Tutorial Letter 101/3/2021: Financial Accounting Reporting

FAC1601/101/3/2021
Tutorial Letter 101/3/2021
Financial Accounting Reporting

FAC1601
Semesters 1 & 2
Department of Financial Accounting
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
BARCODE
FAC1601/101/3/2021
CONTENTS
Page
1 INTRODUCTION TO THE MODULE ............................................................................................. 4

2 PURPOSE AND OUTCOMES........................................................................................................ 4
2.1 Purpose .......................................................................................................................................... 4
2.2 Outcomes ....................................................................................................................................... 4
3 LECTURER(S) AND CONTACT DETAILS.................................................................................... 5
3.1 Lecturer(s) ...................................................................................................................................... 5
3.2 University ........................................................................................................................................ 5
4 RESOURCES ................................................................................................................................. 5
4.1 Prescribed book(s).......................................................................................................................... 5
4.2 Electronic reserves (e-reserves) ..................................................................................................... 6
5 STUDENT SUPPORT SERVICES ................................................................................................. 6
5.1 Contact with fellow students ........................................................................................................... 7
6 PROPOSED STUDY PLAN ........................................................................................................... 7
6.1 First semester ................................................................................................................................. 7
6.2 Second semester ............................................................................................................................ 8
7 ASSESSMENT ............................................................................................................................... 8
7.1 Assessment criteria ........................................................................................................................ 8
7.2 Assignment numbers ...................................................................................................................... 8
7.3 Assignment due dates .................................................................................................................... 8
7.4 Submission of assignments ............................................................................................................ 9
7.5 Important aspects relating to assignments ..................................................................................... 9
7.6 The examination ........................................................................................................................... 10
8 IN CLOSING ................................................................................................................................. 12
9 ADDENDUM A: COMPULSORY ASSIGNMENT 01 (FIRST SEMESTER)................................. 13
10 ADDENDUM B: COMPULSORY ASSIGNMENT 02 (FIRST SEMESTER)................................. 19
11 ADDENDUM C: COMPULSORY ASSIGNMENT 01 (SECOND SEMESTER)............................ 27
12 ADDENDUM D: COMPULSORY ASSIGNMENT 02 (SESOND SEMESTER) ............................ 34
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Dear Student
As part of this tutorial letter, we wish to inform you that Unisa has implemented a transformation
charter based on five pillars and eight dimensions. In response to this charter, we have also
placed curriculum transformation high on the agenda. For your information, curriculum
transformation includes the following pillars: student-centred scholarship, the pedagogical
renewal of teaching and assessment practices, the scholarship of teaching and learning, and
the infusion of African epistemologies and philosophies. These pillars and their principles will be
integrated at both the programme and module levels, as a phased-in approach. You will notice
the implementation thereof in your modules, and we encourage you to fully embrace these
changes during your studies at Unisa.
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1 INTRODUCTION TO THE MODULE
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 AND OUTCOMES

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 represented
mainly by financial statements of partnerships, close corporations and companies.
2.2 Outcomes
You must be able to demonstrate an understanding of the nature, composition and functions of
financial statements for partnerships, close corporations and companies. You must also be able
to record the accounting entries for the formation of, admittance to, retirement or death of a
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partner and the liquidation of partnerships. Furthermore, 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.
3 LECTURER(S) AND CONTACT DETAILS

3.1 Lecturer(s)
The following lecturers are responsible for this module:
Mr S Mnguni (Module leader) +27(0)12 429 4835

Mr R Ngcobo +27(0)12 429 4454
Mrs B Ceki +27(0)12 429 3651
Mr P Maraisane +27(0)12 429 4426
Module E-mail Address: fac1601@unisa.ac.za
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.
3.2 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).
4 RESOURCES
4.1 Prescribed book(s)
Your prescribed book for this module is:
About Financial Accounting, Volume 2, 8th Edition by Doussy F, et al. LexisNexis

Butterworths. Durban. 2019.
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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.
4.2 Electronic reserves (e-reserves)

E-reserves can be downloaded from the library catalogue. More information is available at:
http://libguides.unisa.ac.za/request/request
4.4 Library services and resources information

The Unisa Library offers a range of information services and resources:
• for brief information go to: https://www.unisa.ac.za/library/libatglance

• for more detailed Library information, go to
http://www.unisa.ac.za/sites/corporate/default/Library
• for research support and services (e.g. Personal Librarians and literature
search services), go to
http://www.unisa.ac.za/sites/corporate/default/Library/Library-
services/Research-support
The Library has created numerous Library guides: http://libguides.unisa.ac.za

Recommended guides:
• request and find library material/download recommended material:

http://libguides.unisa.ac.za/request/request
• postgraduate information services:
http://libguides.unisa.ac.za/request/postgrad
• finding and using library resources and tools:
http://libguides.unisa.ac.za/Research_skills
• Frequently asked questions about the Library: http://libguides.unisa.ac.za/ask
• Services to students living with disabilities:
http://libguides.unisa.ac.za/disability
Important contact information:
• https://libguides.unisa.ac.za/ask - Ask a Librarian

• Lib-help@unisa.ac.za - technical problems accessing library online services
• Library-enquiries@unisa.ac.za - general library related queries
• Library-fines@unisa.ac.za - for queries related to library fines and payments
5 STUDENT SUPPORT SERVICES

The Study@Unisa brochure is available on myUnisa: www.unisa.ac.za/brochures/studies
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This brochure has all the tips and information you need to succeed at distance learning and,
specifically, at Unisa.
5.1 Contact with fellow students
5.1.1 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
5.1.2 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.
6 PROPOSED STUDY PLAN

6.1 First semester
DATE STUDY MATERIAL AND ASSIGNMENTS
± 07/1 to 08/2 Study: Study units 1 to 5
± 11/2 to 18/2 Do Assignment 01 (compulsory assignment): Due date
09/03/2021
± 19/2 Submit Assignment 01 (NB: DO NOT WAIT UNTIL 09/03/2021)
06/04/2021
± 30/3 to 05/4 Do and mark Assignment 03 (do not submit this assignment)
The solutions to Assignments 03 and 04 are provided in the same
tutorial letter
14/4 to examination Revision
During May/June 2021: EXAMINATION
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6.2 Second semester

