FAC1502
Assignment 2 Semester 1 2026
Detailed Solutions, References & Explanations
Unique number: 659863
Due Date: 24 March 2026
Terms of use
+27 81 278 3372 By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, FAC1502-26-S1 Welcome Message Assessment 2
QUIZ
Time left 0:29:34
, Question 2
Not yet answered
Marked out of 15.00
The following information was extracted from the pre-adjustment trial balance of North Traders, a grocery retail business
with a financial year ending 30 June 2025. The business uses the accrual basis of accounting and maintains a general
journal for year‑end adjustments. Inventory is maintained using the perpetual inventory system. The business is not
registered for VAT.
Account Debit Credit
R R
Trade receivables control 205 400
Allowance for credit losses 6 700
Inventory (30 June 2025) 86 600
Equipment (cost) 333 000
Accumulated depreciation: Equipment (1 July 2024) 133 200
Bank 57 700
Trade payables control 106 600
Sales 987 900
Purchases 455 100
Settlement discount granted 4 000
Settlement discount received 4 600
Insurance expense 26 600
Advertising expense 23 100
Salaries 266 400
Stationery 6 000
Additional information:
1. A physical stock count on 30 June 2025 revealed that the inventory on hand amounted to R81 030.
2. The insurance amount of R26 600 represents 12 months’ cover from 1 October 2024.
3. Advertising expenses are part of a 12-month campaign that North Traders embarked on with Blue Horizon Media a
service provider. In terms of the contract, the monthly amount payable is R2 100. The contract started on 1 July 2024.
4. On 28 June 2025, a debtor owing R16 650 settled their account early and received a 10% settlement discount. The
bookkeeper only recorded the bank receipt of R14 985 in the cash receipts journal but did not account for the discount.
5. On 30 June, it was determined that consumable inventory (stationery) with a cost of R1 140 remained unused at
year‑end. This year‑end adjustment has not yet been recorded.
6. Depreciation is calculated using the units of production method. Units produced for the current year were 9 500 units.
The equipment has an estimated useful capacity of 50 000 units.
REQUIRED:
Prepare the general journal entries for all the above year‑end adjustments.
Instructions:
(i) Round off to the nearest rand (eg: 50.56 will be rounded to 51)
(ii) Do not type in “R” for Rand in the numeric block
Assignment 2 Semester 1 2026
Detailed Solutions, References & Explanations
Unique number: 659863
Due Date: 24 March 2026
Terms of use
+27 81 278 3372 By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, FAC1502-26-S1 Welcome Message Assessment 2
QUIZ
Time left 0:29:34
, Question 2
Not yet answered
Marked out of 15.00
The following information was extracted from the pre-adjustment trial balance of North Traders, a grocery retail business
with a financial year ending 30 June 2025. The business uses the accrual basis of accounting and maintains a general
journal for year‑end adjustments. Inventory is maintained using the perpetual inventory system. The business is not
registered for VAT.
Account Debit Credit
R R
Trade receivables control 205 400
Allowance for credit losses 6 700
Inventory (30 June 2025) 86 600
Equipment (cost) 333 000
Accumulated depreciation: Equipment (1 July 2024) 133 200
Bank 57 700
Trade payables control 106 600
Sales 987 900
Purchases 455 100
Settlement discount granted 4 000
Settlement discount received 4 600
Insurance expense 26 600
Advertising expense 23 100
Salaries 266 400
Stationery 6 000
Additional information:
1. A physical stock count on 30 June 2025 revealed that the inventory on hand amounted to R81 030.
2. The insurance amount of R26 600 represents 12 months’ cover from 1 October 2024.
3. Advertising expenses are part of a 12-month campaign that North Traders embarked on with Blue Horizon Media a
service provider. In terms of the contract, the monthly amount payable is R2 100. The contract started on 1 July 2024.
4. On 28 June 2025, a debtor owing R16 650 settled their account early and received a 10% settlement discount. The
bookkeeper only recorded the bank receipt of R14 985 in the cash receipts journal but did not account for the discount.
5. On 30 June, it was determined that consumable inventory (stationery) with a cost of R1 140 remained unused at
year‑end. This year‑end adjustment has not yet been recorded.
6. Depreciation is calculated using the units of production method. Units produced for the current year were 9 500 units.
The equipment has an estimated useful capacity of 50 000 units.
REQUIRED:
Prepare the general journal entries for all the above year‑end adjustments.
Instructions:
(i) Round off to the nearest rand (eg: 50.56 will be rounded to 51)
(ii) Do not type in “R” for Rand in the numeric block
