in settlement of her account and deposit the amount in Business bank Clients control the bank account. (e) Issued a petty cash voucher for postage. Postage Business bank Which options indicate the correct accounting treatment of the above transactions in the relevant accounts in the general ledger of Ungerer Attorneys for May 2018? 1. (b) and (e) 2. (a). (c) and (d) 3. (a), (b), (c): (d) and (e) 4. (b), (c) and (d) 5. (a) and (e) The following transactions were extracted from the accounting records of Miro Attorneys for December 2018. Miro Attorneys is not registered as a VAT vendor Date Transactions 2018 Dec 12 Received cash from Mr L Pedi, a client, for legal services rendered – R2 610. Dec 28 Paid R1 700 per business cheque to Zee Bank as part of a loan repayment. PAL150W0120 ASSIGNMENT 01, SEMESTER 2 (continued) Question 5 (continued) Which option correctly indicates the net effect of the above transactions on the accounting equation of Miro Attorneys for December 2018? Assets Equity Liabilities + 1 700 – 1 700 N- +910 +2 610 – 1700 – 1700 +2 610 -2 610 -1 700 +2 610 1 700 6. Which one of the following statements relating to Value Added Tax (VAT) is incorrect? 1. Input VAT may be claimed on sheriff fees. 2. No input VAT may be claimed on salaries and wages. 3. Services to a welfare organization is a zero-rated supply. 4. No input VAT may be claimed on passenger vehicles 5. Residential accommodation is exempt from VAT. 7. A debtor, G Grey, who owed R2 400 (including VAT) to Khumalo Attorneys, was declared insolvent by the North Gauteng High Court. His account must be written off as irrecoverable. Which option represents the amount that should be recorded in the credit losses account in the general ledger of Khumalo Attorneys, assuming VAT of 15%? 1. R2 040,00 2. R313,04 3. R2 086,96 4. R2 760,00 5. R2 400,00 The following information is applicable to questions 8 and 9: March 2019. Lerato Attorneys paid rates and taxes to the amount of R3 220 (including VAT on behalf of a client, Mr Chuck Lerato Attorneys also paid the following from the business bank account during March 2019 • Advocate fees of R2 100 (on behalf of Mr Chuck) . Wages of R3 500 Office rent of R4 700 Mr Chuck was charged with a fee of R2 185 (including VAT) on 31 March 2019, the day on which Lerato Attorneys' services were complete. Assume that all transactions were accompanied by valid tax invoices, where applicable and that VAT is levied at 15%. ASSIGNMENT 01, SEMESTER 2 (continued) 8. counting entry in the fees account in the general led Which option represents the correct accounting entry in the fees account of Lerato Attorneys? 1. Credit the fees account with R2 800,00 2. Debit the fees account with R2 185,00. 3. Credit the fees account with R4 700,00 4. Debit the fees account with R5 405,00 5Credit the fees account with R1 900,00 Which option represents the input VAT amount that Lerato Attorneys may transactions in the given information? 1. R1 306,96 2. R1 318,04 3. R1 033,04 4. R750.00 5. R613,04 10. On comparing the business cash journals of Eco Attorneys for the month ended 30 April 2018, with the business bank statement for the same period, it was noted that P Preller, a client, made a direct deposit of R2 750 on 30 April 2018 for legal services rendered. The deposit appeared on the business bank statement as at 30 April 2018 but not in the relevant business cash journal for the month ended 30 April 2018. What will the correct entry in the accounting records of Eco Attorneys for 30 April 2018 be, to account for the deposit? 1. Record entry in the business cash receipts journal for R2 750. 2. Credit the bank reconciliation statement with an outstanding deposit of R2 750 3. Debit the bank reconciliation statement with an outstanding deposit of R2 750.

