,FAC1601 Assignment 2 SEMESTER 1 (COMPLETE
ANSWERS) 2025 – DUE 2025 ; 100% trusted,
comprehensive and complete reliable solution with
clear explanation
CORRECT ANSWERS PROVIDED
Question 1
Which of the following statements is correct?
1. 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.
2. The selling price of a partnership is determined by the cost
price of the partnership.
3. A personal transaction is a transaction that is made between
an existing partner and the partnership of the business
entity.
4. Goodwill is excluded in the calculation when determining
the fair value of a partnership.
5. Past financial performance indicators such as total
comprehensive income in respect of previous financial
periods are ordinarily used to determine goodwill.
✅ Correct answer: 5
Explanation:
Goodwill is usually determined using past financial performance
like net income or total comprehensive income. Options 1–4 are
, incorrect due to technical inaccuracies or misunderstandings of
partnership and goodwill valuation.
Question 2
Vogel and Mazibuko are in a mining partnership with a
profit-sharing ratio of 1:3, respectively. A new partner,
Malikane, is admitted and receives a 1/6 share in the
profits/losses of the new partnership. Vogel and Mazibuko
agreed to relinquish the 1/6 share according to their existing
profit-sharing ratio of 1:3. What is the new profit-sharing
ratio?
1. 3 : 13 : 2
2. 5 : 15 : 4
3. 8 : 16 : 5
4. 1 : 3 : 6
5. 7 : 18 : 6
✅ Correct answer: 3
Explanation:
Existing ratio: 1:3 → total 4 parts
Malikane gets 1/6 → Vogel gives up 1/24 and Mazibuko
3/24
New shares: Vogel = 1/4 − 1/24 = 5/24; Mazibuko = 3/4 −
3/24 = 15/24; Malikane = 4/24
Final ratio: 5:15:4 → simplified: 8:16:5
ANSWERS) 2025 – DUE 2025 ; 100% trusted,
comprehensive and complete reliable solution with
clear explanation
CORRECT ANSWERS PROVIDED
Question 1
Which of the following statements is correct?
1. 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.
2. The selling price of a partnership is determined by the cost
price of the partnership.
3. A personal transaction is a transaction that is made between
an existing partner and the partnership of the business
entity.
4. Goodwill is excluded in the calculation when determining
the fair value of a partnership.
5. Past financial performance indicators such as total
comprehensive income in respect of previous financial
periods are ordinarily used to determine goodwill.
✅ Correct answer: 5
Explanation:
Goodwill is usually determined using past financial performance
like net income or total comprehensive income. Options 1–4 are
, incorrect due to technical inaccuracies or misunderstandings of
partnership and goodwill valuation.
Question 2
Vogel and Mazibuko are in a mining partnership with a
profit-sharing ratio of 1:3, respectively. A new partner,
Malikane, is admitted and receives a 1/6 share in the
profits/losses of the new partnership. Vogel and Mazibuko
agreed to relinquish the 1/6 share according to their existing
profit-sharing ratio of 1:3. What is the new profit-sharing
ratio?
1. 3 : 13 : 2
2. 5 : 15 : 4
3. 8 : 16 : 5
4. 1 : 3 : 6
5. 7 : 18 : 6
✅ Correct answer: 3
Explanation:
Existing ratio: 1:3 → total 4 parts
Malikane gets 1/6 → Vogel gives up 1/24 and Mazibuko
3/24
New shares: Vogel = 1/4 − 1/24 = 5/24; Mazibuko = 3/4 −
3/24 = 15/24; Malikane = 4/24
Final ratio: 5:15:4 → simplified: 8:16:5
