Fac 1601 Financial Accounting

FAC1601/101/3/2018
Tutorial letter 101/3/2018

Financial Accounting Reporting
FAC1601
Semesters 1 & 2
Department of Financial Accounting
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
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 2018 .......................................................................... 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).......................................... 18
ADDENDUM C: COMPULSORY ASSIGNMENT 01 (SECOND SEMESTER) ..................................... 26
ADDENDUM D: COMPULSORY ASSIGNMENT 02 (SECOND SEMESTER) ..................................... 34
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FAC1601/101/3/2018
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 mySTUDIES@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) +27(0)12 429 4835 [email protected]

Mr B Khanyeza +27(0)12 429 4766 [email protected]
Mrs B Ceki +27(0)12 429 3631 [email protected]
Mr A Visagie +27(0)12 429 4810 [email protected]
3
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:

- [email protected]
- [email protected]
- [email protected]
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 mySTUDIES@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 mySTUDIES@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 [email protected].
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.
 Prescribed book
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FAC1601/101/3/2018
Your prescribed book for this module is:
About Financial Accounting, Volume 2, 6th Edition by Doussy F, et al. LexisNexis Butterworths.
Durban. 2016.
Please consult the list of official booksellers and their addresses listed in mySTUDIES@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
mySTUDIES@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 mySTUDIES@Unisa, which you received with your study material, for
more information on myUnisa.
5
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 [email protected]. 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 mySTUDIES@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 Type Unique number

Assignment 01 Multiple choice 598791
Semester 2 Type Unique number

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FAC1601/101/3/2018
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 Semester 1 Semester 2

Due dates Due dates
01/2018 Compulsory – Addendum A 12 March 2018
02/2018 Compulsory – Addendum B 09 April 2018
01/2018 Compulsory – Addendum C 20 August 2018

02/2018 Compulsory – Addendum D 10 September 2018
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
The study programme is based on the following assumptions:
 That study will commence on either 08 January 2018 for the first semester or 25 June 2018 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.
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FAC1601/101/3/2018
8. PROPOSED STUDY PROGRAMME FOR 2018
8.1 First semester

DATE STUDY MATERIAL AND ASSIGNMENTS
± 08/1 to 09/2 Study: Study units 1 to 5
± 12/2 to 16/2 Do Assignment 01 (compulsory assignment): Due date 12/03/2018
± 16/2 Submit Assignment 01 (NB: DO NOT WAIT UNTIL 12/03/2018)
± 28/3 to 03/4 Do and mark Assignment 03 (do not submit this assignment)
The solutions to Assignments 03 and 04 are provided in the same
tutorial letter
10/4 to examination Revision
During May/June 2018: EXAMINATION
8.2 Second semester

DATE STUDY MATERIAL AND ASSIGNMENTS
The solutions to Assignments 03 and 04 are provided in the same
tutorial letter
11/9 to examination 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: [email protected]
LECTURERS: FINANCIAL ACCOUNTING REPORTING (FAC1601)
9
ADDENDUM A: COMPULSORY ASSIGNMENT 01 (FIRST SEMESTER)
UNIQUE NO: 598791
DUE DATE: 12 MARCH 2018
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
mySTUDIES@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:

 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.
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FAC1601/101/3/2018
ASSIGNMENT 01 – FIRST SEMESTER (continued)
QUESTION 1
Consider the following statements:

(a) According to the Conceptual Framework, an asset is recognised in the statement of financial
position when it is probable that the future economic benefits will flow to the entity and the asset has
a cost or value that can be measured reliably.
(b) All financial statements of an entity must be prepared according to the accrual basis of accounting.
(c) An entity with an intention to liquidate its operations may prepare its financial statements according
to the going concern basis.
(d) Equity is the residual interest in the assets of the entity after deducting all its liabilities.
(e) Some companies listed on the Johannesburg Stock Exchange (JSE) are required to comply with
International Financial Reporting Standards (IFRS).
Which one of the following alternatives represents the correct statement(s)?
1. (d)
2. (a), (b) and (d)
3. (a), (b), (c) and (d)
4. (a) and (d)
QUESTION 2

(a) A partnership is a separate legal entity.
(b) A close corporation can continue to operate under its registered name when the membership thereof
changes.
(c) If there is no written agreement between the partners of a partnership regarding the appropriation of
a profit/loss, it is assumed that the profit/loss will be apportioned to the partners equally.
(d) According to the “legal approach” towards accounting for partnerships, salaries to partners are an
appropriation of the profit of a partnership and not an operating expense.
(e) A close corporation has an independent juristic personality and the taxable income of a close
corporation is subject to normal income tax at the rate which is applicable to a company.
Which one of the following alternatives represents the correct statement(s)?
1. (b)
2. (b), (d) and (e)
3. (b), (c), (d) and (e)
4. (a) and (c)
11
Given information for Questions 3 to 5:
You are approached to assist in the preparation of the financial statements of a partnership, trading as
Baleka-Msana.
List of balances of Baleka-Msana as at 28 February 2018:

