FAC1601 ASSESSMENT 1 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS(with workings)
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Course
Financial Accounting and Reporting (FAC1601)
Institution
University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS FAC1601 ASSESSMENT 1 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS(with workings). WORKINGS HAVE BEEN PROVIDED AT THE END OF THE DOCUMENT. USE IT TO REVISE AND SCORE ABOVE 75%
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Question 1 Qabaqongo Oils is a sunflower oil production and distribution
Answer saved business, supplying various retailers and wholesalers throughout
Marked out of
Mpumalanga. The company is a partnership between Khanyisa and
2.00 Zinhle. Below is the relevant information regarding the partnership’s
financial activities for the year ending 30 June 2024.
Flag
question Extract of balances as at 30 June 2024:
R
Inventory R108,800
Bank (positive) R293,600
Trade receivables control R199,200
Vehicles at cost R708,200
Equipment at cost R209,300
Factory building at cost R575,100
Accumulated depreciation: Vehicles R41,700
Accumulated depreciation: Equipment R64,400
Allowance for credit losses R3,000
Trade payables control R119,800
Capital: Khanyisa R431,500
Capital: Zinhle R246,700
Current account: Khanyisa (Cr: 1 July 2023) R13,000
Current account: Zinhle (Dr: 1 July 2023) R9,600
2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
2.1.1 An annual interest rate of 6% is applied to the opening
balances of the partners’ capital and current accounts.
2.1.2 Profits and losses are shared equally between Khanyisa and
Zinhle.
2.1.3 The monthly salaries to which the partners are entitled are
R15 000 and R20 000 for Khanyisa and Zinhle respectively. As of 30
June 2024, the salaries paid to the partners were only up to 30 April
2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring
additional land for sunflower cultivation. On 30 June 2024, KEN Corp
provided a loan of R468 000 to facilitate the purchase of a farm. The
farmland was acquired on 2 July 2024 at the cost of R468,000. This
loan is classified as long-term, with an 8% annual interest rate, to be
repaid over 6 years with equal instalments starting from 30 June
2025. This transaction has not yet been recorded.
2.2.1 On 30 June 2024, it was decided that an outstanding debt of
R17 700 owed to the business was unlikely to be recovered and
should be written off as bad debt.
199200-3000-17700
, 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 Qabaqongo Oils as at 30 June
2024?
a. R181,500
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b. R179,200 oscardiura@gmail.com
c. R178,500 +27737560989
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d. R199,200 tutorials
e. R196,200
f. R179,000
Clear my choice
Question 2 Qabaqongo Oils is a sunflower oil production and distribution
Answer saved business, supplying various retailers and wholesalers throughout
Marked out of
Mpumalanga. The company is a partnership between Khanyisa and
3.00 Zinhle. Below is the relevant information regarding the partnership’s
financial activities for the year ending 30 June 2024.
Flag
question Extract of balances as at 30 June 2024:
R
Inventory R106,800
Bank (positive) R293,600
Trade receivables control R199,200
Vehicles at cost R708,200
Equipment at cost R209,300
Factory building at cost R575,100
Accumulated depreciation: Vehicles R41,700
Accumulated depreciation: Equipment R68,400
Allowance for credit losses R3,000
Trade payables control R119,800
Capital: Khanyisa R431,500
Capital: Zinhle R246,700
Current account: Khanyisa (Cr: 1 July 2023) R13,300
Current account: Zinhle (Dr: 1 July 2023) R9,400
2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
2.1.1 An annual interest rate of 6% is applied to the opening
balances of the partners’ capital and current accounts.
2.1.2 Profits and losses are shared equally between Khanyisa and
Zinhle.
, 2.1.3 The monthly salaries to which the partners are entitled are
R15 000 and R20 000 for Khanyisa and Zinhle respectively. As of 30
June 2024, the salaries paid to the partners were only up to 30 April
2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring
additional land for sunflower cultivation. On 30 June 2024, KEN Corp
provided a loan of R468 000 to facilitate the purchase of a farm. The
farmland was acquired on 2 July 2024 at the cost of R468,000. This
loan is classified as long-term, with an 8% annual interest rate, to be
repaid over 6 years with equal instalments starting from 30 June
2025. This transaction has not yet been recorded.
2.2.1 On 30 June 2024, it was decided that an outstanding debt of
R17 100 owed to the business was unlikely to be recovered and
should be written off as bad debt.
Assume the correct trade and other receivables amount is R60 000.
Which one of the following alternatives represents the correct
amount that must be disclosed as current assets in the statement of
financial position of Qabaqongo Oils as at 30 June 2024?
106800+293600+60000
a. R928,200
b. R928,400
c. R930,200
d. R868,400
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e. R166,800 oscardiura@gmail.com
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f. R460,400 for FAC MAC ECS
DSC TAX QMI FIN IN
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Question 3 Which one of the following alternatives is incorrect?
Answer saved
Marked out of a. The purpose of the Conceptual Framework is to assist in
1.00
harmonising legislation and reducing the number of
Flag alternative accounting treatments.
question
b. The purpose of the Conceptual Framework is to assist in
developing future standards.
c. The purpose of the Conceptual Framework is to override any
particular disclosure or measurement requirement in any
IFRS
d. The purpose of the Conceptual Framework is to assist users
in interpreting the information in interpreting the financial
statements when compiled according to IFRS.
Clear my choice
, Question 4 The legal position of a partner means that they have limited liability
Answer saved for the debts of the partnership.
Marked out of
1.00
True
Flag
question False
Question 5
Dave and Anna are partners in GNU Bricks, a partnership business in
Answer saved the manufacturing of clay paving bricks in Bergville. The partnership
Marked out of was established on 13 May 2021.
3.00
The following information pertains to the business activities as of 29
Flag
question
February 2024:
Balances as at 29 February 2024:
R
Land and buildings at cost 1 135 800
Machinery at cost 837 800
Accumulated depreciation: Machinery 315 800
Vehicles at cost 637 800
Accumulated depreciation: Vehicles 315 800
Inventory (1 March 2023) 190 700
Bank (Dr) 885 300
Trade receivables control 487 600
Trade payables control 383 000
Long-term loan (Burg Bank) 1 191 000
Capital: Dave 321 800
Capital: Anna 327 800
Drawings: Dave 85 200
Drawings: Anna 83 800
Interest on loan ?
Depreciation 115 000
Delivery cost on sales 54 400
Water and electricity 91 700
Purchases 1 804 000
Security expenses 28 500
Salaries and wages 422 300
Delivery cost on purchases 24 800
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