FAC3702 EXAM ANSWERS WRITTEN 04 JUNE 2026 COMPLETE ANSWERS DISTINCTION GUARANTEED

FAC3702 – QUESTION 1
A. Journal Entries – Mamelodi Property
Date Entry

01/01/2023 Dr PPE 10,735,000 / Cr Bank

01/01/2023 Dr SARS receivable 134,200 / Cr PPE

01/02/2023 Dr PPE 420,000 / Cr Bank

15/02/2023 Dr Profit or loss 95,000 / Cr Bank

25/02/2023 Dr Profit or loss 48,000 / Cr Bank

01/07/2025 Transfer PPE to Investment property at FV
10,900,000

31/12/2025 Dr FV loss 1,700,000 / Cr Investment
property



B. PPE Note with Full Reconciliations
Land R Explanation

Opening 5,000,000 Cost

Revaluation surplus 2,200,000 OCI

Closing 7,200,000

Factory Building R Explanation

Cost 13,000,000

Accumulated dep (2,080,000)

Carrying 10,920,000

Impairment (2,820,000) 2024

Reversal 2,820,000 2025

Final 10,920,000

, Equipment R Explanation

Cost 4,775,000

Depreciation (1,190,000)

Carrying 3,585,000


Impairment Calculation (Detailed)
Item R Notes

VIU 2024 8,100,000

FV less costs 7,220,000

Recoverable 8,100,000 Higher

Carrying 10,920,000

Impairment 2,820,000 Loss



C. Deferred Tax (Full Table)
Asset Temp diff Rate DT

Land 2,200,000 27% x 80% 475,200

Equipment 1,000,000 27% 270,000