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FAC2601 Exam pack 2024(Financial Accounting for Companies)
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FAC2601 Exam pack 2024(Financial Accounting for Companies)
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FAC2601 EXAM PACK2024
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:gabrielmusyoka940@gmail.com
, lOMoARcPSD|31863004
UNIVERSITY EXAMINATIONS
October / November 2021
FAC2601
Financial Accounting for Companies
100 marks
2 hours
This paper consists of eleven (11) pages.
Instructions:
1. This paper consists of FOUR (4) questions.
2. All questions must be answered.
3. Basic calculations, where applicable, must be shown.
4. Each question attempted must commence on a new (separate) page.
5. PROPOSED TIMETABLE: (Avoid deviating from this as far as possible.)
Question Time in
no Subject Marks minutes
1 Multiple choice question 10 12
2 Statement of profit or loss and other 30 36
comprehensive income including the note on
profit before tax
3 Statement of changes in equity 30 36
4 Property, plant and equipment and Investment 30 36
property notes
TOTAL 100 120
Download this paper as soon as it has been accessed.
Remember to complete and adhere to the Honesty Declaration.
Please upload your submission in PDF-format: a single file not larger than
20Mb, before the expiry of the available time. (https://cas.myexams.unisa.ac.za).
Additional student instructions:
1. Students must upload their answer scripts in a single PDF file
(answer scripts must not be password protected or uploaded as
“read only” files).
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, lOMoARcPSD|31863004
2 FAC2601
OCT/NOV 2021
2. NO emailed scripts will be accepted.
3. Students are advised to preview submissions (answer scripts) to
ensure legibility and that the correct answer script file has been
uploaded.
4. Students are permitted to resubmit their answer scripts should their
initial submission be unsatisfactory.
5. Incorrect file format and uncollated answer scripts will not be
considered.
6. Incorrect answer scripts and/or submissions made on unofficial
examinations platforms will not be marked and no opportunity will
be granted for resubmission.
7. Mark awarded for incomplete submission will be the student’s final
mark. No opportunity for resubmission will be granted.
8. Mark awarded for illegible scanned submission will be the student’s
final mark. No opportunity for resubmission will be granted.
9. Submissions will only be accepted from registered student
accounts.
10. Students suspected of dishonest conduct during the examinations
will be subjected to disciplinary processes. UNISA has a zero
tolerance for plagiarism and/or any other forms of academic
dishonesty.
11. Students are provided one hour to submit their answer scripts after
the official examination time. Submissions made after the official
examination time will be rejected by the examination regulations
and will not be marked.
12. Students experiencing network or load shedding challenges are
advised to apply together with supporting evidence for an Aegrotat
within 3 days of the examination session.
13. Students experiencing technical challenges, contact the SCSC 080
000 1870 or email Examenquiries@unisa.ac.za or refer to Get-
Help for the list of additional contact numbers. Communication
received from your myLife account will be considered.
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, lOMoARcPSD|31863004
3 FAC2601
OCT/NOV 2021
QUESTION 1 (10 marks) (12 minutes)
THIS QUESTION MUST BE ANSWERED IN YOUR EXAMINATION ANSWER BOOK. EACH
QUESTION HAS ONLY ONE CORRECT ANSWER. THE MARKS PER QUESTION ARE INDICATED
IN BRACKETS AT THE END OF EACH QUESTION.
(a) The following balances regarding the shares issued was extracted from the accounting records of
Tech-Stores Ltd on 29 February 2020 the financial year-end of the company:
R
Debit /
(Credit)
1 200 000 Ordinary shares ....................................................................................... (4 800 000)
800 000 15% Non-cumulative preference shares ..................................................... (4 000 000)
250 000 10% Cumulative preference shares ............................................................ (500 000)
Retained earnings (1 March 2019) .......................................................................... (4 580 000)
Included in the capital structure above is the following transaction that took place during the current
financial year (this was the only equity transaction with owners that occurred since incorporation):
A capitalisation issue that the directors made on the 29 February 2020 of one ordinary share for
every three shares held at R2,00 per share.
No dividends were declared or paid during the previous financial year. Dividends on ordinary
shares were declared at 10c per share on the 29 February 2020.
What is the effect of the above capitalisation issue on retained earnings?
1) Debit retained earnings with R300 000
2) Debit retained earnings with R600 000
3) Credit retained earnings with R300 000
4) Credit retained earnings with R600 000 (2)
(b) As stipulated in the Conceptual Framework 2018, materiality is therefore an entity-specific aspect
to ensure relevant information based on the _______ or _______ of items to which the information
relates.
Fill in the correct words to complete the sentence?
1) disclosure or amount
2) value or balance
3) nature or magnitude
4) faithful presentation or completeness (2)
(c) Derecognition is the removal of all or part of a recognised asset or liability from an entity’s
statement of financial position in accordance with the Conceptual Framework 2018. The above
aim is to normally achieve derecognising via the following below statements:
Which of the statements as mentioned below is NOT correct to achieve the above aim?
1) Derecognizing any assets or liabilities transferred, consumed, collected, fulfilled or expired
2) Derecognizing any resultant income or expense
3) Recognizing any resultant income or expense
4) Continuing to recognize assets or liabilities retained (2)
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