FAC1601/101/3/2019
Tutorial letter 101/3/2019
Financial Accounting Reporting
FAC1601
Semesters 1 & 2
Department of Financial Accounting
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
FAC1601/101/3/2019
CONTENTS
Page
1
INTRODUCTION .......................................................................................................................... 3
2
PURPOSE OF AND OUTCOMES FOR THE MODULE................................................................ 3
2.1
Purpose ........................................................................................................................................ 3
3
LECTURER(S) AND CONTACT DETAILS................................................................................... 3
4.
COMMUNICATION WITH THE UNIVERSITY .............................................................................. 4
5.
MODULE-RELATED RESOURCES ............................................................................................. 4
5.1
Inventory letter .............................................................................................................................. 4
5.2
Study material ............................................................................................................................... 4
5.3
Calculator policy ........................................................................................................................... 5
6
STUDENT SUPPORT SERVICES FOR THE MODULE ............................................................... 5
6.1
Contact with fellow students.......................................................................................................... 5
7.
ASSESSMENT ............................................................................................................................. 6
7.1
Assignments and learning ............................................................................................................. 6
7.2
Submission of assignments .......................................................................................................... 6
7.3
Unique assignment numbers ........................................................................................................ 6
7.4
Due dates for assignments ........................................................................................................... 7
7.5
Feedback on assignments ............................................................................................................ 7
7.6
Study process ............................................................................................................................... 7
7.7
Important aspects regarding assignments ..................................................................................... 8
7.8
Plagiarism ..................................................................................................................................... 8
8.
PROPOSED STUDY PROGRAMME FOR 2019 .......................................................................... 9
8.1
First semester ............................................................................................................................... 9
8.2
Second semester .......................................................................................................................... 9
ADDENDUM A:
COMPULSORY ASSIGNMENT 01 (FIRST SEMESTER).......................................... 10
ADDENDUM B:
COMPULSORY ASSIGNMENT 02 (FIRST SEMESTER).......................................... 16
ADDENDUM C:
COMPULSORY ASSIGNMENT 01 (SECOND SEMESTER) ..................................... 22
ADDENDUM D:
COMPULSORY ASSIGNMENT 02 (SECOND SEMESTER) ..................................... 28
2
FAC1601/101/3/2019
1
INTRODUCTION
Dear Student,
We are pleased to welcome you to this module and hope that you will find it both interesting and
rewarding. We will do our best to make your study of this module successful. You will be well on your
way to success if you start studying early in the semester and resolve to do the assignments properly.
You will receive a number of tutorial letters during the year. A tutorial letter is our way of communicating
with you about teaching, learning and assessment.
This tutorial letter contains important information about the scheme of work, resources and assignments
for this module. We urge you to read it carefully and to keep it at hand when working through the study
material, preparing the assignments, preparing for the examination and addressing questions to your
lecturers.
Please read Tutorial Letter 301 in combination with this tutorial letter as it gives you an idea of generally
important information when studying distance education and information within a particular College.
In this tutorial letter, you will find the assignments and assessment criteria as well as instructions on the
preparation and submission of the assignments. It also provides all the information you need with regard
to the prescribed study material and other resources and how to obtain them. Please study this
information carefully and make sure that you obtain the prescribed material as soon as possible.
Right from the start we would like to point out that you must read all the tutorial letters you receive
during the semester immediately and carefully, as they always contain important and, sometimes,
urgent information. You will also find useful information of a general nature in Tutorial Letter 301 and
in the booklet Study@Unisa. Having read through these, you should be well prepared to start.
We trust that you will enjoy this module and wish you all the best!
2
PURPOSE OF AND OUTCOMES FOR THE MODULE
2.1
Purpose
The purpose of this module is to introduce students to financial accounting and reporting referring to
some of the International Accounting Standards issued by the International Accounting Standards Board.
In this module the focus will be on financial reporting and the analysis of financial statements of
partnerships and close corporations. You must also be able to record the accounting entries for the
formation of, admittance to, retirement or death of a partner and the liquidation of partnerships.
Furthermore, you will be introduced to companies. You should be able to record the accounting entries
to the capital structure of companies. You should be able to record the transactions relating to
businesses with branches and to know how to record the transactions between head office and the
branch. Lastly, you must be able to prepare calculations relating to the time value of money.
3
LECTURER(S) AND CONTACT DETAILS
The following lecturers are responsible for this module:
Mr S Mnguni (Module leader)
Mr B Khanyeza
Mrs B Ceki
Mr A Visagie
+27(0)12 429 4835
+27(0)12 429 4766
+27(0)12 429 3631
+27(0)12 429 4810
3
FAC1601/101/3/2019
All queries that are not of a purely administrative nature but are about the content of this module
should be directed to us. Please have your study material with you when you contact us.
NB:
Letters to lecturers may not be enclosed with or inserted into assignments.
4.
COMMUNICATION WITH THE UNIVERSITY
The following contact details may be used for any enquiries within the College of Accounting Sciences
(CAS)
College e-mail Addresses:
- CASenquiries-Postgraduate@unisa.ac.za
-
CASenquiries-Undergraduate@unisa.ac.za
-
CASenquiries-CTA@unisa.ac.za
College telephone number: 012 429 2982/2233
If you need to contact the university about matters not related to the content of this module, please
consult the publication Study@Unisa, which you have received with your study material. This brochure
contains information on how to contact the university (e.g. to whom you can write for different queries,
important telephone and fax numbers, addresses and details of the times certain facilities are open).
5.
MODULE-RELATED RESOURCES
5.1
Inventory letter
You should have received an inventory letter indicating what you have received in your study package
and also showing items that are still outstanding. Also see the brochure entitled Study@Unisa.
Check the study material that you have received against the inventory letter. You should have received
all the items listed in the letter, unless there is a statement such as “out of stock” or “not available”. If any
item is missing, follow the instructions on the back of the inventory letter without delay.
PLEASE NOTE
Your lecturers cannot help you with missing study material. For any enquiries about your study
material, please contact the UNISA despatch department by sending a SMS to 43579 or by
e-mailing despatch@unisa.ac.za.
5.2
Study material
The despatch department should supply you with the following study material for this module:


One study guide
Tutorial Letters 101 and 301 at registration and others later
Apart from Tutorial Letters 101 and 301, you will also receive other tutorial letters during the semester.
These tutorial letters will not necessarily be available at the time of registration, but will be dispatched to
you as soon as they are available or needed (for instance, for feedback on assignments).
If you have access to the internet, you can view the study guides and tutorial letters for the modules for
which you are registered on the university’s online campus, myUnisa, at http://myunisa.ac.za.

