FAC1602 - Elementary Financial Accounting And Reporting
Institution
University Of South Africa (Unisa)
this document contains expected answers for fac1602 assignment 2. Using it correctly for research and comparative purposes will help you score above 75%
FAC1602 - Elementary Financial Accounting And Reporting
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By: khanyisamaphaha • 1 year ago
The document is just screenshots last year's assignments with no formulas or work calculations. Obviously questions will not be repeated for this assignment. I feel scammed. is there a way i can get a refund. This is not going to help me.
By: oscardiura • 1 year ago
hi Khanyisa, apologies for your experience, that document is indeed for 2022 and we can only update it when the latest questions become available on my unisa. You will have the right to download the latest for free when it becomes available or you contact me directly on the number provided on the document
Use the following information to answer questions 1 to 5.
Karabo and Moroka were in a partnership and traded as KM Traders. Karabo and Moroka shared in the profits or losses of KM Traders in the
ratio of 5:4 respectively. Karabo and Moroka decided to admit Queen to the partnership. The new partnership trades as KQM Traders and the
profit-sharing ratio between Karabo, Queen and Moroka is 4:2:4 respectively. The following statement of financial position (extract) was
prepared (in preparation of the change in the ownership structure) at 28 February 2021, the financial year-end of KM Traders:
Moroka Traders
Balances as at 28 February 2020: R
Furniture and equipment 96,000.00
Inventories 36,000.00
Trade receivables control 24,000.00
Trade payables control 18,000.00
Bank (Dr) 30,000.00
Capital: Karabo 105,000.00
Capital: Moroka 63,000.00
The following appraisals were obtained on 28 February 2021 by KM Traders in the preparation of the change in the ownership structure:
1. Trade receivables control – R24 000. (An allowance for credit losses to the amount of R2 500 should be created.)
2. Inventories – R43 750.
3. Furniture and equipment at market (fair) value - R125 000.
After the valuation adjustments, Queen was admitted to the partnership on 1 March 2021.Queen paid R70 000 into the bank account of the
partnership for a 20% interest in the net assets (equity) of the new partnership.
1.The amount recorded in in the Valuation account relating to Inventories and Furniture and equipment in preparation for the admission of
Queen as a partner is?
A. R34 250,00
B. R29 000,00
C. R36 750,00
D. R7 750,00
Clear my choice
, Question 2
Not yet answered
Marked out of 3.00
MENU
Which of the following is the correct alternative for the creation of an allowance for credit losses of R2500,00 in preparation of the change in
Dashboard
the / structure
ownership My courses / FAC1602-22-S1
of the partnership? / Welcome Message / Assessment 2
A. Dr: Trade receivables Cr: Allowance for credit losses
B. Dr: Credit Losses Cr: Allowance for credit losses
C. Dr Allowance for credit losses Cr: Trade receivables
D. Dr: Valuation account Cr : Allowance for credit losses
Clear my choice
Question 3
Not yet answered
Marked out of 3.00
Which amount is the correct alternative recorded for closing off the balancing amount in the valuation account to the capital accounts of
Karabo and Moroka according to their profit-sharing ratio?
A. Karabo - R 34 250,00; Moroka – R34 250,00
B. Karabo – R32 000,00; Moroka – R32 000,00
C. Karabo – R16 000,00; Moroka – R16 000,00
D. Karabo - R17 125,00; Moroka - R 17 125,00
Clear my choice
Question 4
Not yet answered
Marked out of 3.00
Which of the following is the correct amount to be recorded as Goodwill in preparation for the admission of Queen?
A. R 147 750,00
B. R 112 000,00
C. R 280 000,00
D. R 77 750,00
Clear my choice
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