100%
FAC2601
EXAM PACK
DISTINCTION QUALITY
UNISA EXAM
, UNIVERSITY EXAMINATIONS
May/June
FAC2601
FINNACIAL ACCOUNTING FOR COMPANIES
100 Marks
Duration 2 1/2 Hours
This paper consists of 9 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 before the expiry of the due time.
PLEASE NOTE:
1. This paper consists of FOUR (4) questions.
2. All questions must be answered.
3. Basic calculations, where applicable, must be shown.
4. Each question attempted must commence on a new (separate) page.
5. PROPOSED TIMETABLE: (Avoid deviating from this as far as possible.)
Question Time in
no Subject Marks minutes
1 Multiple choice questions 10 12
2 Statement of Profit or Loss and Other Comprehensive Income 50 60
3 Leases 15 18
4 Financial instruments 25 30
TOTAL 100 120
, FAC2601
MAY/JUNE
QUESTION 1 (10 marks) (12 minutes)
THIS QUESTION MUST BE ANSWERED IN YOUR EXAMINATION ANSWER BOOK. EACH
QUESTION HAS ONLY ONE CORRECT ANSWER. THE MARKS PER QUESTION ARE INDICATED
IN BRACKETS AT THE END OF EACH QUESTION.
(a) Which one of the following statements describes the role of substance over form in determining if
information is useful to the users of financial information?
1) Information is relevant if it is capable of making a difference to the decisions made by users.
2) Information must faithfully represent the substance of what it purports to present.
3) The economic substance of transactions and events must be recorded in the financial
statements rather than just their legal form in order to present a true and fair view of the affairs
of the entity.
4) The most relevant information may have such a high level of measurement uncertainty that
the most useful information is information that is slightly less relevant but is subject to lower
measurement uncertainty.
(2)
(b) Which factors should NOT be considered in selecting a measurement basis for an asset, liability,
income and expense when preparing financial statements that are useful to investors, lenders and
other creditors?
1) It is necessary to consider the nature of the information that the measurement basis will
produce in both the statement of financial position and the statements of financial
performance as well as other factors.
2) One must consider that in most cases, no single factor will determine which measurement
basis should be selected. The relative importance of each factor will depend on facts and
circumstances.
3) The information provided must be relevant and faithfully represented what it purports to
represent but the information provided, does not and should not have to be comparable,
verifiable timely nor understandable.
4) The information provided by a measurement basis must be useful to users of financial
statements.
(2)
(c) The following list of balances appear, amongst others, in the accounting records of Trail Ltd on
29 February 2020:
R
Ordinary Share Capital (shares issued at R5,50 each) 5 500 000
Proceeds of ordinary shares issued on 31 July 2019 550 000
(Shares issued at R2,75 each)
8% Preference Shares issued on 1 September 2019 100 000
(Shares issued at R4,00 each)
, QUESTION 1 (continued)
The following decision was taken by the board of directors and has not yet been recorded in the
accounting records of Trail Ltd as at 29 February 2020:
The directors decided on a capitalisation share issue of 1 share for every 4 shares held as at
31 August 2019 at R3,50 per share. Which one of the following options represents the Rand value
of the shares that have to be capitalised:
1) R 980 000
2) R1 050 000
3) R1 071 875
4) R1 150 000
(2)
(d) Soil Ltd provided a loan to Fargo Ltd on 1 November 2016 of which the capital portion is repayable
in eleven equal annual installments starting on 1 July 2017. Interest on the loan is calculated at
10% per annum and is payable at the end of each financial year.
The year-end of Soil Ltd is 31 December.
The outstanding balance on the loan, as at 31 December 2019, amounts to R540 000
Which one of the following options represents the amount of interest received by Soil Ltd for the
year ended 31 December 2019?
1) R27 000
2) R30 375
3) R57 375
4) R67 375
(2)
(e) Outdoor-Track Ltd has a revenue policy intact that allow their customers to receive a 5% discount
on goods sold, when those customers purchase more than 1 250 cool bags per year. On
1 June 2018 a regular customer already purchased 750 cool bags at R150 per cool bag.
Outdoor-Track Ltd expects that this customer will purchase more than 1 250 cool bags during the
year. The financial year end of Outdoor-Track Ltd is 28 February 2019
Which one of the following options represents the correct amount of revenue recognised in the
statement of profit or loss and other comprehensive income on the 1st of June 2018?
1) R 5 625
2) R106 875
3) R112 500
4) R178 125
(2)
FAC2601
EXAM PACK
DISTINCTION QUALITY
UNISA EXAM
, UNIVERSITY EXAMINATIONS
May/June
FAC2601
FINNACIAL ACCOUNTING FOR COMPANIES
100 Marks
Duration 2 1/2 Hours
This paper consists of 9 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 before the expiry of the due time.
PLEASE NOTE:
1. This paper consists of FOUR (4) questions.
2. All questions must be answered.
3. Basic calculations, where applicable, must be shown.
4. Each question attempted must commence on a new (separate) page.
5. PROPOSED TIMETABLE: (Avoid deviating from this as far as possible.)
Question Time in
no Subject Marks minutes
1 Multiple choice questions 10 12
2 Statement of Profit or Loss and Other Comprehensive Income 50 60
3 Leases 15 18
4 Financial instruments 25 30
TOTAL 100 120
, FAC2601
MAY/JUNE
QUESTION 1 (10 marks) (12 minutes)
THIS QUESTION MUST BE ANSWERED IN YOUR EXAMINATION ANSWER BOOK. EACH
QUESTION HAS ONLY ONE CORRECT ANSWER. THE MARKS PER QUESTION ARE INDICATED
IN BRACKETS AT THE END OF EACH QUESTION.
(a) Which one of the following statements describes the role of substance over form in determining if
information is useful to the users of financial information?
1) Information is relevant if it is capable of making a difference to the decisions made by users.
2) Information must faithfully represent the substance of what it purports to present.
3) The economic substance of transactions and events must be recorded in the financial
statements rather than just their legal form in order to present a true and fair view of the affairs
of the entity.
4) The most relevant information may have such a high level of measurement uncertainty that
the most useful information is information that is slightly less relevant but is subject to lower
measurement uncertainty.
(2)
(b) Which factors should NOT be considered in selecting a measurement basis for an asset, liability,
income and expense when preparing financial statements that are useful to investors, lenders and
other creditors?
1) It is necessary to consider the nature of the information that the measurement basis will
produce in both the statement of financial position and the statements of financial
performance as well as other factors.
2) One must consider that in most cases, no single factor will determine which measurement
basis should be selected. The relative importance of each factor will depend on facts and
circumstances.
3) The information provided must be relevant and faithfully represented what it purports to
represent but the information provided, does not and should not have to be comparable,
verifiable timely nor understandable.
4) The information provided by a measurement basis must be useful to users of financial
statements.
(2)
(c) The following list of balances appear, amongst others, in the accounting records of Trail Ltd on
29 February 2020:
R
Ordinary Share Capital (shares issued at R5,50 each) 5 500 000
Proceeds of ordinary shares issued on 31 July 2019 550 000
(Shares issued at R2,75 each)
8% Preference Shares issued on 1 September 2019 100 000
(Shares issued at R4,00 each)
, QUESTION 1 (continued)
The following decision was taken by the board of directors and has not yet been recorded in the
accounting records of Trail Ltd as at 29 February 2020:
The directors decided on a capitalisation share issue of 1 share for every 4 shares held as at
31 August 2019 at R3,50 per share. Which one of the following options represents the Rand value
of the shares that have to be capitalised:
1) R 980 000
2) R1 050 000
3) R1 071 875
4) R1 150 000
(2)
(d) Soil Ltd provided a loan to Fargo Ltd on 1 November 2016 of which the capital portion is repayable
in eleven equal annual installments starting on 1 July 2017. Interest on the loan is calculated at
10% per annum and is payable at the end of each financial year.
The year-end of Soil Ltd is 31 December.
The outstanding balance on the loan, as at 31 December 2019, amounts to R540 000
Which one of the following options represents the amount of interest received by Soil Ltd for the
year ended 31 December 2019?
1) R27 000
2) R30 375
3) R57 375
4) R67 375
(2)
(e) Outdoor-Track Ltd has a revenue policy intact that allow their customers to receive a 5% discount
on goods sold, when those customers purchase more than 1 250 cool bags per year. On
1 June 2018 a regular customer already purchased 750 cool bags at R150 per cool bag.
Outdoor-Track Ltd expects that this customer will purchase more than 1 250 cool bags during the
year. The financial year end of Outdoor-Track Ltd is 28 February 2019
Which one of the following options represents the correct amount of revenue recognised in the
statement of profit or loss and other comprehensive income on the 1st of June 2018?
1) R 5 625
2) R106 875
3) R112 500
4) R178 125
(2)
