Exam (elaborations)
FAC1602 ASSESSMENT 1 SEMESTER 1 2024
- Course
- Institution
FAC1602 ASSESSMENT 1 SEMESTER 1 2024
[Show more]
Seller
Follow
passmatetutorials
Reviews received
Content preview
FAC1601 ASSESSMENT 1 – SEMESTER 1 OF2024
Question 1
Given information to questions 1 – 6:
Phaduli Boerdery, a cattle feedlot business supplying to various abattoirs around Mpumalanga, is
a partnership between Itani and Ndivhuwo. The following information relates to the business
activities of the partnership for the year ended 30 June 2023.
EXTRACT OF BALANCES AS AT 30 JUNE 2023
R
Land and building at cost R672,800
Vehicle at cost R362,240
Accumulated depreciation: Vehicles R16,710
Inventory R29,770
Bank (positive) R130,070
Trade receivables control R163,080
Allowance for credit losses R4,000
Prepayment: Veterinary services R54,040
Trade payables control R76,490
Drawings: Itani (30 June 2023) R5,936
Drawings: Ndivhuwo (30 June 2023) R11,830
Capital: Itani R152,100
Capital: Ndivhuwo R147,180
Current account: Itani (CR: 1 July 2022) R15,270
Current account: Ndivhuwo (DR: 1 July 2022) R12,640
Profit for the year R191,420
2. Supplementary information:
2.1 Partnership agreement specifics between the partners:
2.1.1 Profit and loss share between Itani and Ndivhuwo are shared equally.
2.1.2 Each partner is due a salary of R18,500 monthly. As of 30 June 2023, Itani and
Ndivhuwo received R15,200 and R16,500 respectively as their monthly salaries for only 11
months of the year, which has not yet been recorded in the partnership’s financial records.
,2.1.3 An annual interest rate of 14% is applied to the opening balances of the partners’ capital
and current accounts.
2.2 Adjustments at the end of the year:
2.2.1 As of 30 June 2023, it was decided that an outstanding debt of R22 850, owed to the
business, would be classified as irrecoverable and thus needs to be written off.
2.2.1 The business needed to expand and get additional land for the backgrounding of cattle
bought at less than 250kg. On 30 June 2023, Itani’s father provided a loan of R600,000 to the
partnership to buy the additional adjacent land. The farmland was purchased only purchased on 2
January 2024 at a cost of R600 000. This loan is considered long-term, bearing an 8% annual
interest rate, and is structured to be repaid over 6 years with equal payments, starting from 30
June 2024. This transaction is yet to be recorded.
Which one of the following alternatives represents the correct amount that must be disclosed as
total equity in the statement of changes in equity of Phaduli Boerdery for the year ended 30 June
2022?
a.
R 301,910 (152 100 + 147 180 + 15 270 – 12 640)
b.
R 327,190
c.
R 299,280
d.
R 299,000
e.
R 296,650
, Question 2
Which one of the following alternatives represents the correct amount that must be disclosed as
cash and cash equivalents or bank overdraft in the statement of financial position of Phaduli
Boerdery as at 30 June 2023?
a.
R 730,700
b.
R 730,000
c.
R 130,700
d.
R 130,070
e.
R 730,070 (130 070 + 600 000)
Question 3
Which one of the following alternatives represents the correct amount that must be disclosed as
trade and other receivables in the statement of financial position of Phaduli Boerdery as at
30 June 2023?
a.
R 136,230 (163 080 – 4 000 – 22 850)
b.
R 159,080
c.
R 159,000
d.
R 163,080
e.
R 140,230
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 passmatetutorials. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.84. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75057 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now