FAC2602 ASSIGNMENT 3 SEMESTER 2 2024 MCQ Distinction guaranteed 90+

Question 1
.


The pro-forma journal entry to eliminate the depreciation relating to the prior year on the
sale of the video editing equipment is:

1.
Accumulated depreciation – Neptune Ltd 18 750
Retained earnings – Uranus Ltd 18 750


2.
Accumulated depreciation – Uranus Ltd 22 500
Retained earnings – Neptune Ltd 22 500



3.
Accumulated depreciation – Neptune Ltd 22 500
Depreciation – Uranus Ltd 22 500



4.
Accumulated depreciation – Uranus Ltd 18 750
Depreciation – Neptune Ltd 18 750




(1 700 000 – 1 450 000) x 9% x 10/12 = 18 750
Neptupe is depreciating the machine, therefore the depreciation should be eliminated from Neptune

, Question 2
Use the scenario to answer the following question.
The intragroup portion of arrear preference dividends up to the beginning of the current
year amounts to:

1. R45 581


2. R32 175


3. R42 900


4. R60 775

Uranus owns: 45 000/60 000 shares = 75%

Total preference dividend declared and paid= 103 675
Less Preference dividend for current year = 390 000 x 11% = 42 900

Intragroup preference dividend in arrear up to beginning of current year = (103 675 – 42 900) x 75% = R45 581




Question 3
Use the scenario to answer the following question.
In the current group context, other components of equity in the consolidated statement of
financial position comprises:

1.
Ordinary share capital, preference share capital, the revaluation surplus, retained earnings
and the non-controlling interests
2.
Only the revaluation surplus
3.
Ordinary share capital, preference share capital, the revaluation surplus and retained
earnings
4.
Ordinary share capital, the revaluation surplus and retained earnings