FAC3702
Together We Pass
Exam Pack 2021
Written by Godfrey
www.togetherwepass.co.za
,Welcome
Welcome to FAC3702. This exam pack is compiled of the lastest exam paper we have and possible
exam question + solutions. We wish you the best of luck with your student and hope you have a
successful exam.
© 2021 Together We Pass. All rights reserved.
2
,Table of Contents
Welcome ............................................................................................................................................... 2
October/November 2020 Suggested Solution ................................................................................. 4
Examination Paper Questions ......................................................................................................... 11
Examination Paper Recommended Solutions ............................................................................... 62
© 2021 Together We Pass. All rights reserved.
3
, FAC3702 Financial Accounting and
Reporting
October/November 2020 Suggested Solution
Part A
Question 1
a)
MLM LTD
Statement of Profit or Loss and Other Income for the year ended 31 December 2019
DISCONTINUED OPERATIONS
Revenue(1) R375 000
Expenses(2) -R277 200
Profit Before Tax R97 800
Tax Expense -R27 384
Profit After tax R70 416
Loss after tax on measurement of non-current asset held for sale/disposal group -R52 301
Loss on measurement of non-current assets held for sale to fair value less cost to sell(A) -R72 640
Income tax Benefit R20 339
Profit for the year from discontinued operations R18 115
1. 350000+25000=375000
2. 175000+8000+15000+2000+67200+(125000-115000)=277200
A. Loss on measurement of non-current assets held for sale to fair value less cost to
sell
Carrying amount of property andplant to be sold
Carrying amount of Bottling Machine R411 640
Trade Recievables R96 000
Inventory at Net Realisable value R115 000
R622 640
Less fair value less costs to sell R550 000
Loss on measurement of non-current assets held for sale to fair value less cost to sell R72 640
Deffered Tax(28%x72640) R20 339
b)
MLM LTD
NOTES FOR THE YEAR ENDED 31 DECEMBER 2019
Profit before tax for seperately discolsable items
Income
© 2021 Together We Pass. All rights reserved.
4
Together We Pass
Exam Pack 2021
Written by Godfrey
www.togetherwepass.co.za
,Welcome
Welcome to FAC3702. This exam pack is compiled of the lastest exam paper we have and possible
exam question + solutions. We wish you the best of luck with your student and hope you have a
successful exam.
© 2021 Together We Pass. All rights reserved.
2
,Table of Contents
Welcome ............................................................................................................................................... 2
October/November 2020 Suggested Solution ................................................................................. 4
Examination Paper Questions ......................................................................................................... 11
Examination Paper Recommended Solutions ............................................................................... 62
© 2021 Together We Pass. All rights reserved.
3
, FAC3702 Financial Accounting and
Reporting
October/November 2020 Suggested Solution
Part A
Question 1
a)
MLM LTD
Statement of Profit or Loss and Other Income for the year ended 31 December 2019
DISCONTINUED OPERATIONS
Revenue(1) R375 000
Expenses(2) -R277 200
Profit Before Tax R97 800
Tax Expense -R27 384
Profit After tax R70 416
Loss after tax on measurement of non-current asset held for sale/disposal group -R52 301
Loss on measurement of non-current assets held for sale to fair value less cost to sell(A) -R72 640
Income tax Benefit R20 339
Profit for the year from discontinued operations R18 115
1. 350000+25000=375000
2. 175000+8000+15000+2000+67200+(125000-115000)=277200
A. Loss on measurement of non-current assets held for sale to fair value less cost to
sell
Carrying amount of property andplant to be sold
Carrying amount of Bottling Machine R411 640
Trade Recievables R96 000
Inventory at Net Realisable value R115 000
R622 640
Less fair value less costs to sell R550 000
Loss on measurement of non-current assets held for sale to fair value less cost to sell R72 640
Deffered Tax(28%x72640) R20 339
b)
MLM LTD
NOTES FOR THE YEAR ENDED 31 DECEMBER 2019
Profit before tax for seperately discolsable items
Income
© 2021 Together We Pass. All rights reserved.
4