DATE STUDY MATERIAL AND ASSIGNMENTS
17/08/2021
09/09/2021
The solutions to Assignments 03 and 04 are provided in the same
tutorial letter
16/9 to examination Revision
During October/November 2021: EXAMINATION
7 ASSESSMENT
7.1 Assessment criteria
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 Tutorial Letter 501 at the end of each study unit will help you to understand
what is required of you when doing your assignment.
7.2 Assignment numbers

7.2.1 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 2019:
Semester 1 Type Unique number

Assignment 01 Multiple choice 784588
Semester 2 Type Unique number

7.3 Assignment due dates

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.
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Assignments must reach the university not later than the dates specified below:
Assignment number Semester 1 Semester 2

Due dates Due dates
01/2021 Compulsory – Addendum A 09 March 2021
02/2021 Compulsory – Addendum B 06 April 2021
01/2021 Compulsory – Addendum C 17 August 2021

02/2021 Compulsory – Addendum D 09 September 2021
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.
7.4 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.
7.5 Important aspects relating to assignments

There are 4 assignments for this module:
• Assignment 01 is a multiple-choice assignment that is compulsory and contributes 50%

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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.
7.6 The examination

For general information and requirements as far as assignments are concerned, see the
brochure mySTUDIES@Unisa, which you received with your study material.
7.6.1 Examination admission
Submission of the first compulsory assignment by its due date will give a student admission to
the examination in the particular module and the mark obtained for that assignment will
contribute towards the final mark for that module. The second assignment is also compulsory
and contributes equally to the final mark.
Please ensure that the compulsory assignments reaches the University before the due date as
late submission of assignment 01 will result in you not being admitted to the
examination.
7.6.2 Year-mark and final examination mark
The year-mark contribution towards the final examination mark is calculated as follows:
50% of the mark obtained for assignment 01
Plus
50% of the mark obtained for assignment 02
If you only submit assignment 01, your year mark will be 50% of the mark obtained for this
assignment. This will then be your year mark out of a possible 100%. If, for example, you
obtain 80% for assignment 01 and 0% for assignment 02, your year mark will be 40%.
According to university policy you require a sub-minimum of 40% in the examination before your
year mark is taken into consideration. In other words, if you do not obtain at least 40% in the
examination, you will automatically fail, and your final mark will be the mark you obtained in the
examination.
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A final mark of 50% is required to pass this module. This final mark is calculated as follows:
(10% x of the year mark) + (90% x mark obtained in the examination)
Example:
A B C D
Exam mark
Average of
Year mark contribution Minimum exam
marks for
contribution to required to pass mark required
assignment
final (50% minus to pass
1&2
mark at 10% year mark (C ÷ 0,9)
(Year mark)
contribution)
Student 1 100% 10% 40% 45%
Student 2 70% 7% 43% 48%
Student 3 50% 5% 45% 50%
Student 4 30% 3% 47% 52%
Student 5 20% 2% 48% 53%
Student 6 10% 1% 49% 54%
Student 7 0% 0% 50% 56%
If you obtain between 40% and 49% as a final mark, you will be allowed to write a
supplementary examination. The supplementary examination will be written at the end of the
next semester. This means that if you qualify for a supplementary examination in May/June,
you will write the FAC1601 paper in October/November. Similarly, students who qualify for a
supplementary examination in October/November will write this paper in May/June of the
following year. A student may, however, write only one supplementary examination per
enrolment.
If, for any reason, you transfer your exam period for FAC1601 to a following semester, you need
to submit Assignment 01 and 02 before the due date in the semester for which you originally
registered for the course. The year mark you obtain will then be carried forward to the next
semester because you will not be allowed to submit any assignments in the semester to which
you have changed. By applying to have your semester changed to a following semester, in
effect, you are applying for an aegrotat examination. However, you still need a year mark that
will be taken into account as explained above – hence the need to submit the compulsory
assignments in the semester for which you originally registered.
7.6.3 Examination period
This module is offered in a semester period of 15 weeks. This means that if you are registered
for the first semester, you will write the examination in May/June 2021 and the supplementary
examination will be written in October/November 2021. If you are registered for the second
semester, you will write the examination in October/November 2021 and the supplementary
examination will be written in May/June 2021.
During the semester, the Examination Section will provide you with information regarding the
examination in general, examination venues, examination dates and examination times. This
information can also be obtained from the myUnisa site. Click on Examinations when you are
logged into the site.
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8 IN CLOSING
We trust that you will enjoy this module and we wish you success with your studies.
Kind regards
Mr S Mnguni (Module leader)

Mr R Ngcobo
Mrs B Ceki
Mr P Maraisane
Module Telephone Number: 012 429 4176

Module E-mail Address: fac1601@unisa.ac.za
LECTURERS: FINANCIAL ACCOUNTING REPORTING (FAC1601)
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9 ADDENDUM A: COMPULSORY ASSIGNMENT 01 (FIRST SEMESTER)

UNIQUE NO: 784588
DUE DATE: 09 MARCH 2021
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 Tutorial Letter 501.
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. Round off all amounts to the nearest Rand.
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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ASSIGNMENT 01 - FIRST SEMESTER (continued)
QUESTION 1
An entertainment allowance paid to a partner is recorded by………….
1. debiting the entertainment expense account and accrued expense account.

