FRK 101: Financial Accounting Exam Papers – Comprehensive Study Guide (UP BCom Taxation)

This guide provides exam-focused notes for FRK 101 Financial Accounting as offered in the BCom Taxation degree at the University of Pretoria (UP). It is tailored to the style and difficulty of typical FRK 101 exam papers, with special attention to what first‑year accounting students in South Africa struggle with most. The content also references related search terms used by students at UNISA (e.g. FAC1502 exam papers, FAC1501 study notes) and Central University of Technology (CUT) (e.g. ACCS10AB past papers) to help you recognise shared first-year accounting themes, but the primary focus is UP: FRK 101.

The document covers core theory, formats, calculations, and exam strategy. It is structured to help you answer both theory (short questions, MCQs) and long-form calculation questions under exam conditions.

1. FRK 101 in the UP BCom Taxation Degree: Exam Structure, Weighting and Strategy

1.1 Where FRK 101 Fits in BCom Taxation at UP

FRK 101 Financial Accounting at the University of Pretoria is a core first‑year module in the BCom Taxation degree. Its primary objectives are:

To introduce fundamental financial accounting principles.
To build the skills needed to prepare and interpret basic financial statements.
To provide the foundational accounting language you need before moving into taxation modules like BEL 200, BEL 300 and intermediate accounting modules often labelled FRK 201 or similar.

While FRK 101 shares many outcomes with UNISA’s FAC1502 / FAC1501 and CUT’s ACCS10AB, the assessment style at UP is typically:

More calculation-intensive and format-specific.
Time-pressured with a mix of conceptual and procedural questions.
Strongly aligned with IFRS-based principles used in later taxation studies.

Understanding FRK 101 exam papers early makes second-year tax and accounting subjects smoother, because taxation questions rely on accurate accounting figures as a base (e.g., determining taxable income from accounting profit).

1.2 Typical FRK 101 Assessment Components and Weighting

While the exact semester breakdown can change, a typical FRK 101 assessment structure at UP looks like:

Class tests (continuous assessment)
- 2–3 tests per semester
- Combined weight: ±20–30% of semester mark
- Format: MCQs, short theory, shorter calculation questions.
Assignments / Tutorials / Online quizzes
- Weight: ±10–20%
- Often auto-marked MCQs or limited open questions.
- Strong overlap with textbook examples and previous UP FRK 101 memos.
Semester test (major test)
- 1 major test in the middle/end of semester
- Weight: ±20–30%
- Format similar to exam but shorter (e.g. 60–90 minutes).
Final exam
- Weight: ±40–60% (depending on the year)
- Usually 2–3 hours.
- Pass requirement: often 40% sub-minimum in exam and 50% final mark overall.
- Format: mixture of:
  - Section A: MCQs / short questions.
  - Section B: medium-length questions (journals, adjustments).
  - Section C: long question (complete set of financial statements or full accounting cycle).

This pattern mirrors what students see in UNISA FAC1502 exam papers (large final exam weight) and CUT ACCS10AB (heavy focus on calculations), but each institution’s layout and marking rubric is unique.

1.3 Breakdown of Exam Content for FRK 101

Although exact topic sequencing can vary, FRK 101 exam papers usually test:

Conceptual framework and theory (10–20%)
- Users of financial statements, qualitative characteristics, elements of financial statements, principles like going concern and accrual.
Accounting equation and double-entry system (15–25%)
- Debits/credits, T-accounts, general ledger, trial balance.
The accounting cycle (25–35%)
- Source documents, journals, posting, trial balance, adjustments, closing entries.
Adjustments and year-end procedures (20–30%)
- Accruals, prepayments, depreciation, bad debts, inventory adjustments.
Basic financial statements (20–30%)
- Statement of Profit or Loss and Other Comprehensive Income
- Statement of Financial Position
- Basic notes to the financial statements (e.g., PPE, trade receivables, equity).
Specialised topics (introductory level) (0–10% depending on semester)
- Introductory partnerships or sole proprietors formats.
- Brief exposure to cash flow or manufacturing accounts in some years.

Questions often integrate these areas. For example, a single long question may:

Give transactions,
Require journals,
Adjustments,
Trial balance extraction, and
Preparation of financial statements.

