FAC1601 Assignment 1 (ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED

Well-structured FAC1601 Assignment 1 (ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!).. Question 1 Not yet answered Marked out of 2.00 Qabaqongo Oils is a sunfl ower oil production and distribution business, supplying various retailers and wholesalersthroughout Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant informationregarding the partnership’s fi nancial activities for the year ending 30 June 2024. Extract of balances as at 30 June 2024: R Inventory R106,600 Bank (positive) R293,600 Trade receivables control R199,200 Vehicles at cost R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,800 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R15,300 Current account: Zinhle (Dr: 1 July 2023) R9,300 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts. 2.1.2 Profi ts and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. 2.2 Adjustments at the end of the year: 2.2.1 The business aimed to expand its operations by acquiring additional land for sunfl ower cultivation. On 30 June 2024,KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at thecost of R468,000. This loan is classifi ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equalinstalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2023, it was decided that an outstanding debt of R17 000 owed to the business was unlikely to berecovered and should be written off as bad debt. Which one of the following alternatives represents the correct amount that must be disclosed as total equity in the statementof changes in equity of Qabaqongo Oils for the year ended 30 June 2023? a. R682,100 b. R672,200 c. R681,600 d. R678,200 e. R702,800 f. R684,200 Clear my choice Question 2 Not yet answered Marked out of 6.00 Qabaqongo Oils is a sunfl ower oil production and distribution business, supplying various retailers and wholesalersthroughout Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant informationregarding the partnership’s fi nancial activities for the year ending 30 June 2024. Extract of balances as at 30 June 2024: R Inventory R106,600 Bank (positive) R293,600 Trade receivables control R199,200 Vehicles at cost R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,800 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R15,300 Current account: Zinhle (Dr: 1 July 2023) R9,300 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts. 2.1.2 Profi ts and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. 2.2 Adjustments at the end of the year: 2.2.1 The business aimed to expand its operations by acquiring additional land for sunfl ower cultivation. On 30 June 2024,KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at thecost of R468,000. This loan is classifi ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equalinstalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2023, it was decided that an outstanding debt of R17 000 owed to the business was unlikely to berecovered and should be written off as bad debt. Assuming that the profi t available for distribution to partners amounted to R560 000, which one of the following alternativesrepresents the correct balance in the current account of Khanyisa on 30 June 2024? a. R349,988 b. R72,108 c. R349,670 d. R325,300 e. R502,108 f. R352,108 Clear my choice Question 3 Not yet answered Marked out of 2.00 Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. Thepartnership was established on 13 May 2021. The following information pertains to the business activities as of 29 February 2024: Balances as at 29 February 2024: R Land and buildings at cost 1 135 800 Machinery at cost 837 800 Accumulated depreciation: Machinery 315 800 Vehicles at cost 637 800 Accumulated depreciation: Vehicles 315 800 Inventory (1 March 2023) 190 700 Bank (Dr) 885 300 Trade receivables control 487 600 Trade payables control 383 000 Long-term loan (Burg Bank) 1 191 400 Capital: Dave 321 800 Capital: Anna 327 800 Drawings: Dave 85 200 Drawings: Anna 83 800 Interest on loan ? Depreciation 115 000 Delivery cost on sales 54 400 Water and electricity 91 700 Purchases 1 804 000 Security expenses 28 500 Salaries and wages 422 300 Delivery cost on purchases 24 800 Bank charges 14 900 Sales 2 782 800 Stationery consumed 24 100 Settlement discount received 36 700 Settlement discount granted 26 400 Additional information: 1 Partnership agreement: 1.1 An annual interest rate of 12% is applied to the capital account balances. 1.2 Dave and Anna agreed to share profi ts and losses equally. 1.3 Each partner has a monthly salary entitlement of R18,800. 2 Year-end adjustments: Question 4 Not yet answered Marked out of 1.00 2.1 The security expenses billed to the business every month include a R450 monthly fee for security at Anna’s privatehouse. The security bill amounting to R2 150 for February 2024 has not yet been accounted for. 2.2 The long-term loan with Burg Bank secured by land and buildings, bearing a 13.5% annual interest rate, was securedon April 1, 2023, with interest payments due semi-annually at the end of September and March. 