CAE
CENTRE FOR ACADEMIC EXCELLENCE
YOUR TRUSTED NUMBER 1 LONG DISTANCE PARTNER
PREMIUM EXAM PREPARATION PACK
FAC1601
Financial Accounting for Companies
EXAM PAPERS EDITION
WHAT'S INSIDE THIS STUDY PACK
Compiled past exam papers with full solutions
Topic-by-topic exam-style practice questions
Model answers with detailed mark allocationsStructured for focused, high-yield revision
GET IN TOUCH
WhatsApp: +27 73 887 0986 Email:
Copyright Centre for Academic Excellence. For registered students' personal study use only.
Not for resale or unauthorised distribution.
, FAC1601
FINANCIAL ACCOUNTING REPORTING
SELF-STUDY EXAM PACK
Fully Worked Solutions with Detailed Explanatory Notes
Covers: Full FAC1601 Syllabus
Source: University of South Africa, Department of Financial Accounting, Final Exam Question Papers and assessments.
This pack is an independent self-study aid prepared to build exam technique around the official University of South Africa questions for
,Paper 1 - Exam Paper, October 2025
QUESTION 1 (15 marks)(18 minutes)
Qina Cement CC is a close corporation that produces and supplies high-quality cement to construction companies
and hardware distributors across South Africa. Due to the complexity of the transactions relating to property, plant
and equipment and loans received, the accountant was unable to complete the Statement of cash flows for the
current financial year and has requested your assistance.
1. Extract of amounts and balances as at 28 February
2025 2024
R R
Member’s contributions .............................................................................. 191 600 121 400
Bank ........................................................................................................... 2 900 28 200
Long-term loan ........................................................................................... 75 000 106 200
Loans from members.................................................................................. 194 700 113 700
Retained earnings ...................................................................................... 1 052 900 845 700
Land and buildings at valuation .................................................................. 823 400 556 800
Machinery and equipment at cost .............................................................. 1 963 700 1 568 000
Vehicles at cost .......................................................................................... 516 000 459 800
Accumulated depreciation: Machinery and equipment............................... 894 200 537 300
Accumulated depreciation: Vehicles........................................................... 276 900 211 400
Inventory .................................................................................................... 2 192 800 1 125 800
Trade debtors.............................................................................................. 2 589 400 2 988 100
Revaluation reserve of land and buildings ................................................. 93 600 -
Loss on sale of machinery ......................................................................... 12 800 -
2. Additional information
2.1. On 31 January 2025, Mr. Tau was admitted as a new member of Qina Cement CC. His capital contribution
consisted of a specialised cement-mixing machine valued at R36 000, and the balance was paid in cash.
2.2. The loans from members include R66 000 advanced by Thapelo and R106 000 from Morena. On 1 January 2025,
the corporation obtained an additional loan from Morena to assist with the purchase of upgraded equipment.
2.3. On 31 October 2024, one of the cement mixers (Asset No. MC12400) broke down during operation and was
auctioned off at a profit on the same day. The mixer machine had a cost price of R151 800 and accumulated
depreciation of R36 900 as at 1 March 2024. Depreciation on machinery and equipment is calculated at 15%
per annum on the straight-line method.
2.4. On 30 November 2024, a delivery truck transporting bulk cement was damaged beyond repair in an accident.
The vehicle’s cost price was R128 600 and accumulated depreciation was R101 600. It was sold for scrap at its
carrying amount, and a new truck was purchased for cash.
, 3
FAC1601
2025 Semester 2 Exam
QUESTION 1 (continued)
2.5. During the year, Qina Cement CC purchased an additional warehouse to increase its storage capacity. A sworn
appraiser valued the land and buildings during the year. The revaluation adjustment has already been
processed, and no land or buildings were disposed of during the year.
REQUIRED:
Marks
Prepare the only the cash flows from investing activities section of the statement of cash flows of Qina
Cement CC for the year ended 28 February 2025. Apply the DIRECT METHOD. 15
Please note:
Your answer must comply with the provisions of the Close Corporations Act 1984, and the requirements of
International Financial Reporting Standards (IFRS).
Notes to the annual financial statements and comparative figures are NOT required. Round off all amounts
to the nearest Rand.
All calculations MUST be shown.
SOLUTION
QINA CEMENT CC
STATEMENT OF CASH FLOWS (EXTRACT) FOR THE YEAR ENDED 28 FEBRUARY 2025
Note R
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of land and buildings 1 (173 000)
Purchase of machinery and equipment 2 (511 500)
Proceeds from sale of machinery and equipment 2 86 920
Purchase of vehicles 3 (184 800)
Proceeds from sale of vehicles 3 27 000
Net cash used in investing activities (755 380)
💡 Two items you will NOT see in this section
Mr Tau's R36 000 cement-mixing machine, contributed in kind, never touched the CC's bank account — it is a
non-cash transaction, so IAS 7.43 requires it to be excluded entirely from the statement of cash flows (it would
only be disclosed in a note, if required).
