FAC1602 Assignment 4
(COMPLETE
ANSWERS) Semester 2
2023 - DUE 16 October
2023
, 1
Question Dashboard Calendar
Not yet
Dashboard
answered The /following
/ My courses information
FAC1602-22-S1 relatesMessage
/ Welcome to the 10/ questions below:
Assessment 5
Marked out of
3.00 Following the surge in crime rates around the Dzingidzingi Village in 2017, Baloyi and Manzini came together to form a security company
to operate around the village. Yena-Aya-Kwin Security was formed as a partnership with Baloyi and Manzini as partners. The information
below pertains to the business activities of the partnership for the year ended 29 February 2020.
1. EXTRACT OF BALANCES AS AT 29 FEBRUARY 2020:
R
Land.............................................................................................................. 799 200
Buildings ....................................................................................................... 2 268 000
Accumulated depreciation: Buildings (1 March 2019) .................................. 154 000
Equipment (at cost)....................................................................................... 423 500
Accumulated depreciation: Equipment (1 March 2019)................................ 99 000
Vehicles (at cost) .......................................................................................... 606 600
Accumulated depreciation: Vehicles (1 March 2019) ................................... 92 100
Allowance for credit losses ........................................................................... 5 500
Trade receivables control ............................................................................. 315 800
Fixed deposit ................................................................................................ 103 200
Investments .................................................................................................. 162 000
Prepaid expenses {Advertising).................................................................... 9 900
Capital: Baloyi............................................................................................... . 525 600
Capital: Manzini ............................................................................................ . 373 800
Capital: Nkuna .............................................................................................. . 747 500
Current account: Baloyi (Dr - 1 March 2019) ................................................ 102 400
Current account: Manzini (Dr - 1 March 2019) ............................................. 79 600
Drawings: Baloyi ........................................................................................... . 20 900
Drawings: Manzini ........................................................................................ . 5 600
Allowance for settlement discount granted ................................................... 8 800
Long-term loan: Giyani Development Agency (1 March 2019)..................... . 890 700
Loan to Manzini ............................................................................................ . 54 500
Loan from Baloyi........................................................................................... . 339 900
Bank overdraft .............................................................................................. . 26 100
Trade payables control ................................................................................. . 543 400
Profit for the year (before year-end adjustments)......................................... 1 035 800
2. Terms of the partnership agreement
2.1 Interest is calculated at 8% per annum on the opening balances of the partners’ current and capital accounts.
2.2 Each partner is entitled to a monthly salary of R12 500.
3. Additional information
3.1 Due to investment commitments requiring cash injection, the partnership decided on the following:
Only paid 92% of the salaries to the partners for the year.
On 1 February 2020, admitted a new partner Nkuna for a contribution of cash amount of R320 000 and security equipment
valued at R427 500. Nkuna started earning a salary from the date of admission
The three partners decided to share profits and losses equally.
3.2 A commission of R18 900 was paid to Nkuna for securing additional security contracts at the nearby village. This amount was
recorded as part of wages and salaries expense.
3.3 The long-term loan from Giyani Development Agency was granted on 1 December 2016. The loan is secured by a first mortgage
over land and buildings and is repayable together with interest, on 1 December 2020.
3.4 All loans to partners are immediately callable whilst the loan from Baloyi is repayable in full on 30 November 2022.
3.5 Investments consist of
Investment in Mfunekani (Pty) Ltd valued R82 000
12 000 shares in Mpange Ltd valued at R80 000
3.6 The accountant of the partnership neglected to record the sale of a vehicle with a cost price of R85 000. The vehicle was sold for
R21 000 cash on 1 November 2019. The accumulated depreciation on the vehicle amounted to R66 000 on 1 November 2019.
3.7 Depreciation for the year which must still be provided for was correctly calculated as follows:
Buildings R148 000
Equipment R 35 600
, Vehicles R 42 200
Dashboard Which one of the following alternatives represents the correct carrying amount for buildings amount that must be presented in the
Calendar
statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Dashboard / My courses / FAC1602-22-S1 / Welcome Message / Assessment 5
Select one:
a. R 1 966 000
b. R 2 268 000
c. R 2 765 200
d. R 2 120 000
e. R 2 144 000
Clear my choice
Question 2
Not yet
answered Which one of the following alternatives represents the correctcarrying amount for vehicles amount that must be presented in the
statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 606 600
b. R 472 300
c. R 514 500
d. R 453 300
e. R 387 300
Clear my choice
Question 3
Not yet
answered Which one of the following alternatives represents the correctfixed deposit amount that must be presented in the statement of financial
position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 103 100
b. R 102 300
c. R 103 300
d. R 162 000
e. R 103 200
Clear my choice
Question 4
Not yet
answered Which one of the following alternatives represents the correcttrade and other receivables amount in the statement of financial position
of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 301 500
b. R 315 800
c. R 310 300
d. R 307 000
e. R 301 000
Clear my choice
, 5
Question Dashboard Calendar
Not yet
Dashboard
answered Which
/ My courses one of the following
/ FAC1602-22-S1 statements
/ Welcome represents
Message the correct
/ Assessment 5 disclosure ofloan to partners: Manzini in the statement of financial
position of of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. the loan is deducted from the loans from partners
b. the loan is presented separately under current assets
c. the loan is presented separately under non-current assets
d. the loan is presented as part of partner’s current accounts
e. the loan is presented as part of trade and other receivables
Clear my choice
Question 6
Not yet
answered Which one of the following alternatives represents the correctunlisted share investment amount that must be presented under non-
current assets in the statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 82 100
b. R 54 500
c. R 80 000
d. R 82 000
e. R 80 200
Clear my choice Time left 2:58:40
Question 7
Not yet
answered Which one of the following alternatives represents the correctlisted share investment amount presented under current assets in the
statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 82 000
b. R 54 500
c. R 80 200
d. R 82 100
e. R 80 000
Clear my choice
Question 8
Not yet
Which one of the following alternatives represents the correctprepayments amount that must be presented in the statement of financial
answered
position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 9 800
b. R 9 100
c. R 9 900
d. R 5 500
e. R 9 000
Clear my choice
(COMPLETE
ANSWERS) Semester 2
2023 - DUE 16 October
2023
, 1
Question Dashboard Calendar
Not yet
Dashboard
answered The /following
/ My courses information
FAC1602-22-S1 relatesMessage
/ Welcome to the 10/ questions below:
Assessment 5
Marked out of
3.00 Following the surge in crime rates around the Dzingidzingi Village in 2017, Baloyi and Manzini came together to form a security company
to operate around the village. Yena-Aya-Kwin Security was formed as a partnership with Baloyi and Manzini as partners. The information
below pertains to the business activities of the partnership for the year ended 29 February 2020.
1. EXTRACT OF BALANCES AS AT 29 FEBRUARY 2020:
R
Land.............................................................................................................. 799 200
Buildings ....................................................................................................... 2 268 000
Accumulated depreciation: Buildings (1 March 2019) .................................. 154 000
Equipment (at cost)....................................................................................... 423 500
Accumulated depreciation: Equipment (1 March 2019)................................ 99 000
Vehicles (at cost) .......................................................................................... 606 600
Accumulated depreciation: Vehicles (1 March 2019) ................................... 92 100
Allowance for credit losses ........................................................................... 5 500
Trade receivables control ............................................................................. 315 800
Fixed deposit ................................................................................................ 103 200
Investments .................................................................................................. 162 000
Prepaid expenses {Advertising).................................................................... 9 900
Capital: Baloyi............................................................................................... . 525 600
Capital: Manzini ............................................................................................ . 373 800
Capital: Nkuna .............................................................................................. . 747 500
Current account: Baloyi (Dr - 1 March 2019) ................................................ 102 400
Current account: Manzini (Dr - 1 March 2019) ............................................. 79 600
Drawings: Baloyi ........................................................................................... . 20 900
Drawings: Manzini ........................................................................................ . 5 600
Allowance for settlement discount granted ................................................... 8 800
Long-term loan: Giyani Development Agency (1 March 2019)..................... . 890 700
Loan to Manzini ............................................................................................ . 54 500
Loan from Baloyi........................................................................................... . 339 900
Bank overdraft .............................................................................................. . 26 100
Trade payables control ................................................................................. . 543 400
Profit for the year (before year-end adjustments)......................................... 1 035 800
2. Terms of the partnership agreement
2.1 Interest is calculated at 8% per annum on the opening balances of the partners’ current and capital accounts.
2.2 Each partner is entitled to a monthly salary of R12 500.
3. Additional information
3.1 Due to investment commitments requiring cash injection, the partnership decided on the following:
Only paid 92% of the salaries to the partners for the year.