2. debiting the entertainment expense account and crediting the partner’s current account.
3. disclosing it as distribution, administration and other expenses in the statement of profit or
loss and other comprehensive income. .
4. debiting the drawings account of the partner and crediting the bank account
Given the following information for questions 2 – 4:

The following information is taken from the accounting records of Seskhona Travel and Tourism,
a partnership business between Makhathini and McGregor as partners, at 28 February 2021 –
the financial year end of the partnership.
SESKHONA TRAVEL AND TOURISM

EXTRACT OF BALANCES AS AT 28 FEBRUARY 2021
R
Capital: Makhathini .................................................................................................. 200 000
Capital: McGregor ................................................................................................... 300 000
Current account: Makhathini (Dr) ............................................................................ 15 000
Current account: McGregor (Cr).............................................................................. 9 000
Drawings: Makhathini .............................................................................................. 75 000
Drawings: McGregor ............................................................................................... 82 000
Land and buildings at cost....................................................................................... 800 000
Vehicles at cost ....................................................................................................... 401 000
Accumulated depreciation: Vehicles (1 March 2020) .............................................. 40 000
Mortgage – City Bank .............................................................................................. 121 500
Long-term loan from McGregor ............................................................................... 50 000
Bank overdraft ......................................................................................................... 58 000
Trade payables control ............................................................................................ 75 000
Trade receivables control ........................................................................................ 78 000
Profit for the year (before year-end adjustments).................................................... 536 500
Additional information:
Abstract from the terms of the partnership agreement:
1. Each partner is entitled to an annual salary of R60 000.
2. Interest of 5% per annum is to be allowed on the opening balances of the partners’

capital and current accounts.
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Year-end adjustments:
1. The long-term loan from McGregor was acquired on 1 January 2021. Interest is
calculated at 12% per annum and is payable on 30 June of every year.
2. The mortgage loan was acquired from City Bank on 01 September 2019. The mortgage
bear interest of 9% per annum payable on 31 August every year. The interest for the
current year have not yet been taken into account.
3. Due to the slump in sales. The partners went for separate trainings of the tourism
industry. Each partner received R10 000 from the partnership to pay for the programme.
These amounts were incorrectly included in the salaries paid to the partners during the
year.
4. Provision must still be made for depreciation on vehicles at 25% per annum according to
the diminishing-balance method.
5. The accountant of the partnership inadvertently forgot to record the sale of a vehicle
costing R60 000. The vehicle was sold for R30 000 on 1 December 2020. On
1 March 2020 this vehicle had an accumulated depreciation amounting to R24 000.
QUESTION 2
Which one of the following alternatives represents the correct amount of interest expense
which must be disclosed in the statement of profit or loss and other comprehensive income of
Seskhona Travel and Tourism for the year ended 28 February 2021?
1. R 1 000
2. R 11 935
3. R 16 900
4. R 5 000
QUESTION 3
Which one of the following alternatives represents the correct amount that must be disclosed as
depreciation expense in the statement of profit or loss and other comprehensive income of
Seskhona Travel and Tourism for the year ended 28 February 2021?
1. R 88 000
2. R 82 000
3. R 81 250
4. R 90 250
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QUESTION 4
Assume that the correct amount for depreciation of the vehicle which was sold is R8 500. Which
one of the following alternatives represents the correct amount of profit or loss on sale of
vehicle which must be disclosed in the statement of profit or loss and other comprehensive
income of Seskhona Travel and Tourism for the year ended 28 February 2021?
1. R 30 000
2. R 6 000
3. R 2 500
4. R 36 000
Thabisile and Mike are in a partnership trading as Thami Traders. The partners are sharing
profits and losses equally. On 30 July 2020 the equity and profits of Thami Traders was as
follows:
An extract of balances from the accounting records:
Capital - Thabisile, R84 000

Capital - Mike, R84 000
Current account - Thabisile (Cr) R20 000
Current account - Mike (Cr) R20 000
Thabisile and Mike decided to admit Dineo from 1 August 2020. Dineo will contribute R50 000
cash and a vehicle worth R86 000 to acquire a fifth of the net asset share of the partnership.
Thabisile and Mike agreed to relinquish 1/5 of their share in profits or losses to Dineo in the ratio
of 3:1 respectively. All other assets were revalued before admitting Dineo to the partnership and
a valuation loss of R28 000 was correctly calculated.
QUESTION 5
Which one of the following alternatives represents the new profit-sharing ratio after the
admission of Dineo into the new partnership?
1. 2:2:1
2. 7:9:2
3. 7:9:4
4. 3:1:4
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QUESTION 6
Which one of the following alternatives represents the correct balance in the capital account of
Mike after the valuation of assets and prior to the admission of Dineo?
1. R 62 000
2. R 104 000
3. R 84 000
4. R 90 000
QUESTION 7
Which one of the following alternatives represents the correct amount of goodwill in the
accounting records of Thami traders after the admission of Dineo?
1. R 336 000
2. R 364 000
3. R 500 000
4. R 136 000
The following information relates to questions 8 – 10:
Sabelo and John are in partnership, trading as SJ Engineers and sharing profits/losses of the
partnership equally. The partners decided to liquidate the partnership piecemeal as from 1 May
2020 and to repay the creditors in full with a once off payment as soon as sufficient cash is
received from the liquidation of assets. The partners further agreed that interim repayment will
be made to them as cash becomes available in such a way that, while maximum distribution
was to be made to the partners, under no circumstances would a partner be required to refund
to the partnership any amount he had received.
The following information is extracted from the accounting records of the partnership on
30 April 2020:
R
Capital: Sabelo ....................................................................................................... 220 000
Capital: John ........................................................................................................... 250 000
Current account: Sabelo (Dr) .................................................................................. 43 000
Current account: John (Cr) ..................................................................................... 20 000
Land and buildings at cost ...................................................................................... 330 000
Equipment at cost ................................................................................................... 92 000
Accumulated depreciation: Equipment ................................................................... 8 000
Goodwill .................................................................................................................. 15 000
Inventory ................................................................................................................. 28 000
Trade payables control ........................................................................................... 20 000
Bank (Dr) ................................................................................................................ 10 000
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1. On 2 May 2020 the partners took a decision to donate inventory with a cost price of
R18 000 to a local charity and the rest was sold on the same day for R9 000 cash.
2. The partners negotiated a settlement discount of 10% with their creditor. The creditor
agreed on condition that the account is settled on or before 10 May 2020. The due date
for payment was met by the partnership.
3. On 8 May 2020 equipment was sold at a public auction at a profit of R21 000 cash. The
auctioneers fee amounted to R5 000.
4. The partners received an offer for the purchase of the land and buildings for R350 000.
The offer was accepted by both partners on 10 May 2020.
QUESTION 8
Which one of the following alternatives represents the correct balance in the capital account of
Sabelo at the commencement of the liquidation?
1. R 169 500
2. R 255 500
3. R 184 500
4. R 177 000
QUESTION 9
With regard to inventory, which one of the following alternatives represents the correct amount
that will be allocated to John?
1. R 18 000
2. R 9 000
3. R 19 000
4. R 9 500
QUESTION 10
Which one of the following alternatives represents the correct the cash proceeds on sale of
equipment?
1. R 92 000
2. R 105 000
3. R 100 000
4. R 84 000
END OF ASSIGNMENT 01 – FIRST SEMESTER
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ADDENDUM B: COMPULSORY ASSIGNMENT 02 (FIRST SEMESTER)

