FAC FULL EXAMPACK LATEST PAST PAPERS SOLUTIONS AND QUESTIONS COMPREHENSIVE PACK BY KHEITHYTUTORIALS

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⭐2020⭐
FAC1502
STUDY PACK


COMPILED BY KHEITHYTUTORIALS
2013 TO 2019 SOLUTIONS





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FAC1502 MAY/JUNE 2019 SOLUTIONS

QUESTION 1

a)

Trade receivables control account
R R
Balance b/d 48 800 Bank and discount (207 420 + 900) CRJ 208 320
Credit sales (276 080 – 750) SJ 275 330 Sales returns (4 000 + 100) SRJ 4 100
R/d cheques (12 800 + 450) CPJ 13 250 Credit losses GJ 1 500
Interest 170 Balance c/d 123 630
337 550 337 550
Balance b/d 123 630


b)

Allowance for credit losses
R R
Balance b/d 2 040
Balance c/d 4 000 Credit losses GJ 1 960
4 000 4 000
Balance b/d 4 000


QUESTION 2

BIB Traders

Calculation of capital amount at the beginning of year

Assets
Vehicles (28 800 - 28 800 x 15%) 24 480
Furniture and fittings (26 500 - 26 500 x 10%) 23 850
Inventory 21 770
Trade receivables 8 870
Prepaid expenses 360
Bank 25 000
Total assets 104 330

less: Total liabilities (42 900)
Long-term borrowings 30 000
Trade payables control 9 500
Accrued expenses 3 400

Capital as at 30 June 2017 61 070




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b) BIB TRADERS

Statement of financial position as at 30 June 2018

ASSETS
Non-current assets 41 360
Property, plant and equipment [28 800 - 28 800 x 15% x 2 + 26 500 - 26 500 x 10% x
2] 41 360

Current assets 60 659
Inventory (27 669 + 625 + 150) 28 444
Trade and other receivables (12 350 - 500) 11 850
Prepaid expenses 365
Cash and cash equivalents 20 000

TOTAL ASSETS 102 019

EQUITY AND LIABILITIES

EQUITY 72 019
Capital *** balancing figure (102 019 - 15 000 - 15 000) 72 019

Non-current liabilities 15 000
Long-term loan 15 000

Current liabilities 15 000
Trade and other payables (12 700 + 2 300) 15 000

TOTAL EQUITY AND LIABILITIES 102 019




c) Calculation of estimated profit for the year


Capital at the end of the year 72 019
less capital at the beginning of year (61 070)
Add drawings 2 1500
Estimated profit for the year 32 449




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QUESTION 3

Land and
buildings Vehicles Machinery
Carrying amount at the beginning of year 150 000 64 000 188 500
Cost 150 000 (1) 100 000 290 000 (6)
Accumulated depreciation - (36 000) (101 500)(7)

Additions - - 80 000

Asset realisation 50 000 (2) - -

Depreciation - (12 800) (4) (74 000)(8)

Carrying amount at the end of the year 100 000 51 200 114 500
Cost 100 000 (3) 100 000 290 000
Accumualted depreciation - (48 800) (5) (175 500)(9)




Calculations

1. Cost of land and buildings (100 000 + 50 000) 150 000

2. Cost of land sold (100 000 x 50%) 50 000

3. Cost of land at the end of the year (150 000 - 50 000) 100 000

4. Depreciation: Vehicles - (100 000 - 36 000) x 20% 12 800

5. Accumulated depreciation: vehicles (36 000 + 12 800) 48 800

6. Cost of Machine XB
Purchase price 250 000
Import duties and non-refundable purchase taxes 30 000
Installation costs 10 000
Finace costs - not part of the cost -
Repair cost - an expense, not part of cost -
290 000

7. Accumulated depreciation on machinery at beginning of
year
(290 000 x 20% x 21/12) 101 500


8. Depreciation : Machinery




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