1.4 Format of FRK 101 Exam Papers at UP

A typical 2–3 hour UP FRK 101 exam might look like:

Section A: Objective / Short Questions (20–40 marks)
- 10–20 MCQs (2 marks each) on:
  - Definitions (asset, liability, equity).
  - Understanding debits and credits.
  - Quick adjustments (e.g., calculate interest for a period).
- Short theory:
  - 2–6 mark conceptual questions:
    - “Explain the accrual basis of accounting.”
    - “List four qualitative characteristics of financial information.”
Section B: Medium Questions (30–50 marks)
Examples:
- Prepare general journal entries for given transactions and adjustments.
- Prepare adjusted trial balance from given information.
- Calculate depreciation and record adjusting entries.
- Small incomplete income statement or balance sheet with missing figures.
Section C: Long Question (30–60 marks)
Typical long question structure:
1. Given unadjusted trial balance and additional information.
2. You must process adjustments.
3. Draw up Statement of Profit or Loss and Other Comprehensive Income.
4. Draw up Statement of Financial Position.
5. Possibly prepare selected notes (e.g., PPE, Trade Receivables).

The exact mark allocations vary, but the long question is usually 30–40% of the paper. Many students lose easy marks due to poor layout or careless arithmetic.

1.5 Time Management Strategy for FRK 101 Exams

Use 1 mark ≈ 1.2 minutes as a rough timing rule. For a 100-mark, 2-hour exam, this is tight; for a 3-hour exam, you get more breathing space. A common allocation:

Section A (20–40 marks):
- Aim for 25–40 minutes.
- Do not get stuck on one MCQ—mark it and move on.
Section B (30–50 marks):
- Aim for 40–60 minutes.
- Prioritise questions with formats you know best (e.g., journals, adjustments).
Section C (30–60 marks):
- Reserve 60–80 minutes.
- Plan the answer:
  - 5–10 minutes to read and underline key data.
  - 45–60 minutes to work.
  - 5–10 minutes to review and recheck calculations.

Key tips:

Start with what you know. Pick the sections where you are confident (often the long question if you practised many UP FRK 101 past papers).
Write something for every question. Empty spaces cost you dearly.
Show workings clearly. UP marking memos frequently award method marks even if the final answer is wrong.

1.6 How FRK 101 Exam Style Compares to UNISA and CUT First-Year Accounting

Students often search for UNISA FAC1502 exam papers and memos or CUT ACCS10AB past exam questions when revising FRK 101, because the content overlaps in:

The accounting equation.
Journals, ledgers, trial balance.
Basic financial statements.
Depreciation, accruals, prepayments.

Key differences:

UP FRK 101:
- Stronger emphasis on layout and full financial statement preparation.
- Often more integrated questions requiring multiple steps.
- Continuous assessment plus final exam.
UNISA (e.g. FAC1502, FAC1501):
- Distance-learning structure.
- Heavier reliance on self-study, past papers, and tutorial letters.
- Exams often emphasise MCQs and medium-length questions.
CUT (e.g. ACCS10AB, ACFS10AB):
- Often includes similar content but may incorporate:
  - More practical, trade-related examples.
  - Technical college-style scenario questions.

For UP BCom Taxation students, FRK 101 exam preparation is most efficient when combining UP-specific tutorials and past papers with generic first-year accounting practice from other SA universities.

2. Core Theory for FRK 101 Exams: Concepts, Framework and Principles

2.1 The Purpose of Financial Accounting

In FRK 101, theory questions often start with basic but crucial ideas:

Objective of Financial Accounting
To provide useful financial information about the reporting entity to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity.
Primary users of financial statements:
- Equity investors (shareholders).
- Lenders (banks).
- Other creditors (suppliers).
Other users:
- Tax authorities (e.g., SARS).
- Employees.
- Management (although primarily served by management accounting).
- The public.

Remember: FRK 101 focuses on external users, which is why the subject links closely with the taxation curriculum (tax authorities use externally reported figures as a starting point).

2.2 Elements of Financial Statements (Test Favourite)

UP exams frequently ask you to define or identify:

Asset
A present economic resource controlled by the entity as a result of past events from which future economic benefits are expected to flow to the entity.
Liability
A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.
Equity
The residual interest in the assets of the entity after deducting liabilities. In a sole trader context it's often called owner’s equity; in a company context, shareholders’ equity.
Income
Increases in assets or decreases in liabilities that result in increases in equity, other than those relating to contributions from equity participants (e.g. sales, interest income).
Expenses
Decreases in assets or increases in liabilities that result in decreases in equity, other than those relating to distributions to equity participants (e.g. salaries, rent, depreciation).

MCQs often test short application scenarios:

“XYZ Traders collects R5 000 cash from a customer for services rendered. Which elements are affected?”

