Exam (elaborations)
FAC1601 ASSIGNMENT 5 SEMESTER 2 2023
- Course
- (FAC1601)
- Institution
- University Of South Africa (Unisa)
This document contains FAC1601 Assignment 5 semester 2 Questions and trusted answers.
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Alphabets and Numbers
Use the following information to answer questions 1 to 12.
Alphabets and Numbers
1. Balances as at 28 February 2023:
R
Member’s contribution: Thabo 168000
Member’s contribution: Thabang 252000
Retained earnings (1 March 2022) 67920
Revaluation surplus 98400
Loan from Thabo 84000
Distribution to member: Thabo 38400
Distribution to member: Thabang 57600
Loan to Thabang 60000
Allowance for credit losses 3600
Land and buildings at valuation (cost price R153600) ??
Equipment at cost (01 March 2022) 198000
Investment at fair value 150000
Trading inventory 168600
Consumable inventory 7440
Long-term loan: Lethabong bank 72000
Accumulated depreciation: Equipment 74784
Accrued expenses 8160
Prepaid expenses 4200
Bank (overdraft) 30144
Petty cash 840
Trade receivables control 84528
Trade payables control 37848
Profit before tax 209256
SARS (Income tax) (Dr) 84504
Additional information
1.The following information relates to the fixed assets of Alphabets and Numbers:
· The depreciation on the old equipment for the year amounted to R42 250.
· On the 28 February 2023 Alphabets and Numbers purchased a new equipment for R150 000. It is the accounting policy
to depreciate equipment at 20% per annum with nill residual value. The transaction still needs to be recorded.
· On 31 December 2022 the land and buildings were revalued for by Mr Two, an independent sworn appraiser. The
transaction has already been recorded.
· There were no other disposals of, or additions to the land and buildings and equipment during the financial year except
for the ones mentioned above.
2. On 1 September 2022, Alphabets and Numbers CC purchased 30 000 ordinary shares at R4 each in Vodakom Limited. On
28 February 2023 the shares traded at R5,00 per share.
3. Credit losses of R6 000 must be written off. The closing balance of the allowance for credit losses account must be
increased with R1 200.The transaction has not yet been recorded.
4. The loan to Thabang is immediately callable.
5. During 2023 Alphabets and Numbers obtained an interest free loan from Thabo of R84 000, the first instalment of R21 000
must be paid on 31 January 2024.The loan is unsecured.
6. The actual income tax for the financial year amounted to R62 850 and must still be
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