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FAC1601 EXAM PACK 2025 {DETAILED QUESTIONS AND ANSWERS }
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FAC1601 EXAM PACK 2025 {DETAILED QUESTIONS AND ANSWERS }
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lOMoAR cPSD| 49343224Downloaded by Vincent master (VINCENTKYALO920@GMAIL.COM)
, lOMoAR cPSD| 49343224
Given the following information for questions 1 – 6:
Gill and Zaahir are in the business of supplying and installing solar panels in the form
of a partnership trading as Solar Installations. Gill and Zaahir share profits and losses in
the ratio 1:2 respectively. On 31 May 2023 the following information was extracted
from the accounting records of the partnership:
EXTRACT OF GIVEN INFORMATION FOR SOLAR
INSTALLATIONS
R
Current account - Gill (Dr) 7,200
Current account - Zaahir (Dr) 6,500
Capital - Gill 96,500
Capital - Zaahir 108,600
• Additional information Gill and Zaahir agreed to admit Brian as a new partner
from 1 June 2023.
• Brain will contribute the following to acquire a third of the net asset share of
the partnership:
Cash…........................................................................R23 200
Solar Installation Equipment…...................................R130 000
•Gill and Zaahir agreed to relinquish the 1/3 share equally.
• All other assets were revalued before admitting Brian to the partnership.
• A valuation profit was correctly calculated at R68 400
Which one of the following alternatives represents the new profit-sharing ratio after
the admission of Brian into the new partnership?
A.
2:1:2
B
.
2:3:1
C.
1:3
:2
Downloaded by Vincent master (VINCENTKYALO920@GMAIL.COM)
, lOMoAR cPSD| 49343224
Current profit
ratio as fractions
Gill = =
Zaahir = =
New Profit
sharing ratio:
Gill = - x =
− = - =
Zaahir = - x
= − = - =
Brian = =
Therefore=
new 1:3:2
profit
sharing
ratio
D.
3:2:1
Clear my
choice
Downloaded by Vincent master (VINCENTKYALO920@GMAIL.COM)
, lOMoAR cPSD| 49343224
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Question text
Assuming Gill and Zaahir agree to relinquish the 1/3rd share in terms of their existing
profitsharing ratio, which one of the following alternatives represent the new profit-
sharing ratio after the admission of Brian into the new partnership?
A.
2:4:3
B
.
3:2:1
C.
1:3:2
D.
2:3:1
Clear my
choice
Current profit ratio as fractions
Gill = =
Downloaded by Vincent master (VINCENTKYALO920@GMAIL.COM)
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