FAC1601 ASSESSMENT 5 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS
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Module
Financial Accounting and Reporting (FAC1601)
Institution
University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS FAC1601 ASSESSMENT 5 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS WITH WORKINGS AND AN INTERACTIVE EXCEL SHEET WHEN YOU JUST NEED TOFILL IN VALUES AS PER YOU SPECIFIC QUESTIONS AND IT AUTOMATICALLY CALCULATES THE STATEMENT NEEDED. IF YOU HAVE ANY QUESTIONS PLEASE
Greenfields Fertilizers CC is a fertilizer manufacturing company operating around Broederstroom in the Northwest
Province (in the Witwatersrand, the southern foothills of the Magaliesberg). Raynard and Dikeledi are the two
founders and members of this registered close corporation, and they obtained municipal approval to expand the
business into producing and distributing fertilizers for maize and other crops.
The following EXTRACT of balances as at 31 December 2023 from the accounting records of Greenfields
Fertilizers CC is presented to you for assistance:
R
Loan to Raynard 23,800
Member’s contribution: Raynard 232,600
Member’s contribution: Dikeledi 195,200
Retained earnings (1 January 2023) (Dr) 505,200
Trade receivables control 202,700
Trade payables control 224,800
Loan from Raynard 150,600
Bank (favourable) 3,803,800
Long-term loan (Broederstroom Fund) 6,029,900
SARS (income tax) 157,700
Vehicles at cost 2,794,200
Accumulated depreciation: Vehicles (1 January 2023) 380,500
Machinery at cost 66,600
Accumulated depreciation: Machinery (1 January 2023) 23,800
Equipment at cost 1,862,900
Accumulated depreciation: Equipment (1 January 2023) 650,500
Inventory 1,273,200
Profit before tax (before taking into account the additional
3,766,700
information)
Additional information
1. Depreciation for the year ended 31 December 2023 was correctly calculated as R93,000, R6,800, and R210,000
for vehicles, machinery, and equipment, respectively.
2. The income tax assessment, received from SARS on 4 January 2024, indicated that the normal income tax for the
2023 financial year amounted to R433,000.
3. The loan from Raynard was advanced to the CC in December 2022 and is repayable on 31 May 2024.
4. Dikeledi experienced personal financial problems during the year and borrowed R31,100 from the close
corporation. The loan was granted to Dikeledi on 1 November 2023 at an interest rate of 21% per annum. The
interest on this loan is capitalised. This transaction is still to be recorded.
5. On 1 January 2023, an experienced agricultural scientist by the name of Peter was admitted to the CC in July
2023 to assist in developing new fertilizer formulations for maize and other crops. In addition to the R39,100 cash
contribution, Peter further contributed laboratory equipment and an old delivery vehicle to the value of R122,000
and R46,000, respectively.
6. On 1 September 2023, a profit distribution of R47,100 was made to each member of the close corporation. These
amounts should be regarded as loans from members with interest charged and capitalised at 18% per annum.
This transaction is yet to be accounted for.
7. On 30 June 2023, one of the fertilizer mixing machines (production equipment) got damaged by an inexperienced
technician from a local service company and was not repairable. This machine was acquired at a cost of
R102,000 on 1 May 2019 and had accumulated depreciation of R60,400 on 30 June 2023 (R42,000 at 1 January
2023). The equipment was insured, and an insurance pay-out at R41 600 more than the carrying amount of the
equipment was paid to the close corporation. The accountant credited the insurance pay-out to the SARS
(income tax) account.
REQUIRED:
Complete the amounts in the EXTRACT of the statement of changes in net investments of members for Greenfields
Fertilizers CC for the year ended 31 December 2023.
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer. It will be marked incorrect.
3. Do not use any abbreviations.
4. Please remember the brackets around the amounts must be indicated by a negative amount [eg: (50) will be -50].
GREENFIELDS FERTILIZERS CC
, STATEMENT OF CHANGES IN NET INVESTMENTS OF MEMBERS FOR THE YEAR ENDED 31
DECEMBER 2023
M e m be r's Loans from
Re taine d Earnings Loans to m e m be rs Total
contributions m e m be rs
Balances at 1 January 2023 427800 505200 -23800 150600 1059800
Total comprehensive income for the year 0 3456900 0 0 3456900
Loans to members advanced during the year 0 0 -31100 0 -31100
Distribution to members 0 -141300 0 0 -141300
Loans to received members during the year 0 0 0 141300 141300
Interest on loans from/to members capitalised 0 0 -6087 8478 2392
Balance s at 31 De ce m be r 2023 634900 3820800 -60987 300378 4695091.5
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Assessment 4 Timetable of online classes
,GreenFields Fertilizer Ltd is a company specialising in the production and distribution of
high-quality fertilizers for maize and other crops. The company operates a large
manufacturing plant located in Broederstroom, North West Province, where it produces a
variety of fertilizers tailored to optimise soil nutrients and increase crop
yields. GreenFields Fertilizer Ltd has gained a significant presence in the agricultural
sector and serves clients across Southern Africa.
