FAC1601 ASSIGNMENT 1 2022 WITH CORRECT ANSWERS
Calculations
1. 3 Incorrect numbering - Option 7
a, c & e are incorrect
2. 1
3. 2 Profit for the year 115 000
Depreciation: Vehicles (270 000/6 + 45 000/6 x 3/12) (46 875)
Depreciation: Equipment [(95 000 - 20 000 - 5 000) x 10%] (7 000)
Wriite down of closing inventory to net realisaible value
(95 000 - 90 700) (4 300)
Profit for the year 56 825
Other comprehensive income
Revaluation: Land (590 000 - 450 000) 140 000
Total comprehensive income or the year 196 825
4. 1 Sima
Balance at beginning of year 85 000
Cash contribution 28 000
Interest on capital (320 000 x 12%) 38 400
Salary (8 000 x 12) 96 000
Interest on drawings (15 000 + 15 000) x 5% (1 500)
Drawings (15 000 + 15 000) (30 000)
215 900
***check for erratta ** the R28 000 contribution was not
added
5. 3 Capital accounts Current Accounts
Sima Shuly Sima
Balance at the beginning of year 320 000 280 000 85 000
Capital contributions 28 000 45 000
Total comprehensive income for the year
Salaries (8 000 x 12); (7 000 x 12) 96 000
Interest on capital (320 000 x 12%); (280 000 x 12%) 38 400
Interest on drawings : [(15 000 + 15 000) x 5%]: [(20 000 +
20 000) x 5%] (1 500)
Drawings :(15 000 + 15 000); (20 000 + 20 000) (30 000)
To be shared between partners
6. 4 Valuation account
Land and buildings (625 000 - 490
Motor vehicles (60 000 - 32 000) 28 000 000)
, Capital: Vusi (107 000 x 1/2) 53 500
Capital: Nova (107 000 x 1/2) 53 500
135 000
Capital: Vusi
Balace b/d
Current account
Valuation account
Balance c/d 296 500
296 500
Balance b/d
Capital: Nova
Balance b/d
Current account
Valuation account
Balance c/d 308 500
308 500
Balance b/d
Goodwill = (45 000 + 115 000) x 5/1 - 296 500 - 308 500 - (45 000 + 115 000)
7. 1
8. 1 Bank account
Balance b/d 300 000 Capic loan
Furniture and fittings 85 000 Trade and other payables
Inventory 65 000 Liquidation expenses
Trade and other receivables (92 000 - 2000 90 000 Balance c/d
540 000
Balance b/d 4 000
9. 2 Liquidation account
Furniture and fittings 350 000 Loan from Capic
Inventory 72 000 Trade and other payables
Trade and other receivables 92 000 Bank: Furniture and fittings
Bank: Loan from capic 285 000 Bank: Inventory
Bank: Trade and other payables 208 000 Bank: Trade and other receivables
Bank: Liquidation expenses 43 000 Capital: Brian (306 000 x 2/5)
Capital: Adams (306 000 x 3/5)
1 050 000
Capital: Brian
Goodwill (80 000 x 2/5) 32 000 Balance b/d
Liquidation account 122 400 Current account
Calculations
1. 3 Incorrect numbering - Option 7
a, c & e are incorrect
2. 1
3. 2 Profit for the year 115 000
Depreciation: Vehicles (270 000/6 + 45 000/6 x 3/12) (46 875)
Depreciation: Equipment [(95 000 - 20 000 - 5 000) x 10%] (7 000)
Wriite down of closing inventory to net realisaible value
(95 000 - 90 700) (4 300)
Profit for the year 56 825
Other comprehensive income
Revaluation: Land (590 000 - 450 000) 140 000
Total comprehensive income or the year 196 825
4. 1 Sima
Balance at beginning of year 85 000
Cash contribution 28 000
Interest on capital (320 000 x 12%) 38 400
Salary (8 000 x 12) 96 000
Interest on drawings (15 000 + 15 000) x 5% (1 500)
Drawings (15 000 + 15 000) (30 000)
215 900
***check for erratta ** the R28 000 contribution was not
added
5. 3 Capital accounts Current Accounts
Sima Shuly Sima
Balance at the beginning of year 320 000 280 000 85 000
Capital contributions 28 000 45 000
Total comprehensive income for the year
Salaries (8 000 x 12); (7 000 x 12) 96 000
Interest on capital (320 000 x 12%); (280 000 x 12%) 38 400
Interest on drawings : [(15 000 + 15 000) x 5%]: [(20 000 +
20 000) x 5%] (1 500)
Drawings :(15 000 + 15 000); (20 000 + 20 000) (30 000)
To be shared between partners
6. 4 Valuation account
Land and buildings (625 000 - 490
Motor vehicles (60 000 - 32 000) 28 000 000)
, Capital: Vusi (107 000 x 1/2) 53 500
Capital: Nova (107 000 x 1/2) 53 500
135 000
Capital: Vusi
Balace b/d
Current account
Valuation account
Balance c/d 296 500
296 500
Balance b/d
Capital: Nova
Balance b/d
Current account
Valuation account
Balance c/d 308 500
308 500
Balance b/d
Goodwill = (45 000 + 115 000) x 5/1 - 296 500 - 308 500 - (45 000 + 115 000)
7. 1
8. 1 Bank account
Balance b/d 300 000 Capic loan
Furniture and fittings 85 000 Trade and other payables
Inventory 65 000 Liquidation expenses
Trade and other receivables (92 000 - 2000 90 000 Balance c/d
540 000
Balance b/d 4 000
9. 2 Liquidation account
Furniture and fittings 350 000 Loan from Capic
Inventory 72 000 Trade and other payables
Trade and other receivables 92 000 Bank: Furniture and fittings
Bank: Loan from capic 285 000 Bank: Inventory
Bank: Trade and other payables 208 000 Bank: Trade and other receivables
Bank: Liquidation expenses 43 000 Capital: Brian (306 000 x 2/5)
Capital: Adams (306 000 x 3/5)
1 050 000
Capital: Brian
Goodwill (80 000 x 2/5) 32 000 Balance b/d
Liquidation account 122 400 Current account
