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FAc1601 assignment 2 Semester (2023) solutions
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- University Of South Africa (Unisa)
FAc1601 assignment 2 Semester (2023) solutions with full calculations. distinction guaranteed
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UNISA 2023 FAC1602-23-S2 Welcome Message Assessment 2QUIZ
Time left 1:51
Question 1 Not yet
answered Given the following information for questions 1-15
Marked out of 1.00
Greg and Sheniz are in a partnership trading as Sugar Rush, a new, up-and-coming pastry shop. They
share profits and losses in the ratio of 5:3 respectively. The following information was obtained for
the financial year ending 31 August 2023:
Sugar Rush
Extract of Balances as at 31 August 2023
Capital: Greg (01 September 2022) 480,000
Capital: Sheniz (01 September 2022) 550,000
Current: Greg (01 September 2022) 68,000
Current: Sheniz (01 September 2022) 55,000
Drawings: Greg 32,000
Drawings: Sheniz 38,000
Office furniture at cost 300,000
Vehicles at cost (01 September 2020) 630,000
Accumulated depreciation: Office furniture 87,500
Accumulated depreciation: Vehicles ??
Mortgage 280,000
Trade receivables control 330,000
Trade payables control 78,800
Bank (overdraft) 12,000
Allowance for credit losses 4,850
Sales 666,800
Inventory (01 September 2022) 66,000
Profit on sale of office furniture ??
Settlement discount granted 5,866
Purchases 520,000
Carriage on purchases 6,200
Sales returns 7,600
Purchases returns 2,560
Settlement discount received ??
Telephone expenses 4,344
Maintenance and repairs (office furniture) 1,500
Fuel and sundry vehicle expenses 17,280
Marketing fees 6,552
The partnership agreement stipulates the following:
1. Interest on capital must be calculated at 7% per annum on the opening balances of the
Capital Accounts
2. The partnership must create separate drawings and current accounts for each partnership.
3. Interest on current accounts must be calculated at 17.5% per annum on the opening balances of
the current accounts.
,4. At the end of the financial year, the Drawings accounts must be closed off against the applicable current accounts.
Additional Information
The following information has not yet been accounted for:
1. A settlement discount of 3% on total Purchases for the year was received. Inventory on hand at 31 August 2023 amounted to R16 000.
2. The mortgage was obtained from The Baking Bank on 01 November 2022 and bears interest at a rate of 15% per annum. Interest for the
current year must still be provided for.
3. The closing balance of the allowance for credit losses account must be increased with R3 800.
4. Depreciation is accounted for as follows:
a. Vehicles: Straight line method, no residual value. The expected lifespan of each vehicle is estimated to be 15 years. A new Ford bakkie was
purchased on the 30 November 2022 for R680 000. There were no disposals during the year.
b. Office furniture: 15% per annum on the diminishing balance method, no residual value. Office Furniture with a cost of R65 000 was
sold on the 31 December 2022 for R50 000, the furniture was acquired on the 1 October 2021
5. Drawings:
a. Greg - Inventory R5 000
b. Sheniz - Inventory R360
6. The monthly salary expense for existing staff amounts to R48 000 per month. Sugar Rush brought in two new employees on January 1,
2023, both receiving a monthly wage of R18 000 each.
7. A new insurance contract was entered into by Sugar Rush on 1 March 2023. The monthly insurance premiums are R750 with a total
annual payment being made on 1st of March every year. The current years premium was not recorded in the books of Sugar Rush.
, QUESTION 1
Which one of the following alternatives represents the correct Revenue amount recorded in the statement of profit / loss and other
comprehensive income of Sugar Rush for the year ended 31 August 2023?
A. R653 334
B. R659 200
C. R660 934
D. R482 500
E. R432 220
Clear my choice
Sales - given 666 800
Less: sttlement discount granted (5 866)
Less: sales returns (7 600)
653 334
Question 2 Not yet answered
Marked out of 1.00 Which one of the following alternatives represents the correct Purchases amount of Sugar Rush for the year ended 31 August 2023?
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