Asset (Cash) increases.

Income (Service revenue) increases.

Equity increases (through income).

2.3 Qualitative Characteristics of Useful Financial Information

UP FRK 101 exam papers often ask for qualitative characteristics:

Fundamental characteristics:
1. Relevance – Information is capable of making a difference to users’ decisions.
  - Has predictive and/or confirmatory value.
2. Faithful representation – Information is complete, neutral, and free from error.
Enhancing characteristics:
- Comparability – Users can compare across periods and entities.
- Verifiability – Different knowledgeable and independent observers could reach consensus.
- Timeliness – Information is available in time for decisions.
- Understandability – Information is clear and concise to reasonably informed users.

Short theory examples:

“Explain why comparability is important.”
Because users need to compare current performance to previous periods and to other entities to assess trends and relative performance.
“How does faithful representation relate to estimates?”
Estimates must be based on reasonable assumptions and appropriate data to avoid misleading users. They can never be exact, but they should be made carefully and disclosed.

2.4 The Accounting Assumptions and Principles

UP FRK 101 theory questions frequently test:

Going concern
Assumes the entity will continue operations for the foreseeable future. Assets and liabilities are measured on this basis (e.g., no forced liquidation values).
Accrual basis
Transactions are recorded when they occur, not when cash is received or paid. Income is recognised when earned; expenses when incurred.
Consistency
Accounting policies should be applied consistently from one period to another, unless a change leads to more relevant or reliable information.
Materiality
Information is material if omitting or misstating it could influence users’ decisions.
Prudence (Conservatism – often in discussions)
Exercise caution in judgments under conditions of uncertainty; avoid overstating assets or income and understating liabilities or expenses.

Example exam question:

“Explain the accrual basis of accounting and give two examples of how it affects year-end adjustments.”

Model answer structure:

Definition (as above).
Example 1: Accrued income – Interest income that has been earned but not yet received must be recognised as income now and a receivable created.
Example 2: Prepaid expense – Insurance paid in advance must be partially recognised as asset (prepayment) and only the portion relating to current period is expense.

2.5 The Accounting Equation and Extended Equation

The basic accounting equation:

Assets = Equity + Liabilities

Extended version often used in FRK 101:

Assets = Equity + Liabilities
Equity (end) = Equity (beginning) + Capital contributions + Income – Expenses – Drawings

Or, fully expanded:

Assets = Capital + Income – Expenses – Drawings + Liabilities

UP exam papers may present short scenarios requiring you to update the equation:

Example:

A sole trader, Mpho Traders, starts business with the following events in January:

Owner invests R50 000 cash as capital.
Buys equipment for R20 000 cash.
Buys inventory on credit for R15 000.
Sells inventory for R10 000 cash; cost R6 000.
Pays rent of R2 000 cash.
Owner withdraws R1 500 cash for personal use.

You might be asked to show the effect on the accounting equation after each transaction. You should be able to express:

After 1:
- Assets: +R50 000 (Cash)
- Equity: +R50 000 (Capital)
After 2:
- Assets: +R0 net (Cash -R20 000, Equipment +R20 000)
- Equity: no change
After 3:
- Assets: +R15 000 (Inventory)
- Liabilities: +R15 000 (Creditors)
After 4:
- Assets: Cash +R10 000, Inventory -R6 000 → net +R4 000
- Equity: Income (Sales profit) +R4 000
After 5:
- Assets: -R2 000 (Cash)
- Equity: Expenses (Rent) -R2 000
After 6:
- Assets: -R1 500 (Cash)
- Equity: Drawings -R1 500

This foundational logic carries into journals and ledger postings, which are heavily tested.

2.6 Common Theory Question Types and Sample Answers

Type 1: Definition Matching (MCQ)

“Which of the following is an example of an expense?”
A. Bank overdraft
B. Depreciation
C. Capital contribution
D. Trade receivable

Correct: B. Depreciation (it’s a cost allocated over an asset’s useful life, decreasing equity).

Type 2: State and Explain

“List and briefly explain two qualitative characteristics of useful financial information.”

Model outline (4 marks):

Relevance (1 mark definition + 1 mark explanation).
Faithful representation (1 mark definition + 1 mark explanation).

Type 3: Short Scenario Application

“Sello sells inventory costing R2 000 for R3 500 on credit. Discuss the effect on the elements of financial statements.”

