FAC2601
Assignment 1
Semester 1 2023
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
QUESTION 1
a.
Number capitalization of shares = 550 000/4 = 137 500
Rand value = 137 500 x 2 = R275 000
DR Retained earnings 275 000
CR Ordinary share capital 275 000
b.
Ordinary dividend
(550 000 + 137 500) x 10c 68 750,00
10% non-cumulative preference
(10% x 220 000) 22 000,00
12% cumulative preference
(12% x 90 000) 10 800,00
Total dividend 101 550,00
QUESTION 2
It will not be ethical for you to accept this gift
Such gift is substantial and may impair the auditor objectivity. In terms of ethical
standards expected of an accountant, auditors should not accept anything from a
company being audited as a gift. Gifts are considered to compromise the integrity of
auditors.
This study source was downloaded by 100000864134731 from CourseHero.com on 04-06-2023 06:33:20 GMT -05:00
M Want to earn $1.236
Distribution of this document is illegal
https://www.coursehero.com/file/195457704/Stuvia-1920188-fac2601-assignment-1-semester-1-2023pdf/ form orextra per year?
by any means.
Assignment 1
Semester 1 2023
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
QUESTION 1
a.
Number capitalization of shares = 550 000/4 = 137 500
Rand value = 137 500 x 2 = R275 000
DR Retained earnings 275 000
CR Ordinary share capital 275 000
b.
Ordinary dividend
(550 000 + 137 500) x 10c 68 750,00
10% non-cumulative preference
(10% x 220 000) 22 000,00
12% cumulative preference
(12% x 90 000) 10 800,00
Total dividend 101 550,00
QUESTION 2
It will not be ethical for you to accept this gift
Such gift is substantial and may impair the auditor objectivity. In terms of ethical
standards expected of an accountant, auditors should not accept anything from a
company being audited as a gift. Gifts are considered to compromise the integrity of
auditors.
This study source was downloaded by 100000864134731 from CourseHero.com on 04-06-2023 06:33:20 GMT -05:00
M Want to earn $1.236
Distribution of this document is illegal
https://www.coursehero.com/file/195457704/Stuvia-1920188-fac2601-assignment-1-semester-1-2023pdf/ form orextra per year?
by any means.