UNIQUE NO: 801957
DUE DATE: 06 APRIL 2021

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:
REMEMBER:
mark per question.
first semester.

envelope.
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The following information pertains to Bantu Ltd and covers questions 1 – 4:
Bantu Ltd is a private company incorporated in 2015 and has a 28 February financial year-end.
The bookkeeper presented the following information to you as the accounting officer of the
company:
BANTU LTD
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2021:
R
Retained earnings (1 March 2020) ........................................................................ 190 000
Share capital: Ordinary shares (1 March 2020) .................................................... 480 000
Loan: Nam Bank.................................................................................................... 80 000
Land and buildings at revaluation.......................................................................... 750 000
Equipment at cost.................................................................................................. 390 500
Accumulated depreciation: Equipment .................................................................. 55 950
Revaluation surplus (1 March 2020) ..................................................................... 70 000
Inventory (1 March 2020) ...................................................................................... 26 950
Bank (Dr) ............................................................................................................... 87 000
Income received in advance.................................................................................. 5 280
Allowance for credit losses .................................................................................... 4 000
SARS (income tax) (Dr)......................................................................................... 21 300
Sales .................................................................................................................... 516 070
Salaries ................................................................................................................. 85 000
Carriage on purchases .......................................................................................... 980
Settlement discount granted.................................................................................. 3 280
Purchases ............................................................................................................. 188 900
Telephone ............................................................................................................. 4 015
Directors’ remuneration: ........................................................................................ 10 800
Stationery .............................................................................................................. 5 300
1. The allowance for credit losses must be adjusted to R5 500. A debtor who owes the
business R3 500 was declared insolvent and must be written off as irrecoverable.
2. Authorised share capital consists of 400 000 NPV ordinary shares. Share capital stated
above consists of ordinary shares issued at R3 per share. On 01 December 2020, the
directors issued 40 000 shares at R4 per share, the shares were taken up by the public
on 1 February 2021, this transaction has not been recorded.
3. The income tax for the financial year ended 28 February 2021 amounted to R27 100 and
must still be recorded.
4. The loan from Nam was acquired on 1 March 2015 at an interest rate of 5% per annum.
Interest on all loans for the current financial year has not yet been accounted for.
20
FAC1601/101/3/2021
5. Directors made the following resolutions at year end:

• Dividends declared amounts to R50 000.
• A total bonus amounting to R45 000 must be paid to directors.
The above transactions have not been recorded.
6. Provision of R31 455 must still be made for depreciation on equipment.
7. Inventory on 28 February 2021 amounted to R18 850.
8. Dividends received for the year amounted to R10 000.
QUESTION 1
Which alternative represents the correct amount for share capital in the statement of financial
position of Bantu Ltd as at 28 February 2021?
1. R 640 000
2. R 480 000
3. R 200 000
4. R 680 000
QUESTION 2
Which alternative represents the correct amount for gross profit in the statement of profit or
loss and other comprehensive income of Bantu Ltd for the year ended 28 February 2021?
1. R 315 790
2. R 327 170
3. R 314 810
4. R 319 070
QUESTION 3
Which alternative represents the correct total distribution, administrative and other
expenses amount in the statement of profit or loss and other comprehensive income of Bantu
Ltd for the year ended 28 February 2021?
1. R 155 115
2. R 110 115
3. R 141 570
4. R 186 570
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FAC1601/101/3/2021
QUESTION 4
Assume that the correct total comprehensive income for the year amount is R300 000. Which
alternative represents the correct amount to be disclosed as retained earnings in the
statement of financial position for Bantu Ltd as at 28 February 2021?
1. R190 000
2. R440 000
3. R490 000
4. R510 000
The following information pertains to Buhle CC and covers question 5 – 7:
1. ACCOUNTS PERTAINING TO THE STATEMENT OF FINANCIAL POSITION AS AT

