MENU
Dashboard / My courses / FAC1602-23-S1 / Welcome Message / Assessment 4
, Question 1
Answer saved
Marked out of 6.00
MENU
The information below relates to questions 1 – 21.
Dashboard / My courses / FAC1602-23-S1 / Welcome Message / Assessment 4
Terrilson Trading is a company in the business of manufacturing parts for train wagons. Terri and Nilson formed this company in 2015 after
they were both retrenched from their employment. The following information pertains to the business activities of the partnership for the
year ended 31 August 2022.
Extract from the statement of financial position as at 31 August 2022:
2022 2021
R R
Land and buildings (at cost) 1,010,600 660,600
Equipment (at cost) 624,900 569,400
Accumulated depreciation: Equipment 175,200 74,400
Long-term loan 283,600 198,200
Members’ contributions 1,276,500 1,080,100
Retained earnings 231,200 79,700
Loans to members 98,100 34,100
Loans from members 118,700 -
Distribution to members payable 78,200 108,600
Inventory 59,100 33,200
Dividend receivable 21,600 101,200
Trade payables control 137,000 66,900
Accrued security expenses 7,700 3,400
Current tax payable 62,200 40,000
Accrued rental income 6,200 5,500
Trade receivables control 108,600 101,800
Prepaid advertising expense 20,800 17,100
Investment (at cost) 202,900 -
Bank 198,000 276,900
Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2022:
R
Revenue from parts sold 832,200
Cost of sales 389,300
Fair value gain on listed investments 20,000
Investment income: dividend income 14,300
Rental income 41,100
Interest income on loans to members 13,700
Loss on sale of machinery 8,900
Other operating expenses 23,400
Telephone expenses 31,200
Interest expense on loans from members 16,400
Interest expense on long term loans 13,300
Income tax expense 124,600
Water and electricity 53,100
Repairs and maintenance 28,500
Depreciation on equipment 93,600
Additional information
1. Cash flows from operating activities are presented using the direct method.
2. Interest on loans advanced to and received from members is capitalised. All loans to members are immediately callable whilst the total
amount owing to members is payable on 31 August 2024.
3. Equipment with a cost price of R32 200 and accumulated depreciation of R10 100 was sold for cash. A replacement equipment was
bought on 30 June 2020.
4. The additional member’s contributions include a piece of land worth R90 000.
5. Investments consist of the following:
Dashboard / My courses / FAC1602-23-S1 / Welcome Message / Assessment 4
, Question 1
Answer saved
Marked out of 6.00
MENU
The information below relates to questions 1 – 21.
Dashboard / My courses / FAC1602-23-S1 / Welcome Message / Assessment 4
Terrilson Trading is a company in the business of manufacturing parts for train wagons. Terri and Nilson formed this company in 2015 after
they were both retrenched from their employment. The following information pertains to the business activities of the partnership for the
year ended 31 August 2022.
Extract from the statement of financial position as at 31 August 2022:
2022 2021
R R
Land and buildings (at cost) 1,010,600 660,600
Equipment (at cost) 624,900 569,400
Accumulated depreciation: Equipment 175,200 74,400
Long-term loan 283,600 198,200
Members’ contributions 1,276,500 1,080,100
Retained earnings 231,200 79,700
Loans to members 98,100 34,100
Loans from members 118,700 -
Distribution to members payable 78,200 108,600
Inventory 59,100 33,200
Dividend receivable 21,600 101,200
Trade payables control 137,000 66,900
Accrued security expenses 7,700 3,400
Current tax payable 62,200 40,000
Accrued rental income 6,200 5,500
Trade receivables control 108,600 101,800
Prepaid advertising expense 20,800 17,100
Investment (at cost) 202,900 -
Bank 198,000 276,900
Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2022:
R
Revenue from parts sold 832,200
Cost of sales 389,300
Fair value gain on listed investments 20,000
Investment income: dividend income 14,300
Rental income 41,100
Interest income on loans to members 13,700
Loss on sale of machinery 8,900
Other operating expenses 23,400
Telephone expenses 31,200
Interest expense on loans from members 16,400
Interest expense on long term loans 13,300
Income tax expense 124,600
Water and electricity 53,100
Repairs and maintenance 28,500
Depreciation on equipment 93,600
Additional information
1. Cash flows from operating activities are presented using the direct method.
2. Interest on loans advanced to and received from members is capitalised. All loans to members are immediately callable whilst the total
amount owing to members is payable on 31 August 2024.
3. Equipment with a cost price of R32 200 and accumulated depreciation of R10 100 was sold for cash. A replacement equipment was
bought on 30 June 2020.
4. The additional member’s contributions include a piece of land worth R90 000.
5. Investments consist of the following:
