FAC1601 EXAM PACK
2023
QUESTIONS AND
ANSWERS
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Contents
Study & Exam Pack for FAC1601 © 2014 ...................................................................................................... 1
CHAPTER 1: INTRODUCTION ......................................................................................................................... 4
FINANCIAL STATEMENTS OF A PARTNERSHIP .............................................................................................. 7
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .............................................. 7
OCTOBER-NOVEMBER 2011.................................................................................................................... 11
B. PARTNERSHIPS ........................................................................................................................................ 18
STATEMENT OF CHANGES IN EQUITY ......................................................................................................... 18
OCTOBER-NOVEMBER 2010.................................................................................................................... 18
MAY-JUNE 2012 ...................................................................................................................................... 22
MAY-JUNE 2011 ...................................................................................................................................... 28
Classification of Components ................................................................................................................. 29
Rationale - Why the balance sheet always balances? ............................................................................ 30
Purpose & Importance ............................................................................................................................ 31
MAY- JUNE 2011 ..................................................................................................................................... 32
OCTOBER-NOVEMBER 2012.................................................................................................................... 39
CHAPTER THREE : PARTNERSHIP CHANGES AND LIQUIDATION ................................................................. 45
MAY-JUNE 2011 ...................................................................................................................................... 49
OCTOBER TO NOVEMBER 2012 .............................................................................................................. 51
NOVEMBER 2010 .................................................................................................................................... 56
CHAPTER 4: FINAL ACCOUNTS OF A CLOSE CORPORATION ....................................................................... 62
MAY –JUNE 2011 QUESTION 3 ................................................................................................................ 68
OCTOBER-NOVEMBER 2011 QUESTION 3............................................................................................... 70
OCTOBER – NOVEMBER 2011 ................................................................................................................ 72
OCTOBER-NOVEMBER 2012.................................................................................................................... 78
CHAPTER 4 .................................................................................................................................................. 82
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OCTOBER- NOVEMBER 2010 ................................................................................................................... 87
MAY-JUNE 2011 ...................................................................................................................................... 89
OCTOBER- NOVEMBER 2011 ................................................................................................................... 91
OCTOBER-NOVEMBER 2012.................................................................................................................... 94
MAY-JUNE 2012 ...................................................................................................................................... 98
CHAPTER 6 INTRODUCTION TO COMPANY ACCOUNTS............................................................................ 100
MAY-JUNE 2010 .................................................................................................................................... 100
MAY – JUNE 2010 .................................................................................................................................. 101
CHAPTER 7: BRANCH ACCOUNTS .............................................................................................................. 104
MAY-JUNE 2010 .................................................................................................................................... 104
OCTOBER-NOVEMBER 2012.................................................................................................................. 107
CHAPTER 8: INTERPRETATION OF FINAL ACCOUNTS ................................................................................ 110
OCTOBER-NOVEMBER 2010 QUESTION 5............................................................................................. 110
OCTOBER – NOVEMBER 2010 ............................................................................................................... 111
OCTOBER-NOVEMBER 2012.................................................................................................................. 112
CHAPTER 8: TIME VALUE OF MONEY ........................................................................................................ 114
OCTOBER-NOVEMBER 2011.................................................................................................................. 114
SOLUTION .................................................................................................................................................. 115
OCTOBER – NOVEMBER 2011 ................................................................................................................... 115
2023
QUESTIONS AND
ANSWERS
,
, lOMoARcPSD|3566627
2
Contents
Study & Exam Pack for FAC1601 © 2014 ...................................................................................................... 1
CHAPTER 1: INTRODUCTION ......................................................................................................................... 4
FINANCIAL STATEMENTS OF A PARTNERSHIP .............................................................................................. 7
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .............................................. 7
OCTOBER-NOVEMBER 2011.................................................................................................................... 11
B. PARTNERSHIPS ........................................................................................................................................ 18
STATEMENT OF CHANGES IN EQUITY ......................................................................................................... 18
OCTOBER-NOVEMBER 2010.................................................................................................................... 18
MAY-JUNE 2012 ...................................................................................................................................... 22
MAY-JUNE 2011 ...................................................................................................................................... 28
Classification of Components ................................................................................................................. 29
Rationale - Why the balance sheet always balances? ............................................................................ 30
Purpose & Importance ............................................................................................................................ 31
MAY- JUNE 2011 ..................................................................................................................................... 32
OCTOBER-NOVEMBER 2012.................................................................................................................... 39
CHAPTER THREE : PARTNERSHIP CHANGES AND LIQUIDATION ................................................................. 45
MAY-JUNE 2011 ...................................................................................................................................... 49
OCTOBER TO NOVEMBER 2012 .............................................................................................................. 51
NOVEMBER 2010 .................................................................................................................................... 56
CHAPTER 4: FINAL ACCOUNTS OF A CLOSE CORPORATION ....................................................................... 62
MAY –JUNE 2011 QUESTION 3 ................................................................................................................ 68
OCTOBER-NOVEMBER 2011 QUESTION 3............................................................................................... 70
OCTOBER – NOVEMBER 2011 ................................................................................................................ 72
OCTOBER-NOVEMBER 2012.................................................................................................................... 78
CHAPTER 4 .................................................................................................................................................. 82
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OCTOBER- NOVEMBER 2010 ................................................................................................................... 87
MAY-JUNE 2011 ...................................................................................................................................... 89
OCTOBER- NOVEMBER 2011 ................................................................................................................... 91
OCTOBER-NOVEMBER 2012.................................................................................................................... 94
MAY-JUNE 2012 ...................................................................................................................................... 98
CHAPTER 6 INTRODUCTION TO COMPANY ACCOUNTS............................................................................ 100
MAY-JUNE 2010 .................................................................................................................................... 100
MAY – JUNE 2010 .................................................................................................................................. 101
CHAPTER 7: BRANCH ACCOUNTS .............................................................................................................. 104
MAY-JUNE 2010 .................................................................................................................................... 104
OCTOBER-NOVEMBER 2012.................................................................................................................. 107
CHAPTER 8: INTERPRETATION OF FINAL ACCOUNTS ................................................................................ 110
OCTOBER-NOVEMBER 2010 QUESTION 5............................................................................................. 110
OCTOBER – NOVEMBER 2010 ............................................................................................................... 111
OCTOBER-NOVEMBER 2012.................................................................................................................. 112
CHAPTER 8: TIME VALUE OF MONEY ........................................................................................................ 114
OCTOBER-NOVEMBER 2011.................................................................................................................. 114
SOLUTION .................................................................................................................................................. 115
OCTOBER – NOVEMBER 2011 ................................................................................................................... 115