30 April 2021 30 April 2020
R R
Members’ contributions ................................................................. 484 000 388 000
Retained earnings ......................................................................... 216 564 151 300
Long-term borrowings .................................................................... 29 200 67 600
Trade and other payables .............................................................. 38 800 37 340
Current portion of long-term borrowings ........................................ 4 800 −
Bank overdraft ............................................................................... 6 166 −
Land and buildings at cost ............................................................. 259 050 153 600
Furniture and equipment at carrying amount ................................. 23 200 33 600
Listed share investments ............................................................... 158 400 105 600
Cash and cash equivalents ........................................................... − 27 300
Trade and other receivables .......................................................... 85 520 77 360
Accrued income (Rent) .................................................................. − 1 440
Inventory ........................................................................................ 190 240 196 000
Distribution to members payable ................................................... 5 880 10 660
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FAC1601/101/3/2021
2. Items disclosed in the statement of profit or loss and other comprehensive income
for the year ended 30 April 2021
R
Revenue .................................................................................................................... 506 880
Cost of sales. ............................................................................................................. 288 000
Profit on sale of non-current assets: Furniture and equipment .................................. 800
Dividend income: Listed share investments .............................................................. 17 280
Fair value adjustment: Listed share investments held for trading ............................. 21 120
Remuneration: accounting officer .............................................................................. 16 800
Salaries to members .................................................................................................. 60 000
Depreciation (Furniture and equipment) .................................................................... 4 800
Water and electricity .................................................................................................. 2 880
Credit losses .............................................................................................................. 3 000
General expenses ..................................................................................................... 4 200
Interest on long-term loan .......................................................................................... 12 000
Income tax expense .................................................................................................. 41 136
Profit for the year ....................................................................................................... 113 264
3. Additional information
3.1 No land and buildings were sold, and no furniture and equipment were purchased. It is
business policy not to sell any furniture and equipment on credit.
3.2 Listed share investments pertain to:
• 3 520 ordinary shares with a fair value of R105 600 on 1 May 2020, purchased from
Ingwe Limited on 30 April 2020. None of the shares were sold during the financial
year under review.
• 5 280 ordinary shares purchased from Jozi Limited in July 2020 for R31 680.
3.3 A profit distribution of R57 000 was made to members during the financial year under
review.
3.4 The members’ contributions were made in cash.
3.5 Buhle CC uses the indirect method to record cash generated from operations.
QUESTION 5
Which alternative represents the correct net cash generated from operating activities in the
cash flow statement of Buhle CC for the year ended 30 April 2021?
1 R 37 952
2. R 264 500
3. R 34 864
4. R 3 184
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FAC1601/101/3/2021
QUESTION 6
Which alternative represents the correct net cash from investing activities of in the cash flow
statement of Buhle CC for the year ended 30 April 2021?
1. (R105 450)
2. (R 99 050)
3. (R 94 250)
4. R 23 200
QUESTION 7
Which alternative represents the correct net cash increase generated from financing
activities of in the cash flow statement of Buhle CC for the year ended 30 April 2021?
1. R96 000
2. (R33 600)
3. R62 400
4. R15 000
The following information pertains to Sazi CC and covers question 8
Vusa, Buya and Amu are the members of Sazi CC with a year end of 28 February. The
following information was extracted from the financial statements of Sazi CC as at 28 February
2021:
R
Revenue .................................................................................................................. 320 000
Cost of sales ............................................................................................................ 112 000
Distribution, administrative and other expenses ...................................................... 83 000
Finance costs .......................................................................................................... 14 000
Income tax expense ................................................................................................ 32 000
Equity at the end of the year .................................................................................... 505 800
QUESTION 8
Which one of the following alternatives represents the correct return on equity?
1. 15.62%
2. 21.95%
3. 24.71%
4. 18.21%
24
FAC1601/101/3/2021
Given information for questions 9 – 10:
The following information pertains Clement Ltd:
CLEMENT LTD
STATEMENT OF FINANCIAL POSITION AS AT 31 March 2020
2020
R
ASSETS
Non-current assets ............................................................................................... 313 000
Property, plant and equipment ............................................................................ 256 000
Fixed deposit ....................................................................................................... 57 500
Current assets ...................................................................................................... 187 000
Inventories ........................................................................................................... 94 000
Trade receivables ................................................................................................ 93 000
Total assets .......................................................................................................... 500 000
EQUITY AND LIABILITIES
Total equity ........................................................................................................... 296 500
Share capital ...................................................................................................... 173 500
Retained earnings ............................................................................................... 123 000
Total liabilities ...................................................................................................... 203 500
Non-current liabilities .......................................................................................... 99 000
Long-term borrowings ......................................................................................... 99 000
Current liabilities .................................................................................................. 104 500
Trade payables .................................................................................................... 90 500
Bank overdraft ..................................................................................................... 14 000
Total equity and liabilities ................................................................................... 500 000
Additional information
1. Profit for the year amounted to R65 500 for the year end 2020.
2. Interest expense for the year amounts to R 13 000.
3. The opening balance of inventory on 1 April 2020 amounted to R83 000.
4. Income tax for the year amounted to R67 000
QUESTION 9
Which of the following alternatives represents the correct acid test ratio for Clement Ltd for the
year ended 31 March 2021? Round off to the nearest number/decimal.
1. 1,59 : 1
2. 2,89 : 1
3. 0,89 : 1
4. 1,79 : 1
25
FAC1601/101/3/2021
QUESTION 10
Which of the following alternatives represents the correct return on total assets for Clement
Ltd for the year ended 31 March 2021? Round off to the nearest number/decimal.
1. 29.10%
2. 25.30%
3. 35.77%
4. 23.74%
END OF ASSIGNMENT 02 – FIRST SEMESTER
26
FAC1601/101/3/2021
ADDENDUM C: COMPULSORY ASSIGNMENT 01 (SECOND SEMESTER)

UNIQUE NO: 737467
DUE DATE: 17 AUGUST 2020

sheet:
REMEMBER:
mark per question.
first semester.

envelope.
27
FAC1601/101/3/2021
ASSIGNMENT 01 - SECOND SEMESTER (continued)
QUESTION 1
An interest on current account paid to a partner during the year is recorded by…….
5. debiting the interest expense account and disclosing the transaction as an accrued
expense in the statement of financial position.
6. debiting the drawings account of the partner and crediting the bank account
7. debiting the interest expense account and crediting the partner’s current account.
8. debiting the interest expense account and crediting the interest payable account.
The following information was obtained from the accounting records of Alice Mthembu and
Jane Ngobese, trading as Alice & Jane Traders:
1. Balances as at 28 February 2020:

R
Capital: A Mthembu ................................................................................................... 775 000

Capital: J Ngobese .................................................................................................... 775 000
Current account: A Mthembu (Dr - 1 March 2019) .................................................... 9 750
Current account: J Ngobese (Cr - 1 March 2019) ..................................................... 4 340
Drawings: A Mthembu ............................................................................................... 10 000
Drawings: J Ngobese ................................................................................................ 7 630
Long-term loan: US Bank .......................................................................................... 660 000
Inventories ................................................................................................................. 835 600
Trade receivables control .......................................................................................... 288 850
Trade payables control .............................................................................................. 159 650
Land and buildings .................................................................................................... 1 600 000
Equipment at cost...................................................................................................... 280 000
Accumulated depreciation: Equipment (1 March 2019) ............................................ 80 000
Vehicles at cost ......................................................................................................... 170 000
Accumulated depreciation: Vehicles (1 March 2019) ................................................ 24 000
Bank (Cr) ................................................................................................................... 84 870
Allowance for credit losses ........................................................................................ 3 600
Allowance for settlement discount ............................................................................. 5 250
Accrued expenses (Water and electricity) ................................................................. 1 500
Prepaid expenses (Insurance) .................................................................................. 2 700
2. Additional information:
2.1 Land and buildings consists of:
Land - Erf 529 Bloom West, bought on 1 March 2018 for R850 000.
Building - The building was erected during the year at a total cost of R750 000 and
was only occupied on 1 January 2020.
28
FAC1601/101/3/2021
2.2 On 30 November 2019 equipment with a cost price of R35 000 was sold for R20 780 at a
loss of R3 000. All the transactions regarding the sale were recorded correctly.
2.3 Depreciation must still be provided for as follows:
Buildings: 2% per annum on the straight-line method.

