100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
FAC3764 ASSESSMENT 05 ANSWERS/ SOLUTIONS 2023 FIRST SEMESTER R104,00   Add to cart

Exam (elaborations)

FAC3764 ASSESSMENT 05 ANSWERS/ SOLUTIONS 2023 FIRST SEMESTER

2 reviews
 376 views  10 purchases

THIS DOCUMENT CONTAINS ANSWERS FOR FAC3764 ASSESSMENT 05 DUE ON THE 28TH JUNE 2023. BUY HIGH QUALITY WORK IN TIME.

Preview 1 out of 2  pages

  • May 1, 2023
  • 2
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers
  • in profit or loss
All documents for this subject (23)

2  reviews

review-writer-avatar

By: Portiamth • 1 year ago

review-writer-avatar

By: EducationSA • 1 year ago

avatar-seller
koketsosilas
FAC3764 ASSIGNMENT 05 ANSWERS


DATE : 28 JUNE 2023




The accountant recorded the first journal entry correctly. However, he forgot to
recognise the exchange difference loss that was created by exchange rates.


The equipment and the associated liability would be recorded in the financial
statements using the rate of exchange in force at the transaction date – R14.21 to
$1. Therefore, the initial carrying amount of both items is R794 339 ($55900 x
R14.21).


The liability is a monetary item so it would be retranslated at the year end of 30 June
20x22 using the closing rate of R14.55 to $1 at R449 595 ($30 900 x R14.55),
having paid R359 000 ($25000 X R14.36) on 1 August 20x21 and shown as a
current liability.


The exchange difference of R9 621 (R3 750 + R5 871), is recognised in profit or loss
– in this case a loss.


The machine is a non-monetary asset measured under the cost model and so is not
retranslated as the exchange rate changes.


The equipment is depreciated from 1 October 20x21 (the date it is brought into use)
and so the depreciation for the year ended 30 June 20x22 is R99 293 (R794 339/5 x
9/12).


The equipment will be shown as a non-current asset at a closing carrying value of
R695 046 (R794 339 – R99 293).


Journal Account names Debit Credit

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller koketsosilas. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R104,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82871 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R104,00  10x  sold
  • (2)
  Buy now