FAC3701 EXAM WRITTEN 30 MAY 2026 COMPLETE ANSWERS DISTINCTION GUARANTEED

FAC3701 – FULL UNISA MEMORANDUM
May/June 2026 Exam Solutions




Question 1(a): Ordinary dividend
Dividends tax = 600 000 × 20% = 120 000

Net dividend = 480 000

Account Dr (R) Cr (R)

Retained earnings 600 000

Bank 480 000

Dividends tax payable 120 000



Question 1(b): Adjusted profit before tax
Start: 1 027 000

Less: Foreign income (150 500)

Adjusted PBT = 876 500 (simplified key adjustment)


Question 1(c): Deferred tax (summary)
Item CA TB Temp diff DT@27%

Vehicles 2025 359 400 219 000 140 400 37 908



Question 1(d): Current tax
Taxable income approximated = 876 500

Tax @27% = 236 655

, Question 1(e): Tax rate reconciliation
Accounting profit ×27% = expected tax

Add non-deductible expenses, subtract exempt income


Question 1(f): Liability motivation
A liability is a present obligation arising from past events expected to result in an outflow of
resources. Tax meets definition → recognise as liability.


Question 1(g): Notes disclosure
Events after reporting period: rights issue disclosed as non-adjusting.


Question 1(h): IFRS 15 journal (Nels Ltd)
Account Dr Cr

Trade receivable 100 000

Revenue 100 000