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FAC 1602 ASSESSMENT 02 SEMESTER 1 2023 85% UPWARDS
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FAC 1602 ASSESSMENT 02 SEMESTER 1 2023
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Question 1Which of the following statements is correct:
1.
A personal transaction is a transaction that is made between an existing partner and the partnership of
the business entity.
2.
Past financial performance indicators such as total comprehensive income in respect of previous
financial periods, are ordinarily used to determine goodwill.
3.
When revaluing an asset or liability in terms of a change in ownership structure, the current account is
used. The current account is then closed off to the accounts of the existing partners according to their
existing profit-sharing ratio.
4.
Goodwill is excluded in the calculation when determining the fair value of a partnership.
5.
The selling price of a partnership is determined by the cost price of the partnership.
Question 2
Question text
Vogel and Mazibuko are in a mining partnership with a profit-sharing ratio of 1:3 respectively. A new
partnership was formed by admitting Malikane. A 1/6 share in the profits/loss of the new partnership was
obtained by Malikane. Vogel and Mazibuko agreed to relinquish the 1/6 share according to their previous
profit-sharing ratio of 1:3. The new profit-sharing ratio is:
1.
8:16:5
2.
5:15:4
3.
3:13:2
2
, 4.
1:3:6
5.
7:18:6
Time left 1:47:41
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Question text
Which of the following statements is incorrect:
1.
Goodwill is subsequently measured at cost less impairment.
2.
The change in the ownership structure of a partnership can be accomplished using two accounting
procedures based on two distinct perspectives namely the legal and the going-concern perspective.
3.
Goodwill is an asset representing the future economic benefits arising from other assets that are not
capable of being individually identified and separately recognised.
4.
A transferal account is used to close off the accounting records of the existing partnership.
5.
Goodwill is a non-current tangible asset in the statement of financial position.
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