Equipment: 20% per annum on the diminished balance method.
Vehicles: 20% per annum according to the straight-line method.
2.4 Inventories consist of:

• Merchandise, R830 000
• Stationery, R5 600
QUESTION 2
Which one of the following alternatives represents the correct amount of depreciation in
respect of buildings to be disclosed on the property, plant and equipment note of Alice & Jane
Trading for the year ended 28 February 2020?
1. R 2 500
2. R 32 000
3. R 15 000
4. R 5 000
QUESTION 3
Which one of the following alternatives represents the correct accumulated depreciation in
respect of vehicles as at 28 February 2020?
1. R 112 000
2. R 24 000
3. R 34 000
4. R 58 000
QUESTION 4
Which one of the following alternatives represents the correct accumulated depreciation in
respect of equipment sold during the year?
1. R 3 000
2. R 20 780
3. R 11 220
4. R 35 000
29
FAC1601/101/3/2021
Dumisani and Jabulani are in partnership trading as DJ events management services, with a
profit-sharing ratio of 3:2 respectively. Moses made an offer to join the partnership which was
duly accepted by Dumisani and Jabulani. The bookkeeper of the partnership is battling on how
to prepare accounts necessary to admit a partner to the partnership. The partners have
approached you to assist in the preparation of accounts to admit Moses. The following
information is extracted from the accounting records of the partnership on 30 September 2020,
the end of the financial year:
R
Capital: Dumisani ...................................................................................................... 140 000
Capital: Jabulani ........................................................................................................ 130 000
Current account: Dumisani (Dr)................................................................................. 30 000
Current account: Jabulani (Cr) .................................................................................. 35 000
Revaluation reserve .................................................................................................. 21 400
Land and buildings .................................................................................................... 75 000
Vehicles at cost ......................................................................................................... 50 000
Accumulated depreciation: Vehicle ........................................................................... 31 000
Furniture and equipment at cost................................................................................ 78 000
Accumulated depreciation: Furniture and equipment ................................................ 27 600
Inventory.................................................................................................................... 64 000
Bank .......................................................................................................................... 88 000
1. The partners agreed that Moses will join the partnership on 1 October 2020 and that the
new partnership will trade as DJ events management services. Dumisani and Jabulani
further decided that they would relinquish a third of interest in the profits/losses to Moses
in the ratio of 6:4 respectively. Moses would contribute a vehicle worth R150 000, catering
equipment worth R15 000 and R40 000 cash and thereby acquire a third interest in the
equity of the new partnership.
2. In preparation of Moses’s admission an appraiser made the following valuations on

1 October 2020:
• Furniture and equipment R55 000
• Land and buildings R76 500
• Vehicles R15 500
• Inventory R62 500
30
FAC1601/101/3/2021
QUESTION 5
Which of the following represents the correct amount of valuation gain or loss of assets for the
purpose of admitting Moses?
1. R 8 100 valuation loss

2. R 1 100 valuation gain
3. R 8 100 valuation gain
4. R 1 100 valuation loss
QUESTION 6
Assume that the correct revaluation gain amounted to R35 000. Which one of the following
alternatives represents the correct amount of goodwill after the admission of Moses?
1. R 78 600
2. R 100 000
3. R 283 600
4. R 18 600
QUESTION 7
Which one of the following alternatives represents the correct profit-sharing ratio after the
admission of Moses ?
1. 3:2:1
2. 6:4:3
3. 3:2:3
4. 6:4:5
Loyiso, Tebogo and Vuyani were in partnership trading as Messina trading. The partners
conducted their business in South Africa and shared profits/losses in the ratio of 5:3:2. Since
the formation of the partnership, Loyiso and Tebogo have been struggling to agree on matters
affecting the day to day operations of the business. The partners have consequently agreed to
dissolve the partnership piecemeal as from 1 October 2020.
31
FAC1601/101/3/2021
The following information is extracted from the accounting records of the partnership on
30 September 2020:
R
Capital: Loyiso ........................................................................................................... 130 000
Capital: Tebogo ......................................................................................................... 100 000
Capital: Vuyani .......................................................................................................... 80 000
Revaluation reserve .................................................................................................. 20 000
Property, plant and equipment .................................................................................. 202 000
Investments: Shangai Limited ................................................................................... 100 000
Loan from Tebogo ..................................................................................................... 12 000
Long-term loan .......................................................................................................... 80 000
Fees receivable (Debtors) ......................................................................................... 105 000
Bank (Dr) ................................................................................................................... 15 000
1. The partners agreed to distribute the cash received from the sale of assets immediately in
such a way that, while maximum distribution was to be made to the partners, under no
circumstances would a partner be required to refund to the partnership any amount he had
received.
2. The partner’s loan account is to be transferred to his capital account.
3. The partnership had taken out an insurance policy on the life of the partners. The
surrender value of the policy is currently R18 000 and is to be paid to the partnership on
8 October 2020.
4. The partnership reached an agreement with all its clients (debtors) that if fees owing are
settled before 31 October 2020, a discount of 5% will be granted. On 31 October 2020,
only 90% of clients had settled their accounts. The remainder of the balance was
recovered on 5 November 2020.
5. The assets were sold for cash as follows:

Carrying amount Proceeds
12 October 2020 Furniture and equipment R130 000 R118 000

