FAC1602
ASSIGNMENT 2
FIRST SEMESTER 2023
BY: MTHOMBENI: 0767297208
1
,Question 1
Which of the following statements is correct:
1.
A personal transaction is a transaction that is made between an existing partner and the partnership of
the business entity.
2.
Past financial performance indicators such as total comprehensive income in respect of previous
financial periods, are ordinarily used to determine goodwill.
3.
When revaluing an asset or liability in terms of a change in ownership structure, the current account is
used. The current account is then closed off to the accounts of the existing partners according to their
existing profit-sharing ratio.
4.
Goodwill is excluded in the calculation when determining the fair value of a partnership.
5.
The selling price of a partnership is determined by the cost price of the partnership.
Question 2
Question text
Vogel and Mazibuko are in a mining partnership with a profit-sharing ratio of 1:3 respectively. A new
partnership was formed by admitting Malikane. A 1/6 share in the profits/loss of the new partnership was
obtained by Malikane. Vogel and Mazibuko agreed to relinquish the 1/6 share according to their previous
profit-sharing ratio of 1:3. The new profit-sharing ratio is:
1.
8:16:5
2.
5:15:4
3.
3:13:2
2
,4.
1:3:6
5.
7:18:6
Time left 1:47:41
Question 3
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Question text
Which of the following statements is incorrect:
1.
Goodwill is subsequently measured at cost less impairment.
2.
The change in the ownership structure of a partnership can be accomplished using two accounting
procedures based on two distinct perspectives namely the legal and the going-concern perspective.
3.
Goodwill is an asset representing the future economic benefits arising from other assets that are not
capable of being individually identified and separately recognised.
4.
A transferal account is used to close off the accounting records of the existing partnership.
5.
Goodwill is a non-current tangible asset in the statement of financial position.
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Question 4
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3
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Question text
Which of the following statement(s) is/are correct:
1.
If a current account has a debit balance when closing, the journal entry would be to debit the current
account and credit the capital account.
2.
A retired or deceased partner does not receive a share of the revaluation surplus account according to the
profit-sharing ratio.
3.
When admitting a new partner, the accounts to be disclosed in the statement of financial position
are closed off to a transferal account.
4.
In the case of a retired/deceased partner, the capital account of the aforementioned partner is closed off
to the transferal account.
5.
All of the above statements are correct.
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Question 5
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Question text
When applying the loss-absorption method, the following must be recorded in the books of the
partnership:
1.
4
ASSIGNMENT 2
FIRST SEMESTER 2023
BY: MTHOMBENI: 0767297208
1
,Question 1
Which of the following statements is correct:
1.
A personal transaction is a transaction that is made between an existing partner and the partnership of
the business entity.
2.
Past financial performance indicators such as total comprehensive income in respect of previous
financial periods, are ordinarily used to determine goodwill.
3.
When revaluing an asset or liability in terms of a change in ownership structure, the current account is
used. The current account is then closed off to the accounts of the existing partners according to their
existing profit-sharing ratio.
4.
Goodwill is excluded in the calculation when determining the fair value of a partnership.
5.
The selling price of a partnership is determined by the cost price of the partnership.
Question 2
Question text
Vogel and Mazibuko are in a mining partnership with a profit-sharing ratio of 1:3 respectively. A new
partnership was formed by admitting Malikane. A 1/6 share in the profits/loss of the new partnership was
obtained by Malikane. Vogel and Mazibuko agreed to relinquish the 1/6 share according to their previous
profit-sharing ratio of 1:3. The new profit-sharing ratio is:
1.
8:16:5
2.
5:15:4
3.
3:13:2
2
,4.
1:3:6
5.
7:18:6
Time left 1:47:41
Question 3
Not yet answered
Marked out of 1.00
Flag question
Question text
Which of the following statements is incorrect:
1.
Goodwill is subsequently measured at cost less impairment.
2.
The change in the ownership structure of a partnership can be accomplished using two accounting
procedures based on two distinct perspectives namely the legal and the going-concern perspective.
3.
Goodwill is an asset representing the future economic benefits arising from other assets that are not
capable of being individually identified and separately recognised.
4.
A transferal account is used to close off the accounting records of the existing partnership.
5.
Goodwill is a non-current tangible asset in the statement of financial position.
Clear my choice
Question 4
Not yet answered
Marked out of 1.00
3
, Flag question
Question text
Which of the following statement(s) is/are correct:
1.
If a current account has a debit balance when closing, the journal entry would be to debit the current
account and credit the capital account.
2.
A retired or deceased partner does not receive a share of the revaluation surplus account according to the
profit-sharing ratio.
3.
When admitting a new partner, the accounts to be disclosed in the statement of financial position
are closed off to a transferal account.
4.
In the case of a retired/deceased partner, the capital account of the aforementioned partner is closed off
to the transferal account.
5.
All of the above statements are correct.
Clear my choice
Question 5
Not yet answered
Marked out of 1.00
Flag question
Question text
When applying the loss-absorption method, the following must be recorded in the books of the
partnership:
1.
4
