FAC2601 Assignment 2 for the year 2024

QUESTION 1:
Trail Ltd’s issued share capital has not changed since incorporation on 1 January 2020,
and consists of:
400 000 Ordinary shares (issued at R2 each)
150 000 9% Preference shares (issued at R2 each)
180 000 10% Cumulative preference shares (issued at R3 each)
No dividends were declared in the previous two financial years, but at the end of the
current financial year on 31 December 2023, a dividend of 15c per ordinary share was
declared.
REQUIRED:
Which one of the following amounts will be the total dividend expense
on 31 December 2023?




1.
R250 500
2.
R150 000
3.
R141 000
4.
R249 000
Clear my choice

Ordinary dividned (400 000 x 0,15) 60 000
9% preference shares (150 000 x R2 x 9%) 27 000
10% preference shares (180 000 x R3 x 10% x 3 years) 162 000
249 000




Question 2

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QUESTION 2:

,Soll Ltd provided a loan to Fargo Ltd on 1 November 2020 of which the capital portion is
repayable in eleven equal annual instalments starting on 1 July 2021. Interest on the loan
is calculated at 10% per annum and is payable at the end of each financial year.
The year-end of Soll Ltd is 31 December.
The outstanding balance on the loan, as at 31 December 2023, amounts to R540 000.
REQUIRED:
Which one of the following options represents the amount of interest received by Soll
Ltd for the year ended 31 December 2023?




1.
R27 000
2.
R30 375
3.
R57 375
4.
R67 375
Clear my choice
Interest
1 Jan - 30 June 2023 (540 000 x 9/8 x 10% x 6/12) 30 375
1 Jul - 31 Dec 2023 (540 000 x 10% x 6/12) 27 000
57 375




Question 3

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QUESTION 3:
Both the managing director and regional manager of Vilakazi Ltd have the benefit of the
use of company cars, which may also be used for private purposes. The total benefit for
the use of such a car is estimated at R150 000 per year, of which 30% is for private use
and 70% for business purposes.
REQUIRED:
The total amount that should be disclosed in remuneration as other benefits should be:

, 1.
R210 000
2.
R90 000
3.
R150 000
4.
R45 000
Clear my choice


Remuneration (150 000 x 2 x 30%) 90 000


Question 4

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QUESTION 4:
Ribelo Ltd issued 5 000 6% redeemable preference shares on 1 July 2023. The shares are
convertible at the option of the holder, with compulsory dividend payments by the
issuer.
REQUIRED:
How will you disclose the preference shares in the annual financial statements of
Ribelo Ltd on 31 December 2023?




1.
Equity
2.
Contingent liability
3.
Financial liability
4.
Current Liability
Clear my choice