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fac1601 Assignment 5 semester 2 2024 (COMPLETE QUESTIONS AND ANSWERS)
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fac1601 Assignment 5 semester 2 2024 (COMPLETE QUESTIONS AND ANSWERS)
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Fac1601 Assignment 5 Semester 2 2024 Due date 11 October Time: 11:59Pm (COMPLETE QUESTIONS AND ANSWERS) carefully extracted
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Fac1601 Assignment 4 semester 2 2024 (COMPLETE ANSWERS AND QUESTIONS)
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Fac1601 Assignment 4 Semester 2 2024 ( COMPLETE QUESTIONS AND ANSWERS) Due date 22 October 2024 Time 11:59 carefully completed
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GreenFields Fertilizer Ltd is a company specialising in the production and distribution of high-qualityfertilizers for maize and other crops. The company operates a large manufacturing plant located
in Broederstroom, North West Province, where it produces a variety of fertilizers tailored to optimise soil
nutrients and increase crop yields. GreenFields Fertilizer Ltd has gained a significant presence in the
agricultural sector and serves clients across Southern Africa.
The company's financial year-end is 28 February, and it has consistently maintained strong financial
performance since its incorporation.
GREENFIELDS FERTILIZER LTD
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:
R
Investments 359,375
Land and buildings at revaluation (1 March 2023) 1,119,500
Equipment at cost 658,200
Accumulated depreciation: Equipment 88,000
Revaluation surplus (1 March 2023) 120,100
Inventory (1 March 2023) 46,300
Bank 137,200
Trade receivables control 283,600
Petty cash 7,900
Share capital: Ordinary shares (1 March 2023) 755,400
Retained earnings (1 March 2023) 280,600
Loan: Broederstroom Bank 125,600
SARS (income tax) (Dr) 35,200
Sales 3,205,200
Allowance for settlement discount granted 7,300
Carriage on purchases 22,700
Trade payables control 265,800
Income received in advance 8,100
Allowance for credit losses 7,100
Settlement discount granted 5,600
Auditor's remuneration 141,700
Carriage on sales 28,400
Settlement discount received 2,300
Purchases 305,100
Salaries and wages 379,100
Directors’ remuneration 200,200
Stationery 11,300
Telephone 16,700
Additional information:
1. The income tax for the financial year ended 28 February 2024 amounted to R138,000 and must still be
recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus amounting to R114,000.
,3. A provision of R53,000 must still be made for depreciation on equipment.
4. Directors made the following resolutions at year-end, which are yet to be recorded:
· Dividends declared at R1.4 per share and will be paid at the end of April 2024.
· A total bonus amounting to R163,000 must be paid to directors on 30 April 2024.
5. The loan from Broederstroom Bank was acquired on 1 March 2023 at an interest rate of 10% per annum.
Interest on all loans for the current financial year has not yet been accounted for. The loan is repayable in
five (5) annual equal instalments with effect from 1 March 2024.
6. Authorised share capital consists of 1000,000 NPV ordinary shares. Share capital stated above consists
of ordinary shares issued at R4.00 per share. On 01 December 2023, the directors issued 50,000 shares
at R5.4 per share. The shares were taken up by the public on 27 February 2024, and this transaction has
not been recorded.
7. Inventory on 28 February 2024 consisted of the following:
· Inventory (stock) on hand: R50,000
· Stationery on hand: R5,100
8. The allowance for credit losses must be adjusted to R8,400. A debtor who owes the business R12,200
was declared insolvent and must be written off as irrecoverable.
9. Investments consist of
· Investment in Mkhaya Institute (Pty) Ltd at a cost of R140,000 – this investment is measured at
cost.
· 17,550 shares in Mkhuluwa Ltd at fair value on 28 February 2023 – this investment is held for
trading and the fair value gain/losses are recognised in profit or loss. These shares were trading
at R15.5 per share on 28 February 2024. On the 27th of February 2024, Mkhuluwa Ltd declared a
dividend of R4.5 per share.
10. Assume the correct amount of total comprehensive income for the year is R600,000.
REQUIRED:
Complete the amounts in the EXTRACT (presented below) of the statement of financial position of
Greenfields Fertilizers Ltd at 28 February 2024.
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer. It will be marked incorrect.
3. Do not use any abbreviations.
4. Please remember the brackets around the amounts must be indicated by a negative amount [eg: (50) will
be -50].
,GREENFIELDS FERTILIZERS Ltd
STATEMENT OF FINANCIAL POSITION AT 28 FEBRUARY 2024
R
ASSETS
Non-current assets Xxx xxx
Property, plant and equipment 1750700
Investments - Unlisted 140000
Current assets Xxx xxx
Inventories 50000
Trade and other receivables 270100
Cash and cash equivalents 137200
Listed share investment 272025
Total assets Xxx xxx
EQUITY AND LIABILITIES
Total equity Xxx xxx
Share capital 1025400
Retained earnings 294210
Other components of equity 234100
Total liabilities Xxx xxx
Non-current liabilities Xxx xxx
Long-term borrowings 100480
Current liabilities Xxx xxx
Trade and other payables 286400
Dividends payable 334390
Current tax payable 78800
, Current portion of long-term loan 25120
Total equity and liabilities Xxx xxx
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