2.3 During the year, red paver bricks valued at R18 000 were taken from the inventory and used to pave the additionalparking lot for customers. After the completion of the project, 20% of the bricks weren’t used and Dave took the remainingbricks to build a fi replace at his house. This adjustment is yet to be made. 2.4 The inventory's value was calculated to be R180 000 as of February 29, 2024. 2.5 Dave withdrew his salary from March to May 2024 as he had personal fi nancial challenges. The total amount paid wasdebited to the salaries and wages account. Which one of the following alternatives represents the correct amount that must be disclosed as revenue in the statement ofprofi t or loss and other comprehensive income of GNU Bricks for the year ended 29 February 2024? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 2756400.00 The defi nition of an asset is… a. A future economic resource controlled by a reporting entity as a result of a past event. b. A present economic resource controlled by a reporting entity as a result of a future event. c. A present economic resource controlled by a reporting entity as a result of a past event. d. A future economic resource controlled by a reporting entity as a result of a future event. Clear my choice Question 5 Not yet answered Marked out of 5.00 Engwenya Traders, owned by Ms Mabusa, is a business in the manufacturing of tables using hard wood from the area. Thestandard-sized tables are sold at a price of R4 200 each to furniture shops around the Mpumalanga, Limpopo and Gautengprovinces. On 31 May 2024, Engwenya Traders had an order to supply 22 tables to Mkhaya Furniture in Barberton. The orderwas completed and the sale was concluded on 15 July 2024. This transaction was concluded on the following terms: Credit sale A trade discount of 12% on the bulk sale. An early payment discount of 5% on the amount paid within 30 days. Which one of the following amounts represents the correct amount received by Engwenya Traders if Mkhaya Furniture onlypaid 75% of the amount owing by 15 August 2024? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 57934.80 Question 6 Not yet answered Marked out of 2.00 Qabaqongo Oils is a sunfl ower oil production and distribution business, supplying various retailers and wholesalersthroughout Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant informationregarding the partnership’s fi nancial activities for the year ending 30 June 2024. Extract of balances as at 30 June 2024: R Inventory R106,800 Bank (positive) R293,600 Trade receivables control R199,200 Vehicles at cost R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,400 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,300 Current account: Zinhle (Dr: 1 July 2023) R9,400 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts. 2.1.2 Profi ts and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. 2.2 Adjustments at the end of the year: 2.2.1 The business aimed to expand its operations by acquiring additional land for sunfl ower cultivation. On 30 June 2024,KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at thecost of R468,000. This loan is classifi ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equalinstalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 100 owed to the business was unlikely to berecovered and should be written off as bad debt. Which one of the following alternatives represents the correct amount that must be disclosed as trade and otherreceivables in the statement of fi nancial position of Qabaqongo Oils as at 30 June 2024? a. R196,200 b. R179,000 c. R182,100 d. R199,200 e. R179,100 f. R179,200 Clear my choice Question 7 Not yet answered Marked out of 5.00 Question 8 Not yet answered Marked out of 1.00 You are given the following information is for Engwenya Traders at 31 August 2024: R Capital 253 000 Sales 278 300 Credit losses recovered 7 400 Cost of sales 117 300 Operating expenses 68 900 On May 15, 2024, the owner, withdrew an amount of R15 200 to pay for the school fees for one of her nephews. She furtherwithdrew R40 500 on 18 June 2024 to pay for a family trip to the Olympics 2024 in Paris. A stock take of the tables was conducted on July 31, 2024. During this assessment, it was discovered that 3 tables, valued atR12 600, were damaged by the trailer when they were transported to the storeroom. These damaged tables were offered to the local church at a reduced price of R3 300 each. This offer was accepted by thechurch and the tables were delivered at the church on 5 August 2024. Which one of the following alternatives represents the correct capital balance in the statement of fi nancial position ofEngwenya Traders as at 31 August 2024? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 294100.00 A statement of profi t or loss and other comprehensive incomeconsists of assets, liabilities, and equity sections. True False Question 9 Not yet answered Marked out of 3.00 Qabaqongo Oils is a sunfl ower oil production and distribution business, supplying various retailers and wholesalersthroughout Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant informationregarding the partnership’s fi nancial activities for the year ending 30 June 2024. Extract of balances as at 30 June 2024: R Inventory R108,600 Bank (positive) R293,600 Trade receivables control R199,200 Vehicles at cost R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R64,800 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,500 Current account: Zinhle (Dr: 1 July 2023) R9,500 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts. 2.1.2 Profi ts and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. 2.2 Adjustments at the end of the year: 2.2.1 The business aimed to expand its operations by acquiring additional land for sunfl ower cultivation. On 30 June 2024,KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at thecost of R468,000. This loan is classifi ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equalinstalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 200 owed to the business was unlikely to berecovered and should be written off as bad debt. Assume the correct trade and other receivables amount is R60 000. Which one of the following alternatives represents thecorrect amount that must be disclosed as current assets in the statement of fi nancial position of Qabaqongo Oils as at30 June 2024? a. R870,200 b. R168,600 c. R462,200 d. R928,200 e. R928,400 f. R930,200 Clear my choice Question 10 Not yet answered Marked out of 1.00 Non-current liabilities are long-term debts and have to be settled after one year of the statement of fi nancial position date. True False Question 11 Not yet answered Marked out of 5.00 Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. Thepartnership was established on 13 May 2021. The following information pertains to the business activities as of 29 February 2024: Balances as at 29 February 2024: R Land and buildings at cost 1 135 800 Machinery at cost 837 800 Accumulated depreciation: Machinery 315 800 Vehicles at cost 637 800 Accumulated depreciation: Vehicles 315 800 Inventory (1 March 2023) 190 700 Bank (Dr) 885 300 Trade receivables control 487 600 Trade payables control 383 000 Long-term loan (Burg Bank) 1 191 400 Capital: Dave 321 800 Capital: Anna 327 800 Drawings: Dave 85 200 Drawings: Anna 83 800 Interest on loan ? Depreciation 115 000 Delivery cost on sales 54 400 Water and electricity 91 700 Purchases 1 804 000 Security expenses 28 500 Salaries and wages 422 300 Delivery cost on purchases 24 800 Bank charges 14 900 Sales 2 782 800 Stationery consumed 24 100 Settlement discount received 36 700 Settlement discount granted 24 000 Additional information: 1 Partnership agreement: 1.1 An annual interest rate of 12% is applied to the capital account balances. 1.2 Dave and Anna agreed to share profi ts and losses equally. 1.3 Each partner has a monthly salary entitlement of R18,800. 2 Year-end adjustments: Question 12 Not yet answered Marked out of 1.00 2.1 The security expenses billed to the business every month include a R450 monthly fee for security at Anna’s privatehouse. The security bill amounting to R2 150 for February 2024 has not yet been accounted for. 2.2 The long-term loan with Burg Bank secured by land and buildings, bearing a 13.5% annual interest rate, was securedon April 1, 2023, with interest payments due semi-annually at the end of September and March. 2.3 During the year, red paver bricks valued at R18 000 were taken from the inventory and used to pave the additionalparking lot for customers. After the completion of the project, 20% of the bricks weren’t used and Dave took the remainingbricks to build a fi replace at his house. This adjustment is yet to be made. 2.4 The inventory's value was calculated to be R180 000 as of February 29, 2024. 2.5 Dave withdrew his salary from March to May 2024 as he had personal fi nancial challenges. The total amount paid wasdebited to the salaries and wages account. Which one of the following alternatives represents the correct amount that must be disclosed as cost of sales in thestatement of profi t or loss and other comprehensive income of GNU Bricks for the year ended 29 February 2024? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 1802800.00 Which one of the following expenses should be included in the cost of inventories sold during the year? a. Carriage on sales b. Insurance on deliveries c. Settlement discount granted d. Carriage on purchases Clear my choice Question 13 Not yet answered Marked out of 1.00 Question 14 Not yet answered Marked out of 1.00 Which one of the following alternatives is incorrect? a. The purpose of the Conceptual Framework is to override any particular disclosure or measurement requirement inany IFRS b. The purpose of the Conceptual Framework is to assist users in interpreting the information in interpreting thefi nancial statements when compiled according to IFRS. c. The purpose of the Conceptual Framework is to assist in developing future standards. d. The purpose of the Conceptual Framework is to assist in harmonising