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FAC1602 Assignment 5 Second Semester 2022
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- University Of South Africa (Unisa)
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FAC1602ASSIGNMENT 5
SECOND SEMSTER 2022
BY: MTHOMBENI: 0767297208
1
,The information below relates to 21 questions below
Senza and Ngakhona came together to form a company specialising on collecting and selling special art
work from the local talent around Mnambithi. Senzangakhona Painting was formed as a close corporation
with Senza and Ngakhona as members. The information below pertains to the business activities of the
close corporation for the year ended 28 February 2022.
1. EXTRACT OF BALANCES AS AT 28 February 2022:
R
Member's contributions 2 101 800
Retained earnings (1 March 2021) -229 900
Fixed deposit 131 900
Investments 207 000
Vehicles (at cost) 774 700
Accumulated depreciation: Vehicles (1 March 2021) 117 700
Buildings 2 896 100
Accumulated depreciation: Buildings (1 March 2021) 196 800
Land 1 002 700
Equipment (at cost) 531 400
Accumulated depreciation: Equipment (1 March 2021) 124 300
Trade receivables control 396 200
Allowance for credit losses 7 000
Prepaid expenses 12 500
Allowance for settlement discount granted 11 100
Long-term loan: Mnabmbithi Bank 1 117 400
Loan to Ngakhona 67 200
Loan from Senza 418 900
Trade payables control 669 600
Profit for the year (before year-end adjustments) 1 276 300
2. Additional information
2.1. The fixed deposit in Mnambithi bank matures on 31 December 2024.
2.2. Due to investment commitments requiring cash injection, the CC decided on the following:
· On 28 February 2022, admitted a new member Tiyani for a contribution of cash amount of R105
000 and equipment valued at R40 500. This transaction is yet to be recorded.
2.3. The long-term loan from Mnambithi Bank was granted on 1 December 2021. The loan is secured by a
first mortgage over land and buildings and is repayable in four equal annual instalments together with
interest, with the first instalment on 1 December 2022.
2.4. All loans to members are immediately callable whilst the loan from Senza is repayable in full on 30
November 2023.
2.5. Investments consist of
· Investment in Makhathini (Pty) Ltd valued R110 000
· 2 000 shares in Njengabo Ltd at R97 000. These shares were trading at R50.5 at 28 February 2022.
2
,2.6. The accountant of the CC neglected to record the sale of a vehicle with a cost price of R105 000. The
vehicle was sold for R32 000 cash on 1 November 2021. The accumulated depreciation on the vehicle
amounted to R78 000 on 1 November 2021.
2.7. A telephone statement from Telkom relating to February 2022 was received on 4 March 2022.
2.8. Depreciation for the year which must still be provided for was correctly calculated as follows:
· Buildings R154 000
· Equipment R 44 600
· Vehicles R 51 100
Question 1
Which one of the following alternatives represents the correct carrying amount for land amount that
must be disclosed in the statement of financial position of Senzangakhona Painting as at 28 February
2022?
a.
R 1 002 000
b.
R 2 896 100
c.
R 1 002 700
d.
R 1 007 200
3
, Question 2
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Question text
Which one of the following alternatives represents the correct carrying amount for buildings amount
that must be disclosed in the statement of financial position of Senzangakhona Painting as at 28 February
2022?
a.
R 2 896 100
b.
R 2 699 300
c.
R 2 545 300
d.
R 2 896 000
2896100-196800-154000
4
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