On 1 February 2020, admitted a new partner Nkuna for a contribution of cash amount of R320 000 and security equipment
valued at R427 500. Nkuna started earning a salary from the date of admission
The three partners decided to share profits and losses equally.
3.2 A commission of R18 900 was paid to Nkuna for securing additional security contracts at the nearby village. This amount was
recorded as part of wages and salaries expense.
3.3 The long-term loan from Giyani Development Agency was granted on 1 December 2016. The loan is secured by a first mortgage
over land and buildings and is repayable together with interest, on 1 December 2020.
3.4 All loans to partners are immediately callable whilst the loan from Baloyi is repayable in full on 30 November 2022.
3.5 Investments consist of
Investment in Mfunekani (Pty) Ltd valued R82 000
12 000 shares in Mpange Ltd valued at R80 000
3.6 The accountant of the partnership neglected to record the sale of a vehicle with a cost price of R85 000. The vehicle was sold for
R21 000 cash on 1 November 2019. The accumulated depreciation on the vehicle amounted to R66 000 on 1 November 2019.
3.7 Depreciation for the year which must still be provided for was correctly calculated as follows:
Buildings R148 000
Equipment R 35 600
, Vehicles R 42 200
Dashboard Which one of the following alternatives represents the correct carrying amount for buildings amount that must be presented in the
Calendar
statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Dashboard / My courses / FAC1602-22-S1 / Welcome Message / Assessment 5
Select one:
a. R 1 966 000
b. R 2 268 000
c. R 2 765 200
d. R 2 120 000
e. R 2 144 000
Clear my choice
Question 2
Not yet
answered Which one of the following alternatives represents the correctcarrying amount for vehicles amount that must be presented in the
statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 606 600
b. R 472 300
c. R 514 500
d. R 453 300
e. R 387 300
Clear my choice
Question 3
Not yet
answered Which one of the following alternatives represents the correctfixed deposit amount that must be presented in the statement of financial
position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 103 100
b. R 102 300
c. R 103 300
d. R 162 000
e. R 103 200
Clear my choice
Question 4
Not yet
answered Which one of the following alternatives represents the correcttrade and other receivables amount in the statement of financial position
of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 301 500
b. R 315 800
c. R 310 300
d. R 307 000
e. R 301 000
Clear my choice
, 5
Question Dashboard Calendar
Not yet
Dashboard
answered Which
/ My courses one of the following
/ FAC1602-22-S1 statements
/ Welcome represents
Message the correct
/ Assessment 5 disclosure ofloan to partners: Manzini in the statement of financial
position of of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. the loan is deducted from the loans from partners
b. the loan is presented separately under current assets
c. the loan is presented separately under non-current assets
d. the loan is presented as part of partner’s current accounts
e. the loan is presented as part of trade and other receivables
Clear my choice
Question 6
Not yet
answered Which one of the following alternatives represents the correctunlisted share investment amount that must be presented under non-
current assets in the statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 82 100
b. R 54 500
c. R 80 000
d. R 82 000
e. R 80 200
Clear my choice Time left 2:58:40
Question 7
Not yet
answered Which one of the following alternatives represents the correctlisted share investment amount presented under current assets in the
statement of financial position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 82 000
b. R 54 500
c. R 80 200
d. R 82 100
e. R 80 000
Clear my choice
Question 8
Not yet
Which one of the following alternatives represents the correctprepayments amount that must be presented in the statement of financial
answered
position of Yena-Aya-Kwin Security as at 29 February 2020?
Marked out of
3.00
Select one:
a. R 9 800
b. R 9 100
c. R 9 900
d. R 5 500
e. R 9 000
Clear my choice
