, MRL3701 Assignment 1 (COMPLETE ANSWERS)
Semester 1 2026 - DUE 2 March 2026 ;100% trusted
,comprehensive and complete reliable solution with clear
explanation
Questions and well explained answers
CASE STUDY
Palesa and her best friend Mpho started a new restaurant
business in 2023. Despite their impressive culinary skills, the
restaurant was not a success. Palesa lost a lot of money which
she had invested in the restaurant, leaving her in a dire financial
situation. By 1 October 2025, Palesa’s liabilities exceeded her
assets by R1,8 million. Palesa presently owes a total of R2,4
million to various creditors. Her creditors include Lethabo, to
whom she owes R1,1 million.
Over the past few months, Palesa has failed to pay many of her
debts, including the R1,1 million owed to Lethabo, which was
due and payable on 15 January 2026. Lethabo has discovered
that Palesa had borrowed R900 000 from her boyfriend, Andile,
which Palesa repaid in full on 31 January 2026. Lethabo is
distressed that Palesa had repaid the loan to Andile, even though
the amount was due only on 1 August 2026. Palesa seems to
have been mindful that she was in financial difficulty and that
her creditors could apply for the sequestration of her estate at
any time.
Semester 1 2026 - DUE 2 March 2026 ;100% trusted
,comprehensive and complete reliable solution with clear
explanation
Questions and well explained answers
CASE STUDY
Palesa and her best friend Mpho started a new restaurant
business in 2023. Despite their impressive culinary skills, the
restaurant was not a success. Palesa lost a lot of money which
she had invested in the restaurant, leaving her in a dire financial
situation. By 1 October 2025, Palesa’s liabilities exceeded her
assets by R1,8 million. Palesa presently owes a total of R2,4
million to various creditors. Her creditors include Lethabo, to
whom she owes R1,1 million.
Over the past few months, Palesa has failed to pay many of her
debts, including the R1,1 million owed to Lethabo, which was
due and payable on 15 January 2026. Lethabo has discovered
that Palesa had borrowed R900 000 from her boyfriend, Andile,
which Palesa repaid in full on 31 January 2026. Lethabo is
distressed that Palesa had repaid the loan to Andile, even though
the amount was due only on 1 August 2026. Palesa seems to
have been mindful that she was in financial difficulty and that
her creditors could apply for the sequestration of her estate at
any time.
