FAC1601 - Financial Accounting And Reporting (FA1601)
Institution
University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS WORKINGS AND ANSWERS TO THE LATEST FAC1601 ASSIGNMENT 3. DOCUMENT SHOULD BE USED FOR COPMARATIVE AND PRACTICE PURPOSES. CORRECT USE WILL ENSURE YOU SCORE ABOVE 75%
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,Question 1
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The following information pertains to KPMJ Ltd and covers questions 1 – 12:
Dashboard / My courses / FAC1601-22-S1 / Welcome Message / Assessment 3
KPMJ Ltd is a company incorporated in 2017 and has a 28 February financial year-end. The company’s accountant presented the following
information to you as the accounting officer of the company:
KPMJ LTD
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2022:
R
Retained earnings (1 March 2021) 200,900
Share capital: Ordinary shares (1 March 2021) 600,900
Inventory (1 March 2021) 34,700
Trade receivables control 244,200
Petty cash 5,900
Loan: PWA Bank 102,600
SARS (income tax) (Dr) 24,500
Land and buildings at revaluation 963,900
Equipment at cost 501,900
Accumulated depreciation: Equipment 72,000
Revaluation surplus (1 March 2021) 85,000
Income received in advance 6,900
Allowance for credit losses 5,200
Bank (Dr) 111,900
Trade payables control 189,300
Auditor's remuneration 36,100
Sales 1,163,730
Carriage on sales 2,000
Settlement discount received 1,700
Allowance for settlement discount granted 6,300
Purchases 234,800
Salaries and wages 229,900
Carriage on purchases 1,400
1. The allowance for credit losses must be adjusted to R7 600. A debtor who owes the business R9 300 was declared insolvent and must
be written off as irrecoverable.
2. The income tax for the financial year ended 28 February 2022 amounted to R121 100 and must still be recorded.
3. Authorised share capital is 400 000 NPV ordinary shares. Share capital stated above consists of ordinary shares issued at R3.5 per
share. On 01 December 2021, the directors issued 57 000 shares at R4.8 per share, the shares were taken up by the public on 1 February
2022, this transaction has not been recorded.
, 4. The loan from PWA was acquired on 1 March 2018 at an interest rate of 8% per annum. Interest on all loans for the current financial
year has not yet been accounted for. The loan is repayable in four annual equal instalments with effect from 1 March 2022.
5. Directors made the following resolutions at year end
· Dividends declared at 80 cents per share and will paid at the end of April 2022
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· A total bonus amounting to R82 500 must be paid to directors on 30 April 2022
· Dashboard
Only 30% of the
/ My auditors’
courses fees stated above
/ FAC1601-22-S1 was settled
/ Welcome at the year
Message end, with the
/ Assessment 3 remainder to be paid to the auditors during the
second week of March 2022.
The above transactions have not been recorded.
6. Provision of R44 200 must still be made for depreciation on equipment.
7. Inventory on 28 February 2022 consisted of the following:
· Inventory (stock) on hand R48 900
· Stationary on hand R 8 300
8. The revaluation of land for the current year resulted in a revaluation surplus amounting to R101 000.
Which alternative represents the correct amount for revenue in the statement of profit or loss and other comprehensive income of KPMJ Ltd
for the year ended 28 February 2022?
1. R1,456,600
2. R1,341,000
3. R1,156,530
4. R1,163,730
5. R1,336,400
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Question 2
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Which alternative represents the correct amount for cost of sales in the statement of profit or loss and other comprehensive income of
KPMJ Ltd for the year ended 28 February 2022?
1. R 364,300
2. R 336,600
3. R 316,700
4. R 318 100
5. R 338,200
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for FAC, MAC ,INV, ECS,TAX,DSC,QMI,FIN ,BNU TUTORING
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