COMPLETE WORKINGS (ANSWERS) FAC1601 ASSESSMENT 1 SEM1 2025 DUE 18 MARCH 2025 GUARANTEED PASS!

COMPLETE
WORKINGS FOR
FAC1601 2025
ASSIGNMENT 1
SEMESTER 1

THE KNOWLEDGE GROUP

WhatsApp/Call: 082 205 7431

, 1. FAC1601-25-S1
2. Welcome Message
3. Assessment 1



Quiz

Assessment 1
Question 1
Answer saved
Marked out of 1.00

Flag question

Question text
A credit balance on a ledger account indicates………


a.
an asset or expense account

b.
a liability or income account

c.
an asset or income account

d.
a liability or an expense account
Clear my choice



Question 2
Not yet answered
Marked out of 1.00

Flag question

Question text
Which of the following is an advantage of forming a partnership?


a.
The difficulty in raising additional capital

b.

,The requirement for extensive regulatory compliance

c.
The ability to pool resources and expertise

d.
Unlimited liability for the debts of the business



Question 3
Not yet answered
Marked out of 1.00

Flag question

Question text
Depreciation is considered an operating expense and is included in the Statement of Profit or Loss
and Other Comprehensive Income.

True
False



Question 4
Not yet answered
Marked out of 4.00

Flag question

Question text
Khanyisile and Tinyiko are business partners in Ride4Yours, a partnership business based in
Malelane that manufactures specialised helmets for motorcycle riders. The business prides itself on
using eco-friendly materials, making their helmets not only durable but also safe and sustainable for
the environment.
Khanyisile is passionate about motorcycle riding, while Tinyiko is an advocate for sustainability and
green business solutions. Together, they aim to position Ride4Yours as a leading brand in the
motorcycle safety industry.
The following information pertains to the business activities as of February 28, 2025:
Extract of given amounts as at 28 February 2025:
R
Land and buildings at cost 1,276,300
Machinery at cost 941,400
Accumulated depreciation: Machinery 354,900
Vehicles at cost 716,700

, Accumulated depreciation: Vehicles 354,900
Inventory (1 March 2024) 214,400
Bank (positive balance) 994,900
Trade receivables control 548,000
Trade payables control 430,400
Long-term loan (Mbombela Bank) 1,338,300
Capital: Khanyisile 361,700
Capital: Tinyiko 368,400
Drawings: Khanyisile 95,400
Drawings: Tinyiko 94,300
Interest on loan ?
Depreciation 129,300
Delivery cost on sales 61,200
Water and electricity 103,200
Purchases 2,027,100
Security expenses 32,200
Salaries and wages 474,600
Delivery cost on purchases 27,900
Bank charges 16,800
Sales 3,126,800
Stationery consumed 27,200
Settlement discount received 41,400
Settlement discount granted 27,100

Additional information:
1.1 Partnership agreement:
1.1.1 An annual interest rate of 12% is applied to the capital account balances.
1.1.2 Khanyisile and Tinyiko agreed to share profits and losses equally.
1.1.3 Each partner has a monthly salary entitlement of R12,000.


2 Year-end adjustments:
2.1. The security expenses billed to the business every month include a R700 monthly fee for
security at Tinyiko’s private house. The security bill amounting to R2 900 for February 2025 has not
yet been accounted for.
2.2. The long-term loan with Mbombela Bank secured by land and buildings, bearing a 11.4%
annual interest rate, was secured on June 1, 2024, with interest payments due semi-annually at the
end of December and May.