legislation and reducing the number ofalternative accounting treatments. Clear my choice Interest on capital account will be recorded in the current account of the partner. True False Question 15 Not yet answered Marked out of 3.00 Qabaqongo Oils is a sunfl ower oil production and distribution business, supplying various retailers and wholesalersthroughout Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant informationregarding the partnership’s fi nancial activities for the year ending 30 June 2024. Extract of balances as at 30 June 2024: R Inventory R108,600 Bank (positive) R293,600 Trade receivables control R199,200 Vehicles at cost R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R64,800 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,500 Current account: Zinhle (Dr: 1 July 2023) R9,500 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts. 2.1.2 Profi ts and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. 2.2 Adjustments at the end of the year: 2.2.1 The business aimed to expand its operations by acquiring additional land for sunfl ower cultivation. On 30 June 2024,KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at thecost of R468,000. This loan is classifi ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equalinstalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 200 owed to the business was unlikely to berecovered and should be written off as bad debt. Which one of the following alternatives represents the correct amount that must be disclosed as property, plant andequipment in the statement of fi nancial position of Qabaqongo Oils as at 30 June 2024? a. R1,321,300 b. R1,386,100 c. R1,382,100 d. R811,000 e. R1,382,500 f. R1,492,600 Clear my choice Question 16 Not yet answered Marked out of 1.00 Question 17 Not yet answered Marked out of 1.00 In a partnership, if the agreement does not specify the interest on capital, what is the usual practice? a. Interest is paid at a fi xed statutory rate. b. Interest is paid at the bank's prime rate. c. The partners negotiate the rate annually. d. Interest on capital is not paid. Clear my choice A partnership is a separate legal entity distinct from its partners. True False Question 18 Not yet answered Marked out of 3.00 Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. Thepartnership was established on 13 May 2021. The following information pertains to the business activities as of 29 February 2024: Balances as at 29 February 2024: R Land and buildings at cost 1 135 800 Machinery at cost 837 800 Accumulated depreciation: Machinery 315 800 Vehicles at cost 637 800 Accumulated depreciation: Vehicles 315 800 Inventory (1 March 2023) 190 700 Bank (Dr) 885 300 Trade receivables control 487 600 Trade payables control 383 000 Long-term loan (Burg Bank) 1 191 100 Capital: Dave 321 800 Capital: Anna 327 800 Drawings: Dave 85 200 Drawings: Anna 83 800 Interest on loan ? Depreciation 115 000 Delivery cost on sales 54 400 Water and electricity 91 700 Purchases 1 804 000 Security expenses 28 500 Salaries and wages 422 300 Delivery cost on purchases 24 800 Bank charges 14 900 Sales 2 782 800 Stationery consumed 24 100 Settlement discount received 36 700 Settlement discount granted 24 000 Additional information: 1 Partnership agreement: 1.1 An annual interest rate of 12% is applied to the capital account balances. 1.2 Dave and Anna agreed to share profi ts and losses equally. 1.3 Each partner has a monthly salary entitlement of R18,800. 2 Year-end adjustments: Question 19 Not yet answered Marked out of 1.00 2.1 The security expenses billed to the business every month include a R450 monthly fee for security at Anna’s privatehouse. The security bill amounting to R2 150 for February 2024 has not yet been accounted for. 2.2 The long-term loan with Burg Bank secured by land and buildings, bearing a 13.5% annual interest rate, was securedon April 1, 2023, with interest payments due semi-annually at the end of September and March. 2.3 During the year, red paver bricks valued at R18 000 were taken from the inventory and used to pave the additionalparking lot for customers. After the completion of the project, 20% of the bricks weren’t used and Dave took the remainingbricks to build a fi replace at his house. This adjustment is yet to be made. 2.4 The inventory's value was calculated to be R180 000 as of February 29, 2024. 2.5 Dave withdrew his salary from March to May 2024 as he had personal fi nancial challenges. The total amount paid wasdebited to the salaries and wages account. Which one of the following alternatives represents the correct amount of half-yearly interest payment by GNU Bricks on 30September 2023? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 80399.25 When a partnership is dissolved, what happens to its assets? a. The assets are automatically transferred to a new partnership. b. The assets are distributed among the partners according to the profi t-sharing ratio. c. The assets remain with the last standing partner. d. The assets are donated to charity. Clear my choice Question 20 Not yet answered Marked out of 3.00 Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. Thepartnership was established on 13 May 2021. The following information pertains to the business activities as of 29 February 2024: Balances as at 29 February 2024: R Land and buildings at cost 1 135 800 Machinery at cost 837 800 Accumulated depreciation: Machinery 315 800 Vehicles at cost 637 800 Accumulated depreciation: Vehicles 315 800 Inventory (1 March 2023) 190 700 Bank (Dr) 885 300 Trade receivables control 487 600 Trade payables control 383 000 Long-term loan (Burg Bank) 1 191 400 Capital: Dave 321 800 Capital: Anna 327 800 Drawings: Dave 85 200 Drawings: Anna 83 800 Interest on loan ? Depreciation 115 000 Delivery cost on sales 54 400 Water and electricity 91 700 Purchases 1 804 000 Security expenses 28 800 Salaries and wages 422 300 Delivery cost on purchases 24 800 Bank charges 14 900 Sales 2 782 800 Stationery consumed 24 100 Settlement discount received 36 700 Settlement discount granted 24 000 Additional information: 1 Partnership agreement: 1.1 An annual interest rate of 12% is applied to the capital account balances. 1.2 Dave and Anna agreed to share profi ts and losses equally. 1.3 Each partner has a monthly salary entitlement of R18,800. 2 Year-end adjustments: 2.1 The security expenses billed to the business every month include a R450 monthly fee for security at Anna’s privatehouse. The security bill amounting to R2 150 for February 2024 has not yet been accounted for. 2.2 The long-term loan with Burg Bank secured by land and buildings, bearing a 13.5% annual interest rate, was securedon April 1, 2023, with interest payments due semi-annually at the end of September and March. 2.3 During the year, red paver bricks valued at R18 000 were taken from the inventory and used to pave the additionalparking lot for customers. After the completion of the project, 20% of the bricks weren’t used and Dave took the remainingbricks to build a fi replace at his house. This adjustment is yet to be made. 2.4 The inventory's value was calculated to be R180 000 as of February 29, 2024. 2.5 Dave withdrew his salary from March to May 2024 as he had personal fi nancial challenges. The total amount paid wasdebited to the salaries and wages account. Which one of the following alternatives represents the correct amount that must be disclosed as security expense in thestatement of profi t or loss and other comprehensive income of GNU Bricks for the year ended 29 February 2024? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 30500.00 Question 21 Not yet answered Marked out of 6.00 Qabaqongo Oils is a sunfl ower oil production and distribution business, supplying various retailers and wholesalersthroughout Mpumalanga. The company is a partnership between Khanyisa and Zinhle. Below is the relevant informationregarding the partnership’s fi nancial activities for the year ending 30 June 2024. Extract of balances as at 30 June 2024: R Inventory R106,800 Bank (positive) R293,600 Trade receivables control R199,200 Vehicles at cost R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,400 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,300 Current account: Zinhle (Dr: 1 July 2023) R9,400 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts. 2.1.2 Profi ts and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively.As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. 2.2 Adjustments at the end of the year: 2.2.1 The business aimed to expand its operations by acquiring additional land for sunfl ower cultivation. On 30 June 2024,KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at thecost of R468,000. This loan is classifi ed as long-term, with an 8% annual interest rate, to be repaid over 6 years with equalinstalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 100 owed to the business was unlikely to berecovered and should be written off as bad debt. Assuming that the profi t available for distribution to partners amounted to R560 000, which one of the following alternativesrepresents the correct balance in the current account of Zinhle on 30 June 2024? a. R325,966 b. R324,732 c. R324,838 d. R324,944 e. R44,838 f. R524,838 g. R310,600 Clear my choice Question 22 Not yet answered Marked out of 1.00 When a sole proprietor withdraws money from the business for personal use, it is recorded as an increase in equity. True False Question 23 Not yet answered Marked out of 5.00 Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. Thepartnership was established on 13 May 2021. The following information pertains to the business activities as of 29 February 2024: Balances as at 29 February 2024: R Land and buildings at cost 1 135 800 Machinery at cost 837 800 Accumulated depreciation: Machinery 315 800 Vehicles at cost 637 800 Accumulated depreciation: Vehicles 315 800 Inventory (1 March 2023) 190 700 Bank (Dr) 885 300 Trade receivables control 487 600 Trade payables control 383 000 Long-term loan (Burg Bank) 1 191 400 Capital: Dave 321 800 Capital: Anna 327 800 Drawings: Dave 82 200 Drawings: Anna 83 800 Interest on loan ? Depreciation 115 000 Delivery cost on sales 54 400 Water and electricity 91 700 Purchases 1 804 000 Security expenses 28 500 Salaries and wages 422 300 Delivery cost on purchases 24 800 Bank charges 14 900 Sales 2 782 800 Stationery consumed 24 100 Settlement discount received 36 700 Settlement discount granted 24 000 Additional information: 1 Partnership agreement: 1.1 An annual interest rate of 12% is applied to the capital account balances. 