4. Record entry in the business cash payments journal for R2 750. 5. Debit the business bank account in the general ledger with an amount of R2 750 11 A comparison of the business bank statement with the business cash journals of Atkins Attorneys for the month ended 30 June 2018 and the bank reconciliation statement as at 30 May 2018, revealed that a deposit to the amount of R4 100 for another client of the bank was entered erroneously on the business bank statement of Atkins Attorneys What will the correct accounting procedure in the accounting records of Atkins A n sfer 30 June 2018 be, when preparing the bank reconciliation statement: 1. Record an entry in the business cash payments journal for R4 100 2 Debit the bank reconciliation statement with a correction of an incorrect deposit DA 100 3. Credit the business bank account in the general ledger with an amount of RA 4. Record entry in the business cash receipts journal for R4 100. 5. Credit the bank reconciliation statement with a correction of an incorrect deposit of A 100 12 On comparing the business cash receipts and business cash payments journal with the business bank statement of Chico Attorneys on 31 March 2018, the following were noted A trust cheque (no 311 for R3 210, issued to J Maverick, a client, was incorrectly recorded in the business cash payments journal FAC1503/101/31 ASSIGNMENT 01, SEMESTER 2 (continued) Question 12 (continued) The correct accounting procedure for trust cheque no 311 in the accounting record Chico Attorneys for March 2018 is the following: 1 Credit the bank reconciliation statement with cheque no 311-correction of incorrect -R3 210. 2. Record entry in the trust cash payments journal for R3 210. 3. Record an entry in the business cash receipts journal for R3 210 4 Debit the bank reconciliation statement with cheque no 311 – erroneous cheque – R3 5. Record entry in the business cash payments journal for R3 210. 13. The following entries were recorded in the trust cash payments journal of Ackers Attorney July 2018: Date Details Folio Trust creditors Bank RR 2 B Edwards TCL13 500 3500 7 D Peters – Advocate A Mc Donald 29 S Pretorius TCL3 8 500 8 500 16 900 16 900 Which option represents the correct entries of the above transactions in the general ledger trust creditors' ledger accounts of Ackers Attorneys, for July 2018? 1. General ledger: Debit trust bank account – R16 900; Credit trust creditors control account – R16 900. Trust creditors ledger: Credit B Edwards – R3 500; Credit A Mc Donald – R4 900; Credit S Pretorius – R8 50 2. General ledger: Debit trust creditors control account – R16 900: Credit trust bank account – R16 900. Trust creditors ledger: Debit B Edwards – R3 500; Debit D Peters – R4 900: Credit A Mc Donald – R4 900: C S Pretorius – R8 500. 3. General ledger: Debit trust bank account – R16 900; Credit trust creditors control account – R16 900. Trust creditors ledger: Debit B Edwards – R3 500: Credit D Peters – R4 900; Credit S Pretorius – R8 500. General ledger: Debit trust creditors control account – R16 900; Credit trust bank account – R16 900, Trust creditors ledger: Debit B Edwards – R3 500; Debit D Peters – R4 900; Debit S Pretorius – R8 500. 5. General ledger: Debit trust creditors control account – R16 900; Credit trust bank account – R16 900. Trust creditors ledger: Debit B Edwards – R3 500; Debit A Mc Donald – R4 900; Debit S Pretorius – R8 500. Sundries R ASSIGNMENT 01, SEMESTER 2 (continued) of 14. The following entries were recorded in the business cash payments owing entries were recorded in Zondi and Tali Inc for August 2018: Bank Date Details Folio 2 170 1 Telephone G10 2 170 1 300 17 Advertisements G16 1 300 26 . 190 Sheriff Louw (client-B Botha) 190 G21 3 660 3 660 • The legal practice uses the sheriff's journal to account for sheriff fees. Which option represents the correct postings of the above transactions to the general ledger accounts of Zondi and Tali Inc, for August 2018? 1. Debit telephone account – R2 170; Debit advertisement account – R1 300: Debit trust creditors control account – R190: Credit business bank account – R3 660. 2. Debit business bank account – R3 660: Credit telephone account – R2 170; Credit advertisements account – R1300; Credit trust creditors control account – R190. 3. Debit telephone account – R2 170: Debit advertisements account – R1300: Debit Sheriff Louw's account – R190: Credit business bank account – R3 660. 4. Debit business bank account – R3 660: Credit telephone account – R2 170: Credit advertisements account -R1300: Credit clients control account – R190. 5. Debit telephone account – R2 170; Debit advertisements account – R1300: Debit clients control account – R190; Credit business bank account – R3 660 The following information is applicable to questions 15: Goliath Attorneys entered into the following transactions during October 2018: 2018 Oct 3 Received R8 000 from Mrs. Fortein as a deposit towards the cost of her divorce proceedings. 5 Paid the insurance account of R1 345. 13 Debited fees for rendering a legal service to S Honey to the amount of R2 700 15. Debited fees to Mrs. Fortein's account for the services rendered in her divorce case of R4 350. 21 D Dollar's account was in arrears and charged with interest on the outstand R528 ending balance of 25 Office rental of RS 500 for the month paid in cash. 28 Purchased computers on credit to the amount of R11 500 30 Paid salaries to the amount of R16 350. 31 Transferred R3 750 from the trust creditors account of Mrs. Fortein to her st creditors account of Mrs. Fontain to her client account. 15. Which subsidiary journals will be affected by the transactions above? 1. General journal,  journal and trust cash receipts journal 2. General journal, fees journal, trust cash receipts journal, business cash can payments journal and trust cash payments journal. 3. Trust cash payment journal and trust cash receipts journal. 4. Fees journal and business cash receipts journal. 5. General journal, fees journal, business and trust cash receipts journals payments journals and transfer journal. and business cash. Get Accounting homework help today