FAC2601 - Financial Accounting for Companies (FAC2601)
Exam (elaborations)
FAC2601 Exam Study Pack 2014
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Course
FAC2601 - Financial Accounting for Companies (FAC2601)
Institution
University Of South Africa (Unisa)
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FAC2601 - Financial Accounting for Companies (FAC2601)
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LUCIANO SCHOOL OF LAW & SOCIAL SCIENCE [LSLSS]
“Inspired to impact with a difference”
Page |1
Contents
OCTOBER / NOVEMBER 2013 ................................................................................................................... 2
OCTOBER / NOVEMBER 2011 ................................................................................................................. 18
MAY / JUNE 2012 .................................................................................................................................... 21
OCTOBER – NOVEMBER 2012 ................................................................................................................. 32
MAY / JUNE 2013 .................................................................................................................................... 44
MAY / JUNE 2014 .................................................................................................................................... 59
www.lslss.co.za
, LUCIANO SCHOOL OF LAW & SOCIAL SCIENCE [LSLSS]
“Inspired to impact with a difference”
Page |2
OCTOBER / NOVEMBER 2013
SOLUTION 1(a) STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
KINGSWOOD LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE
YEAR ENDED 30 JUNE 2013
R
Revenue 2400 000
Cost of sales (70% x 2 400 000) 1680 000
Gross Profit (30% x 2 400 000) 720 000
Other Income (9275 + 500) W1 9775
Administration expenses (411150)
Other expenses w2 (43950)
Finance costs w3 (10500)
Profit before tax 264175
Income tax expenses (47500)
Profit for the year 216 675
Other comprehensive Income
Revaluation surplus on buildings (w4) 112 000
Gain on financial assets at fair value through other comprehensive income 12500
(1.25-1) x 50 000
Total comprehensive income for the year 341175
Profit for the year attributable to – owners 216675
Total comprehensive income for the year attributable to - owners 341175
www.lslss.co.za
, LUCIANO SCHOOL OF LAW & SOCIAL SCIENCE [LSLSS]
“Inspired to impact with a difference”
Page |3
NOTES OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013
1. Profit before tax
Profit before tax includes the following
R
Revenue 2400 000
Income from investment in subsidiary :Legends Ltd
- finance income (30 000 x 9% x 10⁄12 ) 2250
- Dividend income 450
Listed investment : Shamrock Ltd
- Dividends received (50 000 shares x 10c) 5000
Finance income (350 + 325) 675
Profit on sale at machinery (2500 – 2000) 500
Expenses
Finance costs ( 600 + 9900 (w2b) ) 10500
Credit losses written off 750
Auditors remuneration 7000
- Audit fees 6000
- Travel expenses 1000
Directors remuneration:
Executive 155 000
Emoluments (w5) 170 000
Pension for executive director 50 000
Paid by subsidiary (65 000)
Non – executive 65 000
Emoluments (w6) 190 000
Paid by subsidiary (125 000)
Depreciation 8100 (2b) + 12 000 20 100
2. Income tax expense R
SA Normal tax current 47 500
CALCULATIONS
W1 Other income (shown) 9275
Profit on realization of machinery (2500 – 2 000) 500
9775
W2 Other Expenses
www.lslss.co.za
, LUCIANO SCHOOL OF LAW & SOCIAL SCIENCE [LSLSS]
“Inspired to impact with a difference”
Page |4
R
Total as per draft 34350
Interest paid – long - term loan (finance charge ) (a) (9900)
Interest paid – bank overdraft (finance charge) (600)
Depreciation : Machinery and Equipment (b) 8100
Depreciation : Buildings (600 000 ÷ 50 ) 12000
Adjusted Total 43950
(a) Timeline
31May 30 30 31 30 31 30 31 30
2008 June June Dece June Dece June Dece June
Loan 2009 2010 meber 2011 mber 2012 mber 2013
taken Year - Year 2010 Year 2011 Year 2012 Year
End End End End End
st nd rd
1 2 3
Repayment Repayment Repayment
This means 3 equal repayments had been made by the end of the financial year ending 30 June
2013, reaming with 5(8-3) instalments totaling R75 000
Amount per instalment = R75 000 ÷ 5
= R15 000
At 1 July 2012 (year start) Loan = R75 000 + R15 000 (Repaid 31 Dec 2012)
=R90 000
www.lslss.co.za
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