Answer outline:

Assets: Trade receivables +R3 500; Inventory -R2 000 → net +R1 500.
Equity: Income (Sales revenue) +R3 500; Expense (Cost of sales) -R2 000 → net +R1 500.
Liabilities: no effect.

Having clear, exam-ready explanations reduces time spent writing and earns full marks efficiently.

3. The Accounting Cycle: From Transactions to Trial Balance in FRK 101

3.1 Overview of the Accounting Cycle (UP, UNISA, CUT Overlap)

The accounting cycle is central to FRK 101 and is also heavily emphasised in UNISA FAC1502 / FAC1501 and CUT ACCS10AB. Questions frequently require you to:

Record transactions in journals.
Post to the general ledger.
Prepare a trial balance.
Process year-end adjustments.
Correct errors and prepare an adjusted trial balance.

Standard cycle steps:

Identify and analyse transactions from source documents.
Record entries in the general journal or appropriate subsidiary journals.
Post to ledger accounts (T-accounts or running-balance ledgers).
Prepare trial balance.
Adjust entries for accruals, prepayments, depreciation, etc.
Prepare adjusted trial balance.
Prepare financial statements.
Close temporary accounts (income, expenses, drawings) to equity.

3.2 Journals: General and Subsidiary

While exam focus differs by institution, UP FRK 101 often still tests journal entries heavily, similar to UNISA and CUT. Key journals:

General Journal:
- For non-regular transactions: opening entries, adjustments, corrections.
- Format in exam:
  
  Date Details Debit (R) Credit (R)
  
  2026-03-01 Equipment Dr 25 000
  
  Bank 25 000
  
  (Bought equipment cash)
Cash Receipts Journal (CRJ):
- Summarises all cash received.
- Columns: Bank, Sales, Debtors control, Sundry accounts.
Cash Payments Journal (CPJ):
- Summarises all cash paid.
- Columns: Bank, Creditors control, Wages, Rent, Sundries.
Sales Journal (SJ) and Purchases Journal (PJ):
- For credit sales and credit purchases (inventory).
Debtors and Creditors Journals:
- For returns, allowances, etc.

Date	Details	Debit (R)	Credit (R)
2026-03-01	Equipment Dr	25 000
	Bank		25 000
	(Bought equipment cash)

Exam questions may provide source documents (like invoices, receipts) and require you to:

Allocate them to the correct journal.
Record the amounts in the correct columns.
Post totals or individual transactions to ledgers.

3.3 Ledger Accounts and Posting

After journaling, transactions are posted to T-accounts or running-balance ledgers.

T-Account Format:

Bank
Dr | Cr
2026-01-01 Capital 50 000 | 2026-01-05 Rent 2 000
2026-01-02 Sales 10 000 | 2026-01-06 Drawings 1 500

UP FRK 101 exams may:

Give you journals and ask you to post to specific ledger accounts.
Give incomplete accounts and ask you to complete them from additional data.

Key posting rules:

Debits on the left; credits on the right.
Asset and expense accounts have debit balances.
Liability, equity, and income accounts have credit balances.

3.4 Trial Balance: Purpose and Preparation

A trial balance lists all ledger accounts with their ending debit or credit balances to test if total debits = total credits.

Typical layout:

Account	Debit (R)	Credit (R)
Bank	35 000
Equipment	20 000
Inventory	15 000
Capital		50 000
Trade payables		15 000
Sales		10 000
Cost of sales	6 000
Rent expense	2 000
Drawings	1 500
Totals	79 500	75 000

If debits and credits do not match, you must search for errors such as:

Omitted entries.
Double posting on one side.
Transposition errors (e.g. R3 600 instead of R6 300).

FRK 101 exam questions may:

Ask you to prepare a trial balance from ledger accounts.
Provide a trial balance and ask you to identify obvious errors.
Use a given trial balance as the start of a long question for financial statements.

3.5 Adjusting Entries: Accruals and Prepayments

Most FRK 101 and related first-year accounting exams (UNISA, CUT) heavily test year-end adjustments. These adjustments ensure the accrual basis and matching principle are applied.