1.2 Dave and Anna agreed to share profi ts and losses equally. 1.3 Each partner has a monthly salary entitlement of R18,800. 2 Year-end adjustments: 2.1 The security expenses billed to the business every month include a R450 monthly fee for security at Anna’s privatehouse. The security bill amounting to R2 150 for February 2024 has not yet been accounted for. 2.2 The long-term loan with Burg Bank secured by land and buildings, bearing a 13.5% annual interest rate, was securedon April 1, 2023, with interest payments due semi-annually at the end of September and March. 2.3 During the year, red paver bricks valued at R18 000 were taken from the inventory and used to pave the additionalparking lot for customers. After the completion of the project, 20% of the bricks weren’t used and Dave took the remainingbricks to build a fi replace at his house. This adjustment is yet to be made. 2.4 The inventory's value was calculated to be R180 000 as of February 29, 2024. 2.5 Dave withdrew his salary from March to May 2024 as he had personal fi nancial challenges. The total amount paid wasdebited to the salaries and wages account. Which one of the following alternatives represents the correct amount that must be disclosed as total drawings in thestatement of changes in equity of GNU Bricks for the year ended 29 February 2024? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 452050.00 Question 24 Not yet answered Marked out of 3.00 Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. Thepartnership was established on 13 May 2021. The following information pertains to the business activities as of 29 February 2024: Balances as at 29 February 2024: R Land and buildings at cost 1 135 800 Machinery at cost 837 800 Accumulated depreciation: Machinery 315 800 Vehicles at cost 637 800 Accumulated depreciation: Vehicles 315 800 Inventory (1 March 2023) 190 700 Bank (Dr) 885 300 Trade receivables control 487 600 Trade payables control 383 000 Long-term loan (Burg Bank) 1 191 400 Capital: Dave 321 800 Capital: Anna 327 800 Drawings: Dave 85 200 Drawings: Anna 83 800 Interest on loan ? Depreciation 115 000 Delivery cost on sales 54 400 Water and electricity 91 700 Purchases 1 804 000 Security expenses 28 500 Salaries and wages 422 300 Delivery cost on purchases 24 800 Bank charges 14 900 Sales 2 782 800 Stationery consumed 24 100 Settlement discount received 36 700 Settlement discount granted 24 000 Additional information: 1 Partnership agreement: 1.1 An annual interest rate of 12% is applied to the capital account balances. 1.2 Dave and Anna agreed to share profi ts and losses equally. 1.3 Each partner has a monthly salary entitlement of R18,800. 2 Year-end adjustments: Question 25 Not yet answered Marked out of 1.00 Question 26 Not yet answered Marked out of 1.00 2.1 The security expenses billed to the business every month include a R450 monthly fee for security at Anna’s privatehouse. The security bill amounting to R2 150 for February 2024 has not yet been accounted for. 2.2 The long-term loan with Burg Bank secured by land and buildings, bearing a 13.5% annual interest rate, was securedon April 1, 2023, with interest payments due semi-annually at the end of September and March. 2.3 During the year, red paver bricks valued at R18 000 were taken from the inventory and used to pave the additionalparking lot for customers. After the completion of the project, 20% of the bricks weren’t used and Dave took the remainingbricks to build a fi replace at his house. This adjustment is yet to be made. 2.4 The inventory's value was calculated to be R180 000 as of February 29, 2024. 2.5 Dave withdrew his salary from March to May 2024 as he had personal fi nancial challenges. The total amount paid wasdebited to the salaries and wages account. Which one of the following alternatives represents the correct amount that must be disclosed as fi nance costs in thestatement of profi t or loss and other comprehensive income of GNU Bricks for the year ended 29 February 2024? Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the nearest Rand (eg: 50.56 is 51) 3. Only show the amount, do not show the R (eg: 12141.72) Answer: 147435.75 Which of the following is an advantage of forming a partnership? a. The ability to pool resources and expertise b. The diffi culty in raising additional capital c. The requirement for extensive regulatory compliance d. Unlimited liability for the debts of the business Clear my choice Drawings would appear in the Statement of Profi t or Loss and Other Comprehensive Income for a sole proprietorship. True False