FAC1601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 ;DUE 2025 100% correct solutions and explanations.

, FAC1601 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 ;DUE 2025 100% correct solutions and
explanations.
Question 1

Correct Answer: Option 3
Explanation:

 A personal transaction is indeed a transaction between an existing
partner and the partnership—for example, when a partner lends or
borrows money from the partnership.
 Option 1 is incorrect because the capital account, not the current account,
is used when revaluing assets/liabilities during a change in ownership.
 Option 2 is incorrect because a partnership's selling price is based on fair
value, not its original cost.
 Option 4 is incorrect because goodwill is included when calculating fair
value.
 Option 5 is incorrect since total comprehensive income is just one aspect
of goodwill determination; it's not the sole basis.



✅ Question 2

Correct Answer: Option 2 – 5 : 15 : 4
Explanation:

 Vogel and Mazibuko share profits 1:3, meaning 1/4 and 3/4 respectively.
 They give up a 1/6 share for Malikane, split in that same ratio:
o Vogel gives up 1/6 × 1/4 = 1/24
o Mazibuko gives up 1/6 × 3/4 = 3/24
 New shares:
o Vogel = 1/4 − 1/24 = 5/24
o Mazibuko = 3/4 − 3/24 = 15/24
o Malikane = 4/24
 Final ratio: 5 : 15 : 4