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FAC1601 ASSESSMENT 2 OF 2022 EXPECTED ANSWERS
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THIS DOCUMENT CONTAINS EXPECTED ANSWERS OF FA1601 ASSESSMENT 2 HELPING YOU TO SCORE MORE THAN 75%. THE ASSESSMENT IS TIMED SO TIME MANAGEMENT IS CRUCIAL
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MENU Dashboard / My courses / FAC1601-22-S1 / Welcome Message / Assessment 2
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,Question 1
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Use the following information to answer questions 01 to 10.
Dashboard / My courses / FAC1601-22-S1 / Welcome Message / Assessment 2
Meikie and John were in partnership and traded as Maputla Traders. They shared profits/losses in the ratio of 5:3 respectively. The following
information is presented to you on 28 February 2021, the end of the financial year:
Maputla Traders
Balances as at 28 February 2021: R
Capital: John (28 February 2020), 360000
Capital: Meikie(28 February 2020) 60000
Current account: John (Dr) (1 March 2020) 33000
Current account: Meikie (Cr) (1 March 2020) 18000
Drawings: John (cash) 78000
Drawings: Meikie(cash) 66000
Office furniture at cost 228000
Vehicles at cost (01 March 2019) 240000
Accumulated depreciation: Office furniture (30 September 2020) 87840
Accumulated depreciation: Vehicles (28 February 2020), ??
Long-term loan (unsecured) 150000
Trade receivables control, 120000
Trade payables control 88800
Bank (overdraft) 11760
Allowance for credit losses 3060
Stationery inventory (01 March 2020) 3900
Sales 555360
Inventory (28 February 2020) 51000
Profit on sale of office furniture ??
Delivery expenses (in respect of sales) 4140
Settlement discount granted, 6744
Purchases 469971.60
Delivery expenses (in respect of inventories) 7800
Sales returns 8400
Purchases returns 3500
Settlement discount received ??
Rent expense 32400
Bank charges 1770
Depreciation (office furniture) 1536
Interest expense (paid on long-term loan) 18000
Salaries and wages 186000
Telephone expenses 4344
Maintenance and repairs (office furniture) 1500
Fuel and sundry vehicle expenses 17280
Stationery (purchased) 3048
Marketing fees 6552
Insurance premium 6500
Additional Information
1. The following amounts have not yet been provided for:
1.1 Depreciation
a) On the vehicles – according to the straight-line method. The expected lifespan of each vehicle is estimated to be 10 years. The residual
value thereof is estimated at R25 000.
A new Toyota bakkie was acquired on the 31 December 2020 for R340 000. There was no vehicle disposed of during the year.
b) On the office furniture – at 20% per annum on the diminishing balance method, no residual value. Office Furniture with a cost of R25
000 was sold on the 31 September 2020 for R19 000, the furniture was acquired on the 01 April 2019.
, 1.1.1 The long-term loan was acquired from Campitec Bank on 01 June 2020 at 21% interest per annum. The loan is unsecured and is
repayable in 10 equal annual instalments from 1 June 2021.
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1.2 Credit losses of R7 000 must be written off. The closing balance of the allowance for credit losses account must be increased with R2 700.
Dashboard / My courses / FAC1601-22-S1 / Welcome Message / Assessment 2
1.3 The following are stipulated in the partnership agreement:
1.3.1 Interest on capital must be calculated at 8,5% per annum on the opening balances of the
capital accounts.
1.3.2 The partnership must create separate drawings and current accounts for each partner.
1.3.3 Interest on current accounts must be calculated at 20% per annum on the opening balances of the current accounts.
1.4 Drawings still to be accounted for:
a) John – trading inventory, R5 000
b) Meikie – stationery inventory, R360
1.5 A total Settlement discount of 1% on Purchases for the year was received. Stationery on hand on 28 February 2021 R600 and Inventory
on hand at 28 February 2021 at R22 000,00.
1.6 The insurance premium for March 2021 was paid in advance. The premiums are paid in equal monthly amounts.
1.7 At the end of each financial year the drawings accounts must be closed off against the
applicable current accounts.
6. Which of the following amount to be recorded on the face of the Statement of profit/loss for the year ended 28 February 2021 relating
to Revenue is:
Which of the following alternative to be recorded on the face of the Statement of profit/loss for the year ended 28 February 2021 relating to
Revenue?
A. R 555 360,00
B. R 540 216,00
C. R 536 076,00
D. R 546 960,00
Clear my choice
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OSCAR THE TUTOR
oscardiura@gmail.com
+27844708483
contact for FAC,MAC,DSC,ECS,FIN,INV,QMI,BNU,STA tutoring
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