FAC3701 - Refelections on Assignment 1 of Semester 2 – 2020
In conjunction with this feedback please also refer to tutorial letter 201/2/2020, which
is available on myUnisa.
General
In general, learners performed well in this assignment. It was evident that learners
who did work through the contents as required before attempting assignment one performed better. It
is of utmost importance to work through the “suggested solution” of assignment 01 including the
“suggested examination approach” in tutorial letter 201/2/2020. The following cannot be emphasised
enough:
“You will be examined on all examinable topics as indicated in the tutorial matter and prescribed text
book. It is not sufficient to only work through your assignments because all the principles are not tested
in there.”
The following problems were identified whilst marking assignment one and learners should
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avoid making the following mistakes:
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a) Calculate profit before tax for the year ended 30 June 2019
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An extract of the trial balance was given which is your starting point. All the items in the trial balance
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were already accounted for in the accounting records of 3D PrintHub Ltd at 30 June 2019.
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Profit before tax is calculated as indicated on page 150 of the tutorial letter 501.
Start with sales/revenue less cost of sales
Administration building:
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Many learners incorrectly included the depreciation of the administration building.
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Learners must establish if the depreciation was included in the trial balance for the administration
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building.
The building was acquired on 1 July 2017 and on 30 June 2019 the building was two years old.
The accumulated depreciation for two years is R120 000 (1200 000 x 5% x 2 years). The
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depreciation on the administration building was therefore already included in the trial balance at
30 June 2019.
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3D Printers
The additional information states that the sale of the old 3D Printers was not recorded in the
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accounting records of 3D PrintHub Ltd. Learners must therefore calculate the profit and include
it in the profit before tax calculation. Learners incorrectly calculated the profit on sale of the old
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3D Printers. For accounting purposes the profit on sale is calculated as follows:
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Selling price 280 000
sh
Carrying amount (250 000 – 93 750) (156 250)
Profit on sale of old 3D printers 123 750
Many learners incorrectly included the 3D printers’ depreciation in their calculation of profit
before tax. Learners must to establish if the depreciation was included in the trial balance at
30 June 2019. The cost price of 3D printers was R700 000 on 1 July 2017. Old 3D printers with
a cost of R250 000 and carrying amount of R156 250 was sold after one-and-a-half years
1
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