4
Prescribed book
FAC1601/101/3/2019
Your prescribed book for this module is:
About Financial Accounting, Volume 2, 7th Edition by Doussy F, et al. LexisNexis Butterworths.
Durban. 2018.
Please consult the list of official booksellers and their addresses listed in Study@Unisa. If you have any
difficulty obtaining books from these bookshops, please contact the Prescribed Books Section.
5.3
Calculator policy
Unisa’s calculator policy is as follows:
Candidates may only use silent, electronic, battery-driven pocket calculators subject to the
following conditions:
●
Calculators must be cordless, and may not have print-out facilities or alpha keys;
●
The calculator function on mobile telephones or any electronic device (i.e. laptops and/or
any Smart Phone) may not be used; and
●
Candidates may not share a calculator with another candidate in the examination room.
6
STUDENT SUPPORT SERVICES FOR THE MODULE
For information on the various student support systems and services available for students at Unisa (e.g.
student counselling, tutorial classes, language support), please consult the publication Study@Unisa,
which you have received with your study material.
6.1
Contact with fellow students
6.1.1 Study groups
It is advisable to have contact with fellow students. One way to do this is to form study groups. The
addresses of students in your area may be obtained from the following department:
Directorate: Student Administration and Registration
PO Box 392
UNISA
0003
6.1.2
myUNISA
If you have access to a computer that is linked to the internet, you can quickly access resources and
information at the university. The myUnisa learning management system is Unisa's online campus that
will help you to communicate with your lecturers, with other students and with the administrative
departments of Unisa – all through the computer and the internet.
To go to the myUnisa website, start at the main Unisa website, http://www.unisa.ac.za, and then click on
the “Login to myUnisa” link on the right-hand side of the screen. This should take you to the myUnisa
website. You can also go there directly by typing http://my.unisa.ac.za.
Please consult the publication Study@Unisa, which you received with your study material, for more
information on myUnisa.
5
FAC1601/101/3/2019
7.
ASSESSMENT
7.1
Assignments and learning
Compulsory assignments for all modules should be submitted by students at set due dates. Assignments
are seen as part of the learning process for this module. As you do the assignment, study the reading
text, consult other resources, discuss the work with fellow students or tutors or do research, you are
actively engaged in learning. The assessment criteria included in your study guide at the end of each
study unit will help you to understand what is required of you when doing your assignment.
7.2
Submission of assignments
Enquiries about assignments (e.g. whether or not the university has received your assignment or the
date on which an assignment was returned to you) must be directed to the assignments department.
This department can be reached by sending an SMS to 43584 or by e-mail at assign@unisa.ac.za. You
might also find information on myUNISA. To gain access to the myUnisa website, start at the main Unisa
website, http://www.unisa.ac.za, and then click on the ‘login to myUnisa link under the myUnisa heading
on the screen. This should take you to the myUnisa website. You can also go there directly by typing
http://my.unisa.ac.za.
Assignments should be addressed to:
The Registrar (Assignments)
PO Box 392
UNISA
0003
You may submit written assignments and assignments done on mark-reading sheets either by post or
electronically via myUNISA. Assignments may not be submitted by fax or email. For detailed information
and requirements for assignments refer to the brochure Study@Unisa, which you have received with
your study material.
To submit an assignment through myUNISA:






Go to myUnisa.
Log in with your student number and password.
Select the module.
Click on assignments in the menu on the left.
Click on the assignment number you want to submit.
Follow the instructions on the screen.
7.3
Unique assignment numbers
In addition to the general assignment number (e.g. 02), assignments to be completed by means of a
mark-reading sheet (multiple choice questions) or by means of a written assignment must also have their
unique assignment number. The following are the unique assignment numbers for 2018:
Semester 1
Assignment 01
Assignment 02
Type
Multiple choice
Multiple choice
Unique number
872524
797345
Semester 2
Assignment 01
Assignment 02
Type
Multiple choice
Multiple choice
Unique number
806208
755231
6
FAC1601/101/3/2019
7.4
Due dates for assignments
The two compulsory assignments for this module are attached as Addendum A and Addendum B for the
first semester and Addendum C and Addendum D for the second semester.
Assignments must reach the university not later than the dates specified below:
Assignment number
01/2019 Compulsory – Addendum A
02/2019 Compulsory – Addendum B
Semester 1
Due dates
12 March 2019
09 April 2019
01/2019 Compulsory – Addendum C
02/2019 Compulsory – Addendum D
Semester 2
Due dates
20 August 2019
10 September 2019
The receipt of assignments after the due date disrupts our marking programme and the uncontrolled
submission of assignments creates administrative problems. No extension or requests for extension of
assignments will be considered.
7.5
Feedback on assignments
You will automatically receive the correct answers for multiple-choice questions. Feedback on
compulsory assignments will be sent to all students registered for this module in a follow-up tutorial
letter, and not only to those students who submitted the assignments. The tutorial letter numbers will be
201, 202, etc.
As soon as you have received the feedback, please work through it. The assignments and the feedback
on these assignments constitute an important part of your learning and should help you to be better
prepared for the next assignment and the examination.
7.6
Study process
You may encounter fewer problems when you work as follows:
Point 8 of this tutorial letter sets out the suggested study programme for semester 1 and 2. First
semester students: refer to paragraph 8.1 and second semester students: refer to paragraph 8.2.

Study the relevant study units of the Study Guide for assignment 01. Do all the exercises in the
Study Guide and make sure that you understand the contents of the study material.

Do assignment 01 and send it to UNISA for marking. Remember, the submission of assignment
01 is compulsory for examination admission and contributes to your year mark (refer to
points 7.7).

Study the relevant study units of the Study Guide for assignment 02 and do the assignment.
Remember, the submission of assignment 02 is compulsory and contributes to your year
mark (refer to points 7.7).

After completing an assignment, carry on with the study programme. Do not wait for the
suggested solution or for the return of the marked assignment.
Students often fail to plan their studies properly in order to achieve specific study goals at predetermined
dates. This leads to a haphazard approach to studying and the use of ineffective study techniques.
The study programme for each semester is included in this tutorial letter under point 8 to assist you in
this regard. The programme indicates the dates during which certain sections of the study material
should be studied, as well as the dates by which the compulsory assignments should be completed.
7
FAC1601/101/3/2019
The study programme is based on the following assumptions:

That study will commence on either 07 January 2019 for the first semester or 24 June 2019 for
the second semester and that the full course should be completed leaving sufficient time for
revision.
That you should study at least 6 hours per week. We are of the opinion that this is within your
reach.

We are convinced that, if you adhere to the suggested programme, you should be able to master the
subject. It is very important that the subject matter covered in each study unit be mastered and not just
be skimmed. If you happen to register late or fall behind with this programme, extra effort on your part
will be necessary.
Addendums A and B contain the compulsory assignment 01 and 02 for students who are registered for
FAC1601 in the first semester.
Addendums C and D contain the compulsory assignment 01 and 02 for students who are registered for
FAC1601 in the second semester.
Please note that these assignments are not the same. You must ensure that you submit the
assignments which pertain to the semester that you are registered in for FAC1601.
IF YOU ARE REGISTERED FOR FAC1601 IN THE SECOND SEMESTER YOU CANNOT SUBMIT
ANY ASSIGNMENTS DURING THE FIRST SEMESTER. ASSIGNMENTS INCORRECTLY
SUBMITTED, WILL BE RETURNED UNMARKED
7.7
Important aspects regarding assignments
There are 4 assignments for this module:

Assignment 01 is a multiple-choice assignment that is compulsory and contributes 50% towards
your year mark. It is important to note that if you do not submit this assignment you will not
be admitted to the examination;

Assignment 02 is a multiple-choice assignment that is also compulsory and contributes 50%
towards your year mark;