Common adjustments and their journal entries:

Accrued Income (Income receivable)
- Example: Interest income of R1 200 earned but not yet received.
- Entry:
  
  Dr Income receivable (Asset) R1 200
  Cr Interest income (Income) R1 200
Accrued Expense (Expense payable)
- Example: Electricity bill of R800 for March not yet paid.
- Entry:
  
  Dr Electricity expense R800
  Cr Electricity payable (Liability) R800
Prepaid Expense
- Example: Insurance of R3 000 paid for 6 months; year-end after 2 months.
- Expense for period: (R3 000 ÷ 6) × 2 = R1 000.
- Prepaid portion: R2 000.
- Entry to record asset (if total initially expensed):
  
  Dr Prepaid insurance (Asset) R2 000
  Cr Insurance expense R2 000
Income Received in Advance
- Example: Rent received R6 000 for 3 months; only one month relates to current year.
- Current income: (R6 000 ÷ 3) × 1 = R2 000.
- Income received in advance: R4 000.
- Entry:
  
  Dr Rent income R4 000
  Cr Rent received in advance (Liability) R4 000

MCQs may ask you to identify whether an adjustment increases/decreases assets, liabilities, equity, income, or expenses.

3.6 Depreciation and Bad Debts in the Cycle

Two more adjustments examiners favour:

(a) Depreciation

Systematic allocation of cost of a tangible asset over its useful life.
Methods:
- Straight-line (most common in FRK 101).
- Diminishing balance (may be introduced).

Straight-line formula:

Depreciation per year = (Cost – Residual value) ÷ Useful life (years)

Example:

Equipment cost: R100 000
Residual value: R10 000
Useful life: 5 years

Depreciation per year = (100 000 – 10 000) ÷ 5 = R18 000.

Journal entry:

Dr Depreciation expense – Equipment R18 000
Cr Accumulated depreciation – Equipment R18 000

(b) Bad Debts and Allowance for Credit Losses

FRK 101 often introduces:

Bad debts (irrecoverable) – specific debtor who will not pay.
- Entry:
  
  Dr Bad debts expense R1 000
  Cr Trade receivables (Debtors) R1 000
Allowance for credit losses (Provision for doubtful debts) – estimate of future non-collection.

If you adjust allowance to a percentage of closing trade receivables:
- Trade receivables after bad debts: R80 000
- Policy: Allowance = 5% of receivables = R4 000
- Existing allowance: R2 500 credit balance
Additional required: R4 000 – R2 500 = R1 500.

Journal:

Dr Credit losses expense R1 500
Cr Allowance for credit losses R1 500

FRK 101 exam papers may ask:

Calculate and record depreciation and credit loss adjustments.
Show how they appear in the Statement of Profit or Loss and Statement of Financial Position.

3.7 Correcting Errors: Suspense Accounts and Reversals

Sometimes exam questions involve error correction. Examples:

Error of omission – Transaction not recorded at all.
- Correction: Record as if new, no suspense.
Error of commission – Correct amount in wrong account of same type.
- Example: Received R2 000 from Sizwe but entered into Thabo’s account.
- Correction:
  - Dr Thabo (to cancel wrong credit) R2 000
  - Cr Sizwe (to record correct credit) R2 000
Error of original entry – Wrong amount posted on both sides.
- Correction: Additional entry to make up difference.
Single-sided entry error – Only debit or credit recorded.
- Correction may require suspense account if working from a trial balance that doesn’t balance.

A typical FRK 101 long question may:

Provide a trial balance with suspense account.
List error descriptions.
Ask you to pass journal entries to correct errors and show the revised suspense balance.

4. Financial Statements and Key Adjustments in FRK 101 (UP Focus)

4.1 Overview of Basic Financial Statements

UP FRK 101 expects you to prepare, in correct format:

Statement of Profit or Loss and Other Comprehensive Income (Income Statement)
- Shows performance over a period.
Statement of Financial Position (Balance Sheet)
- Shows financial position at a point in time.
Selected Notes to the Financial Statements
- Property, plant and equipment (PPE).
- Trade receivables.
- Equity (capital/drawings).

Most long questions integrate both 1 and 2 plus at least one note.

4.2 Structure of the Statement of Profit or Loss and Other Comprehensive Income

Typical format (sole trader, UP first-year level):

Mpho Traders
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2026

Revenue (Sales)
- Less: Sales returns
  = Net revenue
Cost of sales
- Opening inventory
- Plus: Purchases
- Less: Purchase returns
- Plus: Carriage on purchases
- Less: Closing inventory
  = Cost of sales
Gross profit = Net revenue – Cost of sales
Other income (add):
- Interest income
- Rent income
- Discount received, etc.
Expenses (deduct):
- Salaries and wages
- Rent expense
- Insurance expense
- Depreciation
- Bad debts / credit losses
- Electricity and water
- Other operating expenses
Profit for the year

Exam tips:

Show subtotals clearly (Gross profit, Profit for the year).
Align with UP’s preferred format as shown in lectures and tutorials.
Be consistent with sign conventions (income positive, expenses negative).

