Exam (elaborations)
FAC1601 EXAM PACK 2023
- Course
- Institution
the document has the latest questions and elaborate answers
[Show more]
Seller
Follow
AlectaGroup
Reviews received
Content preview
FAC1601 EXAMPACK 2023
UPDATED REVISION
PACK
, lOMoARcPSD|3566627
2
Contents
Study & Exam Pack for FAC1601 © 2014 ...................................................................................................... 1
CHAPTER 1: INTRODUCTION ......................................................................................................................... 4
FINANCIAL STATEMENTS OF A PARTNERSHIP .............................................................................................. 7
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .............................................. 7
OCTOBER-NOVEMBER 2011.................................................................................................................... 11
B. PARTNERSHIPS ........................................................................................................................................ 18
STATEMENT OF CHANGES IN EQUITY ......................................................................................................... 18
OCTOBER-NOVEMBER 2010.................................................................................................................... 18
MAY-JUNE 2012 ...................................................................................................................................... 22
MAY-JUNE 2011 ...................................................................................................................................... 28
Classification of Components ................................................................................................................. 29
Rationale - Why the balance sheet always balances? ............................................................................ 30
Purpose & Importance ............................................................................................................................ 31
MAY- JUNE 2011 ..................................................................................................................................... 32
OCTOBER-NOVEMBER 2012.................................................................................................................... 39
CHAPTER THREE : PARTNERSHIP CHANGES AND LIQUIDATION ................................................................. 45
MAY-JUNE 2011 ...................................................................................................................................... 49
OCTOBER TO NOVEMBER 2012 .............................................................................................................. 51
NOVEMBER 2010 .................................................................................................................................... 56
CHAPTER 4: FINAL ACCOUNTS OF A CLOSE CORPORATION ....................................................................... 62
MAY –JUNE 2011 QUESTION 3 ................................................................................................................ 68
OCTOBER-NOVEMBER 2011 QUESTION 3............................................................................................... 70
OCTOBER – NOVEMBER 2011 ................................................................................................................ 72
OCTOBER-NOVEMBER 2012.................................................................................................................... 78
CHAPTER 4 .................................................................................................................................................. 82
, lOMoARcPSD|3566627
3
OCTOBER- NOVEMBER 2010 ................................................................................................................... 87
MAY-JUNE 2011 ...................................................................................................................................... 89
OCTOBER- NOVEMBER 2011 ................................................................................................................... 91
OCTOBER-NOVEMBER 2012.................................................................................................................... 94
MAY-JUNE 2012 ...................................................................................................................................... 98
CHAPTER 6 INTRODUCTION TO COMPANY ACCOUNTS............................................................................ 100
MAY-JUNE 2010 .................................................................................................................................... 100
MAY – JUNE 2010 .................................................................................................................................. 101
CHAPTER 7: BRANCH ACCOUNTS .............................................................................................................. 104
MAY-JUNE 2010 .................................................................................................................................... 104
OCTOBER-NOVEMBER 2012.................................................................................................................. 107
CHAPTER 8: INTERPRETATION OF FINAL ACCOUNTS ................................................................................ 110
OCTOBER-NOVEMBER 2010 QUESTION 5............................................................................................. 110
OCTOBER – NOVEMBER 2010 ............................................................................................................... 111
OCTOBER-NOVEMBER 2012.................................................................................................................. 112
CHAPTER 8: TIME VALUE OF MONEY ........................................................................................................ 114
OCTOBER-NOVEMBER 2011.................................................................................................................. 114
SOLUTION .................................................................................................................................................. 115
OCTOBER – NOVEMBER 2011 ................................................................................................................... 115
, lOMoARcPSD|3566627
4
CHAPTER 1: INTRODUCTION
This study guide provides brief notes on the topics covered in FAC1601. The topics covered
include the following:
Preparation of Financial Statements of Partnerships;
Changes in the ownership structure of Partnerships;
Liquidation of Partnerships;
Financial Statements of Close Corporations;
Introduction to Company Accounts;
Statement of Cash Flows;
Analysis and Interpretation of Financial Statements;
Branches;
Time value of money.
Financial Accounting
This course mainly covers the Financial Accounting side of broad Accounting. The two main
branches of Accounting are Financial Accounting and Management Accounting. Management
Accounting is mainly used for internal purposes whilst Financial Accounting is mainly produced
for external purposes.
Users of Financial Statements
In this course, focus will mainly be based on the preparation of Financial Statements. These are
supposed to be prepared in terms of International Financial Reporting Standards (IFRSs) as set
out by the International Accounting Standards Board (IASB), of which the South African Institute
of Chartered Accountancy is a member. IFRs are the generally accepted accounting practices by
Accountants throughout the whole world. The final accounts which shall be the main focus are
prepared in terms of International Accounting Standards (IAS) 1.
These accounts are prepared for various users who have differing needs. Examples of users and
their needs are as follows:
1. Investors: to assess the profitability of the entity in order to make a decision on whether to
invest or divest from the entity.
2. Management: to evaluate their performance as guardians of the owners wealth and
sometimes to measure their rewards where there are performance based bonuses.
3. Employees: to gauge the security of their jobs and assess the ability of the entity to pay. The
profitability of the firm can also be used as a basis for collective bargaining.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AlectaGroup. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.30. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52355 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now