Assignments 03 and 04 are long question assignments. These assignments must NOT be
submitted to UNISA for marking but forms an important part of your study material and exam
questions will definitely be set on these sections.
Please keep copies of assignments submitted to UNISA through myUnisa or manually as this is proof
that you submitted the assignment.
Assignments constitute an integral part of the tutorial material. Study material on which assignment 01 is
based is given in Addendum A (for students registered for the first semester) or Addendum C (for
students registered for the second semester). Assignments and tutorial letters must also be studied for
examination purposes.
7.8
Plagiarism
Although students may work together when preparing assignments, each student must submit his or her
own individual assignment. It is unacceptable for students to discuss the answers on myUnisa. That is
considered as copying (a form of plagiarism) and you may be penalised or subjected to disciplinary
proceedings by the university.
8
FAC1601/101/3/2019
8.
PROPOSED STUDY PROGRAMME FOR 2019
8.1
First semester
DATE
± 07/1 to 08/2
± 11/2 to 18/2
± 18/2
± 19/2 to 22/3
± 25/3 to 29/3
± 29/3
± 01/4 to 05/4
± 08/4 to 12/4
15/4 to examination
8.2
STUDY MATERIAL AND ASSIGNMENTS
Study: Study units 1 to 5
Do Assignment 01 (compulsory assignment): Due date 12/03/2019
Submit Assignment 01 (NB: DO NOT WAIT UNTIL 12/03/2019)
Study: Study units 6 to 9
Do Assignment 02 (compulsory assignment): Due date 09/04/2019
Submit Assignment 02 (NB: DO NOT WAIT UNTIL 09/04/2019)
Do and mark Assignment 03 (do not submit this assignment)
Do and mark Assignment 04 (do not submit this assignment)
The solutions to Assignments 03 and 04 are provided in the same
tutorial letter
Revision
During May/June 2018: EXAMINATION
Second semester
DATE
± 24/6 to 26/7
± 29/7 to 02/8
± 02/8
± 05/8 to 23/8
± 26/8 to 30/8
± 30/8
± 02/9 to 06/9
± 09/9 to 13/9
16/9 to examination
STUDY MATERIAL AND ASSIGNMENTS
Study: Study units 1 to 5
Do Assignment 01 (compulsory assignment): Due date 20/08/2019
Submit Assignment 01 (NB: DO NOT WAIT UNTIL 20/08/2019)
Study: Study units 6 to 9
Do Assignment 02 (compulsory assignment): Due date 10/09/2019
Submit Assignment 02 (NB: DO NOT WAIT UNTIL 10/09/2019)
Do and mark Assignment 03 (do not submit this assignment)
Do and mark Assignment 04 (do not submit this assignment)
The solutions to Assignments 03 and 04 are provided in the same
tutorial letter
Revision
During October/November 2018: EXAMINATION
We trust that you will enjoy this module and we wish you success with your studies.
Kind regards
Mr BT Khanyeza
Mr S Mnguni
Mrs B Ceki
Mr LA Visagie
Module Telephone Number: 012 429 4176; Module E-mail Address: fac1601@unisa.ac.za
LECTURERS: FINANCIAL ACCOUNTING REPORTING (FAC1601)
9
FAC1601/101/3/2019
ADDENDUM A:
COMPULSORY ASSIGNMENT 01 (FIRST SEMESTER)
UNIQUE NO: 872524
DUE DATE: 12 MARCH 2019
1.
This assignment must be answered on a mark-reading sheet if submitted by post. It can also be
submitted electronically through myUnisa.
2.
Before answering this assignment, please read paragraph 7 of this tutorial letter.
3.
This assignment covers study units 1 – 5 of the study guide.
4.
We cannot grant any extension for the late submission of this assignment since the due
date is set in accordance with the marking date of this assignment. No correspondence
or telephone conversations will be conducted in this regard.
5.
Important aspects regarding multiple-choice assignments answered on a mark-reading
sheet:

For detailed information and requirements as far as assignments are concerned, see
Study@Unisa which you received with your study package.

Work carefully through the relevant tutorial matter before you do the assignment.

Calculate your answer on a separate piece of paper before completing the mark-reading
sheet.
REMEMBER:





There is only one correct answer for each question. Do not make more than one mark per
question.
All questions are equal in value.
Indicate your student number correctly.
Indicate the assignment number correctly.
Indicate the unique assignment number for Assignment 01 correctly. Every assignment which
is marked by the computer is given a unique number. The number contains information on the
course code and the assignment number. When the computer reads the unique number, it
identifies it as Assignment 01 for FAC1601 – first semester.
FOR HARD COPY SUBMISSION:








