FAC FULL EXAMPACK PAST PAPERS SOLUTIONS AND QUESTIONS COMPREHENSIVE PACK BY KHEITHYTUTORIALS

2021




STUDY MATERIAL


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MAY/JUNE 2019 SOLUTIONS


Question 1 (30 marks) (36 minutes)

Dikgomu Farming
Statement of profit or loss and other comprehensive income for the year ended 31 August 2018
Revenue (536 820 - 2 000) 534 820
Cost of sales (277 330)
Inventory (1 Sep 2017) 0
Purchases (302 530 - 2 400) 300 130
Carriage on purchases 5 280
Inventory (28 Feb 2018) (28 080)
Gross profit 257 490
Other income 3 575
Rent income 3 000
Profit on sale of equipment 575


Distribution admin and other expenses (213 850)
Salaries & wages (123 600 - 36 000 - 38 000) 49 600
Travel expenses 38 720
Water & electricity (41 160 - 10 400) 30 760
Motor vehicle expenses 23 160
Building expenses 17 010
Depreciation (75 + 28 800 + 14 250 + 1 875) 45 000
Insurance (10 400 - 800) 9 600
(10 400/13 = 800)
Finance costs (12 960)
Interest on loan (108 000 x 12%) 12 960
Profit for the year 34 255
Other comprehensive income 0
Total comprehensive income for the year 34 255



Calculations: Depr:
Cost price 15 000 Veh: 144 000 x 20% = 28 800
Accum Depr (14 000 + 75) (14 075) Equip:
925 (Old) CP: 130 000 - 25 000 = 105 000
Trade-in value 1 500 AD: 24 000 - 14 000 = (10 000)




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Profit on sale 575 95 000
Depr 95 000 x 15% = 14 250
New equip:
25 000 x 15% x 6/12 = 1 875




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