18 October 2020 Investments R100 000 R105 000
20 October 2020 Land and buildings R 72 000 R 63 000
32
FAC1601/101/3/2021
QUESTION 8
Which one of the following alternatives represents the correct capital balance of Vuyani at the
commencement of the liquidation?
1. R 84 000
2. R 80 000
3. R 76 000
4. R 148 300
QUESTION 9
Which one of the following alternatives represents the correct amount of to be allocated to
Tebogo on the liquidation of the partnership in relation to the sale of furniture and equipment
on 12 October 2020?
1. R 12 000 gain
2. R 3 600 gain
3. R 3 600 loss
4. R 6 000 loss
QUESTION 10
Which one of the following alternatives represents the correct amount to be allocated to Loyiso
on the liquidation of the partnership in relation to the realisation of fees receivable on 31
October 2020. The answer must be rounded off to the nearest rand.
1. R 2 363
2. R 4 725
3. R 10 500
4. R 5 250
END OF ASSIGNMENT 01 – SECOND SEMESTER
33
FAC1601/101/3/2021
ADDENDUM D: COMPULSORY ASSIGNMENT 02 (SESOND SEMESTER)

UNIQUE NO: 648746
DUE DATE: 09 SEPTEMBER 2020

sheet:
REMEMBER:
mark per question.
first semester.

envelope.
34
FAC1601/101/3/2021
Soka and Lami are the only members of Sokalami 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 31 March
2021, the financial year-end of the corporation.
R
Member’s contribution: Soka ............................................................................... 90 000
Member’s contribution: Lami ............................................................................... 80 000
Retained earnings (1 April 2020) ......................................................................... 385 850
Loan from member: Soka .................................................................................... 46 900
Loan to member: Lami ........................................................................................ 35 500
Inventory (1 April 2020) ....................................................................................... 33 000
Trade receivables control .................................................................................... 55 900
Trade payables control ........................................................................................ 252 050
Bank (Dr) ............................................................................................................. 36 200
Sales ................................................................................................................... 652 260
Investment in Sinalo Ltd at fair value .................................................................. 150 000
Income received in advance ................................................................................ 8 330
Prepaid expenses ................................................................................................ 6 500
Rental income ..................................................................................................... 46 700
Purchases ........................................................................................................... 380 600
Administrative, distribution and other expenses .................................................. 38 900
Settlement discount granted ................................................................................ 5 700
SARS (Income tax) (Dr) ...................................................................................... 46 700
1. An invoice relating to carriage on purchases amounting to R11 500 was received on 30

March 2021 and must still be taken into account.
2. The closing inventory amounted to R60 500.
3. The investment in Sinalo Ltd consist of 85 000 shares bought for R150 000 and was
acquired in March 2020. The investment was acquired for trade purposes. At the end of the
current financial year, the fair value of the investment amounted to R190 000. On 15 March
2021, Sinalo Ltd declared a dividend of 50 cents per share payable on 30 April 2021.
4. Each member received a monthly salary of R10 500 paid in cash. Lami the managing
member of Sokalami CC is entitled to a bonus of R15 000 payable on 1 April 2021. These
transactions were not recorded in the books of the close corporation.
5. The current income tax for the financial year amounted to R38 900 and must still be
recorded.
6. Interim profit distribution of R50 000 was paid to members during the year.
35
FAC1601/101/3/2021
7. Interest must be recorded on the loan accounts to members at 12% per annum on the
opening balance of any existing loans as well as on any additional loans granted. On 30
September 2020, an additional loan of R20 000 was granted to Lami 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.
8. Interest on loans from members is calculated at 9% per annum and is not capitalised.
QUESTION 1
profit before tax in the statement of profit or loss and other comprehensive income of Sokalami
CC for the year ended 31 March 2021?
1. R375 565
2. R104 099
3. R 65 820
4. R 61 599
QUESTION 2
Assume that the correct total comprehensive income for the current financial year amounted to
R100 000. Which one of the following alternatives represents the correct amount that must be
disclosed as retained earnings in the statement of financial position of Sokalami CC as at 31
March 2021?
1. R396 049
2. R259 330
3. R435 850
4. R485 850
QUESTION 3
Which one of the following alternatives represents the correct amount to be disclosed as
current liabilities in the statement of financial position of Sokalami CC as at 31 March 2021?
1. R291 101
2. R282 771
3. R278 550
4. R271 880
36
FAC1601/101/3/2021
Fika 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 were issued on 1 January 2021 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. The remainder were issued on 31 July 2020 at a consideration
of R180 000.
On 31 January 2021, the board of Fika Ltd decided to issue capitalisation shares to ordinary
shareholders in the ratio of 1 share for every 4 ordinary shares held at a fair value consideration
of 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.
QUESTION 4
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 2021?
1. R 2 250
2. R 6 000
3. R10 500
4. R 3 000
37
FAC1601/101/3/2021
QUESTION 5
Which one of the following alternatives represents the value of the capitalisation issue of
ordinary shares for ordinary shareholders and the preference share dividend paid to preference
shareholders for the year ended January 2021?
1. R192 500: capitilisation issue ; R21 000: preference dividend

2. R 82 500: capitilisation issue ; R10 000: preference dividend
3. R175 000: capitilisation issue ; R 9 000: preference dividend
4. R190 000: capitilisation issue ; R12 000: preference dividend
The following information was extracted from the accounting records of Asambeni LTD:
ASAMBENI LTD
EXTRACT OF BALANCES FOR THE YEAR ENDED 28 FEBRUARY 2021
2021 2020
R R
Property, plant and equipment ......................................................... 204 300 179 300
Investment in Bhanoyi (pty) Ltd ........................................................ - 135 000
Inventories ........................................................................................ 38 000 18 000
Trade and other receivables ............................................................. 40 000 20 000
Prepayments (Rent) ......................................................................... - 500
Cash and cash equivalents .............................................................. 108 000 1 000
Share capital: Ordinary shares ......................................................... 152 000 130 000
Retained earnings ............................................................................ 142 500 100 000
Long-term borrowings ...................................................................... 65 200 139 700
Trade and other payables ................................................................ 50 000 18 000
Current tax payable .......................................................................... 19 500 15 000
38
FAC1601/101/3/2021
ASAMBENI LTD
EXTRACT OF BALANCES FOR THE YEAR ENDED 28 FEBRUARY 2021
R
Revenue .................................................................................................................... 191 000
Cost of sales .............................................................................................................. 70 000
Dividend income ........................................................................................................ 5 300
Profit on sale of investment ....................................................................................... 15 000
Depreciation .............................................................................................................. 5 000
Dividends paid ........................................................................................................... 3 000
Credit losses .............................................................................................................. 5 500
Rent expenses .......................................................................................................... 6 000
Water and electricity .................................................................................................. 3 500
Salaries and wages ................................................................................................... 40 500
Interest on long-term loan ......................................................................................... 3 000
Income tax expense .................................................................................................. 25 800
1. All sales and purchases are on credit.