The company's financial year-end is 28 February, and it has consistently maintained
strong financial performance since its incorporation.
GREENFIELDS FERTILIZER LTD
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:
R
Investments 359,375
Land and buildings at revaluation (1 March 2023) 1,119,500
Equipment at cost 658,200
Accumulated depreciation: Equipment 88,000
Revaluation surplus (1 March 2023) 120,100
Inventory (1 March 2023) 46,300
Bank 137,200
Trade receivables control 283,600
Petty cash 7,900
Share capital: Ordinary shares (1 March 2023) 755,400
Retained earnings (1 March 2023) 280,600
Loan: Broederstroom Bank 125,600
SARS (income tax) (Dr) 35,200
Sales 3,205,200
Allowance for settlement discount granted 7,300
Carriage on purchases 22,700
Trade payables control 265,800
Income received in advance 8,100
Allowance for credit losses 7,100
Settlement discount granted 5,600
Auditor's remuneration 141,700
Carriage on sales 28,400
Settlement discount received 2,300
Purchases 305,100
Salaries and wages 379,100
Directors’ remuneration 200,200
Stationery 11,300
Telephone 16,700
Additional information:
1. The income tax for the financial year ended 28 February 2024 amounted to
R138,000 and must still be recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus amounting
to R114,000.
3. A provision of R53,000 must still be made for depreciation on equipment.
4. Directors made the following resolutions at year-end, which are yet to be recorded:
· Dividends declared at R1.4 per share and will be paid at the end of April
2024.
, · A total bonus amounting to R163,000 must be paid to directors on 30 April
2024.
5. The loan from Broederstroom Bank was acquired on 1 March 2023 at an interest
rate of 10% per annum. Interest on all loans for the current financial year has not yet
been accounted for. The loan is repayable in five (5) annual equal instalments with
effect from 1 March 2024.
6. Authorised share capital consists of 1000,000 NPV ordinary shares. Share capital
stated above consists of ordinary shares issued at R4.00 per share. On 01
December 2023, the directors issued 50,000 shares at R5.4 per share. The shares
were taken up by the public on 27 February 2024, and this transaction has not been
recorded.
7. Inventory on 28 February 2024 consisted of the following:
· Inventory (stock) on hand: R50,000
· Stationery on hand: R5,100
8. The allowance for credit losses must be adjusted to R8,400. A debtor who owes the
business R12,200 was declared insolvent and must be written off as irrecoverable.
9. Investments consist of
· Investment in Mkhaya Institute (Pty) Ltd at a cost of R140,000 – this
investment is measured at cost.
· 17,550 shares in Mkhuluwa Ltd at fair value on 28 February 2023 – this
investment is held for trading and the fair value gain/losses are recognised in
profit or loss. These shares were trading at R15.5 per share on 28 February
2024. On the 27th of February 2024, Mkhuluwa Ltd declared a dividend of
R4.5 per share.
10. Assume the correct amount of total comprehensive income for the year is
R600,000.
REQUIRED:
Complete the amounts in the EXTRACT (presented below) of the statement of financial
position of Greenfields Fertilizers Ltd at 28 February 2024.
Instructions:
1. Round off all your answers to the ne are st rand (eg: 50.56 = 51)
2. Don’t use any spe cial characte rs (&) and don’t use bold in your answe r. It will
be marked incorrect.
3. Do not use any abbre viations.
4. Ple ase re me mbe r the bracke ts around the amounts must be indicate d by a
ne gative amount [eg: (50) will be -50].
GREENFIELDS FERTILIZERS Ltd
STATEMENT OF FINANCIAL POSITION AT 28 FEBRUARY 2024
R
ASSETS
Non-current assets Xxx xxx
Property, plant and equipment 1750700
Investments - Unlisted 140000
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