4.3 Structure of the Statement of Financial Position

Typical format (classical approach):

Mpho Traders
Statement of Financial Position
as at 31 December 2026

Assets
- Non-current assets
  - Property, plant and equipment at carrying amount
    - (Cost – Accumulated depreciation)
- Current assets
  - Inventory
  - Trade receivables (less allowance)
  - Other receivables (e.g., accrued income)
  - Prepayments
  - Cash and cash equivalents
Equity and Liabilities
- Equity
  - Capital (beginning)
  - Plus: Additional capital
  - Plus: Profit for the year
  - Less: Drawings
    = Closing capital / Equity
- Non-current liabilities
  - Loans (e.g., bank loans)
- Current liabilities
  - Trade payables (creditors)
  - Accrued expenses (payables)
  - Income received in advance
  - Current portion of long-term loans
  - Bank overdraft

Remember that Assets = Equity + Liabilities must balance.

4.4 Integrated Example: From Trial Balance to Financial Statements

Consider a simplified exam-style scenario:

Trial Balance of Mpho Traders at 31 Dec 2026

Account	Debit (R)	Credit (R)
Capital		80 000
Drawings	10 000
Bank	25 000
Inventory (1 Jan 2026)	15 000
Trade receivables	20 000
Trade payables		12 000
Equipment (cost)	60 000
Accumulated dep. – Equipment		15 000
Sales		150 000
Sales returns	5 000
Purchases	80 000
Purchase returns		3 000
Carriage on purchases	4 000
Salaries and wages	30 000
Rent expense	12 000
Insurance expense	6 000
Bad debts	2 000
Allowance for credit losses		1 000
Electricity expense	4 000
Interest income		2 000
Loan from bank		20 000
Totals	258 000	258 000

Additional information (adjustments):

Closing inventory at 31 Dec 2026: R18 000.
Salaries outstanding at year-end: R2 000.
Rent paid covers 12 months to 31 March 2027 (i.e., 3 months prepaid).
Insurance includes R1 000 for next year (prepaid).
Depreciation on equipment: 10% per annum on cost (straight-line).
Adjust allowance for credit losses to 5% of trade receivables after writing off a further R1 000 as bad debt.
Interest income of R500 is accrued (earned but not yet received).

An exam question may ask you to:

Process journal entries for adjustments.
Prepare Statement of Profit or Loss and Other Comprehensive Income.
Prepare Statement of Financial Position.
Prepare note: Trade receivables.

Key steps (high-level):

Adjust expenses and income:
- Salaries: +R2 000 → Salaries expense 32 000; Salaries payable 2 000.
- Rent: R12 000 for 12 months to 31 March 2027 → monthly R1 000; 9 months 2026, 3 months 2027.
  - Current-year expense: R9 000; Prepaid: R3 000.
- Insurance: if total R6 000 includes prepaid R1 000, then:
  - Current-year expense: R5 000; Prepaid: R1 000.
- Depreciation: 10% of R60 000 = R6 000;
  - Depreciation expense +R6 000; Accumulated depreciation +R6 000.
- Bad debts: additional R1 000 wrote off; Bad debts expense +R1 000; Receivables -R1 000.
- Allowance for credit losses:
  - New receivables: R20 000 – R1 000 = R19 000.
  - Required allowance = 5% of R19 000 = R950.
  - Existing allowance: R1 000 credit.
  - Adjustment: Decrease allowance by R50 (R1 000 – R950).
    - Entry: Dr Allowance for credit losses R50; Cr Credit losses income R50 (or reduce expense).
- Accrued interest income: +R500;
  - Interest income +R500; Interest receivable (asset) +R500.
Calculate cost of sales:
- Opening inventory: R15 000
- Purchases: R80 000
- Less purchase returns: R3 000
- Plus carriage on purchases: R4 000
- Goods available: 15 000 + 80 000 – 3 000 + 4 000 = R96 000
- Closing inventory: R18 000
- Cost of sales: 96 000 – 18 000 = R78 000.
Prepare income statement:
- Net sales: 150 000 – 5 000 = 145 000
- Gross profit: 145 000 – 78 000 = 67 000
- Add other income: Interest income (2 000 + 500) = 2 500; Credit losses income 50.
- Total income before expenses = 67 000 + 2 500 + 50 = 69 550
- Expenses: Salaries 32 000; Rent 9 000; Insurance 5 000; Bad debts (2 000 + 1 000) = 3 000; Depreciation 6 000; Electricity 4 000; Net credit losses (if any additional).
  - Total expenses: 32 000 + 9 000 + 5 000 + 3 000 + 6 000 + 4 000 = 59 000
- Profit for the year: 69 550 – 59 000 = 10 550.
Prepare statement of financial position using adjusted balances.

