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Fac1601 Assignment 1 semester 2 2024 Due date 02 September 2024 time 11:59 unique code 194456 ( complete questions and answers carefully done) distinction guaranteed$2.94
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Financial Accounting and Reporting (FAC1601) (FAC1601)
Exam (elaborations)
Fac1601 Assignment 1 semester 2 2024 Due date 02 September 2024 time 11:59 unique code 194456 ( complete questions and answers carefully done) distinction guaranteed
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Course
Financial Accounting and Reporting (FAC1601) (FAC1601)
Institution
University Of South Africa (Unisa)
Book
ABOUT FINANCIAL ACCOUNTING VOLUME 2
Fac1601 Assignment 1 semester 2 2024 Due date 02 September 2024 time 11:59 unique code 194456 ( complete questions and answers carefully done) distinction guaranteed
, Qabaqongo Oils is a sunflower oil production and distribution business, supplying
various retailers and wholesalers throughout Mpumalanga. The company is a
partnership between Khanyisa and Zinhle. Below is the relevant information
regarding the partnership’s financial activities for the year ending 30 June 2024.
Extract of balances as at 30 June 2024:
R
Inventory R106,800
Bank (positive) R293,600
Trade receivables control R199,200
Vehicles at cost R708,200
Equipment at cost R209,300
Factory building at cost R575,100
Accumulated depreciation: Vehicles R41,700
Accumulated depreciation: Equipment R68,400
Allowance for credit losses R3,000
Trade payables control R119,800
Capital: Khanyisa R431,500
Capital: Zinhle R246,700
Current account: Khanyisa (Cr: 1 July 2023) R13,300
Current account: Zinhle (Dr: 1 July 2023) R9,400
2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
2.1.1 An annual interest rate of 6% is applied to the opening balances of the
partners’ capital and current accounts.
2.1.2 Profits and losses are shared equally between Khanyisa and Zinhle.
2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20
000 for Khanyisa and Zinhle respectively. As of 30 June 2024, the salaries paid to
the partners were only up to 30 April 2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring additional land for
sunflower cultivation. On 30 June 2024, KEN Corp provided a loan of R468 000 to
facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at the
cost of R468,000. This loan is classified as long-term, with an 8% annual interest
rate, to be repaid over 6 years with equal instalments starting from 30 June 2025.
This transaction has not yet been recorded.
2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 100 owed
to the business was unlikely to be recovered and should be written off as bad debt.
Which one of the following alternatives represents the correct amount that must be
disclosed as trade and other receivables in the statement of financial position of
Qabaqongo Oils as at 30 June 2024?
a. R199,200
b. R179,000
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