Exam (elaborations)

FAC1601 ASSIGNMENT 1 SEMESTER 2 2024. Drawings would appear in the Statement of Pro�t or Loss and Other Comprehensive Income for a sole proprietorship. True Fals

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Course
Financial Accounting and Reporting (FAC1601)

Institution
University Of South Africa (Unisa)

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fac1601 assignment 1 semester 2 2024

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,Assessment 1 https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=21

FAC1601-24-S2  Welcome Message  Assessment 1

QUIZ

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1 of 24 9/2/2024, 3:12

,Assessment 1 https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=21

Question 1

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Qabaqongo Oils is a sun�ower oil production and distribution business, supplying various retailers and wholesalers throughout
Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant information regarding the
partnership’s �nancial activities for the year ending 30 June 2024.
Extract of balances as at 30 June 2024:
R
Inventory R108,800
Bank (positive) R293,600
Trade receivables control R199,200
Vehicles at cost R708,200
Equipment at cost R209,300
Factory building at cost R575,100
Accumulated depreciation: Vehicles R41,700
Accumulated depreciation: Equipment R64,400
Allowance for credit losses R3,000
Trade payables control R119,800
Capital: Khanyisa R431,500
Capital: Zinhle R246,700
Current account: Khanyisa (Cr: 1 July 2023) R13,000
Current account: Zinhle (Dr: 1 July 2023) R9,600

2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts.
2.1.2 Pro�ts and losses are shared equally between Khanyisa and Zinhle.
2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.
As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring additional land for sun�ower cultivation. On 30 June 2024,
KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at the
cost of R468,000. This loan is classi�ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equal
instalments starting from 30 June 2025. This transaction has not yet been recorded.
2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 700 owed to the business was unlikely to be recovered
and should be written off as bad debt.

Assuming that the pro�t available for distribution to partners amounted to R560 000, which one of the following alternatives
represents the correct balance in the current account of Zinhle on 30 June 2024?

a. R524,626
b. R44,626
c. R324,838
d. R324,732
e. R325,778
f. R324,626
g. R310,400

Clear my choice

2 of 24 9/2/2024, 3:12

,Assessment 1 https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=21

Question 2

Not yet answered

Marked out of 3.00

Qabaqongo Oils is a sun�ower oil production and distribution business, supplying various retailers and wholesalers throughout
Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant information regarding the
partnership’s �nancial activities for the year ending 30 June 2024.
Extract of balances as at 30 June 2024:
R
Inventory R108,800
Bank (positive) R293,600
Trade receivables control R199,200
Vehicles at cost R708,200
Equipment at cost R209,300
Factory building at cost R575,100
Accumulated depreciation: Vehicles R41,700
Accumulated depreciation: Equipment R64,400
Allowance for credit losses R3,000
Trade payables control R119,800
Capital: Khanyisa R431,500
Capital: Zinhle R246,700
Current account: Khanyisa (Cr: 1 July 2023) R13,000
Current account: Zinhle (Dr: 1 July 2023) R9,600

2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts.
2.1.2 Pro�ts and losses are shared equally between Khanyisa and Zinhle.
2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.
As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring additional land for sun�ower cultivation. On 30 June 2024,
KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at the
cost of R468,000. This loan is classi�ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equal
instalments starting from 30 June 2025. This transaction has not yet been recorded.
2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 700 owed to the business was unlikely to be recovered
and should be written off as bad debt.

Assume the correct trade and other receivables amount is R60 000. Which one of the following alternatives represents the
correct amount that must be disclosed as current assets in the statement of �nancial position of Qabaqongo Oils as at
30 June 2024?

a. R930,400
b. R462,400
c. R168,800
d. R928,200
e. R870,400
f. R930,200

Clear my choice

3 of 24 9/2/2024, 3:12

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Exam (elaborations)

FAC1601 ASSIGNMENT 1 SEMESTER 2 2024. Drawings would appear in the Statement of Pro�t or Loss and Other Comprehensive Income for a sole proprietorship. True Fals

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