Exam (elaborations)
FAC1601 ASSESSMENT 3 SEMESTER 2 2024.
- Institution
- University Of South Africa (Unisa)
FAC1601 ASSESSMENT 3 SEMESTER 2 2024.
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BMZ ACADEMYBMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
,10/2/24, 11:34 AM Assessment 3 (page 1 of 8)
UNISA 2024 FAC1601-24-S2 Welcome Message Assessment 3
QUIZ
Time left 1:20:31
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=22879765&cmid=1008888 1/4
,10/2/24, 11:34 AM Assessment 3 (page 1 of 8)
Question 1
Answer saved
Marked out of 27.00
GreenFields Fertilizer Ltd is a company specialising in the production and distribution of high-quality fertilizers for maize and
other crops. The company operates a large manufacturing plant located in Broederstroom, North West Province, where it
produces a variety of fertilizers tailored to optimise soil nutrients and increase crop yields. GreenFields Fertilizer Ltd has
gained a significant presence in the agricultural sector and serves clients across Southern Africa.
The company's financial year-end is 28 February, and it has consistently maintained strong financial performance since its
incorporation.
GREENFIELDS FERTILIZER LTD
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:
R
Investments 350,600
Land and buildings at revaluation (1 March 2023) 1,119,600
Equipment at cost 658,100
Accumulated depreciation: Equipment 88,100
Revaluation surplus (1 March 2023) 120,000
Inventory (1 March 2023) 46,400
Bank 137,100
Trade receivables control 283,700
Petty cash 7,800
Share capital: Ordinary shares (1 March 2023) 755,500
Retained earnings (1 March 2023) 280,500
Loan: Broederstroom Bank 125,700
SARS (income tax) (Dr) 35,100
Sales 3,205,300
Allowance for settlement discount granted 7,200
Carriage on purchases 22,800
Trade payables control 265,700
Income received in advance 8,000
Allowance for credit losses 7,000
Settlement discount granted 5,500
Auditor's remuneration 141,600
Carriage on sales 28,500
Settlement discount received 2,200
Purchases 305,200
Salaries and wages 379,000
Directors’ remuneration 200,300
Stationery 11,200
Telephone 16,800
Additional information:
1. The income tax for the financial year ended 28 February 2024 amounted to R138,700 and must still be recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus amounting to R114,800.
3. A provision of R53,900 must still be made for depreciation on equipment.
4. Directors made the following resolutions at year-end, which are yet to be recorded:
· Dividends declared at R1.4 per share and will be paid at the end of April 2024.
· A total bonus amounting to R163,000 must be paid to directors on 30 April 2024.
5. The loan from Broederstroom Bank was acquired on 1 March 2023 at an interest rate of 10% per annum. Interest on all
loans for the current financial year has not yet been accounted for. The loan is repayable in five (5) annual equal
instalments with effect from 1 March 2024.
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, 10/2/24, 11:34 AM Assessment 3 (page 1 of 8)
6. Authorised share capital consists of 1000,000 NPV ordinary shares. Share capital stated above consists of ordinary
shares issued at R4.00 per share. On 01 December 2023, the directors issued 50,000 shares at R5.4 per share. The
shares were taken up by the public on 27 February 2024, and this transaction has not been recorded.
7. Inventory on 28 February 2024 consisted of the following:
· Inventory (stock) on hand: R50,400
· Stationery on hand: R5,100
8. The allowance for credit losses must be adjusted to R8,400. A debtor who owes the business R12,200 was declared
insolvent and must be written off as irrecoverable.
9. Investments consist of
· Investment in Mkhaya Institute (Pty) Ltd at a cost of R140,000 – this investment is measured at cost.
· 17,550 shares in Mkhuluwa Ltd at fair value on 28 February 2023 – this investment is held for trading and the fair
value gain/losses are recognised in profit or loss. These shares were trading at R15.5 per share on 28 February
2024. On the 27th of February 2024, Mkhuluwa Ltd declared a dividend of R4.5 per share.
REQUIRED:
Complete the amounts in the EXTRACT (presented below) of the statement of profit or loss and other comprehensive income
of Greenfields Fertilizers CC for the year ended 28 February 2024.
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer. It will be marked incorrect.
3. Do not use any abbreviations.
4. Please remember the brackets around the amounts must be indicated by a negative amount [eg: (50) will be -50].
GREENFIELDS FERTILIZERS CC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2024
R
Revenue 3192600
Cost of sales -321800
Inventory (opening balance) -46400
Purchases -303000
Carriage on purchases -22800
Inventory (closing) 50400
Gross profit 2870800
Other income 140400
Fair value adjustment: Listed share investment 61425
Dividend income: Listed share investment 78975
Distribution, administrative and other expenses -1002800
Salaries and wages -379000
Director's remuniration -363300
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=22879765&cmid=1008888 3/4
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