On 1 March 2022, SA Attorneys (a registered VAT vendor and VAT is charged at 15%) received a loan of R230 000 from SA Bank. Interest is charged at 8% per annum and the loan is repayable in monthly instalments of R5 000. The interest payable on the loan was already recorded on 31 March 2022. On 1 April 2022, SA Attorneys paid the first instalment with an EFT. The entry on 1 April 2022 in the book of first entry will be:Select one:a.In the bank column - R5 000; and in the Debtors column - R5 000b.In the bank column - R5 000; and in the Creditors column - R5 000c.In the bank column - R5 000; in the VAT input column - R625; and in the Sundries column - Loan: SA Bank - R4 375d.In the bank column - R5 000; and in the Sundries column - Loan: SA Bank - R5 000

On 25 March 2020, SA Attorneys (registered as a VAT vendor and VAT is charged at 15%) paid the business telephone account to the amount of R2 500 (VAT inclusive) via an EFT. The entry on 25 March 2020 in a book of first entry will be:Select one:a.In the bank column – R2 500; andIn the sundries column – Telephone expense – R2 500.b.In the bank column – R2 173,91; andIn the sundries column – Telephone expense – R2 173,91.c.In the bank column – R2 500;In the VAT output column – R326,09; andIn the sundries column – Telephone expense – R2 173,91.d.In the bank column – R2 500;In the VAT input column – R326,09; andIn the sundries column – Telephone expense – R2 173,91.

The legal firm, SA Attorneys is registered as a VAT vendor. On 27 March 2022, 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.Select one:a.trust cash receipts journalb.business cash payments journalc.business cash receipts journald.general journal

On 31 July 2021, SA Attorneys earned interest of R3 160 for the month from Africa Bank on the trust bank account.The interest received on the trust bank account must be dealt with in accordance with the requirements of section …. of the Legal Practice Act, 28 of 2014.Select one:a.84(1)b.86(3)c.86(2)d.86(4)

On 2 April 2022, SA Attorneys decided to invest R165 000 of trust money, not immediately needed, in a special savings account at SA Bank (An approved bank) to earn interest until the end of May 2022. All the investments were made in terms of section 86 of the Legal Practice Act 28 of 2014. The accountant recorded the transaction as follows: Trust cash payments journal for Apr 2022  Date  DetailsTrust creditors control  VAT  Bank  RRR 2 Sec 86(3) - Trust investment – SA Bank (trust creditor) 165 000 24 750 189 750 165 00024 750189 750 Which one of the following statements is correct relating to the recording of the above transaction?Select one:a.The transaction is recorded correctly.b.The transaction is recorded incorrectly because the transaction does not have any VAT effect.c.The transaction is recorded incorrectly because it should have been recorded in the Business cash receipts journal.d.The transaction is recorded in the correct journal, but the description is incorrect because it should be indicated as a Sec 86(4) – Trust investment.

The following transaction relates to the accounting records of SA Attorneys for March 2022. The legal practice is registered as a VAT vendor. On 24 March 2022, SA Attorneys paid the Sheriff with a business cheque of R115, for the delivery of a summons to A South. The entry on 24 March 2022 in a book of first entry will be:Select one:a.Sheriffs’ journalDateDetailsDrRCrR24Client – A SouthVAT inputSheriff10015  115 Dr – Clients control account115 b.Sheriffs’ journalDateDetailsDrRCrR24Client – A SouthSheriff115  115 Dr – Clients control account115 c.Business cash payments journal of SA AttorneysDateDetailsFol.SundriesRVATRBankR24Sheriff’s fee (client) 10015115d.Business cash payments journal of SA AttorneysDateDetailsFol.SundriesRVATRBankR24Sheriff’s fee (client) 11