FAC2601 EXAM PACK

January/February 2021 FAC2601 FINANCIAL ACCOUNTING FOR COMPANIES 100 Marks Duration 2 Hours This paper consists of 8 pages. Instructions: Download this paper as soon as it has been accessed. Remember to complete and adhere to the Honesty Declaration. Please upload submission in PDF-format, single file not larger than 20Mb before the expiry of the due time. THIS PAPER CONSISTS OF EIGHT (8) PAGES PLEASE NOTE: 1. This paper consists of THREE (3) questions. 2. All questions must be answered. 3. Basic calculations, where applicable, must be shown. 4. Ensure that you are handed the correct examination answer book (blue for accounting) by the invigilator (only applicable for venue based exams). 5. Each question attempted must be commenced on a new (separate) page. 6. PROPOSED TIMETABLE: (Avoid deviating from this as far as possible.) Question No Subject Marks Time in minutes 1 Multiple choice questions 10 12 2 Statement of Financial Position and Statement of Profit or Loss and other Comprehensive Income with relevant notes 50 60 3 Profit calculation and Statement of Changes in Equity 40 48 TOTAL 100 120 S - The study-notes marketplace Downloaded by: reisabrina | Distribution of this document is illegal S - The study-notes marketplace 2 FAC2601 SUPPLEMENTARY EXAM JAN/ FEB 2021 [TURN OVER] QUESTION 1 (10 marks) (12 minutes) This question must be answered in your examination answer book – please only write down the number that you think is correct. Each question has only one correct answer. The marks per question are indicated in brackets at the end of each question. (a) The following list of balances appear, amongst others, in the accounting records of Vusi Ltd on 31 October 2020: Ordinary share capital (shares issued at R2.30 each) R1 265 000 Proceeds of ordinary shares issued on 30 June 2020 R 540 000 (Shares issued at R2.70 each) The following decision was taken and has not yet been recorded in the accounting records of Vusi Ltd as at 31 October 2020: The directors decided on a capitalisation share issue of 1 share for every 5 shares held as at 31 October 2020 at R1,20 per share. Which one of the following options represents the amount of the shares that have to be capitalised?: 1. R48 000 2. R132 000 3. R180 000 4. R1 985 000 (2) (b) Shaka Ltd purchased inventory for R644 000 (including VAT @ 15%) from a supplier. The supplier grants a 6,5% settlement discount for settlement within 30 days. Shaka Ltd arranged with a transport company to deliver the inventory to its premises. The delivery company charged Shaka Ltd R23 000 (including VAT @ 15%) for this delivery. A goods-in-transit insurance was taken out by Shaka Ltd with its insurance brokers to cover any damage of the inventory while in transit. The premium of this goods-in-transit amounted to R1 500 (excluding VAT). Shaka Ltd has a policy of claiming all discounts available to it. What is the purchasing cost of the inventory?: 1. R543 600 2. R545 100 3. R616 904 4. R618 404 (2) (c) Clever Brokers Ltd underwrites an issue of 25 000 ordinary shares at R2.50 each in Smart Ltd. The underwriting commission is 8%. If the public takes up 20 000 shares, how much is the commission?: 1. R1 600 2. R2 000 3. R4 000 4. R5 000 (2) S - The study-notes marketplace Downloaded by: reisabrina | Distribution of this document is illegal S - The study-notes marketplace 3 FAC2601 SUPPLEMENTARY EXAM JAN/ FEB 2021 [TURN OVER] QUESTION 1 (continued) (d) Khoza Ltd issued 20 000 8% cumulative preference shares at R3 each. During the 2019 financial year, Khoza Ltd did not have sufficient funds to pay for the preference shares dividends. During the following year, 2020, Khoza Ltd decided to declare and pay dividends for both 2019 and 2020. How much will be accounted for as dividends declared and paid in the 2020 statement of changes in equity?: 1. R1 600 2. R3 200 3. R4 800 4. R9 600 (2) (e) Which one of the following costs are specifically excluded in the purchasing cost of inventory?: 1. Transport costs 2. Import duties and other appropriate taxes 3. Selling expenses 4. Handling costs