In an exam, layout and neatness significantly affect how easily markers can award method marks.

4.5 Common Adjustment Pitfalls in FRK 101 Exams

Double-counting:
- Including prepaid and accrued portions incorrectly, leading to over/understated expenses.
Wrong sign:
- Treating expense reductions as additional expenses.
Ignoring additional information:
- Not adjusting allowance for credit losses after writing off bad debts.
Misclassifying items:
- Listing bank overdraft under current assets instead of current liabilities.
- Including drawings in expenses instead of equity.

UP exam markers often place comments in memos like “method mark lost due to classification error”, so focus on correct category and heading.

4.6 Basic Notes to the Financial Statements

You may have to draft notes such as:

(a) Property, Plant and Equipment (PPE)

Note X: Property, plant and equipment

Description	Cost (R)	Acc. dep. (R)	Carrying amount (R)
Equipment	60 000	21 000	39 000

Where:

Accumulated depreciation: previous 15 000 + current 6 000 = 21 000.

(b) Trade Receivables

Note Y: Trade receivables

Description	R
Trade receivables (gross)	19 000
Less: Allowance for credit losses	(950)
Carrying amount	18 050

(c) Equity (Capital and Drawings)

Note Z: Owner’s equity

Description	R
Capital at beginning	80 000
Plus: Profit for the year	10 550
Less: Drawings	(10 000)
Capital at end	80 550

Note preparation is common in both UP FRK 101 and UNISA first-year accounting modules, and the skills are essential for later BCom Taxation modules where you base tax calculations on accounting figures.

5. FRK 101 Exam Preparation: Using Past Papers, Study Techniques and Cross-University Resources

5.1 Why Past Exam Papers Matter for FRK 101

For UP BCom Taxation students, FRK 101 past exam papers and memos are one of the most powerful tools because:

They reveal recurring question types:
- Accounting equation updates.
- Journal entries.
- Income statement & balance sheet preparation.
- Depreciation, accruals, prepayments.
They show mark allocations, helping with time planning.
They highlight format expectations (e.g., headings, subtotals).

In practice, many FRK 101 questions appear in patterned variations year after year, similar to how:

UNISA FAC1502 exam papers with solutions reuse themes around journals and adjustments.
CUT ACCS10AB question papers and memos repeat incomplete records and bank reconciliation scenarios.

5.2 How to Use UP FRK 101 Past Papers Effectively

Start with one recent paper under open-book conditions:
- Do not worry about time at first.
- Focus on understanding each question fully.
Cross-check with the official memo:
- Compare not only answers but also layout.
- Note phrases used in theoretical answers.
- Observe how workings are structured:
  - Columns.
  - Stepwise calculations.
  - Labelling of figures.
Create a “Frequently Tested Topics” list:
- From at least 3–5 papers, list how often each topic appears:
  - Depreciation (almost every paper).
  - Adjustments (every paper).
  - Full financial statements (often once per paper).
  - Definition and concept questions (every paper).
Drill weak areas with targeted practice:
- If you struggle with prepayments, redo all similar questions from multiple past papers.
- Fill gaps with textbook examples or tutorial questions.
Move to timed practice:
- Attempt at least 2 past papers under exam-style time pressure.
- Aim to simulate conditions:
  - No notes.
  - Quiet environment.
  - Strict timing.
Analyse your performance:
- Categorise errors:
  - Conceptual gaps (you didn’t understand content).
  - Careless mistakes (signs, copying figures).
  - Time management issues (did not reach final question).
Refine your exam strategy accordingly.

5.3 Supplementing with UNISA and CUT First-Year Accounting Resources

Because content overlaps strongly across South African universities, students often search:

“UNISA FAC1502 past exam papers and answers”
“FAC1501 study notes free download”
“CUT ACCS10AB exam memos”

These resources are particularly useful for:

Extra practice with:
- The accounting equation.
- Journal entries.
- Trial balance and adjustments.
Understanding common conceptual pitfalls.

