SNIPER
FAC1601 ASSIGNMENT 1 – SEMESTER 2 OF
2017
1. 3
An entity has borrowed funds three months after the financial year end. At the end of the
current financial year, the amount borrowed should not be disclosed as a current liability in
the financial statements since these funds were borrowed after financial year end.
Information is material if its omission or misstatement not only influences the decisions of
management.
2. 1
Management does not have the option to disclose assets and liabilities on a net basis if it
prefers.
Omission or misstatement of information refers to the concept of materiality.
3. 1
R
Accumulated Depreciation: Vehicles – 1 June 2014 135 000
Accumulated Depreciation: Equipment – 1 June 2014 20 000
Depreciation – old vehicles (270 ) 45 000
Depreciation – old equipment (90 000 – 20 000) * 15% 10 500
Depreciation – new vehicle (85 ) * ) 4 722
Depreciation – new equipment (25 000 – 5 000) * 15% * ) 1 750
Accumulated Depreciation – 31 May 2015 216 972
This study source was downloaded by 100000850742433 from CourseHero.com on 08-24-2022 06:04:23 GMT -05:00
https://www.coursehero.com/file/43056815/FAC1601-ASSIGNMENT-1-SEMESTER-2-OF-2017pdf/
, SNIPER
4. 3
SIGMA ENTERPRISES
GENERAL LEDGER
Date Details Folio Amount Date Details Folio Amount
R R
Current Account
2015 2014
May 31 Drawings (43 000 + 20 000) GJ 63 000 June Balance b/d 80 000
31 Interest on drawings (63 000 * 15%) GJ 9 450 2015
Balance c/d 123 950 May 31 Interest on Capital (320 000 * 12%) GJ 38 400
Salary (6 500 * 12) GJ 78 000
196 400 196 400
5. 2
R
Provisional Profit 108 000
Depreciation (36 000)
Insurance gain (4 500 – 4 300) 200
Loss on inventory (102 000 – 4 300 – 92 750) (4 950)
Corrected Profit 67 250
6. 2 (Option available but look at note below)
CALCULATION OF CAPITALS
BOB MICHAEL
R R
Balance b/d 312 000 350 000
Current Accounts 33 000 45 000
Goodwill (8 000 * ); (8 000 * ) 3 555 4 444
Revaluation 47 556 59 444
Additional Capital 45 000 60 000
Total assets 441 111 518 888
NB: The above capital is the correct one but if we take out goodwill and the
current account, the option can change (518 888 – 4 444 – 45 000 = 469 444)
This study source was downloaded by 100000850742433 from CourseHero.com on 08-24-2022 06:04:23 GMT -05:00
https://www.coursehero.com/file/43056815/FAC1601-ASSIGNMENT-1-SEMESTER-2-OF-2017pdf/
FAC1601 ASSIGNMENT 1 – SEMESTER 2 OF
2017
1. 3
An entity has borrowed funds three months after the financial year end. At the end of the
current financial year, the amount borrowed should not be disclosed as a current liability in
the financial statements since these funds were borrowed after financial year end.
Information is material if its omission or misstatement not only influences the decisions of
management.
2. 1
Management does not have the option to disclose assets and liabilities on a net basis if it
prefers.
Omission or misstatement of information refers to the concept of materiality.
3. 1
R
Accumulated Depreciation: Vehicles – 1 June 2014 135 000
Accumulated Depreciation: Equipment – 1 June 2014 20 000
Depreciation – old vehicles (270 ) 45 000
Depreciation – old equipment (90 000 – 20 000) * 15% 10 500
Depreciation – new vehicle (85 ) * ) 4 722
Depreciation – new equipment (25 000 – 5 000) * 15% * ) 1 750
Accumulated Depreciation – 31 May 2015 216 972
This study source was downloaded by 100000850742433 from CourseHero.com on 08-24-2022 06:04:23 GMT -05:00
https://www.coursehero.com/file/43056815/FAC1601-ASSIGNMENT-1-SEMESTER-2-OF-2017pdf/
, SNIPER
4. 3
SIGMA ENTERPRISES
GENERAL LEDGER
Date Details Folio Amount Date Details Folio Amount
R R
Current Account
2015 2014
May 31 Drawings (43 000 + 20 000) GJ 63 000 June Balance b/d 80 000
31 Interest on drawings (63 000 * 15%) GJ 9 450 2015
Balance c/d 123 950 May 31 Interest on Capital (320 000 * 12%) GJ 38 400
Salary (6 500 * 12) GJ 78 000
196 400 196 400
5. 2
R
Provisional Profit 108 000
Depreciation (36 000)
Insurance gain (4 500 – 4 300) 200
Loss on inventory (102 000 – 4 300 – 92 750) (4 950)
Corrected Profit 67 250
6. 2 (Option available but look at note below)
CALCULATION OF CAPITALS
BOB MICHAEL
R R
Balance b/d 312 000 350 000
Current Accounts 33 000 45 000
Goodwill (8 000 * ); (8 000 * ) 3 555 4 444
Revaluation 47 556 59 444
Additional Capital 45 000 60 000
Total assets 441 111 518 888
NB: The above capital is the correct one but if we take out goodwill and the
current account, the option can change (518 888 – 4 444 – 45 000 = 469 444)
This study source was downloaded by 100000850742433 from CourseHero.com on 08-24-2022 06:04:23 GMT -05:00
https://www.coursehero.com/file/43056815/FAC1601-ASSIGNMENT-1-SEMESTER-2-OF-2017pdf/