2. Other financial assets consist of shares purchased in Bhanoyi (Pty) Ltd, an unlisted
investment.
3. Asambeni Ltd uses the direct method to prepare their statement of cash flows.
4. The balance of the allowance for credit losses amounted to R5 000 at the beginning of the
current financial year; and R8 500 on 28 February 2021.
QUESTION 6
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
Asambeni Ltd for the year ended 28 February 2021?
1. R34 200
2. R38 500
3. R41 500
4. R39 500
QUESTION 7
net cash (used)/generated from investing activities in the statement of cash flows of
Asambeni Ltd for the year ended 28 February 2021?
1. R(30 000)
2. R150 000
3. R120 000
4. R150 000
39
FAC1601/101/3/2021
QUESTION 8
net cash from financing activities in the statement of cash flows of Asambani Ltd for the year
ended 28 February 2021?
1. R22 000
2. R71 400
3. R(74 500)
4. R(52 500)
The following information pertains Umuzi Ltd:
UMUZI LTD
List of balances of Umuzi Ltd as at 28 February 2021
2021
R
Property, plant and equipment ......................................................................... 206 000
Fixed deposit .................................................................................................... 57 500
Inventories ........................................................................................................ 94 000
Trade receivables ............................................................................................. 93 000
Share capital..................................................................................................... 123 000
Retained earnings ............................................................................................ 123 000
Long-term borrowings....................................................................................... 100 000
Trade payables ................................................................................................. 90 500
Bank overdraft .................................................................................................. 14 000
1. Profit for the year amounted to R30 500 for the year end 28 February 2021.
2. The opening balance of inventory on 1 March 2020 amounted to R63 000.
3. Income tax for the year amounted to R57 500
QUESTION 9
Which of the following alternatives represents the correct current ratio for Umuzi Ltd for the
year ended 28 February 2021?
1. 1,59 : 1
2. 2,89 : 1
3. 0,89 : 1
4. 1,79 : 1
40
FAC1601/101/3/2021
QUESTION 10
Which of the following alternatives represents the correct return on equity ratio for Umuzi Ltd
for the year ended 28 February 2021?
1. 12.40%
2. 25.30%
3. 35.77%
4. 23.74%
END OF ASSIGNMENT 02 – SECOND SEMESTER
41

Tutorial Letter 101/3/2021: Financial Accounting Reporting

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Tutorial Letter 101/3/2021: Financial Accounting Reporting

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FAC1601/101/3/2021

Tutorial Letter 101/3/2021

Financial Accounting Reporting

Department of Financial Accounting

1 INTRODUCTION TO THE MODULE ............................................................................................. 4

1 INTRODUCTION TO THE MODULE

2 PURPOSE AND OUTCOMES

3 LECTURER(S) AND CONTACT DETAILS

Mr S Mnguni (Module leader) +27(0)12 429 4835

Module E-mail Address: fac1601@unisa.ac.za

College e-mail Addresses:

College telephone number: 012 429 2982/2233

Your prescribed book for this module is:

About Financial Accounting, Volume 2, 8th Edition by Doussy F, et al. LexisNexis

4.2 Electronic reserves (e-reserves)

4.4 Library services and resources information

• for brief information go to: https://www.unisa.ac.za/library/libatglance

The Library has created numerous Library guides: http://libguides.unisa.ac.za

• request and find library material/download recommended material:

Important contact information:

• https://libguides.unisa.ac.za/ask - Ask a Librarian

5 STUDENT SUPPORT SERVICES

5.1.1 Study groups

Directorate: Student Administration and Registration

6 PROPOSED STUDY PLAN

6.2 Second semester

7.2 Assignment numbers

Semester 1 Type Unique number

Semester 2 Type Unique number

7.3 Assignment due dates

Assignment number Semester 1 Semester 2

01/2021 Compulsory – Addendum C 17 August 2021

7.4 Submission of assignments

Assignments should be addressed to:

The Registrar (Assignments)

To submit an assignment through myUNISA:

7.5 Important aspects relating to assignments

• Assignment 01 is a multiple-choice assignment that is compulsory and contributes 50%

• Assignment 02 is a multiple-choice assignment that is also compulsory and contributes

7.6 The examination

7.6.1 Examination admission

7.6.2 Year-mark and final examination mark

7.6.3 Examination period

Mr S Mnguni (Module leader)

Module Telephone Number: 012 429 4176

LECTURERS: FINANCIAL ACCOUNTING REPORTING (FAC1601)

9 ADDENDUM A: COMPULSORY ASSIGNMENT 01 (FIRST SEMESTER)

1. This assignment must be answered on a mark-reading sheet if submitted by post. It can

3. This assignment covers study units 1 – 5 of the Tutorial Letter 501.

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

FOR HARD COPY SUBMISSION:

ASSIGNMENT 01 - FIRST SEMESTER (continued)

An entertainment allowance paid to a partner is recorded by………….

1. debiting the entertainment expense account and accrued expense account.

Given the following information for questions 2 – 4:

SESKHONA TRAVEL AND TOURISM

Abstract from the terms of the partnership agreement:

1. Each partner is entitled to an annual salary of R60 000.

2. Interest of 5% per annum is to be allowed on the opening balances of the partners’

ASSIGNMENT 01 - FIRST SEMESTER (continued)

ASSIGNMENT 01 - FIRST SEMESTER (continued)

Given the following information for questions 5 – 7: