UNISA 2023 FAC1601-23-S2 Welcome Message Assessment 2
QUIZ
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Greg and Sheniz are in a partnership trading as Sugar Rush, a new, up-and-coming pastry shop. They share profits and losses
in the ratio of 5:3 respectively. The following information was obtained for the financial year ending 31 August 2023:
The partnership agreement stipulates the following:
1. Interest on capital must be calculated at 7% per annum on the opening balances of the Capital Accounts.
2. The partnership must create separate drawings and current accounts for each partnership.
3. Interest on current accounts must be calculated at 17.5% per annum on the opening balances of the current accounts.
4. At the end of the financial year, the Drawings accounts must be closed off against the applicable current accounts.
Additional Information
The following information has not yet been accounted for:
1. A settlement discount of 3% on total Purchases for the year was received. Inventory on hand at 31 August 2023
amounted to R16 000.
2. The mortgage was obtained from The Baking Bank on 01 November 2022 and bears interest at a rate of 15% per
annum. Interest for the current year must still be provided for.
3. The closing balance of the allowance for credit losses account must be increased with R3 800.
4. Depreciation is accounted for as follows:
a. Vehicles: Straight line method, no residual value. The expected lifespan of each vehicle is estimated to be 15 years. A
new Ford bakkie was purchased on the 30 November 2022 for R680 000. There were no disposals during the year.
b. Office furniture: 15% per annum on the diminishing balance method, no residual value. Office Furniture with a cost of
R65 000 was sold on the 31 December 2022 for R50 000, the furniture was acquired on the 1 October 2021
5. Drawings:
a. Greg - Inventory R5 000
b. Sheniz - Inventory R360
6. The monthly salary expense for existing staff amounts to R48 000 per month. Sugar Rush brought in two new
employees on January 1, 2023, both receiving a monthly wage of R18 000 each.
QUIZ
Time left 0:10:35
, Question 1
Answer saved
Marked out of 1.00
Greg and Sheniz are in a partnership trading as Sugar Rush, a new, up-and-coming pastry shop. They share profits and losses
in the ratio of 5:3 respectively. The following information was obtained for the financial year ending 31 August 2023:
The partnership agreement stipulates the following:
1. Interest on capital must be calculated at 7% per annum on the opening balances of the Capital Accounts.
2. The partnership must create separate drawings and current accounts for each partnership.
3. Interest on current accounts must be calculated at 17.5% per annum on the opening balances of the current accounts.
4. At the end of the financial year, the Drawings accounts must be closed off against the applicable current accounts.
Additional Information
The following information has not yet been accounted for:
1. A settlement discount of 3% on total Purchases for the year was received. Inventory on hand at 31 August 2023
amounted to R16 000.
2. The mortgage was obtained from The Baking Bank on 01 November 2022 and bears interest at a rate of 15% per
annum. Interest for the current year must still be provided for.
3. The closing balance of the allowance for credit losses account must be increased with R3 800.
4. Depreciation is accounted for as follows:
a. Vehicles: Straight line method, no residual value. The expected lifespan of each vehicle is estimated to be 15 years. A
new Ford bakkie was purchased on the 30 November 2022 for R680 000. There were no disposals during the year.
b. Office furniture: 15% per annum on the diminishing balance method, no residual value. Office Furniture with a cost of
R65 000 was sold on the 31 December 2022 for R50 000, the furniture was acquired on the 1 October 2021
5. Drawings:
a. Greg - Inventory R5 000
b. Sheniz - Inventory R360
6. The monthly salary expense for existing staff amounts to R48 000 per month. Sugar Rush brought in two new
employees on January 1, 2023, both receiving a monthly wage of R18 000 each.
