Exam (elaborations)
FAC2601 EXAM PACK 2023
- Institution
- University Of South Africa
QUESTIONS WITH ANSWERS
[Show more]
Content preview
FAC2601EXAM PACK
2023
QUESTIONS WITH
ANSWERS
, Stuvia.com - The study-notes marketplace
UNIVERSITY EXAMINATIONS
January/February 2021
FAC2601
FINANCIAL ACCOUNTING FOR COMPANIES
100 Marks
Duration 2 Hours
This paper consists of 8 pages.
Instructions:
Download this paper as soon as it has been accessed.
Remember to complete and adhere to the Honesty Declaration.
Please upload submission in PDF-format, single file not larger than 20Mb before the expiry of the due
time.
THIS PAPER CONSISTS OF EIGHT (8) PAGES
PLEASE NOTE:
1. This paper consists of THREE (3) questions.
2. All questions must be answered.
3. Basic calculations, where applicable, must be shown.
4. Ensure that you are handed the correct examination answer book (blue for accounting) by the
invigilator (only applicable for venue based exams).
5. Each question attempted must be commenced on a new (separate) page.
6. PROPOSED TIMETABLE: (Avoid deviating from this as far as possible.)
Question Time in
No Subject Marks minutes
1 Multiple choice questions 10 12
2 Statement of Financial Position and Statement of Profit or Loss
and other Comprehensive Income with relevant notes 50 60
3 Profit calculation and Statement of Changes in Equity 40 48
TOTAL 100 120
[TURN OVER]
Downloaded by: reisabrina | rei.sabrina@icloud.com
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
2 FAC2601
SUPPLEMENTARY EXAM JAN/ FEB 2021
QUESTION 1 (10 marks) (12 minutes)
This question must be answered in your examination answer book – please only write down the
number that you think is correct. Each question has only one correct answer. The marks per
question are indicated in brackets at the end of each question.
(a) The following list of balances appear, amongst others, in the accounting records of Vusi Ltd on
31 October 2020:
Ordinary share capital (shares issued at R2.30 each) R1 265 000
Proceeds of ordinary shares issued on 30 June 2020 R 540 000
(Shares issued at R2.70 each)
The following decision was taken and has not yet been recorded in the accounting records of
Vusi Ltd as at 31 October 2020:
The directors decided on a capitalisation share issue of 1 share for every 5 shares held as at
31 October 2020 at R1,20 per share. Which one of the following options represents the amount of
the shares that have to be capitalised?:
1. R48 000
2. R132 000
3. R180 000
4. R1 985 000
(2)
(b) Shaka Ltd purchased inventory for R644 000 (including VAT @ 15%) from a supplier. The supplier
grants a 6,5% settlement discount for settlement within 30 days. Shaka Ltd arranged with a
transport company to deliver the inventory to its premises. The delivery company charged
Shaka Ltd R23 000 (including VAT @ 15%) for this delivery. A goods-in-transit insurance was
taken out by Shaka Ltd with its insurance brokers to cover any damage of the inventory while in
transit. The premium of this goods-in-transit amounted to R1 500 (excluding VAT). Shaka Ltd has
a policy of claiming all discounts available to it. What is the purchasing cost of the inventory?:
1. R543 600
2. R545 100
3. R616 904
4. R618 404
(2)
(c) Clever Brokers Ltd underwrites an issue of 25 000 ordinary shares at R2.50 each in Smart Ltd.
The underwriting commission is 8%. If the public takes up 20 000 shares, how much is the
commission?:
1. R1 600
2. R2 000
3. R4 000
4. R5 000
(2)
[TURN OVER]
Downloaded by: reisabrina | rei.sabrina@icloud.com
Distribution of this document is illegal
, Stuvia.com - The study-notes marketplace
3 FAC2601
SUPPLEMENTARY EXAM JAN/ FEB 2021
QUESTION 1 (continued)
(d) Khoza Ltd issued 20 000 8% cumulative preference shares at R3 each. During the 2019 financial
year, Khoza Ltd did not have sufficient funds to pay for the preference shares dividends. During
the following year, 2020, Khoza Ltd decided to declare and pay dividends for both 2019 and 2020.
How much will be accounted for as dividends declared and paid in the 2020 statement of changes
in equity?:
1. R1 600
2. R3 200
3. R4 800
4. R9 600
(2)
(e) Which one of the following costs are specifically excluded in the purchasing cost of inventory?:
1. Transport costs
2. Import duties and other appropriate taxes
3. Selling expenses
4. Handling costs
(2)
[TURN OVER]
Downloaded by: reisabrina | rei.sabrina@icloud.com
Distribution of this document is illegal
The benefits of buying summaries with Stuvia:
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
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
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 brighttutor10. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R47,81. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now