However, caution:

Formats and mark allocations differ:
UNISA may present more MCQs and shorter questions; CUT may include more practical trade-related details.
Always align with UP’s FRK 101 format and syllabus when finalising revision.

A good approach:

Master UP-prescribed material first (lecture slides, tutorials, UP past papers).
Use UNISA and CUT questions for additional exposure once you are comfortable with FRK 101-specific expectations.

5.4 Building a Weekly Study Plan for FRK 101

For a typical 14-week semester, a workable plan might be:

Weeks 1–3: Foundations

Topics:
- Nature and purpose of accounting.
- Accounting equation.
- Debits and credits.
- Journals, ledgers.
Tasks:
- Do all tutorial questions on basic transactions.
- Create summary sheets with:
  - Definitions.
  - Debit/credit rules.
- Attempt 10–20 MCQs from any FRK 101-style or FAC1502-style bank per week.

Weeks 4–7: Accounting Cycle and Adjustments

Topics:
- Trial balances.
- Accruals, prepayments.
- Depreciation & bad debts.
- Correcting errors.
Tasks:
- Complete all UP tutorial and assignment questions on adjustments.
- Redo them from memory without notes.
- Start working on short past exam questions specifically focusing on:
  - Accruals.
  - Prepayments.
  - Depreciation.

Weeks 8–10: Financial Statements Practice

Topics:
- Full income statement.
- Balance sheet.
- Selected notes.
Tasks:
- Prepare at least 4–6 full sets of financial statements from:
  - UP tutorial problems.
  - Past FRK 101 exam questions.
- Mark yourself strictly using memos.
- Identify and correct layout, heading, and classification errors.

Weeks 11–13: Integrated Past Papers and Exam Simulation

Topics:
- All integrated.
Tasks:
- Complete at least 3 full past FRK 101 papers:
  - First under open-book.
  - Then with time limits.
- Use extra UNISA/CUT first-year accounting questions to plug weak areas.
- Create “formula and format” summary sheets:
  - Depreciation formula.
  - Cost-of-sales layout.
  - Equity reconciliation.

Week 14: Final Review

Revise summary notes.
Redo key questions you initially got wrong.
Rest adequately before the exam.

5.5 Exam-Day Techniques and Common Mistakes to Avoid

Before the exam:

Sleep at least 7 hours.
Pack:
- Calculator (check batteries).
- Multiple pens, ruler, eraser.
- Student card and ID if required.

During reading time:

Skim through the entire paper.
Circle:
- Questions you know well (start here).
- Questions you expect to be time-consuming (budget time).
Check mark allocations.

During writing time:

Always show workings.
Keep answers structured:
- Use headings: “Statement of Profit or Loss…”.
- Underline subtitles (Gross profit, Profit for the year).

Avoid these common mistakes:

Not reading all adjustments carefully:
Missing one line can cause a cascade of wrong figures.
Treating drawings as an expense:
Drawings reduce equity, not profit.
Omitting subtotals:
Especially gross profit, total expenses, profit before tax (if applicable).
Mixing up accruals and prepayments:
Remember:
- Accrued = outstanding = payable/receivable.
- Prepaid = paid in advance = asset/liability.
Not balancing the Statement of Financial Position:
If time allows, adjust minor rounding differences to ensure assets = equity + liabilities; but do not falsify major errors.

5.6 Linking FRK 101 Skills to Later BCom Taxation Modules

Understanding FRK 101 content is not only about passing the first-year exam; it feeds directly into:

Taxation modules:
- You must understand how accounting profit is derived to adjust for tax purposes.
- Depreciation vs. wear-and-tear allowances.
- Provision for doubtful debts vs. tax deductibility.
Intermediate accounting (e.g., FRK 201, FRK 202 equivalents):
- Deeper IFRS applications.
- Company financial statements.
- Complex revenue recognition.
Auditing and managerial accounting:
- Reliance on accurate base figures.
- Understanding of how errors arise and are corrected.

FRK 101 is the language of business in your BCom Taxation degree. Skills you sharpen while working through UP FRK 101 exam papers, UNISA’s FAC1502-style questions, and CUT’s ACCS10AB scenarios lay a permanent foundation for successful professional practice in accounting and taxation.

By thoroughly mastering the theory, the accounting cycle, and financial statement preparation—and by systematically practising with University of Pretoria FRK 101 exam papers and memos, supplemented with UNISA and CUT first-year accounting questions—you position yourself strongly not just to pass, but to excel in FRK 101 and subsequent BCom Taxation modules.