FAC 1601
ASSIGNMENT 2 SEMESTER 2 2023
Use this document as a guide to learn, compare and refere
,
,Greg and Sheniz are in a partnership trading as Sugar Rush, a new, up-and-coming pastry shop. They share
profits and losses in the ratio of 5:3 respectively. The following information was obtained for the financial year
ending 31 August 2023:
The partnership agreement stipulates the following:
1. Interest on capital must be calculated at 7% per annum on the opening balances of the Capital Accounts.
2. The partnership must create separate drawings and current accounts for each partnership.
3. Interest on current accounts must be calculated at 17.5% per annum on the opening balances of the
current accounts.
4. At the end of the financial year, the Drawings accounts must be closed off against the applicable current
accounts.
Additional Information
The following information has not yet been accounted for:
1. A settlement discount of 3% on total Purchases for the year was received. Inventory on hand at 31
August 2023 amounted to R16 000.
2. The mortgage was obtained from The Baking Bank on 01 November 2022 and bears interest at a rate of
15% per annum. Interest for the current year must still be provided for.
3. The closing balance of the allowance for credit losses account must be increased with R3 800.
4. Depreciation is accounted for as follows:
, a. Vehicles: Straight line method, no residual value. The expected lifespan of each vehicle is estimated to
be 15 years. A new Ford bakkie was purchased on the 30 November 2022 for R680 000. There were no
disposals during the year.
b. Office furniture: 15% per annum on the diminishing balance method, no residual value. Office Furniture
with a cost of R65 000 was sold on the 31 December 2022 for R50 000, the furniture was acquired on the 1
October 2021
5. Drawings:
a. Greg - Inventory R5 000
b. Sheniz - Inventory R360
6. The monthly salary expense for existing staff amounts to R48 000 per month. Sugar Rush brought in
two new employees on January 1, 2023, both receiving a monthly wage of R18 000 each.
7. A new insurance contract was entered into by Sugar Rush on 1 March 2023. The monthly insurance
premiums are R750 with a total annual payment being made on 1st of March every year. The current years
premium was not recorded in the books of Sugar Rush.
QUESTION 1
Which one of the following alternatives represents the correct Revenue amount recorded in the statement of
profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?
A. R653 334 666800 – 7600 -5866
B. R659 200
C. R660 934
D. R482 500
E. R432 220
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Which one of the following alternatives represents the correct Purchases amount of Sugar Rush for the year
ended 31 August 2023?
A. R501 840 504400 - 3560
B. R517 440
C. R508 040
D. R502 836
E. R505 050
Clear my choice
ASSIGNMENT 2 SEMESTER 2 2023
Use this document as a guide to learn, compare and refere
,
,Greg and Sheniz are in a partnership trading as Sugar Rush, a new, up-and-coming pastry shop. They share
profits and losses in the ratio of 5:3 respectively. The following information was obtained for the financial year
ending 31 August 2023:
The partnership agreement stipulates the following:
1. Interest on capital must be calculated at 7% per annum on the opening balances of the Capital Accounts.
2. The partnership must create separate drawings and current accounts for each partnership.
3. Interest on current accounts must be calculated at 17.5% per annum on the opening balances of the
current accounts.
4. At the end of the financial year, the Drawings accounts must be closed off against the applicable current
accounts.
Additional Information
The following information has not yet been accounted for:
1. A settlement discount of 3% on total Purchases for the year was received. Inventory on hand at 31
August 2023 amounted to R16 000.
2. The mortgage was obtained from The Baking Bank on 01 November 2022 and bears interest at a rate of
15% per annum. Interest for the current year must still be provided for.
3. The closing balance of the allowance for credit losses account must be increased with R3 800.
4. Depreciation is accounted for as follows:
, a. Vehicles: Straight line method, no residual value. The expected lifespan of each vehicle is estimated to
be 15 years. A new Ford bakkie was purchased on the 30 November 2022 for R680 000. There were no
disposals during the year.
b. Office furniture: 15% per annum on the diminishing balance method, no residual value. Office Furniture
with a cost of R65 000 was sold on the 31 December 2022 for R50 000, the furniture was acquired on the 1
October 2021
5. Drawings:
a. Greg - Inventory R5 000
b. Sheniz - Inventory R360
6. The monthly salary expense for existing staff amounts to R48 000 per month. Sugar Rush brought in
two new employees on January 1, 2023, both receiving a monthly wage of R18 000 each.
7. A new insurance contract was entered into by Sugar Rush on 1 March 2023. The monthly insurance
premiums are R750 with a total annual payment being made on 1st of March every year. The current years
premium was not recorded in the books of Sugar Rush.
QUESTION 1
Which one of the following alternatives represents the correct Revenue amount recorded in the statement of
profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?
A. R653 334 666800 – 7600 -5866
B. R659 200
C. R660 934
D. R482 500
E. R432 220
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Which one of the following alternatives represents the correct Purchases amount of Sugar Rush for the year
ended 31 August 2023?
A. R501 840 504400 - 3560
B. R517 440
C. R508 040
D. R502 836
E. R505 050
Clear my choice
