Exam (elaborations)

FAC1601 ASSESSMENT 1 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS(with workings)

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Course
Financial Accounting and Reporting (FAC1601)

Institution
University Of South Africa (Unisa)

THIS DOCUMENT CONTAINS FAC1601 ASSESSMENT 1 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS(with workings). WORKINGS HAVE BEEN PROVIDED AT THE END OF THE DOCUMENT. USE IT TO REVISE AND SCORE ABOVE 75%

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Type Exam (elaborations)
Contains Questions & answers

fac1601 assessment 1

Institution
University of South Africa (Unisa)
Course
Financial Accounting and Reporting (FAC1601)

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OSCAR THE TUTOR

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for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials
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
OSCAR THE TUTOR is classified as long-term, with an 8% annual interest rate,
be repaid over 6 years with equal instalments starting
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for FAC MAC ECS DSC TAX QMI FIN INV BNU
STA tutorials

, 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 total equity in
the statement of changes in equity of Qabaqongo Oils for
the year ended 30 June 2023?

A. R682,200
B.
R700,900

C. R682,100
D. R684,200
E. R678,200

Clear my choice

Question 2
Dave and Anna are partners in GNU Bricks, a partnership
Answer saved business in the manufacturing of clay paving bricks in
Marked out of Bergville. The partnership was established on 13 May
5.00
2021.
Flag
The following information pertains to the business
question
activities as of 29 February 2024:
Balances as at 29 February 2024:
R
Land and buildings at cost 1 135 800
Machinery at cost 837 800
Accumulated depreciation: Machinery 315 800
Vehicles at cost 637 800
Accumulated depreciation: Vehicles 315 800
Inventory (1 March 2023) 190 700
Bank (Dr) 885 300
Trade receivables control 487 600
Trade payables control 383 000

, Long-term loan (Burg Bank) 1 191 400
Capital: Dave 321 800
Capital: Anna 327 800
Drawings: Dave 85 200
Drawings: Anna 83 800
Interest on loan ?
Depreciation 115 000
Delivery cost on sales 54 400
Water and electricity 91 700
Purchases 1 804 000
Security expenses 28 500
Salaries and wages 422 300
Delivery cost on purchases 24 800
Bank charges 14 900
Sales 2 782 800
Stationery consumed 24 100
Settlement discount received 37 600
Settlement discount granted 24 000
Additional information:
1 Partnership agreement:
1.1 An annual interest rate of 12% is applied to the
capital account balances.
1.2 Dave and Anna agreed to share profits and losses
equally.
1.3 Each partner has a monthly salary entitlement of
R18,800.
2 Year-end adjustments:
2.1 The security expenses billed to the business every
month include a R450 monthly fee for security at Anna’s
private house. The security bill amounting to R2 150 for
February 2024 has not yet been accounted for.
2.2 The long-term loan with Burg Bank secured by land
and buildings, bearing a 13.5% annual interest rate, was
secured on April 1, 2023, with interest payments due semi-
annually at the end of September and March.
2.3 During the year, red paver bricks valued at R18 000
were taken from the inventory and used to pave the
additional parking lot for customers. After the completion
of the project, 20% of the bricks weren’t used and Dave
took the remaining bricks to build a fireplace at his
house. This adjustment is yet to be made.

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Exam (elaborations)

FAC1601 ASSESSMENT 1 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS(with workings)

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