FAC1601
Assessment 02 Solutions
Question 1
Past financial performance indicators such as total comprehensive income in respect of previous financial
periods, are ordinarily used to determine goodwill.
Question 2
Vogel Mazibuko Malikane
1 3 1/6th
Partners Original Each Relinquish
Vogel 1/4 1/4 x 1/6 = 1/24
Mazibuko 3/4 3/4 x 1/6 = 3/24ths
multiply original profit sharing
6/6ths
ratio by:
Vogel 1/4 x 6/6 = 6/24th - 1/24ths = 5/24ths
Mazibuko 3/4 * 6/6 = 18/24ths - 3/24ths = 15/24ths
Malikane 1/6 *4/4 = 4/24ths
New ratio
Vogel 5
Mazibuko 15
Malikane 4
Question 3
Goodwill is a non-current tangible asset in the statement of financial position.
Question 4
When admitting a new partner, the accounts to be disclosed in the statement
of financial position are closed off to a transferal account.
Question 5
Record the interim repayments.
Rosie, Angie and Khaya are in a partnership trading as Delightful Scoops, a
boutique ice-cream parlour.
The aforementioned partners have a profit-sharing ratio of 2:3:1 respectively.
, List of balances as at 31 March 2022
R
Capital - Rosie…..….....................................................
150,000
Capital - Angie…..….....................................................
220,000
Capital - Khaya….…....................................................
180,000
Trade payables…..............................................
376,700
Inventories…...............................................................
78,500
Cash and cash equivalents (Bank).................................
68,200
Land and buildings 780,000
The legal perspective is applied when accounting for the change in ownership structure
Additional information
• Because of ill health, Angie decided to retire from the partnership on 31 March 2022 which is the financial
year end of Delightful Scoops.
• Land and buildings were recorded using the historical cost method. The fair value of the land and buildings as
at 31 March 2022 was R920 000
• The net realisable value of inventory on 31 March 2022 was R62 000.
• A new partner, Melanie, was admitted into the partnership on 1 April 2022. She contributed a heavy-duty ice-
cream maker to the value of R35 200 to the partnership and a cash amount of R80 000 for a1/6 share in the
equity of the partnership.
Question 6
Capital Account Angie
Land and buildings (R920 000 - R780 000) 140,000
Inventory (R62 000-R78 500) (16,500)
Total 123,500
Capital balance (Angie) 220,000
Portion of valuation account (3/6 * R123 500) 61,750
Total Capital Account Angie 281,750
(i) Rosie : (123 500 * 2/6) = 41 167
Khanya : (123 500 * 1/6) = 20 583
(ii) 41 167 + 150 000 = 191 167,00
20 583 + 180 000 = 200 583
Assessment 02 Solutions
Question 1
Past financial performance indicators such as total comprehensive income in respect of previous financial
periods, are ordinarily used to determine goodwill.
Question 2
Vogel Mazibuko Malikane
1 3 1/6th
Partners Original Each Relinquish
Vogel 1/4 1/4 x 1/6 = 1/24
Mazibuko 3/4 3/4 x 1/6 = 3/24ths
multiply original profit sharing
6/6ths
ratio by:
Vogel 1/4 x 6/6 = 6/24th - 1/24ths = 5/24ths
Mazibuko 3/4 * 6/6 = 18/24ths - 3/24ths = 15/24ths
Malikane 1/6 *4/4 = 4/24ths
New ratio
Vogel 5
Mazibuko 15
Malikane 4
Question 3
Goodwill is a non-current tangible asset in the statement of financial position.
Question 4
When admitting a new partner, the accounts to be disclosed in the statement
of financial position are closed off to a transferal account.
Question 5
Record the interim repayments.
Rosie, Angie and Khaya are in a partnership trading as Delightful Scoops, a
boutique ice-cream parlour.
The aforementioned partners have a profit-sharing ratio of 2:3:1 respectively.
, List of balances as at 31 March 2022
R
Capital - Rosie…..….....................................................
150,000
Capital - Angie…..….....................................................
220,000
Capital - Khaya….…....................................................
180,000
Trade payables…..............................................
376,700
Inventories…...............................................................
78,500
Cash and cash equivalents (Bank).................................
68,200
Land and buildings 780,000
The legal perspective is applied when accounting for the change in ownership structure
Additional information
• Because of ill health, Angie decided to retire from the partnership on 31 March 2022 which is the financial
year end of Delightful Scoops.
• Land and buildings were recorded using the historical cost method. The fair value of the land and buildings as
at 31 March 2022 was R920 000
• The net realisable value of inventory on 31 March 2022 was R62 000.
• A new partner, Melanie, was admitted into the partnership on 1 April 2022. She contributed a heavy-duty ice-
cream maker to the value of R35 200 to the partnership and a cash amount of R80 000 for a1/6 share in the
equity of the partnership.
Question 6
Capital Account Angie
Land and buildings (R920 000 - R780 000) 140,000
Inventory (R62 000-R78 500) (16,500)
Total 123,500
Capital balance (Angie) 220,000
Portion of valuation account (3/6 * R123 500) 61,750
Total Capital Account Angie 281,750
(i) Rosie : (123 500 * 2/6) = 41 167
Khanya : (123 500 * 1/6) = 20 583
(ii) 41 167 + 150 000 = 191 167,00
20 583 + 180 000 = 200 583
