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Abey Ltd entered into a contract with Data Pro Ltd for the lease of twenty-four laptop computers. The contract was entered into on 1 April 20x1 for a 2-year period. Each item is of low value and Abey Ltd applies the low value exemption of IFRS 16 Leases. The benefit derived for Abey Ltd from the lease agreement is constant over the lease period.
The following amounts are payable to Data Pro Ltd per the lease agreement:
• From 1/4/20x1-31/03/20x2 $2 000 per month
• From 1/4/20x2-31/03/20x3$3 000 per month
Abbey Ltd has a 31 December year-end
Required:
Prepare the journal entries for the accounting records of Abey Ltd for the year ended 31 December 20x1, 20x2 and 20x3.
At financial year end, 31 December 2020, the following appeared in the general ledger of SA Attorneys:
Dr Insurance expense N1 Cr
2020
31/12 Bank CPJ R 41 600
Additional information:
SA Attorneys entered into an insurance contract with Africa Insurance agency on 1 November 2019. The terms and conditions of the contract stipulates that SA Attorneys should pay an amount of R3 200 on a monthly basis for insurance. The payment is due on the seventh day of each month.
What is the amount for the insurance expense that should appear in the trial balance of SA Attorneys for the year ended 31 December 2020?
A. R3 200
B. R41 600
C. R38 400
D. R32 000
- A and B are in partnership. Their agreement states the following.
- Interest is to be allowed on their fixed capitals at the rate of 10% per annum.
- A is to receive a salary of $17000 per annum in addition to a bonus of 20% of the trading profit after his salary and both partner’s interest have been deducted.
- Any remaining profit/losses are to be shared equilly.
- The following information is available for the year ended 31st December 2018.
- Fixed Capital Accounts:
- A 1 January 2018 $28,000 Cr
- B 1 January 2018 $72,000 Cr
- Additional fixed capital brought in by A on 1st July 2018 $10,000
- Current accounts and drawing details are as follows
- A 1 January 2018 $1530 Cr
- B 1 January 2018 $1640 Cr
- Drawings detail
- A 1 January 2018 $40,000 Dr.
- B 1 January 2018 $20,000 Dr.
- The trading profit for the year ended 31 December 2018, before taking any of the above details and information into account, was $60,300.
The legal firm, SA Attorneys is registered as a VAT vendor. On 27 March 2020, the partners approved the sponsorship of the tuition fees of a newly registered legal student from a rural area. An amount of R6 900 for the first semester tuition fees was paid to SA University via an EFT. The above transaction will be entered in the … as a book of first entry.
A. trust cash receipts journal
B. business cash payments journal
C. general journal
D. business cash receipts journal
An amount of R500 appears on the business bank statement for bank charges. In which book of original entry will it be recorded?
A. general journal
B. trust cash payments journal
C. business cash payments journal
D. fees journal
On 25 February 2021, SA Attorneys, withdrew R500 cash to replenish the petty cash in the office. The cash withdrawal will be recorded into the .... as book of first entry.
A. Business cash receipts journal
B. Trust cash payments journal
C. General journal
D. Business cash payments journal
On 18 October 2020, SA Attorneys received a statement from Advocate S Africa to the amount of R1 100. (Advocate S Africa acted as the defence counsel for S Africa in a court case.) This transaction will be entered in the .... as book of first entry.
A. Fees journal
B. Trust cash payments journal
C. Advocates journal
D. Business cash payments journal
1. Aside from the items listed in this module, Identify and list five (5) key objectives, key risks and typical controls for the following Human Resource functions:
1. Recruitment
2. Training and Development
3. Employee Benefits
4. Employee Termination
5. Employee Evaluations
2. Asidefromtheitemslisted in this module, Identify and list five (5) key objectives, key risks and typical controls for the following Finance, Accounting and Treasury functions:
1. Treasury
2. Accounts Payable
3Accounts Receivable
4. Fixed Assets
5. Inventory
3. Aside from the items listed in this module, Identify and list five (5) key objectives, key risks and typical controls for the following Information Technology:
1. IT Processing Operations
2. Backups and Storage
3. IT Access
4. Personal Devices
5. Systems Development
1. Describe the difference between a process and a project. List three risks that are similar to and three risks that are unique from each other. W
2. What are the five phases of projects? List three operational audit steps for each of them.
Which of the following elements relate to the statement of financial position?
A. Assets, equity and liabilities
B. Expenses, assets and liabilities
C. Assets, income and equity
D. Income and expenses