10
Only the provided mark-reading sheets may be used.
Colour in the correct block clearly with a HB pencil.
Do not colour outside the block, or colour in the block with a pen.
Do not make corrections with correction fluid.
Do not tear or fold the mark-reading sheet. Do not try to repair a torn mark-reading sheet with
sticky tape – use another one.
Do not staple the mark-reading sheet to another piece of paper.
Do not submit answers on a written sheet of paper.
Send only your mark-reading sheet to the Assignments Division in the appropriate envelope.
FAC1601/101/3/2019
ASSIGNMENT 01 – FIRST SEMESTER (continued)
QUESTION 1
Which one of the following alternatives is not a contributing factor towards faithful representation of
financial information?
1.
2.
3.
4.
Freedom from error
Neutrality
Consistency
Completeness
QUESTION 2
Which one of the following characteristics is not a fundamental qualitative characteristic of useful
financial information?
1.
2.
3.
4.
Relevance
Materiality
Faithful representation
Comparability
GIVEN INFORMATION FOR QUESTIONS 3 – 5
Black and Panther are partners in Black Panther Traders. The following information appeared in the
accounting records of the partnership on 31 December 2018, the end of the financial year:
Extract of balances as at 31 December 2018
Capital: Black (1 January 2018) ...............................................................................................
Capital: Panther (1 January 2018) ...........................................................................................
Current Account: Black (Cr) (1 January 2018) .........................................................................
Current Account: Panther (Cr) (1 January 2018) ......................................................................
Drawings: Black (1 January 2018) ...........................................................................................
Drawings: Panther (1 January 2018)........................................................................................
Bank (favourable) ....................................................................................................................
Land and buildings at cost .......................................................................................................
Vehicles at cost (1 January 2018) ............................................................................................
Equipment at cost (1 January 2018) ........................................................................................
Accumulated Depreciation on Vehicles ....................................................................................
Accumulated Depreciation on Equipment ................................................................................
Inventory..................................................................................................................................
Profit for the year (before any applicable additional information) ..............................................
R
350 000
300 000
110 000
100 000
45 000
45 000
230 000
450 000
180 000
110 000
90 000
40 000
95 000
355 000
Additional information:
Extract from the terms of the partnership agreement:
1.
2.
3.
The partners will share profit and losses in the ratio of 2:1 respectively.
Interest will be calculated on opening balances of current accounts of partners at 12% per annum.
The partners are entitled to an annual salary as follows:
 Black
R80 000
 Panther R80 000
11
FAC1601/101/3/2019
ASSIGNMENT 01 – FIRST SEMESTER (continued)
Year-end adjustments:
4.
5.
6.
During the year, the following cash salaries were withdrawn by the partners and were taken into
account in arriving at the profit for the year stated above:
 Black R30 000
 Panther R25 000
During the year the partners withdrew inventory to the value of R8 000 and R6 000 respectively, the
accountant was not sure how to account for this transaction.
Depreciation must be provided for as follows:
 Vehicles: 20% per annum according to the straight-line method.
 Equipment: 15% per annum according to the diminishing balance method. Equipment
has a residual value of R5 000.
QUESTION 3
Which one of the following alternatives represents the correct profit for the year after year end
adjustments have been taken into account as at 31 December 2018?
1. R309 950
2. R364 250
3. R231 250
4. R253 500
QUESTION 4
Which one of the following alternatives represents the correct closing current account balance of Black at
31 December 2018 assuming that the correct profit for the year amounts to R254 250?
1. R166 233
2. R204 233
3. R174 233
4. R139 917
QUESTION 5
Which one of the following alternatives represents the correct drawings balance for Panther as at
31 December 2018?
1.
2.
3.
4.
R45 000
R70 000
R76 000
R51 000
GIVEN INFORMATION FOR QUESTIONS 6 - 7
Nakiya and Okoye are partners in Wakanda Traders sharing profits and losses in the ratio of 3:2
respectively. On 1 July 2018, the partners were approached by Shuri with a proposal to join the
partnership. The partners agreed that Shuri will be admitted to the partnership on 1 August 2018.
12
FAC1601/101/3/2019
GIVEN INFORMATION FOR QUESTION 6 - 7 (continued)
The following is an extract from the accounting records of the partnership on 30 July 2018, the end of the
financial year:
R
Capital: Nakiya ........................................................................................................................ 120 000
Capital: Okoye ......................................................................................................................... 90 000
Current account: Nakiya (Cr) ................................................................................................... 30 000
Current account: Okoye (Cr) .................................................................................................... 20 000
Bank (favourable) .................................................................................................................... 80 000
Mortgage ................................................................................................................................. 180 000
Land and buildings................................................................................................................... 550 000
Trade receivables .................................................................................................................... 70 000
Vehicles at cost (1 August 2017) ............................................................................................. 120 000
Accumulated depreciation: Vehicles ........................................................................................ 60 000
Inventory.................................................................................................................................. 50 000
Trade payables ........................................................................................................................ 150 000
In preparation for the admission of Shuri, the following occurred:
1.
2.
3.
4.
The fair value of land and buildings was determined at R680 000.
The partners noticed that a debtor with a balance of R20 000 had defaulted on repayments for 3
consecutive months. The partners resolved that this account be deemed as a doubtful debt.
Following an inspection, partners confirmed that inventory is worth R30 000 due to some damaged
stock.
On 1 August 2018, Shuri was admitted to the partnership and contributed cash of R75 000 and
equipment worth R 15 000 for a 1/5 share of profits in Wakanda Traders. The profit sharing ratio for
Nakiya, Okoye and Shuri was changed to 5:3:2 respectively.
QUESTION 6
Which one of the following alternatives represents the correct amount that will be disclosed as the
valuation surplus or deficit in the valuation account prior to the admission of Shuri?
1.
2.
3.
4.
R130 000 (deficit)
R110 000 (surplus)
R90 000 (surplus)
R54 000 (deficit)
QUESTION 7
Which one of the following alternatives represents the correct amount of goodwill acquired in Wakanda
Traders?
1.
2.
3.
4.
R90 000
R10 000
R100 000
R190 000
13
FAC1601/101/3/2019
ASSIGNMENT 01 – FIRST SEMESTER (continued)
GIVEN INFORMATION FOR QUESTIONS 8 - 9
James and Arthur were in partnership trading as James Arthur Traders sharing profits and losses in the
ratio 3:2. Respectively. The partners decided to dissolve the partnership by means of a simultaneous
liquidation on 1 June 2018.
The following is a list of items drawn from the financial records of the partnership as at 30 May 2018, the
end of the financial year:
R
Capital: James ......................................................................................................................... 70 000
Capital: Arthur.......................................................................................................................... 50 000
Current account: James ........................................................................................................... 40 000
Current account: Arthur .......................................................................................................... : 60 000
Equipment .............................................................................................................................. : 90 000
Vehicle..................................................................................................................................... 65 000
Goodwill ................................................................................................................................... 30 000
Trade receivables .................................................................................................................... 35 000
Trade and other payables ........................................................................................................ 31 000
Inventory.................................................................................................................................. 44 000
Revaluation surplus ................................................................................................................. 25 000
Long-term loan: Cici Bank........................................................................................................ 50 000
Bank ........................................................................................................................................ 127 000
Additional information:
1.
2.
3.
4.
5.
6.
7.
Equipment was sold for R110 000 cash.
The delivery van was taken over by Authur at a carrying value of R65 000.
Inventories were sold for R55 000.
All debts were settled by customers in full.
Cash received from the sale of office equipment and inventory was used to settle the loan from Cici
Bank.
Creditors accounts were paid an amount of R31 000 in full settlement of their accounts.
The liquidation costs amounted to R6 000.
QUESTION 8
Which one of the following options represents the correct amount of profit or loss on liquidation before
any apportionment to partners? Round-off your answer to the nearest Rand.
1.
2.
3.
4.
14
R15 000 profit
R10 000 loss
R31 000 profit
R25 000 profit
FAC1601/101/3/2019
ASSIGNMENT 01 – FIRST SEMESTER (continued)
QUESTION 9
Which one of the following options represents the bank amount in the capital account of James after the
liquidation of James Authur Trading?
1.
2.
3.
4.
R122 000
R118 000
R125 000
R110 000
QUESTION 10
Lebo, Kgomosto and Bae were in a partnership which traded as Threesum Traders. The partners shared
profits and losses in a ratio of 5:3:2, respectively. The partners decided to liquidate the partnership
piecemeal.
The following list of balances was drawn up from the accounts in the general ledger of the partnership:
R
Capital - Lebo (Cr) ................................................................................................................... 60 000
Capital - Kgomotso (Cr) ........................................................................................................... 33 000
Capital - Bae (Cr) ..................................................................................................................... 17 000
Current account - Lebo (Dr) .....................................................................................................
8 000
Current account - Kgomotso (Cr) .............................................................................................
4 200
Current account - Bae (Dr).......................................................................................................
3 500
Goodwill ................................................................................................................................... 20 000
Revaluation surplus ................................................................................................................. 15 000
Long-term loan (unsecured)..................................................................................................... 62 100
Trade payables control ............................................................................................................
8 600
Furniture and equipment at cost .............................................................................................. 77 000
Accumulated depreciation: Furniture and equipment ...............................................................
7 800
Inventory.................................................................................................................................. 49 000
Trade receivables control.........................................................................................................
7 500
Bank (Dr) ................................................................................................................................. 42 700
The partners decided to distribute the cash amongst them as it becomes available in such a manner that
it would not be necessary for the partners to repay any of the interim cash repayments at a later stage
due to capital deficits that arose.
At the first realisation of the assets, all the inventory was sold for R45 000, cash.
Which one of the following alternatives represents the correct amounts in respect of the first interim
repayment to partners? Apply the loss-absorption-capacity method in your calculation.
1.
2.
3.
4.
Lebo, R6 875; Kgomotso, R10 125 and Bae, R0
Lebo, R8 500; Kgomotso, R5 100 and Bae, R3 400
Lebo, R9 150; Kgomotso, R11 490 and Bae, R3 640
Lebo, R16 875; Kgomotso, R16 125 and Bae, R4 000
END OF ASSIGNMENT 01 – FIRST SEMESTER
15
FAC1601/101/3/2019
ADDENDUM B:
COMPULSORY ASSIGNMENT 02 (FIRST SEMESTER)
UNIQUE NO: 797345
DUE DATE: 9 APRIL 2019
4.
This assignment must be answered on a mark-reading sheet if submitted by post. It can also be
submitted electronically through myUnisa.
5.
Before answering this assignment, please read paragraph 7 of this tutorial letter.
6.
This assignment covers study units 6 – 9 of the study guide.
4.
We cannot grant any extension for the late submission of this assignment since the due
date is set in accordance with the marking date of this assignment. No correspondence
or telephone conversations will be conducted in this regard.
5.
Important aspects regarding multiple-choice assignments answered on a mark-reading
sheet:

For detailed information and requirements as far as assignments are concerned, see
Study@Unisa which you received with your study package.

Work carefully through the relevant tutorial matter before you do the assignment.

Calculate your answer on a separate piece of paper before completing the mark-reading
sheet.
REMEMBER:





There is only one correct answer for each question. Do not make more than one mark per
question.
All questions are equal in value.
Indicate your student number correctly.
Indicate the assignment number correctly.
Indicate the unique assignment number for Assignment 01 correctly. Every assignment which
is marked by the computer is given a unique number. The number contains information on the
course code and the assignment number. When the computer reads the unique number, it
identifies it as Assignment 01 for FAC1601 – first semester.
FOR HARD COPY SUBMISSION:








16
Only the provided mark-reading sheets may be used.
Colour in the correct block clearly with a HB pencil.
Do not colour outside the block, or colour in the block with a pen.
Do not make corrections with correction fluid.
Do not tear or fold the mark-reading sheet. Do not try to repair a torn mark-reading sheet with
sticky tape – use another one.
Do not staple the mark-reading sheet to another piece of paper.
Do not submit answers on a written sheet of paper.
Send only your mark-reading sheet to the Assignments Division in the appropriate envelope.
FAC1601/101/3/2019
ASSIGNMENT 02 – FIRST SEMESTER (continued)
QUESTION 1 – 3
On 1 January 2017, Baleka Ltd was registered with an authorised share capital of 250 000
ordinary shares and 100 000 10% preference shares. The incorporators of the company subscribed to
20% of the ordinary shares at R1,00 per share and paid in full.
On 30 April 2018, Baleka Ltd offered 40% of the authorised ordinary share capital and 15 000
preference shares to the public at R2,50 and R2,80 per share respectively. FCB Bank was
appointed as the underwriter for the issue of shares at a commission of 1%. On 15 May 2018, the
closing date for the applications, 125 000 ordinary and 15 000 preference shares were applied for by
the public. On 31 May 2018, all of the shares offered to the public were allotted by the board of
directors and the underwriter’s account was settled in full.
During the board meeting on 31 December 2018, the directors declared an ordinary dividend of
R0,20 per share. The dividends were paid on 2 January 2019.
QUESTION 1
Which of the following journals represent the correct journal entry for the receipt of all applications for
ordinary shares issued to the public?
R
R
1. Bank
250 000
Applications and allotment – ordinary shares
250 000
2.
3.
4.
Bank
Application and allotment – ordinary shares
100 000
Application and allotment – ordinary shares
Bank
250 000
Bank
Application and allotments – ordinary shares
312 500
100 000
250 000
312 500
QUESTION 2
Which of the following journals represent the correct journal entry for the refund to unsuccessful ordinary
shares applicants?
R
R
1. Applications and allotment – ordinary shares
25 000
Bank
25 000
2.
3.
4.
Applications and allotment – ordinary shares
Bank
62 500
Application and allotment – ordinary shares
Bank
125 000
Bank
Application and allotment – ordinary shares
62 500
125 000
62 500
62 500
17
FAC1601/101/3/2019
ASSIGNMENT 02 – FIRST SEMESTER (continued)
QUESTION 3
Which one of the following alternatives represents the amount payable as dividends on
31 December 2018?
1.
2.
3.
4.
R32 450
R34 200
R30 000
R31 450
GIVEN INFORMATION FOR QUESTIONS 4 - 9
The following information pertains to Silkaats CC:
EXTRACT OF BALANCES AS AT 31 DECEMBER
Members contribution: Sil .............................................................................
Members contribution: Kaats .......................................................................
Land and buildings .......................................................................................
Furniture and equipment at cost ...................................................................
Accumulated depreciation: Furniture and equipment ....................................
Inventory ......................................................................................................
Bank .............................................................................................................
Trade receivables .........................................................................................
Retained earnings ........................................................................................
Profit distributions payable ............................................................................
Revaluation surplus ......................................................................................
Long term loan (Axle Bank) ..........................................................................
Trade payables .............................................................................................
SARS (Cr) ....................................................................................................
2018
R
165 000
165 000
217 500
105 600
10 500
72 000
252 600
105 450
188 850
40 000
20 000
65 500
84 300
14 000
2017
R
145 350
145 350
307 500
10 500
1 500
75 300
38 800
55 500
83 500
39 000
72 900
-
EXTRACT FROM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2018
R
Rental income...................................................................................................................
3 600
Profit on sale of non-current assets (Land and buildings) ................................................
15 500
Administrative expenses (Salaries and wages included) ...................................................
52 500
Depreciation .....................................................................................................................
9 000
Interest expense ...............................................................................................................
9 180
3.
Additional information
3.1
The loan of R37 500 was acquired on 1 September 2017. Interest is charged at 12% per annum
and is capitalised annually. An additional amount was acquired on 31 December 2018.
Included in an interest expense of R9 180, is an interest on a long term loan of R4 680 that was
capitalised.
No land and buildings were purchased during the year. Fifty percent of the selling price of the
land and buildings was received in cash, whereas the outstanding amount was on credit.
No furniture or equipment was sold or scrapped during the year. All purchases were paid for in
cash.
3.2
3.3
3.4
18
FAC1601/101/3/2019
ASSIGNMENT 02 – FIRST SEMESTER (continued)
3.5
3.6
3.7
3.8
3.9
All purchases of inventory were on credit. All the other expenses, except the accrued expenses,
were paid in full.
Income tax expense for the year amounted to R56 030.
Inventory is disclosed at cost.
The debtors control balance as at 31 December 2017 comprised of trade debtors only. The
debtors control balance as at 31 December 2018 includes trade debtors and a debtor in respect
of the sale of land and buildings.
All members’ contributions were made in cash.
QUESTION 4
For question 4 only, assume that the retained income balance of Silkaats CC amounted to R138 850 for
the year ended 31 December 2018. Which one of the following alternatives represents the profit before
tax as disclosed in the operating activities section of the statement of cash flows of Silkaats CC for the
year ended 31 December 2018, disclosed according to the indirect method?
1.
2.
3.
4.
R 55 350
R 111 380
R 151 380
R 171 380
QUESTION 5
Assuming that the profit before tax for Silkaats CC for amounted to R201 380 for the year ended 31
December 2018. Which one of the following alternatives represents the net cash generated from
operating activities in the statement of cash flows of Silkaats CC for the year ended 31 December 2018,
according to the indirect method?
1.
2.
3.
4.
R204 060
R221 380
R231 560
R185 030
QUESTION 6
Which one of the following alternatives represents the net cash generated from or (used in) investing
activities in the statement of cash flows of Silkaats CC for the year ended 31 December 2018?
1.
2.
3.
4.
R (95 100) Outflow
R (32 350) Outflow
R 62 750 Inflow
R 115 500 inflow
QUESTION 7
Which one of the following alternatives represents the net cash generated from or (used in) financing
activities in the statement of cash flows of Silkaats CC for the year ended 31 December 2018?
1.
2.
3.
4.
R 21 820 Inflow
R 39 300 Inflow
R 61 120 Inflow
R 38 800 inflow
19
FAC1601/101/3/2019
ASSIGNMENT 02 – FIRST SEMESTER (continued)
QUESTION 8
Which one of the following alternatives represents total amount of current assets to be disclosed in the
statement of financial position of Silkaats CC for the year ended 31 December 2018?
1.
2.
3.
4.
R 72 000
R 34 600
R 105 450
R 430 050
QUESTION 9
Which one of the following alternatives represents total amount of current liabilities to be disclosed in the
statement of financial position of Silkaats CC for the year ended 31 December 2018?
1.
2.
3.
4.
R 84 300
R 138 300
R 105 450
R 40 000
GIVEN INFORMTION FOR QUESTIONS 10
The following information pertains to the head office and the branch of Shakazulu Enterprises
Branch inventory on hand at selling price
R
1 January 2018 ......................................................................................................... ……
79 400
31 December 2018 ............................................................................................................
83 170
Transactions of the branch for the year ended 31 December 2018
R
Inventory transferred to the branch (selling price) .........................................................….. 440 000
Cash sales at the branch ..............................................................................................….. 392 700
Cash receipts from branch debtors ............................................................................ ……. 164 484
Settlement discount granted to branch debtors .............................................................. …1.
796
Branch administrative expenses paid by head office...................................................... …
27 864
Damaged inventory written off (at cost).......................................................................... …
4 000
Additional information
1.
2.
3.
20
Inventory is purchased by the head office and supplied to the Durban branch at selling price,
which is cost price plus 25%.
During June 2018, inventory with a selling price of R3 750 was stolen at the branch. No
entries have been made to record this theft.
The branch held a clearance sale during April 2018. Inventory was sold at selling price less 30%.
The proceeds of the sale amounted to R84 000 and were included in the cash sales
amount of R392 700 above.
FAC1601/101/3/2019
ASSIGNMENT 02 – FIRST SEMESTER – QUESTION 10 (continued)
QUESTION 10
Which one of the following alternatives represents the balance in the branch inventory account of
Shakazulu Enterprises on 31 December 2018?
1.
2.
3.
4.
R1 220 surplus
R2 530 deficit
R2 530 surplus
R1 220 deficit
END OF ASSIGNMENT 02 – FIRST SEMESTER
21
FAC1601/101/3/2019
ADDENDUM C:
COMPULSORY ASSIGNMENT 01 (SECOND SEMESTER)
UNIQUE NO: 806208
DUE DATE: 20 AUGUST 2019
2. This assignment must be answered on a mark-reading sheet if submitted by post. It can also be
submitted electronically through myUnisa.
2.
Before answering this assignment, please read paragraph 7 of this tutorial letter.
3.
This assignment covers study units 1 – 5 of the study guide.
3. We cannot grant any extension for the late submission of this assignment since the due
date is set in accordance with the marking date of this assignment. No correspondence
or telephone conversations will be conducted in this regard.
4. Important aspects regarding multiple-choice assignments answered on a mark-reading
sheet:

For detailed information and requirements as far as assignments are concerned, see
Study@Unisa which you received with your study package.

Work carefully through the relevant tutorial matter before you do the assignment.

Calculate your answer on a separate piece of paper before completing the mark-reading
sheet.
REMEMBER:





There is only one correct answer for each question. Do not make more than one mark per
question.
All questions are equal in value.
Indicate your student number correctly.
Indicate the assignment number correctly.
Indicate the unique assignment number for Assignment 01 correctly. Every assignment which
is marked by the computer is given a unique number. The number contains information on the
course code and the assignment number. When the computer reads the unique number, it
identifies it as Assignment 01 for FAC1601 – first semester.
FOR HARD COPY SUBMISSION:








22
Only the provided mark-reading sheets may be used.
Colour in the correct block clearly with a HB pencil.
Do not colour outside the block, or colour in the block with a pen.
Do not make corrections with correction fluid.
Do not tear or fold the mark-reading sheet. Do not try to repair a torn mark-reading sheet with
sticky tape – use another one.
Do not staple the mark-reading sheet to another piece of paper.
Do not submit answers on a written sheet of paper.
Send only your mark-reading sheet to the Assignments Division in the appropriate envelope.
FAC1601/101/3/2019
ASSIGNMENT 01 – SECOND SEMESTER (continued)
QUESTION 1
Consider the following statements:
(a) All financial statements are prepared according to the accrual basis of accounting.
(b) An entity has borrowed funds three months before the current financial year end. At the end of the
current financial year, the amount borrowed should be disclosed as a current liability in the financial
statements if it is repayable in the next 8 months.
(c) Information is material if its omission or misstatement only influences the decisions of management.
(d) Equity is the residual interest in the assets after deducting liabilities of an entity.
(e) An entity with an intention of liquidating its operations prepares its financial statement according to
the going concern assumption.
Which one of the following alternatives represents the incorrect statements?
5.
6.
7.
8.
(b), (c) and (d)
(a), (b) and (e)
(a), (c) and (e)
(a), (b) and (c)
QUESTION 2
Consider the following statements:
(a) It is mandatory for entities to disclose comparative information in its financial statements, except
during the first year of operations.
(b) Management has the option to offset assets and liabilities if it prefers.
(c) An item must have a value or cost that can be measured reliably in order to be recognised in the
financial statements.
(d) The communication of financial information is referred to as financial reporting.
(e) Omission or misstatement of information refers to the concept of timeliness.
Which one of the following alternatives represents the correct statements?
1.
2.
3.
4.
(a), (c), and (d)
(a), (b), and (c)
(b), (d) and (e)
(c), (d) and (e)
GIVEN INFORMATION FOR QUESTIONS 3 – 5
Sima and Shuly are in partnership trading as Shuma Trading. The following information relates to the
partnership:
Extract of balances as at 31 May 2018:
Capital: Sima (1 June 2017) ..................................................................................
Capital: Shuly (1 June 2017) ..................................................................................
Current Account: Sima (Cr) ....................................................................................
Current Account: Shuly (Cr) ...................................................................................
Drawings: Sima .....................................................................................................
Continued on the next page
R
320 000
280 000
85 000
74 000
15 000
23
FAC1601/101/3/2019
Drawings: Shuly .....................................................................................................
Bank (Dr) ...............................................................................................................
Land and buildings.................................................................................................
Vehicles at cost (1 June 2017) ...............................................................................
Equipment at cost (1 June 2017) ...........................................................................
Accumulated depreciation: Vehicles (1 June 2017)................................................
Accumulated depreciation: Equipment (1 June 2017) ............................................
Inventory................................................................................................................
Profit for the year (before any applicable additional information) ............................
20 000
305 000
450 000
270 000
95 000
135 000
20 000
95 000
115 000
Additional information:
1.
Abstract from terms of the partnership:
1.1
1.2
1.4
Interest on capital will be calculated at 12% per annum on the opening balances.
Interest will be charged at a rate of 5% per annum on the balance of the drawings accounts at the
end of the year.
Sima and Shuly are entitled to receive monthly salaries amounting to R8 000 and R7 000
respectively.
Partners will share profit and losses in the ratio of 3:2 respectively.
2.
Year-end adjustments:
2.1
On 1 March 2018, Sima made a cash contribution to the partnership amounting to R28 000. On
the same date. Shuly contributed to the partnership her vehicle valued at R45 000.
Land and buildings were revalued to R590 000 at 31 May 2018.
Depreciation for the year has not yet been provided for. It is Shuma’s policy to depreciate assets
as follows:
 Vehicles: According to the straight-line method over 6 years.
 Equipment: According to the diminishing balance method at 10% per annum. Equipment
has a residual value of R5 000.
On 31 May 2018 the net realisable value of the closing inventory was determined at R90 700.
During the year the partners withdrew inventory, for own personal use, as follows:
 Sima R15 000
 Shuly R20 000
1.3
2.2
2.3
2.4
2.4
QUESTION 3
Which one of the following alternatives represents the correct total comprehensive income for the year
for Shuma Trading as at year end? Round-off your answer to the nearest Rand.
1.
2.
3.
4.
R201 125
R196 825
R218 222
R224 667
QUESTION 4
Which one of the following alternatives represents the correct balance on the current account of Sima at
year end before the appropriation of comprehensive income?
1.
2.
3.
4.
24
R187 900
R189 400
R116 000
R149 500
FAC1601/101/3/2019
ASSIGNMENT 01 – SECOND SEMESTER (continued)
QUESTION 5
Assuming that total comprehensive income for the year amounts to R320 000, which one of the following
alternatives represents the correct amount of total comprehensive income or loss to be appropriated to
partners as at 31 May 2018?
1.
2.
3.
4.
R62 700
R68 000
R71 500
R75 000
GIVEN INFORMATION FOR QUESTIONS 6 - 7
Vusi and Nova are partnership trading as Vusi Nova Wholesalers. The partners share profits and losses
equally. On 1 November 2018, they decided to admit Nathi into the partnership. The new profit-sharing
ratio will be 2:2:1. Vusi Nova Wholesalers adopts the legal perspective in accounting for the change in
the ownership structure of the partnership. The following information appeared in the accounting records
of the partnership on 31 October 2018, the end of the financial year:
Extract of balances as at 31 October 2018:
Capital: Vusi (1 September 2017) ............................................................................................
Capital: Nova (1 September 2017) ...........................................................................................
Current Account: Vusi (Cr) .......................................................................................................
Current Account: Nova (Cr) .....................................................................................................
Land and buildings at cost .......................................................................................................
Vehicles at cost .......................................................................................................................
Accumulated depreciation: Vehicles ........................................................................................
Bank (Dr) .................................................................................................................................
R
220 000
220 000
23 000
35 000
490 000
110 000
70 000
10 000
In preparation for the admission of Nathi, the following adjustments must be taken into account:
1.
2.
3.
On 31 October 2018 the fair value of land and buildings was found to be R625 000.
One of the drivers of the partnership was involved in an accident with a delivery vehicle of the
partnership. The original cost price of the vehicle was R60 000 and the vehicle was damaged
beyond economic repair. On 31 October 2018, the date of the accident, the vehicle had an
accumulated depreciation amounting to R32 000. The vehicle was only insured against the third
party.
Upon joining the partnership, Nathi contributed cash of R45 000 and agreed to replace the delivery
van by purchasing a new one at a cost of R115 000.
QUESTION 6
Which one of the following alternatives represents the correct amount of goodwill acquired in Vusi
Nova Wholesalers 2018?
1. R302 000
2. R142 000
3. R107 000
4. R 35 000
25
FAC1601/101/3/2019
ASSIGNMENT 01 – SECOND SEMESTER (continued)
QUESTION 7
Which one of the following alternatives represents the correct amount allocated to Nova in the valuation
account of Vusi Nova Wholesalers on 1 November 2018?
1.
2.
3.
4.
R53 500
R107 000
R302 000
R142 000
GIVEN INFORMATION FOR QUESTIONS 8 - 9
Brian and Adams were in partnership trading as BA Suppliers and they provide car wash services to
clients. Profits and losses were shared in the ratio 2:3. In April 2019, they decided to liquidate the
partnership by means of a simultaneous liquidation on 1 April 2019. The partners further agreed that
deficits, if any, should be apportioned using the capital ratio.
EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2019:
Furniture and fittings ................................................................................................................
Goodwill ...................................................................................................................................
Bank ........................................................................................................................................
Inventory..................................................................................................................................
Trade and other receivables ....................................................................................................
Capital account: Brian..............................................................................................................
Capital account: Adams ...........................................................................................................
Current account: Brian (Cr) ......................................................................................................
Current account: Adams (Cr) ...................................................................................................
Revaluation surplus .................................................................................................................
Loan from Capic Bank .............................................................................................................
Trade and other payables ........................................................................................................
R
350 000
80 000
300 000
72 000
92 000
55 000
140 000
38 000
47 000
110 000
285 000
219 000
On 1 April 2019 the assets were liquidated, and liabilities settled as follows:
1.
2.
3.
4.
5.
Furniture and fittings were sold for R85 000 and inventory sold for R65 000 cash.
The debtors accounts were settled and a settlement discount of R2 000 was granted.
The loan from Capic bank was settled in full.
The creditors were paid R208 000 in full settlement of their accounts.
Liquidation expenses amounting to R43 000 were paid in full.
QUESTION 8
Which one of the following alternatives represents the balance on the bank account before any
settlement to partners?
1.
2.
3.
4.
26
R4 000
R188 000
R145 000
R300 000
FAC1601/101/3/2019
ASSIGNMENT 01 – SECOND SEMESTER (continued)
QUESTION 9
Which one of the following alternatives represents the correct settlement amount on the capital account
of Brian after the liquidation distribution?
1.
2.
3.
4.
R4 000
R17 400
R21 400
R69 400
GIVEN INFORMATION FOR QUESTION 10
Busi, Bulumko and Buhle were in partnership and shared profits and losses in the ratio 3:4:2. The
partnership is undergoing dissolution and assets have been liquidated piecemeal. You have been
approached by partners to oversee the accounting process of liquidating the partnership and the
following information has been made available to you.
1.
2.
3.
4.
5.
5.
All liabilities have already been paid.
The partners have decided to apply the loss absorption capacity method in accounting for the
liquidation.
Unsold assets amount to R 7 200.
Inventory in transit amounts to R 6 400. The supplier has confirmed that the inventory will be
delivered to the partnership’s premises in 2 days.
The bank balance amounts to R11 200.
The balances on the capital accounts are as follows:
 Busi:
R 8 000 credit
 Bulumko: R 4 200 credit
 Buhle:
R 12 600 credit
QUESTION 10
Which of the following options represents the interim payment that should be made to Buhle upon
liquidation of the partnership?
1.
2.
3.
4.
R9 578
R8 840
R9 168
R10 262
END OF ASSIGNMENT 01 – SECOND SEMESTER
27
FAC1601/101/3/2019
ADDENDUM D:
COMPULSORY ASSIGNMENT 02 (SECOND SEMESTER)
UNIQUE NO: 755231
DUE DATE: 10 SEPTEMBER 2019
1.
This assignment must be answered on a mark-reading sheet if submitted by post. It can also be
submitted electronically through myUnisa.
2.
Before answering this assignment, please read paragraph 7 of this tutorial letter.
3.
This assignment covers study units 6 – 9 of the study guide.
4.
We cannot grant any extension for the late submission of this assignment since the due
date is set in accordance with the marking date of this assignment. No correspondence
or telephone conversations will be conducted in this regard.
5.
Important aspects regarding multiple-choice assignments answered on a mark-reading
sheet:

For detailed information and requirements as far as assignments are concerned, see
Study@Unisa which you received with your study package.

Work carefully through the relevant tutorial matter before you do the assignment.

Calculate your answer on a separate piece of paper before completing the mark-reading
sheet.
REMEMBER:





There is only one correct answer for each question. Do not make more than one mark per
question.
All questions are equal in value.
Indicate your student number correctly.
Indicate the assignment number correctly.
Indicate the unique assignment number for Assignment 01 correctly. Every assignment which
is marked by the computer is given a unique number. The number contains information on the
course code and the assignment number. When the computer reads the unique number, it
identifies it as Assignment 01 for FAC1601 – first semester.
FOR HARD COPY SUBMISSION:








28
Only the provided mark-reading sheets may be used.
Colour in the correct block clearly with a HB pencil.
Do not colour outside the block, or colour in the block with a pen.
Do not make corrections with correction fluid.
Do not tear or fold the mark-reading sheet. Do not try to repair a torn mark-reading sheet with
sticky tape – use another one.
Do not staple the mark-reading sheet to another piece of paper.
Do not submit answers on a written sheet of paper.
Send only your mark-reading sheet to the Assignments Division in the appropriate envelope.
FAC1601/101/3/2019
ASSIGNMENT 02 – SECOND SEMESTER (continued)
GIVEN INFORMATION FOR QUESTIONS 1 – 3
The financial information below pertains to Notsonice CC. The information was prepared by the Close
Corporation’s accountant. The members of the Close Corporation are considering hiring a more suitable
accountant as the statement of financial position never balances.
EXTRACT OF BALANCES OF NOTSONICE CC AS AT 31 JULY 2019
Member’s contribution: Not .............................................................................................
Member’s contribution: So ..............................................................................................
Member’s contribution: Nice ...........................................................................................
Land and buildings at cost ..............................................................................................
Furniture and equipment at cost .....................................................................................
Accumulated depreciation: Furniture and equipment ......................................................
Trade receivables control................................................................................................
Loan to member: Not ......................................................................................................
Trade payables control ...................................................................................................
Bank (overdraft) ..............................................................................................................
Investment at fair value (1 August 2018).........................................................................
Long-term loan (Prince Bank) .........................................................................................
Retained earnings (1 August 2018) ................................................................................
SARS (income tax) (Dr) ..................................................................................................
Loan from member: Nice ................................................................................................
Distribution to member: Not ............................................................................................
Distribution to member: So .............................................................................................
Distribution to member: Nice ...........................................................................................
Inventory...... ...................................................................................................................
Accrued expenses ..........................................................................................................
Prepaid expenses ...........................................................................................................
R
260 000
210 000
120 000
600 000
270 000
83 220
149 800
40 000
42 480
6 220
130 000
60 000
188 290
33 200
50 000
44 000
26 000
14 000
133 700
16 500
5 410
Additional information that must still be adjusted
1.
2.
3.
4.
5.
6.
7.
8.
9.
The depreciation for the year has been correctly calculated and recorded, except for the
depreciation of R35 000 on buildings.
A debtor that owes Notsonice CC R4 500 is experiencing financial difficulties and must be written
off as irrecoverable at year end.
As at 31 July 2019, debtors owing R55 000 have indicated that they will settle their accounts
within 15 days after year end, in order to make use of the 10% granted for early settlement.
The investment consists of 100 000 ordinary shares of R1 each in Mareetsane Company Ltd. On
31 July 2019 the fair value of the shares was R155 000.
The profit before tax was calculated as R359 400 before the valuation of the investment for the
current financial year was taken into account.
During the financial year, Not experienced personal financial difficulties resulting in the close
corporation granting her a loan of R40 000 on 31 August 2018. The loan is immediately
callable.
The long-term loan from Prince Bank is secured by a first mortgage over land and buildings and
is repayable in full on 1 August 2028.
The loan from Nice is unsecured and interest free. An amount of R25 000 is repayable on
1 August 2019. The outstanding balance is repayable on 1 August 2020.
The income tax assessment, received from SARS on 15 August 2019, indicated that the
actual normal income tax for the 2019 financial year amounted to R115 398.
29
FAC1601/101/3/2019
ASSIGNMENT 02 – SECOND SEMESTER (continued)
10.
The members agreed to distribute a further profit of R50 000
members. This amount is payable to them on 1 September 2019.
in
total
to
the
QUESTION 1
Which of the following amounts represent the correct current assets in the statement of financial position
of Notsonice CC as at 31 July 2019?
1.
2.
3.
4.
R 433 910
R 468 500
R 473 910
R 139 800
QUESTION 2
Which of the following amounts represent the correct non-current assets in the statement of financial
position of Notsonice CC as at 31 July 2019?
1.
2.
3.
4.
R870 000
R600 000
R786 780
R751 780
QUESTION 3
Which of the following amounts represent the correct current liabilities in the statement of financial
position of Notsonice CC as at 31 July 2019?
1.
2.
3.
4.
R197 398
R272 398
R222 398
R205 898
GIVEN INFORMATION FOR QUESTIONS 4 – 6
Sibukho Ltd was formed during 2005 and its financial year end is on the last day of August. The
company had the following share capital structure on 01 September 2018:
Authorised share capital


400 000 ordinary shares
150 000 8% preference shares
Issued share capital


200 000 ordinary shares
150 000 8% R1 preference shares
Additional information
Sibukho Ltd offered 150 000 ordinary shares of R2 each on 15 December 2018 to the public. These
shares were underwritten City bank at 5% per share. On 15 January 2019, 145 000 applications for
30
FAC1601/101/3/2019
ASSIGNMENT 02 – SECOND SEMESTER (continued)
shares were received by Sibukho Ltd. The shares were allotted for applications received on 31 January
2019 and all necessary transactions were finalised.
The directors of Sibukho Ltd declared an ordinary dividend of 10 cents for every ordinary share on
31 August 2019.
QUESTION 4
Which of the following journals represent the correct journal entry for the final settlement to City bank on
31 January 2019?
1.
2.
3.
4.
City Bank
Bank
R
15 000
R
15 000
Underwriters commission
City Bank
15 000
City Bank
Bank
10 000
City Bank
Bank
5 000
15 000
10 000
5 000
QUESTION 5
Which of the following journals represent the correct journal entries for total dividends declared by
Sibukho Ltd on 31 August 2019?
1.
2.
3.
4.
Preference dividends
Ordinary dividends
Dividends payable
R
12 000
35 000
R
47 000
Ordinary dividends
Dividends payable
35 000
Ordinary dividends
Dividends payable
28 750
Preference dividends
Ordinary dividends
Dividends payable
12 000
28 750
35 000
26 750
40 750
31
FAC1601/101/3/2019
ASSIGNMENT 02 – SECOND SEMESTER (continued)
QUESTION 6
Using exactly the same information for question 4 to 5, except that 152 000 applications for shares
issued were received instead of 145 000. Which of the following journals represent the correct journal
entries for refund paid to unsuccessful applicants on 31 January 2019?
1.
2.
3.
4.
Bank
Applications and allotment
Applicacation and allotment
Bank
Application and allotment
Bank
Bank
Application and allotments
R
4 000
R
4 000
4 000
4 000
304 000
304 000
14 000
14 000
GIVEN INFORMATION FOR QUESTIONS 7 – 10
The accounting officer asked for your input in preparation of the statement of cash flows of Khanyi CC
using the indirect method for the year ended 31 August 2019.
The following items are extracted from the financial statements and presented to you – 31 August
2019
2018
R
R
Property, plant and equipment ..............................................................................
1 774 000
Investment at fair value .........................................................................................
300 000
Trade receivables .................................................................................................
160 000
Inventories ...........................................................................................................35 000
Cash and cash equivalents ...................................................................................
(Cr) 97 500
Members’ contributions .........................................................................................
440 000
Retained earnings.................................................................................................
347 000
Loans from members ............................................................................................
265 000
Loans to members ................................................................................................88 000
Mortgage ...........................................................................................................
1 100 500
SARS (Cr) ...........................................................................................................
122 000
Dividends receivable …………………………………………………………
15 000
188 000
45 000
14 000
(Dr)33 900
160 500
98 000
150 000
160 000
32 400
-
The note pertaining to property, plant and equipment for the year ended 31 August 2019 is as follows:
Land and
Equipment
Vehicle
buildings
R
R
R
Carrying amount at 1 July 2018
121 000
67 000
Cost price
153 000
75 000
Accumulated depreciation
(32 000)
(8 000)
Additions during the year
1 500 000
110 000
90 000
Disposals during the year
(54 000)
Depreciation for the year
(44 000)
(16 000)
Carrying amount at 31 August 2019
1 500 000
187 000
87 000
Cost price
1 500 000
263 000
165 000
Accumulated depreciation
(76 000)
(24 000)
32
FAC1601/101/3/2019
ASSIGNMENT 02 – SECOND SEMESTER (continued)
You have also obtained the following information in respect of the corporation. (All transactions were
correctly recorded):
1.
2.
3.
4.
5.
6.
7.
Interest:
 The loans from members bear interest at a rate of 10% per annum. The interest for the 2019
financial year was paid in cash to the members.
 There is no interest charged on loans to members.
 The interest expense in respect of the mortgage loan for the 2019 financial year amounted to
R87 500. According to the loan agreement, the interest was capitalised.
The income tax expense was disclosed as R111 000 in the statement of profit or loss and other
comprehensive income for the year ended 31 August 2019.
An additional amount of loans was received from members on 1 September 2018.
The vehicle of the business was stolen on 1 April 2019. During the financial year, the insurance
company paid the carrying amount of the stolen vehicle to the CC in cash. The close corporation
purchased a new vehicle in cash to replace the stolen vehicle.
The CC purchased a new building at the beginning of the 2019 financial year. The building was
partly paid for in cash from the CC’s own resources and the remaining part with a mortgage from
FNZA Bank. The proceeds of the mortgage were paid directly to the estate agent.
The additions to equipment were paid for in cash.
The investment consists of 150 000 shares in Platinum Ltd bought at R1 per share. On 31
August 2019 Platinum Ltd declared a dividend of 10 cents per share payable on
15 October 2019. The fair value of the investment R300 000 at year end.
QUESTION 7
Which option represents the correct amount for net cash generated from operating activities in the
statement of cash flows of Khanyi CC for the year ended 31 August 2019?
1.
2.
3.
4.
R369 000 cash inflow
R407 100 cash inflow
R435 100 cash inflow
R107 100 cash inflow
QUESTION 8
Which option represents the correct amount for cash generated from investing activities in the statement
of cash flows of Khanyi CC for the year ended 31 August 2019?
1.
2.
3.
4.
R1 646 000 cash outflow
R1 700 000 cash outflow
R 633 000 cash outflow
R1 640 000 cash outflow
33
FAC1601/101/3/2019
ASSIGNMENT 02 – SECOND SEMESTER (continued)
QUESTION 9
Which option represents the correct amount for cash generated from financing activities in the statement
of cash flows of Khanyi CC for the year ended 31 August 2019?
1.
2.
3.
4.
R 394 500 cash inflow
R1 407 500 cash inflow
R1 495 000 cash inflow
R1 013 500 cash outflow
QUESTION 10
The following information pertains to the head office and the branch of Pirates.
Branch inventory on hand at selling price
1 October 2018...................................................................................................................
30 September 2019……………………………………………………………………………....
R
160 000
40 000
Transactions of the branch for the year ended 30 September 2019
R
Inventory transferred to the branch (selling price) ..............................................................
188 500
Credit sales at the branch ..................................................................................................
285 530
Settlement discount granted to branch debtors ....................................................................
2 433
Branch administrative expenses paid by head office..........................................................
17 375
Damaged inventory written off (at cost)..............................................................................
4 800
Additional information
1.
3.
Inventory is purchased by the head office and supplied to the branch at selling price, which is
cost price plus 25%.
The branch held a clearance sale during June 2019. Inventory was sold at selling price less
30%. The proceeds of the sale amounted to R49 250 and were included in the credit sales
amount of R285 530 as indicated above.
Which of the following represents the correct surplus/(deficit) in the branch inventory account as at
30 September 2019 after taking the additional information into account?
1.
2.
3.
4.
R
R
R
R
146 146 surplus
62 137 surplus
94 030 deficit
2 137 deficit
END OF ASSIGNMENT 02 – SECOND SEMESTER
34