FAC1601
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, lOMoARcPSD|21997160
Question 1
Not yet answered
Marked out of 1.00
Question text
Decreases in a liability or income account is recorded on the debit side of the account.
True
False
Question 2
Not yet answered
Marked out of 3.00
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) 1,338,600
Capital: Khanyisile 361,700
Capital: Tinyiko 368,400
Drawings: Khanyisile 95,700
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 32,500
Salaries and wages 474,600
Delivery cost on purchases 27,900
Bank charges 16,800
3
, lOMoARcPSD|21997160
Sales 3,126,800
Stationery consumed 27,200
Settlement discount received 41,700
Settlement discount granted 27,400
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.
2.3. During the year, 3 helmets valued at R5 500 each were borrowed to Khanyisile’s friends for a
weekend ride as part of marketing campaign. After the weekend, Khanyisile decided to take two of the
helmets for her personal use for weekend rides. This adjustment is yet to be made.
2.4. The inventory's value was calculated to be R209 000 as of February 28, 2025.
2.5. Khanyisile withdrew his salary from March-2024 to December-2024, whilst Tinyiko withdrew her
salary for only 8 months of the financial year. The total amounts paid was debited to the salaries and
wages account.
REQUIRED:
What is the correct amount of half-yearly interest payment made by Ride4Yours on 30 November 2024?
Long-term loan X 6/12 X 11.4%
1 338 600 X 6/12 X 11.4% = 76300
Answer:76300
Question 3
Not yet answered
Marked out of 5.00
Question text
Ride4Yours Enterprise is based in Malelane and 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. Ride4Yours Enterprise is owned by Ms. Mkhwanazi, an
entrepreneur who is both an enthusiastic motorcycle rider and a passionate environmental advocate.
4
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, lOMoARcPSD|21997160
Question 1
Not yet answered
Marked out of 1.00
Question text
Decreases in a liability or income account is recorded on the debit side of the account.
True
False
Question 2
Not yet answered
Marked out of 3.00
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) 1,338,600
Capital: Khanyisile 361,700
Capital: Tinyiko 368,400
Drawings: Khanyisile 95,700
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 32,500
Salaries and wages 474,600
Delivery cost on purchases 27,900
Bank charges 16,800
3
, lOMoARcPSD|21997160
Sales 3,126,800
Stationery consumed 27,200
Settlement discount received 41,700
Settlement discount granted 27,400
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.
2.3. During the year, 3 helmets valued at R5 500 each were borrowed to Khanyisile’s friends for a
weekend ride as part of marketing campaign. After the weekend, Khanyisile decided to take two of the
helmets for her personal use for weekend rides. This adjustment is yet to be made.
2.4. The inventory's value was calculated to be R209 000 as of February 28, 2025.
2.5. Khanyisile withdrew his salary from March-2024 to December-2024, whilst Tinyiko withdrew her
salary for only 8 months of the financial year. The total amounts paid was debited to the salaries and
wages account.
REQUIRED:
What is the correct amount of half-yearly interest payment made by Ride4Yours on 30 November 2024?
Long-term loan X 6/12 X 11.4%
1 338 600 X 6/12 X 11.4% = 76300
Answer:76300
Question 3
Not yet answered
Marked out of 5.00
Question text
Ride4Yours Enterprise is based in Malelane and 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. Ride4Yours Enterprise is owned by Ms. Mkhwanazi, an
entrepreneur who is both an enthusiastic motorcycle rider and a passionate environmental advocate.
4
