FAC1601 Assignment 3 2026 - Distinction Guaranteed | Due 23 April 2026 (9:30 PM)

FAC1601 Assignment 3 2026 - Distinction Guaranteed | Due 23 April 2026 (11 PM) QUESTION 1 (50 Marks) (60 Minutes) Kabokweni Ltd is a company incorporated in 2016, specialising in the supply and distribution of Jojo tanks and a range of valves to households, contractors, and small businesses in Kabokweni and surrounding areas. The company has established itself as a reliable supplier of water storage and flow control solutions, particularly in response to increasing demand for water infrastructure in the region. In recent years, the business has experienced steady growth but has also faced operational challenges, including fluctuating demand, rising input costs, and pressure on cash flows. As a result, effective financial management and accurate reporting have become increasingly important to support decisionmaking and sustainability. The company has a financial year-end of 28 February. The company’s accountant has presented the following information to you as the accounting officer of the company: 1. EXTRACT OF BALANCES AS AT 28 FEBRUARY 2026: R Land and buildings at revaluation 1,017,500 Revaluation surplus (1 March 2025) 92,500 Vehicles at cost 543,700 Accumulated depreciation: Vehicles 72,000 Bank 113,000 Petty cash 6,300 SARS (income tax) (Dr) 27,800 Income received in advance 7,000 Trade payables control 309,575 Allowance for credit losses 5,400 Share capital: Ordinary shares (1 March 2025) 668,400 Retained earnings (1 March 2025) 213,900 Loan: NSS Bank 103,600 Trade receivables control 262,300 Inventory (1 March 2025) 36,600 Sales 1,852,800 Salaries and wages 240,500 Carriage on purchases 1,400 Carriage on sales 2,200 Settlement discount received 1,700 Allowance for settlement discount granted 6,300 Settlement discount granted 4,500