Exam Paper, May/June 2025
FAC1602
Answer
Question 1
Item Amount (R) Calculation
Revenue 665,6 Sales (given)
Less: Sales -2,3 Given
Returns
Less: Settlement -3 Given
Discount Granted
Net Revenue 660,3 665,600−2,300−3,000=660,300665,600−2,300−
3,000=660,300
Cost of Sales -264,3 Opening Inventory+Purchases−Closing Inventor
y=40,500+244,200−20,400Opening Inventory+P
urchases−Closing Inventory=40,500+244,200−2
0,400
Gross Profit 396 660,300−264,300=396,000660,300−264,300=39
6,000
Operating
Expenses
Salaries (non- (28,400) 125,400−97,000 (partners’ salaries excluded)12
partner) 5,400−97,000(partners’ salaries excluded)
Stationery -4,3 Given
Telephone -6,75 4,900+1,850 (accrued July 2024)4,900+1,850(a
ccrued July 2024)
Rent -6,738 7,300÷13×12 (12 months)7,300÷13×12(12 mont
hs)
,Bad Debts Written -3,5 Debtor write-off additional info
Off
Allowance for (3,568) 48,100−3,500×8%=3,568(48,100−3,500)×8%=3,
Credit Losses (8%) 568
Depreciation -27,16 Equipment 95,000−20,800
×10%=7,420(95,000−20,800×10%=7,420
Vehicles
131,600×15%=19,740131,600×15%=19,740
Total Operating -80,416 28,400+4,300+6,750+6,738+3,500+3,568+27,1
Expenses 6028,400+4,300+6,750+6,738+3,500+3,568+27
,160
Operating Profit 315,584 396,000−80,416=315,584396,000−80,416=315,
584
Finance Costs -8,88 88,800×10% Loan interest
88,800×10%(loan interest)
Profit for the Year 306,704 315,584−8,880=306,704315,584−8,880=306,70
4
Other - No additional items provided
Comprehensive
Income
, Total 306,704 306,704+0=306,704306,704+0=306,704
Comprehensive
Income
Question 2
Cash Flows from Operating Activities (Direct Method)
For the Year Ended 31 May 2024
Item Amount (R) Calculation
Cash Received 905,3 Revenue
from Customers Trade Receivables−Credit Losses+Accrued Re
ntal Income Revenue Trade Receivables
Credit Losses+ Accrued Rental Income
957,700−59,200−7,900+14,700=905,300957,7
00−59,200−7,900+14,700= 905,300
Cash Paid to -611,1 Cost of Sales−ΔInventory+ΔTrade Payables+I
Suppliers and nsurance Paid+Admin Paid+Interest Paid+Tax
Employees PaidCost of Sales Inventory+
Trade Payables+Insurance Paid+Admin Paid+I
nterest Paid+Tax Paid
FAC1602
Answer
Question 1
Item Amount (R) Calculation
Revenue 665,6 Sales (given)
Less: Sales -2,3 Given
Returns
Less: Settlement -3 Given
Discount Granted
Net Revenue 660,3 665,600−2,300−3,000=660,300665,600−2,300−
3,000=660,300
Cost of Sales -264,3 Opening Inventory+Purchases−Closing Inventor
y=40,500+244,200−20,400Opening Inventory+P
urchases−Closing Inventory=40,500+244,200−2
0,400
Gross Profit 396 660,300−264,300=396,000660,300−264,300=39
6,000
Operating
Expenses
Salaries (non- (28,400) 125,400−97,000 (partners’ salaries excluded)12
partner) 5,400−97,000(partners’ salaries excluded)
Stationery -4,3 Given
Telephone -6,75 4,900+1,850 (accrued July 2024)4,900+1,850(a
ccrued July 2024)
Rent -6,738 7,300÷13×12 (12 months)7,300÷13×12(12 mont
hs)
,Bad Debts Written -3,5 Debtor write-off additional info
Off
Allowance for (3,568) 48,100−3,500×8%=3,568(48,100−3,500)×8%=3,
Credit Losses (8%) 568
Depreciation -27,16 Equipment 95,000−20,800
×10%=7,420(95,000−20,800×10%=7,420
Vehicles
131,600×15%=19,740131,600×15%=19,740
Total Operating -80,416 28,400+4,300+6,750+6,738+3,500+3,568+27,1
Expenses 6028,400+4,300+6,750+6,738+3,500+3,568+27
,160
Operating Profit 315,584 396,000−80,416=315,584396,000−80,416=315,
584
Finance Costs -8,88 88,800×10% Loan interest
88,800×10%(loan interest)
Profit for the Year 306,704 315,584−8,880=306,704315,584−8,880=306,70
4
Other - No additional items provided
Comprehensive
Income
, Total 306,704 306,704+0=306,704306,704+0=306,704
Comprehensive
Income
Question 2
Cash Flows from Operating Activities (Direct Method)
For the Year Ended 31 May 2024
Item Amount (R) Calculation
Cash Received 905,3 Revenue
from Customers Trade Receivables−Credit Losses+Accrued Re
ntal Income Revenue Trade Receivables
Credit Losses+ Accrued Rental Income
957,700−59,200−7,900+14,700=905,300957,7
00−59,200−7,900+14,700= 905,300
Cash Paid to -611,1 Cost of Sales−ΔInventory+ΔTrade Payables+I
Suppliers and nsurance Paid+Admin Paid+Interest Paid+Tax
Employees PaidCost of Sales Inventory+
Trade Payables+Insurance Paid+Admin Paid+I
nterest Paid+Tax Paid