CENTRE FOR ACADEMIC EXCELLENCE
YOUR TRUSTED NUMBER 1 LONG DISTANCE PARTNER
PREMIUM EXAM PREPARATION PACK
FAC1601
Financial Accounting for Companies
EXAM PAPERS EDITION
WHAT'S INSIDE THIS STUDY PACK
Compiled past exam papers with full solutions
Topic-by-topic exam-style practice questions
Model answers with detailed mark allocationsStructured for focused, high-yield revision
GET IN TOUCH
WhatsApp: +27 73 887 0986 Email:
Copyright Centre for Academic Excellence. For registered students' personal study use only.
Not for resale or unauthorised distribution.
, FAC1601
FINANCIAL ACCOUNTING REPORTING
SELF-STUDY EXAM PACK
Fully Worked Solutions with Detailed Explanatory Notes
Covers: Full FAC1601 Syllabus
Source: University of South Africa, Department of Financial Accounting, Final Exam Question Papers and assessments.
This pack is an independent self-study aid prepared to build exam technique around the official University of South Africa questions for
,Paper 1 - Exam Paper, October 2025
QUESTION 1 (15 marks)(18 minutes)
Qina Cement CC is a close corporation that produces and supplies high-quality cement to construction companies
and hardware distributors across South Africa. Due to the complexity of the transactions relating to property, plant
and equipment and loans received, the accountant was unable to complete the Statement of cash flows for the
current financial year and has requested your assistance.
1. Extract of amounts and balances as at 28 February
2025 2024
R R
Member’s contributions .............................................................................. 191 600 121 400
Bank ........................................................................................................... 2 900 28 200
Long-term loan ........................................................................................... 75 000 106 200
Loans from members.................................................................................. 194 700 113 700
Retained earnings ...................................................................................... 1 052 900 845 700
Land and buildings at valuation .................................................................. 823 400 556 800
Machinery and equipment at cost .............................................................. 1 963 700 1 568 000
Vehicles at cost .......................................................................................... 516 000 459 800
Accumulated depreciation: Machinery and equipment............................... 894 200 537 300
Accumulated depreciation: Vehicles........................................................... 276 900 211 400
Inventory .................................................................................................... 2 192 800 1 125 800
Trade debtors.............................................................................................. 2 589 400 2 988 100
Revaluation reserve of land and buildings ................................................. 93 600 -
Loss on sale of machinery ......................................................................... 12 800 -
2. Additional information
2.1. On 31 January 2025, Mr. Tau was admitted as a new member of Qina Cement CC. His capital contribution
consisted of a specialised cement-mixing machine valued at R36 000, and the balance was paid in cash.
2.2. The loans from members include R66 000 advanced by Thapelo and R106 000 from Morena. On 1 January 2025,
the corporation obtained an additional loan from Morena to assist with the purchase of upgraded equipment.
2.3. On 31 October 2024, one of the cement mixers (Asset No. MC12400) broke down during operation and was
auctioned off at a profit on the same day. The mixer machine had a cost price of R151 800 and accumulated
depreciation of R36 900 as at 1 March 2024. Depreciation on machinery and equipment is calculated at 15%
per annum on the straight-line method.
2.4. On 30 November 2024, a delivery truck transporting bulk cement was damaged beyond repair in an accident.
The vehicle’s cost price was R128 600 and accumulated depreciation was R101 600. It was sold for scrap at its
carrying amount, and a new truck was purchased for cash.
, 3
FAC1601
2025 Semester 2 Exam
QUESTION 1 (continued)
2.5. During the year, Qina Cement CC purchased an additional warehouse to increase its storage capacity. A sworn
appraiser valued the land and buildings during the year. The revaluation adjustment has already been
processed, and no land or buildings were disposed of during the year.
REQUIRED:
Marks
Prepare the only the cash flows from investing activities section of the statement of cash flows of Qina
Cement CC for the year ended 28 February 2025. Apply the DIRECT METHOD. 15
Please note:
Your answer must comply with the provisions of the Close Corporations Act 1984, and the requirements of
International Financial Reporting Standards (IFRS).
Notes to the annual financial statements and comparative figures are NOT required. Round off all amounts
to the nearest Rand.
All calculations MUST be shown.
SOLUTION
QINA CEMENT CC
STATEMENT OF CASH FLOWS (EXTRACT) FOR THE YEAR ENDED 28 FEBRUARY 2025
Note R
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of land and buildings 1 (173 000)
Purchase of machinery and equipment 2 (511 500)
Proceeds from sale of machinery and equipment 2 86 920
Purchase of vehicles 3 (184 800)
Proceeds from sale of vehicles 3 27 000
Net cash used in investing activities (755 380)
💡 Two items you will NOT see in this section
Mr Tau's R36 000 cement-mixing machine, contributed in kind, never touched the CC's bank account — it is a
non-cash transaction, so IAS 7.43 requires it to be excluded entirely from the statement of cash flows (it would
only be disclosed in a note, if required).
