FAC 2602
ASSIGNMENT 1 SEMESTER 1 2026
DUE DATE: 19 March 2026
Use this document as a guide to learn, compare and reference
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EXPECT VIEW TUTORS 0664316658
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, FAC2602 Assignment 1 – S1- 2026
SCENARIO FOR QUESTIONS 1 TO 12 OF THE QUIZ
Kholiswa Ltd is a well-established company with a financial year-end of 31 December. On 1 July
2026, Kholiswa Ltd acquired 75 000 ordinary shares in Elsie Ltd for a cash consideration of
R800 000. Each ordinary share in Elsie Ltd carries one vote. At the date of acquisition, Elsie Ltd had
100 000 ordinary shares in issue.
At the date of acquisition, Elsie Ltd's retained earnings amounted to R352 500. On 1 January 2026,
Elsie Ltd's retained earnings was R217 500. All assets and liabilities of Elsie Ltd were considered to
be at their fair value at the date of acquisition.
At the end of the year, Elsie Ltd’s building was revalued according to the revaluation policy. The
building had a carrying amount of R270 000 but a fair value of R330 000. This fair value adjustment
was not recorded in Elsie Ltd's books.
The profit of Elsie Ltd was earned evenly throughout the year, unless specified otherwise. All other
income and expenditure items were received and spent evenly throughout the year.
Dividends were paid by both companies at year end.
Abridged Trial Balances at 31 December 2026
Kholiswa Ltd Elsie Ltd
(Dr / (Cr) (Dr / (Cr)
R R
Share Capital - Ordinary Shares…………………………. (1 500 000) (270 000)
Retained Earnings – 1 January 2025…………………….. (901 250) (217 500)
Revenue…………………………………………………….. (1 800 000) (1 125 000)
Cost of Sales……………………………………………….. 1 200 000 570 000
Administrative Expenses………………………………….. 340 000 150 000
Depreciation………………………………………………… 100 000 45 000
Dividends Received from Subsidiary……………………. (33 750) -
Income Tax Expense……………………………………… 200 000 90 000
Dividends Paid…………………………………………….. 120 000 45 000
Property, Plant and Equipment (at cost)……………….. 1 400 000 675 000
Accumulated Depreciation (PPE)……………………….. (300 000) (180 000)
Investment in Elsie Ltd (at cost)………………………… 800 000 -
Inventories……………………………………………….... 400 000 270 000
Trade and Other Receivables…………………………… 260 000 157 500
Trade and Other Payables………………………………. (400 000) (187 500)
Bank………………………………………………………... 70 000 22 500
Loan from Kholiswa Ltd …………………………………… - (45 000)
Loan to Elsie Ltd ………………………………………… 45 000 -
Additional Information:
1. All income and expenses of Kholiswa Ltd and Elsie Ltd were earned evenly throughout the
year, except where otherwise stated.
2
ASSIGNMENT 1 SEMESTER 1 2026
DUE DATE: 19 March 2026
Use this document as a guide to learn, compare and reference
,EXPECT VIEW TUTORS 0664316658 EXPECT VIEW TUTORS 0664316658
EXPECT VIEW TUTORS 0664316658
EXPECT VIEW TUTORS 0664316658 EXPECT VIEW TUTORS 0664316658
EXPECT VIEW TUTORS 0664316658
, FAC2602 Assignment 1 – S1- 2026
SCENARIO FOR QUESTIONS 1 TO 12 OF THE QUIZ
Kholiswa Ltd is a well-established company with a financial year-end of 31 December. On 1 July
2026, Kholiswa Ltd acquired 75 000 ordinary shares in Elsie Ltd for a cash consideration of
R800 000. Each ordinary share in Elsie Ltd carries one vote. At the date of acquisition, Elsie Ltd had
100 000 ordinary shares in issue.
At the date of acquisition, Elsie Ltd's retained earnings amounted to R352 500. On 1 January 2026,
Elsie Ltd's retained earnings was R217 500. All assets and liabilities of Elsie Ltd were considered to
be at their fair value at the date of acquisition.
At the end of the year, Elsie Ltd’s building was revalued according to the revaluation policy. The
building had a carrying amount of R270 000 but a fair value of R330 000. This fair value adjustment
was not recorded in Elsie Ltd's books.
The profit of Elsie Ltd was earned evenly throughout the year, unless specified otherwise. All other
income and expenditure items were received and spent evenly throughout the year.
Dividends were paid by both companies at year end.
Abridged Trial Balances at 31 December 2026
Kholiswa Ltd Elsie Ltd
(Dr / (Cr) (Dr / (Cr)
R R
Share Capital - Ordinary Shares…………………………. (1 500 000) (270 000)
Retained Earnings – 1 January 2025…………………….. (901 250) (217 500)
Revenue…………………………………………………….. (1 800 000) (1 125 000)
Cost of Sales……………………………………………….. 1 200 000 570 000
Administrative Expenses………………………………….. 340 000 150 000
Depreciation………………………………………………… 100 000 45 000
Dividends Received from Subsidiary……………………. (33 750) -
Income Tax Expense……………………………………… 200 000 90 000
Dividends Paid…………………………………………….. 120 000 45 000
Property, Plant and Equipment (at cost)……………….. 1 400 000 675 000
Accumulated Depreciation (PPE)……………………….. (300 000) (180 000)
Investment in Elsie Ltd (at cost)………………………… 800 000 -
Inventories……………………………………………….... 400 000 270 000
Trade and Other Receivables…………………………… 260 000 157 500
Trade and Other Payables………………………………. (400 000) (187 500)
Bank………………………………………………………... 70 000 22 500
Loan from Kholiswa Ltd …………………………………… - (45 000)
Loan to Elsie Ltd ………………………………………… 45 000 -
Additional Information:
1. All income and expenses of Kholiswa Ltd and Elsie Ltd were earned evenly throughout the
year, except where otherwise stated.
2
