FAC2601 - Financial Accounting for Companies (FAC2601)
Exam (elaborations)
FAC2601 Exam Study Pack 2019
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Course
FAC2601 - Financial Accounting for Companies (FAC2601)
Institution
University Of South Africa (Unisa)
These are Exam questions and solutions as well as those that were found in assignments, study guides and practice questions. When you work through these together with explanations in your study guide, you will gain an excellent understanding of concepts, theories, techniques and methods which will ...
FAC2601 - Financial Accounting for Companies (FAC2601)
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FAC2601
EXAM COURSE - EXAM PACK
SEMESTER 1
2019
ACADEMIC HEAD
Charles Forbes
charlesf@ebs.co.za
Shop U21, Stoneridge Centre, 1 Stoneridge Drive, Greenstone Park, Edenvale, Johannesburg, 1610
Postnet Suite #448, Private Bag x10010, Edenvale, 1610 • www.ebs.co.za • +27 11 038 5300
, 1
FAC2601 May-Jun 2015
Suggested solution
Question 1
1.1) Jupiter Ltd
Statement of profit or loss and other comprehensive income for the year ended 28
February 2015
2015
Revenue (11 400 000 x 100/114) + (4 000 000) 14 000 000
Cost of sales (5 600 000)
Gross profit 8 400 000
Other income (76 000 + 50 000(W3)) 126 000
Admin expenses (4 340 000) (4 340 000)
Distribution costs (536 000) (536 000)
Other expenses (740 000 – 16 200(W2)) (723 800)
Finance costs (16 200(W2)) (16 200)
Profit before tax 2 910 000
Income tax expense (818 380)
Profit for the year 2 091 620
Other comprehensive income (OCI) 120 000
Gain on financial asset at FVOCI (W4) 20 000
Revaluation gain on land (1 000 000 – 900 000) 100 000
Total comprehensive income for the year 2 211 620
1.2) Jupiter Ltd
Notes to the financial statement for the year ended 28 February 2015
2. Profit before tax
Profit before tax includes:
Income
Revenue 14 000 000
Income from subsidiary: Neptune Ltd 36 000
Dividend income 24 000
Interest received 12 000
Income from financial assets
Listed investment: Mercury Ltd
Dividend income 40 000
Fair value gain on financial asset at FVTPL (W3) 50 000
Expenses
Staff costs 4 000 000
Auditors remuneration 96 000
Audit fees 70 000
Forensic fees 10 000
Travel expenses 16 000
Finance costs (W2) 16 200
Depreciation (W7) 104 000
W5. Motor vehicles
Total Sold Rest
480 000
(120 000)
360 000 160 000 200 000
Depreciation to DoS
(160 000 x 20% x 6/12) (16 000)
Depreciation
(200 000 x 20%) (40 000)
CA at date of sale 144 000 160 000
W6. Equipment
1 Mar 28 Feb 28 Feb 28 Feb
2012 2013 2014 2015
CA at EOY = 96 000
3 years depreciation completed OR 96 000 x 100/40 = 240 000
.’. 96 000/2 remaining years = 48 000 .’. 240 000 x 20% = 48 000
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