FAC1502 – Assignment 1 Quiz Memo | Accounting Formulas & Distinctions
FAC1502 ASSIGNMENT 1 QUIZ MEMORANDUM 2026 | ACCOUNTING
FORMULAS, KEY DISTINCTIONS, WORKED SOLUTIONS AND CHEAT
SHEET
UNIVERSITY OF SOUTH AFRICA
FAC1502
Accounting Concepts, Principles and Procedures
ASSIGNMENT 1 QUIZ
Memorandum / Suggested Solutions
Focus Areas:
Accounting Formulas • Key Distinctions • Financial Statements
Semester 1 | 2026
Total Marks: 30
SECTION A: Key Accounting Formulas
These formulas are foundational to FAC1502. Know them by heart.
1. The Accounting Equation
Basic Accounting Equation
Assets = Equity + Liabilities
Also written as: Assets = Owner's Equity + Liabilities. This must ALWAYS balance.
UNISA | Sample Study Memo | For revision purposes only | Page 1
, FAC1502 – Assignment 1 Quiz Memo | Accounting Formulas & Distinctions
Expanded Equity Form
Assets = (Capital + Revenue - Expenses - Drawings) + Liabilities
Revenue increases equity; Expenses and Drawings decrease equity.
2. Profit / Loss Calculation
Net Profit
Net Profit = Revenue - Expenses
If Revenue > Expenses → Net Profit. If Expenses > Revenue → Net Loss.
Gross Profit
Gross Profit = Net Sales - Cost of Sales (COS)
Net Sales = Sales - Sales Returns - Sales Allowances
Cost of Sales (COS)
COS = Opening Inventory + Purchases - Closing Inventory
Also: COS = Opening Inventory + Net Purchases - Closing Inventory
3. Owner's Equity Movement
Closing Capital (Equity)
Closing Capital = Opening Capital + Additional Capital + Net Profit
- Drawings
Net Loss would be subtracted instead of added.
4. Bank / Cash Reconciliation
Adjusted Bank Balance
Adj. Bank Balance = Bank Statement Balance + Deposits in Transit -
Outstanding Cheques +/- Bank Errors
Purpose: Reconcile cashbook balance with bank statement balance.
5. Depreciation Formulas
Straight-Line Depreciation
Annual Depreciation = (Cost - Residual Value) / Useful Life
Results in EQUAL depreciation each year.
Diminishing Balance Method
Depreciation = Carrying Amount x Depreciation Rate (%)
Carrying Amount = Cost - Accumulated Depreciation. Gives DECREASING amounts each year.
UNISA | Sample Study Memo | For revision purposes only | Page 2
FAC1502 ASSIGNMENT 1 QUIZ MEMORANDUM 2026 | ACCOUNTING
FORMULAS, KEY DISTINCTIONS, WORKED SOLUTIONS AND CHEAT
SHEET
UNIVERSITY OF SOUTH AFRICA
FAC1502
Accounting Concepts, Principles and Procedures
ASSIGNMENT 1 QUIZ
Memorandum / Suggested Solutions
Focus Areas:
Accounting Formulas • Key Distinctions • Financial Statements
Semester 1 | 2026
Total Marks: 30
SECTION A: Key Accounting Formulas
These formulas are foundational to FAC1502. Know them by heart.
1. The Accounting Equation
Basic Accounting Equation
Assets = Equity + Liabilities
Also written as: Assets = Owner's Equity + Liabilities. This must ALWAYS balance.
UNISA | Sample Study Memo | For revision purposes only | Page 1
, FAC1502 – Assignment 1 Quiz Memo | Accounting Formulas & Distinctions
Expanded Equity Form
Assets = (Capital + Revenue - Expenses - Drawings) + Liabilities
Revenue increases equity; Expenses and Drawings decrease equity.
2. Profit / Loss Calculation
Net Profit
Net Profit = Revenue - Expenses
If Revenue > Expenses → Net Profit. If Expenses > Revenue → Net Loss.
Gross Profit
Gross Profit = Net Sales - Cost of Sales (COS)
Net Sales = Sales - Sales Returns - Sales Allowances
Cost of Sales (COS)
COS = Opening Inventory + Purchases - Closing Inventory
Also: COS = Opening Inventory + Net Purchases - Closing Inventory
3. Owner's Equity Movement
Closing Capital (Equity)
Closing Capital = Opening Capital + Additional Capital + Net Profit
- Drawings
Net Loss would be subtracted instead of added.
4. Bank / Cash Reconciliation
Adjusted Bank Balance
Adj. Bank Balance = Bank Statement Balance + Deposits in Transit -
Outstanding Cheques +/- Bank Errors
Purpose: Reconcile cashbook balance with bank statement balance.
5. Depreciation Formulas
Straight-Line Depreciation
Annual Depreciation = (Cost - Residual Value) / Useful Life
Results in EQUAL depreciation each year.
Diminishing Balance Method
Depreciation = Carrying Amount x Depreciation Rate (%)
Carrying Amount = Cost - Accumulated Depreciation. Gives DECREASING amounts each year.
UNISA | Sample Study Memo | For revision purposes only | Page 2