R
Capital: Baleka ............................................................................................................... 300 000
Capital: Msana ............................................................................................................... 300 000
Current account: Baleka (Dr) (1 March 2017) ................................................................. 17 500
Current account: Msana (Dr) (1 March 2017) ................................................................. 25 000
Mortgage loan: A-Bad Bank............................................................................................ 872 000
Trade receivables control ............................................................................................... 75 000
Trade payables control ................................................................................................... 32 500
Bank ............................................................................................................................... 33 350
Land and buildings at cost .............................................................................................. 2 000 000
Vehicle at cost - (1 March 2017) ..................................................................................... 168 000
Equipment at cost (1 March 2017) .................................................................................. 48 000
Accumulated depreciation: Vehicle ................................................................................. 27 900
Accumulated depreciation: Equipment ........................................................................... 8 000
Sales .............................................................................................................................. 1 925 000
Purchases ...................................................................................................................... 570 420
Advertising expenses ..................................................................................................... 7 800
Settlement discount granted (ignore when answering Question 4) ................................. 1 800
Bank charges ................................................................................................................. 3 250
Stationery consumed ...................................................................................................... 2 500
Administrative expenses ................................................................................................. 17 000
Vehicle maintenance costs ............................................................................................. 34 500
Salaries ......................................................................................................................... 165 000
Insurance expenses ....................................................................................................... 24 080
Inventory ........................................................................................................................ 60 420
Carriage on purchases ................................................................................................... 5 000
Inventory 1 March 2016 .................................................................................................. 40 000
Additional information:
While you were in the office of Baleka-Msana, you were informed of the following:
1. Skhulubundru Computers CC, one of the trade debtors of the partnership, was liquidated and no
cash was received to settle the outstanding balance of the CC, which amounts to R16 500. The
bookkeeper forgot to take this event into account.
2. Salaries amounting to R60 000 were paid out in cash during the year to partners and are included in
the salaries amount above. Stationery consumed stated in the list above was taken by Mr Msana, a
partner for his son.
3. On 28 February 2018 a customer returned faulty inventory which he had purchased (at the selling
price) for R500, cash. The cashier refunded him R500 in cash. The bookkeeper was unaware of this
sales return.
4. The partners decided to provide for credit losses at 8% of the balance of the outstanding trade
receivables account.
5. Depreciation for the year was not yet provided for. It is the accounting policy of the partnership to
provide for depreciation as follows:
 Vehicles: According to the straight line method, at 20% per annum. Estimated scrap value
after 5 years is R75 000.
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FAC1601/101/3/2018

 Equipment: At 25% per annum, according to the diminishing-balance method. The mortgage
loan from A-Bad Bank was obtained on 1 April 2017 to finance the land and buildings which
were purchased on this date. No interest on the loan was provided for the financial year. The
interest rate that was agreed upon is 10,5% per annum, payable annually in arrears, that is
on 31 March.
QUESTION 3
Which one of the following alternatives represents the correct amount that must be disclosed as revenue
in the statement of profit or loss and other comprehensive income of Baleka-Msana for the year ended
28 February 2018?
1. R1 925 000
2. R1 922 700
3. R1 908 000
4. R1 908 500
QUESTION 4
Which one of the following alternatives represents the correct amount that must be disclosed as profit for
the year in the statement of profit or loss and other comprehensive income of Baleka-Msana for the year
ended 28 February 2018? Irrespective of your answer in question 3 above, assume that the correct
revenue amount is R1 900 000 for the purposes of answering question 4.
1. R1 018 340
2. R1 015 840
3. R1 075 840
4. R1 078 340
QUESTION 5
Which one of the following alternatives represents the correct amount that must be disclosed as
drawings in the statement of changes in equity of Baleka-Msana for the year ended 28 February 2018?
1. R60 000
2. R2 500
3. R62 500
4. R67 800
QUESTION 6
Phuma and Langa are in a partnership, trading as PL Traders. They decided to admit Sikothe to the
partnership. The new partnership will trade as PLS Traders. It was agreed that Sikothe will contribute
R225 000 in cash as well as equipment with a fair value of R5 000 for a 1/5 interest in the fair value of
the net assets of PLS Traders. The sum of the equity that Phuma and Langa will contribute to PLS
Traders is R900 000. It was decided that Phuma, Langa and Sikothe will share in the profits/losses of
PLS Traders in the ratio of 2:1:1 respectively.
Which one of the following alternatives represents the correct amount that will be calculated as the
purchased goodwill of PLS Traders?
1. R670 000
2. R210 000, negative goodwill
3. R20 000
4. Nil
13
QUESTION 7
Thaba and Bosiu are in a partnership, trading as TB Marena, and they share equally in the profits/losses
of the partnership. For the purpose of admitting Seana to the partnership on 1 April 2017, goodwill to the
amount of R50 000 was created by recording it directly against the capital accounts of the partners. The
land and buildings, with a carrying amount of R300 000, were valued at a fair value of R1 000 000. The
equipment, with a carrying amount of R60 000, was valued at a fair value of R45 000. Thaba, Bosiu and
Seana will share in the profits/losses of the new partnership, which will trade as TBS Marena, in the ratio
of 3:2:1 respectively.
Which one of the following alternatives is the correct valuation account in the general ledger of TB
Marena to record the above valuations?
1.
Dr Valuation account Cr
2017 R 2017 R
Mar 31 Equipment at carrying amount 15 000 Mar 31 Land and buildings 700 000
342 500
Capital: Thaba
Capital: Bosiu 228 333
Capital: Seana 114 167
700 000 700 000
2.
2017 R 2017 R
367 500
Capital: Thaba 367 500 Goodwill 50 000
Capital: Bosiu
750 000 750 000
3.
2017 R 2017 R
Mar 31 Land and buildings 700 000 Mar 31 Equipment at carrying
amount
15 000
Capital: Thaba
342 500
700 000 700 000
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FAC1601/101/3/2018
QUESTION 7 (continued)
4.
2017 R 2017 R
Capital: Thaba 342 500
700 000 700 000
QUESTION 8
Thabo, Thiba and Thabang were in a partnership which traded as Dilo-tše-Tharo Services, and they
shared in the profits and losses of the partnership in the ratio of 3:2:1 respectively. They decided to
liquidate the partnership on 1 July 2017 by means of a simultaneous liquidation.
On 30 June 2017 the following trial balance was prepared:
DILO-TŠE-THARO SERVICES
TRIAL BALANCE AS AT 30 JUNE 2017
Debit Credit
R R
Capital: Thabo ............................................................................................ 540 000
Capital: Thiba ............................................................................................. 300 000
Capital: Thabang ........................................................................................ 176 000
Current account: Thabo .............................................................................. 36 000
Current account: Thiba ............................................................................... 24 000
Current account: Thabang .......................................................................... 12 000
Long-term loan ........................................................................................... 216 000
Trade payables control ............................................................................... 72 000
Land and buildings at fair value .................................................................. 960 000
Equipment at carrying amount .................................................................... 240 000
Bank ........................................................................................................... 80 000
1 328 000 1 328 000
On 1 July 2017 the following liquidation transactions took place:
1. Land and buildings were sold for cash, R960 000. Equipment with a carrying amount of R60 000 was
taken over but not paid for immediately by Thiba at an agreed amount of R54 000. The remaining
equipment was sold for R204 000 in cash. The long-term loan was repaid in full and R66 000 was
paid to the trade creditors in full settlement of their accounts.
Which alternative shows the correct net profit/loss made on the liquidation of Dilo-tše-Tharo Services?
1. R24 000, net loss

2. The partnership broke even
3. R24 000, net profit
4. R30 000, net profit
15
Given information for Questions 9 and 10:
Ntho, Tse and Monate are in a partnership, trading as Shaba Creations, and they share in the
profits/losses of the partnership in the ratio of 4:2:1 respectively. At 31 July 2017 they decided to
dissolve the partnership piecemeal. It is anticipated that the liquidation expenses will amount to R3 500.
The partners are all solvent and each of them will be able to settle any final deficit on his capital account.
All of the assets will be sold for cash. The anticipated liquidation expenses must be provided for in full
and the cash must therefore be retained in the bank account until the date that it is payable. The trade
creditor is to be paid with a once-off payment after the liquidation expenses have been provided for. As
further cash becomes available, interim repayments to the partners must be made in such a manner that
no partner will have to repay an interim repayment that was received.
SHABA CREATIONS
TRIAL BALANCE AS AT 31 JULY 2017
Debit Credit
R R
Capital: Ntho ................................................................................................ 12 000
Capital: Tse.................................................................................................. 6 000
Capital: Monate ............................................................................................ 3 000
Current account: Ntho .................................................................................. 7 000
Current account: Tse.................................................................................... 6 000
Current account: Monate .............................................................................. 2 500
Bank ............................................................................................................ 3 000
Trade receivables control ............................................................................. 4 000
Vehicles at carrying amount ......................................................................... 20 500
Trade payables control................................................................................. 5 000
34 500 34 500
The assets were liquidated as follows:

Selling price/
Date Asset Value Profit
Cash received
R R R
3 August 2017 Trade receivables 4 000 4 000 -
17 August 2017 Motor vehicle 10 000 13 500 3 500
23 August 2017 Motor vehicle 10 500 10 500 -
No discount was received on the payment made to the trade creditor. On 23 August 2017, the liquidation
expenses were settled in full.
QUESTION 9
Which one of the following alternatives discloses the correct balances of the general ledger accounts of
the partnership on 17 August 2017, after the liquidation of the motor vehicle and the settlement of the
trade creditor were recorded, but prior to any interim repayments to the partners?
Motor Trade Trade Capital: Capital: Capital:

Bank
vehicles receivables payables For Ever Young
R R R R R R R
1. 3 000 20 500 4 000 (5 000) (5 000) (12 000) (5 500)
2. 20 500 10 500 - (5 000) (7 000) (13 000) (6 000)
3. 15 500 10 500 - - (7 000) (13 000) (6 000)
4. 12 000 10 500 - - (5 000) (12 000) (5 500)
16
FAC1601/101/3/2018
QUESTION 10
Using the loss-absorption-capacity method, indicate which one of the following alternatives reflects the
interim repayments to be made to the partners:
1. Ntho: R1 000; Tse: R10 000 and Monate: R4 500
2. Ntho: Nil; Tse: R8 333 and Monate: R3 667
3. Ntho: Nil; Tse: R9 000 and Monate: R4 000
4. Ntho: R8 857; Tse: R4 429 and Monate: R2 214
END OF ASSIGNMENT 01 – FIRST SEMESTER
17
ADDENDUM B: COMPULSORY ASSIGNMENT 02 (FIRST SEMESTER)
UNIQUE NO: 839345
DUE DATE: 9 APRIL 2018

sheet:
sheet.
REMEMBER:
question.

18
FAC1601/101/3/2018
Given information for questions 1 to 2:
Sphenge and Fanezi are the only members of Bayafanelwa Travel CC. They have an equal interest in
the corporation and distribute profits accordingly.
The following information is extracted from the accounting records of the CC as at 28 February 2018,
the financial year-end of the corporation.
R
Member’s contribution: Sphenge................................................................................... 80 000
Member’s contribution: Fanezi ...................................................................................... 60 000
Retained earnings (1 March 2017) ................................................................................ 285 817
Loan from member: Sphenge (1 March 2017) ............................................................... 46 900
Loan to member: Fanezi ............................................................................................... 35 250
Inventory (1 March 2017) .............................................................................................. 33 006
Trade receivables control ............................................................................................. 45 900
Trade payables control.................................................................................................. 252 050
Bank (Dr) ...................................................................................................................... 36 200
Sales............................................................................................................................. 552 262
Investment (Lion Ltd) .................................................................................................... 130 000
Interim profit distribution paid to members..................................................................... 40 000
Income received in advance ......................................................................................... 7 330
Prepaid expenses ......................................................................................................... 5 500
Rental income ............................................................................................................... 36 650
Purchases ..................................................................................................................... 300 090
Administrative, distribution and other expenses ............................................................ 57 900
Settlement discount on sales ........................................................................................ 5 700
SARS (Income tax) (Dr) ................................................................................................ 36 348
1. An invoice relating to carriage on purchases amounting to R9 450 was received on 28 February 2018
and must still be taken into account.
2. The closing inventory amounted to R40 500.
3. The investment in Qabaqongo Ltd consist of 80 000 shares bought for R130 000 and was acquired in
February 2016. The investment was acquired for trade purposes, on 15 February 2018 Qabaqongo
Ltd declared a dividend of 20 cents per share payable on April 2018. On 28 February 2018 the fair
value of the investment amounted to R170 000.
4. Each member received a monthly salary of R4 500 paid in cash. Fanezi the managing member of
Bayafanelwa Travel CC is entitled to a bonus of R10 000 payable in March 2018. These transactions
were not recorded in the books of the close corporation.
5. The actual income tax for the financial year amounted to R68 900 and must still be recorded.
6. Interest must be recorded on the loan accounts to members at 11% per annum on the opening
balance of any existing loans as well as on any additional loans granted. On 30 September 2017, an
additional loan of R18 800 was granted to Fanezi and was correctly accounted for in the books of the
close corporation. Interest on the loans to members is capitalised. All loans are unsecured and
immediately callable.
7. Interest on loans from members is calculated at 10% per annum and is not capitalised.
19
QUESTION 1
retained earnings in the statement of financial position of Bayafanelwa Travel CC as at 28 February
2018?
1. R375 565
2. R336 164
3. R384 945
4. R384 999
QUESTION 2
Which one of the following alternatives represents the correct amount to be disclosed as trade and
other payables in the statement of financial position of Bayafanelwa Travel CC as at 28 February 2018?
1. R226 800
2. R259 330
3. R276 190
4. R283 520
Nang’wam Ltd has a financial year end of 31 January. The company has the following share capital
structure:
Authorised share capital:

500 000 ordinary shares
200 000 10% preference shares
Issued share capital:

350 000 ordinary shares valued at R550 000, 150 000 of these shares remained unchanged for the full
year while the remainder was allotted and issued on 1 January 2018 at a consideration of R400 000 by
an underwriter at a 1.5% commission which was paid on the same date. However, 210 000 applications
were received for these shares.
120 000 10% preference shares, 60 000 of these shares remained unchanged for the full year and were
issued for R120 000 while the remainder were allotted and issued on 31 July 2017 at a consideration of
R180 000.
On 31 January 2018, the board of Nang’wam Ltd decided to issue capitalisation shares to ordinary
shareholders in the ratio of 1 share for every 4 ordinary share held at R2,20 per share. The capitalisation
issue to ordinary shareholders was funded from retained earnings.
The preference shareholders were paid a cash dividend.
According to the company’s solvency and liquidity test, it had sufficient cash and retained earnings to
pay the dividends to ordinary and preference shareholders.
20
FAC1601/101/3/2018
QUESTION 3
Which one of the following alternatives represents the correct amount of commission paid to the
underwriter for the issue of ordinary shares as at 1 January 2018?
1. R2 250
2. R6 000
3. R10 500
4. R3 000
QUESTION 4
Which one of the following alternatives represents the value of the capitalization issue of ordinary shares
for ordinary shareholders and the preference share dividend paid to preference shareholders for the
year ended January 2018?
1. R192 500 and R21 000

2. R82 500 and R10 000
3. R175 000 and R9 000
4. R190 000 and R12 000
The following information was extracted from the accounting records of Batsheleni CC:
BATSHELENI CC
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2018
2018 2017
R R
Property, plant and equipment ............................................................. 154 300 129 300
Investment in SAN ............................................................................... 135 000 -
Inventories ........................................................................................... 18 000 12 000
Trade and other receivables................................................................. 30 000 10 000
Prepayments (Rent) ............................................................................. 900 400 -
Other financial assets .......................................................................... 14 000 12 000
Cash and cash equivalents .................................................................. 80 000 4 000
Members’ contributions ........................................................................ 52 000 52 000
Retained earnings ................................................................................ 142 500 100 000
Long-term borrowings .......................................................................... 55 200 129 700
Trade and other payables .................................................................... 30 000 8 000
Current tax payable .............................................................................. 17 500 13 000
21
BATSHELENI CC
EXTRACT FROM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2018
R
Revenue ................................................................................................................ 191 000
Cost of sales .......................................................................................................... 70 000
Dividend income .................................................................................................... 3 300
Profit on sale of investment .................................................................................... 15 000
Depreciation........................................................................................................... 5 000
Credit losses .......................................................................................................... 5 500
Rent expenses ....................................................................................................... 6 000
Water and electricity .............................................................................................. 2 500
Salaries and wages................................................................................................ 40 550
Interest on long-term loan ...................................................................................... 3 000
Income tax expense ............................................................................................... 34 250
1. All sales and purchases are on credit.

2. Other financial assets consist of shares purchased in Mbhiqani Ltd.
3. An interim profit distribution of R6 000 was paid during the year.
4. Batsheleni CC uses the indirect method to prepare their statement of cash flows.
5. The allowance for credit losses increased from R10 000 in 28 February 2017 to R15 500 in
February 2018.
QUESTION 5
Which one of the following alternatives represents the amount that must be disclosed as net cash
generated from/(used in) operating activities in the statement of cash flows of Batsheleni CC for the year
ended 28 February 2018?
1. R31 700
2. R37 700
3. R24 500
4. R40 700
QUESTION 6
proceeds from sale of investments in investing activities in the statement of cash flows of Batsheleni
CC for the year ended 28 February 2018?
1. R64 500
2. R15 000
3. R135 000
4. R150 000
22
FAC1601/101/3/2018
QUESTION 7
Which one of the following alternatives represents the correct amount that must be disclosed as net cash
from financing activities in the statement of cash flows of Batsheleni CC at 28 February 2018?
1. R55 500
2. R71 400
3. R74 500
4. R129 700
QUESTION 8
The following is information is extracted from the accounting records of Skhambeleni Ltd as at
28 February 2018, the end of the financial year:
R
Share capital: Ordinary shares ........................................................................................ 200 000
Land and buildings .......................................................................................................... 530 500
Revaluation surplus ........................................................................................................ 30 000
Retained earnings (1 March 2017) .................................................................................. 98 000
Equipment at cost ........................................................................................................... 200 000
Accumulated depreciation: Equipment ............................................................................ 40 000
Long-term loan ................................................................................................................ 150 000
Trade receivables control ................................................................................................ 70 000
Trade payables control.................................................................................................... 20 000
Sales............................................................................................................................... 350 000
Allowance for settlement discount granted ...................................................................... 5 500
Income tax expense ........................................................................................................ 30 000
Profit for the year ............................................................................................................ 108 000
Additional information
1. The corporation is taxed at a rate of 28%.

2. On 1 March 2018, a sales invoice for R18 000 was found on the desk of the marketing manager.
This invoices related to a sales transaction on 27 February 2018 and must still be recorded in the
books of the entity. The total income tax amount for the year would be R33 000 after taking this
sales invoice into account.
3. The long-term loan was obtained on 31 October 2017 and bears interest at a rate of 12% per annum.
Which one of the following alternatives represents the correct amount to be disclosed as Total equity and
liabilities in the statement of financial position of Skhambeleni Ltd for the year ended 28 February2018?
1. R624 000
2. R621 000
3. R606 000
4. R576 000
23
The following information pertains to the head office and the branch of Lekhethu Ltd:
Branch inventory on hand (selling price):
1 February 2017 R5 200

31 January 2018 R5 000
Transactions during the year ended 31 January 2018:

R
Inventory sent to branch (selling price) ..................................................................................... 156 200
Sales by the branch .................................................................................................................
Cash sales ............................................................................................................................... 71 600
Credit sales .............................................................................................................................. 57 600
Returns to head office (cost price) ........................................................................................... 7 400
Cash received from branch debtors ......................................................................................... 11 200
Settlement discount granted to branch debtors ........................................................................ 1 000
Inventory stolen at the branch (selling price) ............................................................................ 7 500
Sundry expenses of the branch paid by head office ................................................................. 18 500
1. All inventories are purchased by the head office and supplied to the branch at selling price, which is
cost price plus 25%.
2. Due to the current economic downturn, there has been a significant decline in sales at the branch. As
a result, the head office has allowed the branch to sell certain products at selling price less 30%. The
net proceeds of the products sold at discount amounted to R8 400. This amount is included in the
above cash sales figure of R71 600.
3. During the year a burglary took place at the branch and R1 400 in cash (in respect of cash sales)
was stolen. No entries regarding the burglary were made in the books.
4. Inventory invoiced to the branch at R5 600 included in the above amount of R156 200 pertaining to
inventory sent to branch at selling price was in transit at 31 January 2018, and therefore not included
in the branch’s inventory on hand of R5 000 at 31 January 2018.
QUESTION 9
Which of the following alternatives represents the correct mark-down on cost in the branch inventory
account of Lekhethu Ltd for the year ended 31 January 2018?
1. R1 000
2. R2 400
3. R1 200
4. R1 500
24
FAC1601/101/3/2018
QUESTION 10
Which of the following alternatives represents the correct surplus / deficit in the branch inventory
account of Lekhethu Ltd for the year ended 31 January 2018?
1. R20 930 deficit

2. R 5 750 (surplus)
3. R10 750 deficit
4. R 150 (surplus)
END OF ASSIGNMENT 02 – FIRST SEMESTER
25
ADDENDUM C: COMPULSORY ASSIGNMENT 01 (SECOND SEMESTER)
UNIQUE NO: 785637
DUE DATE: 20 AUGUST 2018

sheet:
sheet.
REMEMBER:
question.

26
FAC1601/101/3/2018
ASSIGNMENT 01 – SECOND SEMESTER (continued)
QUESTION 1
Consider the following enhancing qualitative characteristic of useful financial information in terms of the
Conceptual Framework?
(a) Understandability
(b) Timeliness
(c) Going concern
(d) Verifiability
(e) Comparability
Which one of the following alternatives represents the incorrect characteristic(s)?
1. (a) and (b)

2. (c)
3. (c), (d) and (e)
4. (a), (b), (d) and (e)
QUESTION 2
(a) The withdrawal of capital in cash by a partner must be recorded by debiting the drawings account of
the partner and by crediting the bank account of the partnership.
(b) The drawings of partners are expenses of the partnership which must be disclosed in the income
statement of the partnership.
(c) At the end of a financial year, the salary of a partner for the year is provided for by debiting the salary
account of the partner and by crediting the current account of the partner.
(d) At the end of a financial year, the salary account of a partner is closed off to the appropriation
account.
(e) Cash drawn by a partner during a financial year as his salary is recorded by debiting the drawings
account (or the current account if no drawings account was opened) of the partner and crediting the
bank account of the partnership.
Which one of the following alternatives represents the correct statements?
1. All of the above

2. (a), (b), (d) and (e)
3. (a), (c), (d) and (e)
4. (c), (d) and (f)
Given information for Questions 3 to 5:
You are approached to assist in the preparation of the financial statements of a partnership, trading as
Lidoda-Duvha.
27
List of balances of Lidoda-Duvha as at 28 February 2018:

R
Capital: Tshanduko ........................................................................................................ 300 000
Capital: Tshiananeo........................................................................................................ 300 000
Current account: Tshanduko (Dr) (1 March 2017) .......................................................... 17 500
Current account: Tshiananeo (Dr) (1 March 2017) ......................................................... 25 000
Drawings: Tshanduko ..................................................................................................... 48 000
Drawings: Tshiananeo .................................................................................................... 80 200
Mortgage: Taki Bank ...................................................................................................... 872 000
Trade receivables control ............................................................................................... 75 000
Trade payables control ................................................................................................... 32 500
Bank ............................................................................................................................... 33 350
Land and buildings at cost .............................................................................................. 2 000 000
Vehicle at cost (1 March 2017) ....................................................................................... 180 000
Equipment at cost (1 March 2017) .................................................................................. 48 000
Accumulated depreciation: Vehicle ................................................................................. 30 000
Accumulated depreciation: Equipment ........................................................................... 8 000
Sales .............................................................................................................................. 1 925 000
Cost of sales .................................................................................................................. 745 000
Advertising expenses ..................................................................................................... 7 800
Bank charges ................................................................................................................. 3 200
Telephone expenses ...................................................................................................... 23 800
Salaries to employees .................................................................................................... 160 000
Insurance expenses ....................................................................................................... 24 000
Interest expense ............................................................................................................. 2 000
Inventory ........................................................................................................................ 60 420
While you were in the office of Lidoda-Duvha, you were informed of the following:
1. Thinavhuy’ CC, one of the trade debtors of the partnership, was liquidated and no cash was received
to settle the outstanding balance of the CC, which amounts to R14 500. The bookkeeper forgot to
take this event into account.
2. An order for inventory with a cost price of R32 000 was placed via e-mail on 15 February 2017. The
invoice and inventory were received on 27 February 2018. The bookkeeper did not record this credit
purchase by the partnership.
3. On 28 February 2018 a customer returned faulty inventory which he had purchased (at the selling
price) for R500, credit. The bookkeeper forgot to record this sales return. An adjustment to cost of
sales and inventory was already done.
4. The partners decided to provide for allowance for credit losses at 6% of the balance of the
outstanding trade receivables control account.
5. Depreciation for the year was not yet provided for. It is the accounting policy of the partnership to
provide for depreciation as follows:
 Vehicles: According to the straight-line method, at 20% per annum. Estimated scrap value after
5 years: R75 000.
 Equipment: At 15% per annum, according to the diminishing-balance method.
6. The partnership agreement stipulates that the partners are entitled to R8 000 each per month as
salaries. Included in salaries to employees amount above is R30 000 paid out in cash to Tshanduko
during the year.
28
FAC1601/101/3/2018
QUESTION 3
Which one of the following alternatives represents the correct amount that must be disclosed as profit
for the year in the statement of profit or loss and other comprehensive income of Lidoda-Duvha for the
year ended 28 February 2018?
1. R909 200
2. R930 200
3. R1 173 000
4. R937 400
QUESTION 4
Which one of the following alternatives represents the correct closing balance of Tshanduko’s current
account in the statement of changes in equity of Lidoda-Duvha for the year ended 28 February 2018?
1. R10 000
2. R30 000
3. R28 000
4. R375 850
QUESTION 5
Which one of the following alternatives represents the correct amount of total assets in the statement of
financial position of Lidoda-Duvha as at 28 February 2018?
1. R2 228 000
2. R2 000 000
3. R2 326 270
4. R2 332 270
Given information for Questions 6 and 7:
Mbulayeni and Shonisani are in partnership, trading as Mbu-Sho Traders, and they share the
profits/losses in the ratio of 3:1 respectively. For the purpose of admitting Tanga and Mulalo to the
partnership on 1 May 2016, Mbulayeni and Shonisani decided to create goodwill to the amount of
R75 000 by recording it directly against the capital accounts of the partners. The land and buildings with
a carrying amount of R3 500 000 were valued at a fair value of R4 000 000, and the furniture and
equipment, with a carrying amount of R860 000, were valued at a fair value of R900 000. Mbulayeni and
Shonisani decided to provide for bad debts, the provision amounted to R46 000. Mbulayeni, Shonisani,
Tanga and Mulalo will share in the profits/losses of the new partnership, which will trade as
Avhapfani Traders, in the ratio of 4:3:2:1 respectively.
QUESTION 6
Which one of the following alternatives discloses the correct entry (narration omitted) in the general
journal of Mbu-Sho Traders to record the goodwill?
1.
Debit Credit
2016 R R
Apr 30 Goodwill 75 000
Current account: Mbulayeni 56 250
Current account: Shonisani 18 750
29
2.
Debit Credit
2016 R R
Apr 30 Capital: Mbulayeni 56 250
Capital: Shonisani 18 750
Goodwill 75 000
3.
Debit Credit
2016 R R
Capital: Mbulayeni 30 000
Capital: Tanga 15 000
Capital: Mulalo 7 500
4.
Debit Credit
2016 R R
Capital: Mbulayeni 56 250
QUESTION 7
Which one of the following alternatives discloses the correct entry (narration omitted) in the general
journal of Mbu-Sho Traders to record the valuations to be disclosed in the valuation account?
1.
Debit Credit
2016 R R
Apr 30 Provision for credit losses 46 000
Valuation account 494 000
Land and buildings 500 000
Furniture and equipment 40 000
2.
Debit Credit
2016 R R
Apr 30 Valuation account 586 000
Provision for credit losses 46 000
Land and buildings 500 000
3.
Debit Credit
2016 R R
Apr 30 Land and buildings 500 000
30
FAC1601/101/3/2018
4.
Debit Credit
20.6 R R
Apr 30 Land and buildings 500 000
QUESTION 8
Thabo, Thiba and Thabang were in a partnership which traded as Dilo-tše-Tharo Services, and they
shared in the profits and losses of the partnership in the ratio of 3:2:1 respectively. They decided to
liquidate the partnership on 1 July 2017 by means of a simultaneous liquidation.
On 30 June 2017, the following trial balance was prepared:
AQUILLA SERVICES
TRIAL BALANCE AS AT 30 JUNE 2016
Debit Credit
R R
Capital: Thabo...................................................................................... 540 000
Capital: Thiba ....................................................................................... 300 000
Capital: Thabang.................................................................................. 176 000
Current account: Thabo ....................................................................... 36 000
Current account: Thiba......................................................................... 24 000
Current account: Thabang ................................................................... 12 000
Long-term loan ..................................................................................... 216 000
Trade creditors ..................................................................................... 72 000
Land and buildings at fair value ............................................................ 960 000
Equipment at carrying amount ............................................................. 240 000
Bank .................................................................................................... 80 000
1 328 000 1 328 000
On 1 July 2017, the following liquidation transactions took place:

Land and buildings were sold for cash, R960 000. Equipment with a carrying amount of R60 000 was
taken over (not paid for) by Thiba at an agreed amount of R54 000. The remaining equipment was sold
for R204 000, cash. The long-term loan was repaid in full. R66 000 was paid to the trade creditors in full
settlement of their accounts.
Which alternative shows the correct balances of the capital accounts of Thabo, Thiba and Thabang,
immediately prior to the final settlement thereof?
1. Thabo: R516 000 (Cr); Thiba: R278 000 (Cr); Thabang: R168 000 (Cr)
4. Thabo: R516 000 (Dr); Thiba: R332 000 (Dr); Thabang: R168 000 (Dr)
31
Information for Questions 9 and 10:
Baatsheba, Bokang and Khauhelo are in a partnership, sharing in the profits and losses of the
partnership in a ratio of 5:3:2 respectively. They decided to liquidate the partnership by selling the assets
piecemeal. At the commencement of the liquidation, the list of balances of the partnership was as
follows:
R
Capital: Baatsheba............................................................................................................... 20 000
Capital: Bokang.................................................................................................................... 55 000
Capital: Khauhelo................................................................................................................. 60 000
Current account: Baatsheba (Cr) ......................................................................................... 9 640
Current account: Bokang (Dr) .............................................................................................. 2 440
Current account: Khauhelo (Cr) ........................................................................................... 3 600
Goodwill ............................................................................................................................... 6 800
Furniture and equipment at carrying amount ........................................................................ 127 200
Inventory .............................................................................................................................. 24 000
Trade payables control......................................................................................................... 16 200
Bank (Dr) ............................................................................................................................. 4 000
At the first liquidation of the assets, all the inventory was sold for R21 000, cash. Thereafter, the
accounts of the trade creditors were settled in full at a total discount of R1 200.
Any interim repayments to the partners must be made in such a manner that it will not be necessary for a
partner to repay an interim repayment that was received by him to the partnership at a later stage.
QUESTION 9
Which one of the following alternatives represents the cash that is available for a first interim repayment
to the partners?
1. R4 000
2. R25 000
3. R10 000
4. R40 000
QUESTION 10
Which one of the following statements is correct?
1. The correct balances of the general ledger accounts of the partnership, after the liquidation of the
inventory and the settlement of the trade creditors were recorded, but immediately prior to the
recording of any interim repayments, are as follows:
Furniture and Capital: Capital: Capital:
Bank
equipment Baatsheba Bokang Khauhelo
R R R R R
25 000 127 200 (63 600) (38 160) (25 440)
2. The available cash for a first interim repayment must be apportioned to Baatsheba, Bokang and
Khauhelo according to their profit-sharing ratio.
3. According to the loss-absorption-capacity method, an amount of R10 000 must be repaid solely to
Khauhelo as the first interim repayment made by the partnership.
32
FAC1601/101/3/2018
4. When applying the loss-absorption-capacity method to calculate the apportionment of available cash
to the partners as an interim repayment, all the remaining assets (which need to be liquidated) are
assumed worthless. The recorded balances of these asset accounts are apportioned to the partners’
capital accounts. According to the given information, R127 200 must be apportioned to Baatsheba,
Bokang and Khauhelo equally when the first interim repayment to the partners is calculated
according to the loss-absorption-capacity method.
END OF ASSIGNMENT 01 – SECOND SEMESTER
33
ADDENDUM D: COMPULSORY ASSIGNMENT 02 (SECOND SEMESTER)
UNIQUE NO: 782770
DUE DATE: 10 SEPTEMBER 2018

sheet:
sheet.
REMEMBER:
question.

34
FAC1601/101/3/2018
Given information for questions 1 - 2:
The following information relates to Ramatla CC for the year ended 30 September 2017:
1. R80 000 loan was granted to Liseho, a member of the CC on 1 May 2017. Interest is calculated at
10% per annum and is capitalised at the end of the financial period. The loan is unsecured and
immediately callable.
2. Investments consist of:
30 000 ordinary shares in Naleli Ltd, purchased on 1 April 2015 for R50 000. On
30 September 2017, the fair value of shares held in Naleli Ltd was determined at R90 000. These
shares were purchased for speculative purposes.
25 000 ordinary shares in Sizwe-Sethu (Pty) Ltd purchased at a cost of R55 000. On
30 September 2017, these shares were valued at R40 000.
Fixed deposit of R50 000 at BASA Bank made on 31 December 2013 for 60 months at 12% interest
per annum.
QUESTION 1
Which of the following alternatives represents the correct amount to be disclosed as other financial
assets in the current assets section of the statement of financial position of Ramatla CC as at
30 September 2017?
1. R220 000
2. R223 333
3. R222 667
4. R173 333
QUESTION 2
Which of the following alternatives represents the correct amount to be disclosed as financial assets in
the non-current assets section of the statement of financial position of Ramatla CC as at
30 September 2017?
1. R55 000
2. R90 000
3. R180 000
4. R40 000
QUESTION 3
Buang Ltd was registered on 1 June 2017 with an authorised share capital consisting of 100 000
ordinary shares. The company offered 20 000 ordinary shares to the incorporators of the company at a
deemed value of R40 000, all of which were taken up and paid for on 1 August 2017. On
1 September 2017, Buang Ltd shares traded at 25% more than the previously recorded price and the
company decided to offer ordinary shares to the public. TUMA Merchant Bank underwrote this public
offering at a commission of 2%, which had to be settled by 30 October 2017. The company’s accounting
records indicate an expense amounting to R3 000 as underwriter’s commission.
35
The shares to the public were allotted and finalised on 31 December 2017. On 1 January 2018,
Buang Ltd received a cheque amounting to R40 000 from TUMA Merchant Bank as a final settlement.
Which one of the following alternatives represents the correct number of shares subscribed for by the
public?
1. 42 800 shares
2. 47 000 shares
3. 37 000 shares
4. 70 000 shares
The following information pertains to Tlali Ltd:

Tlali Ltd was incorporated on 1 January 2018 with an authorised share capital of 55 000 ordinary shares.
On 1 February 2018, the incorporators of the company subscribed to 5 000 ordinary shares at a deemed
value of R5 000 and paid it in full. On 20 February 2018, the remaining shares were offered to the public
at R1.50 per share.
Rapula Underwriters Ltd underwrites the full public issue for a 3% underwriter’s commission.
The public subscribed to 45 000 shares and the full amounts payable were received on the closing date
of 15 April 2017. All the shares were allotted on 20 April 2018 and all transactions with the underwriter
were concluded by 30 April 2018.
QUESTION 4
Which one of the following alternatives represents the correct net amount to be recorded as a settlement
to/from Rapula Underwriters Ltd on 30 April 2018?
1. R5 000
2. R7 500
3. R1 800
4. R5 250
QUESTION 5
Which one of the following alternatives represents the correct balance of the Share Capital: Ordinary
Shares account in the general ledger of Tlali Ltd on 30 April 2018.
5. R61 250
6. R67 500
7. R78 320
8. R92 800
36
FAC1601/101/3/2018
The following information pertains to Tse’hlanyane CC:
1. Selected items from the statement of financial position as at 30 June:

2018 2017
R R
Member's contribution: Dee ............................................................................................
300 000 200 000
Member's contribution: Sam ............................................................................................
400 000 350 000
Trade payables control (Trade creditors) ........................................................................ 30 560 59 400
Non-current portion of long-term loan (Mbhovu Bank) ..................................................... 80 000 120 000
Current portion of long term loan (Mbhovu Bank) ............................................................ 40 000 80 000
Retained earnings ...........................................................................................................
80 760 65 700
Current tax payable .........................................................................................................
8 900 4 400
Land and buildings at cost ..............................................................................................
259 050 153 600
Furniture and equipment at carrying amount ................................................................... 23 200 33 600
Fixed deposit ..................................................................................................................
90 000 -
Accrued expense (Water and electricity) ......................................................................... 10 040 5 100
Inventory .........................................................................................................................
39 400 40 600
Investment: Shares in Wengweni Limited........................................................................ 105 000 -
2. Selected items from the statement of profit or loss and other comprehensive income of Tse’hlanyane
CC for the year ended 30 June 2018:
R
Profit on sale of furniture and equipment ......................................................................... 800
Depreciation (furniture and equipment) ........................................................................... 4 800
Cost of sales ................................................................................................................... 68 400
Water and electricity ....................................................................................................... 25 000
Insurance ........................................................................................................................ 8 000
Salaries ........................................................................................................................... 33500
3. Additional information:
3.1 No land and buildings were sold during the year; it is the policy of the company to only sell
fixed assets for cash. Land with a cost of R50 000 was bought on credit.
3.2 The fixed deposit and additional member's contribution was made in cash.
3.3 Tse’hlanyane CC uses the direct method when preparing the cash flow statement.
3.4 All purchases of stock are on credit.
QUESTION 6
Which one of the following alternatives represents the correct amount to be disclosed as proceeds from
sale of furniture and equipment in investing activities section of the statement of cash flows of
Tse’hlanyane CC for the year ended 30 June 2018?
1. R 6 400
2. R 5 600
3. R24 000
4. R11 200
37
QUESTION 7
Which one of the following alternatives represents the correct amount to be disclosed as additions to
land and buildings in investing activities section of the statement of cash flows of Tse’hlanyane CC for
the year ended 30 June 2018?
1. R 50 000
2. R 55 450
3. R105 450
4. R216 500
QUESTION 8
Which one of the following alternatives represents the correct amount relating to the net cash from
financing activities, which is to be disclosed in the statement of cash flows of Tse’hlanyane CC for the
year ended 30 June 2018?
1. R 60 000
2. R 70 000
3. R110 000
4. R100 000
The following information pertains to the head office and the branch of KATSE.
Branch inventory on hand at selling price:

1 January 2017..................................................................................R33 500
31 December 2017............................................................................R38 900
Transactions of the branch for the year ended 31 December 2017:

R
Inventory transferred to the branch (selling price) ......................................... 200 000
Cash sales at the branch .............................................................................. 190 200
Settlement discount granted to branch debtors ............................................. 2 796
Branch administrative expenses paid by head office ..................................... 15 965
Damaged inventory written off (at cost) ......................................................... 3 000
1. Inventory is purchased by the head office and supplied to the branch at selling price, which is cost
price plus 25%. During August 2017 inventory with a selling price of R2 175 was stolen at the branch.
No entries have been made to record this theft.
QUESTION 9
Which of the following alternatives represents the correct surplus/deficit in the branch inventory account?
1. R 610 surplus
2. R 610 deficit
3. R1 525 surplus
4. R 525 deficit
38
FAC1601/101/3/2018
QUESTION 10
This additional information relates only to QUESTION 10:
1. Inventory is purchased by the head office KATSE and supplied to the branch at selling price, which is
cost price plus 20%.
2. The branch held a clearance sale during June 2018. Inventory was sold at selling price less 25%.The
proceeds of the sale amounted to R51 000.
Which of the following alternatives represents the correct amount of mark down on cost due to the
clearance sale?
1. R11 333
2. R 5 667
3. R10 000
4. R 5 000
END OF ASSIGNMENT 02 – SECOND SEMESTER
39

Fac 1601 Financial Accounting

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FAC1601/101/3/2018

Tutorial letter 101/3/2018

Department of Financial Accounting

2 PURPOSE OF AND OUTCOMES FOR THE MODULE

3 LECTURER(S) AND CONTACT DETAILS

The following lecturers are responsible for this module:

Mr S Mnguni (Module leader) +27(0)12 429 4835 [email protected]

4. COMMUNICATION WITH THE UNIVERSITY

College e-mail Addresses:

College telephone number: 012 429 2982/2233

5.1 Inventory letter

5.2 Study material

 One study guide

Your prescribed book for this module is:

5.3 Calculator policy

Unisa’s calculator policy is as follows:

6 STUDENT SUPPORT SERVICES FOR THE MODULE

6.1 Contact with fellow students

6.1.1 Study groups

Directorate: Student Administration and Registration

7.1 Assignments and learning

7.2 Submission of assignments

Assignments should be addressed to:

The Registrar (Assignments)

To submit an assignment through myUNISA:

7.3 Unique assignment numbers

Semester 1 Type Unique number

Semester 2 Type Unique number

7.4 Due dates for assignments

Assignment number Semester 1 Semester 2

01/2018 Compulsory – Addendum C 20 August 2018

7.5 Feedback on assignments

7.6 Study process

You may encounter fewer problems when you work as follows:

7.7 Important aspects regarding assignments

There are 4 assignments for this module:

8. PROPOSED STUDY PROGRAMME FOR 2018

8.1 First semester

8.2 Second semester

LECTURERS: FINANCIAL ACCOUNTING REPORTING (FAC1601)

UNIQUE NO: 598791

DUE DATE: 12 MARCH 2018

3. This assignment covers study units 1 – 5 of the study guide.

5. Important aspects regarding multiple-choice assignments answered on a mark-reading

FOR HARD COPY SUBMISSION:

ASSIGNMENT 01 – FIRST SEMESTER (continued)

Consider the following statements:

Consider the following statements:

Given information for Questions 3 to 5:

List of balances of Baleka-Msana as at 28 February 2018:

ASSIGNMENT 01 – FIRST SEMESTER (continued)

ASSIGNMENT 01 – FIRST SEMESTER (continued)

On 1 July 2017 the following liquidation transactions took place:

1. R24 000, net loss

Given information for Questions 9 and 10:

The assets were liquidated as follows:

Motor Trade Trade Capital: Capital: Capital:

END OF ASSIGNMENT 01 – FIRST SEMESTER