FAC1602
Assignment 2
Semester 2
2024 - DUE 16
September
2024
[Type the document subtitle]
[Pick the date]
[Type the company name]
tabbymwesh59@gmail.com
, FAC1602 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 16 September 2024
Course
Elementary Financial Accounting and Reporting (FAC1602)
Institution
University Of South Africa (Unisa)
Book
About Financial Accounting
FAC1602 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 16
September 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations. Ensure your success with us..
Trading under the name Lehumo Bricks, Refentse and Boitshepo are
partners in this brick manufacturing company. Over the years, Lehumo Bricks
has established itself as a reputable supplier of high-quality bricks used in
various construction projects, from residential homes to large commercial
buildings. The business has been profi table, with Refentse and Boitshepo
sharing profi ts and losses equally, refl ecting their initial capital investments
and contributions to the partnership. However, after years of operating in the
competitive construction materials industry, the partners decided to liquidate
the business. Their decision was infl uenced by a combination of factors,
including changes in market demand, increasing production costs, and their
desire to pursue other ventures. Having carefully evaluated offers for key
assets, particularly the land, the building, manufacturing equipment and
inventory on hand, they decided to accept the most favourable ones for the
sale of the land, inventory and equipment. With this decision in place, they
planned to initiate the simultaneous liquidation of the partnership on 1 June
2024. Before any liquidation entries were recorded, they prepared a fi nal trial
balance to summarise the fi nancial position of the business. EXTRACT OF
TRIAL BALANCE AS AT 1 JUNE 2024 R Equipment at carrying amount
R290,000 Long-term loan -R968,500 Land and building at carrying amount
R792,000 Inventory R256,000 Capital – Refentse -R268,900 Capital –
Boitshepo -R285,900 Current account – Refentse (dr) R41,600 Current
account – Boitshepo (dr) R24,000 Bank R119,700 On 1 June 2024, a series
of fi nancial transactions took place to fi nalise the sale of the business’s
assets and settle its liabilities. Below is a summary of the key transactions that
occurred during the liquidation: 1. The land and buildings, which had been
