FAC2602 Assignment 2 Semester 2 2025

FAC2602 – Financial Accounting■Assignment 2 – Semester 2, 2025■Due Date: 5 September 2025



Instructions
Instructions:
1. Answer all questions.
2. Show all workings clearly.
3. Round off to the nearest Rand unless stated otherwise.
4. Use IFRS-compliant formats where applicable.


Question 1
Question 1: Partnerships [20 Marks]

You are provided with the following information relating to the partnership of Zulu & Moyo.

Capital balances as at 1 July 2024:
- Zulu: R120,000
- Moyo: R100,000

On 1 January 2025, Ndlovu was admitted with a 25% share in the partnership. He contributed R80,000.

Profit for the year ended 30 June 2025 was R180,000. Interest on capital is 10% p.a., and salaries are:
- Zulu: R30,000
- Moyo: R20,000
- Ndlovu: R10,000

Required:
(a) Distribute the profit among the partners. (15)
(b) Show journal entry for Ndlovu’s capital contribution. (5)


Answer 1
Answer 1:

(a) Profit Distribution:

Step 1: Calculate interest on capital (for full year unless stated):
- Zulu: 10% of 120,000 = 12,000
- Moyo: 10% of 100,000 = 10,000
- Ndlovu: 10% of 80,000 × 6/12 = 4,000

Step 2: Salaries:
- Zulu: 30,000
- Moyo: 20,000
- Ndlovu: 10,000

Step 3: Remainder of profit = 180,000 - (12,000 + 10,000 + 4,000 + 30,000 + 20,000 + 10,000) = 94,000

Step 4: Share remaining profit:
- Zulu: 37.5% = 35,250
- Moyo: 37.5% = 35,250