Exam (elaborations)
FAC1601 ASSIGNMENT 3 SOLUTIONS
- Course
- Institution
WITH THIS DOCUMENT YOU ARE GUARANTEED TO SCORE 90% AND ABOVE A+
[Show more]
Seller
Follow
Maddigits
Reviews received
Content preview
Dashboard CalendarDashboard / Courses / UNISA / 2023 / Semester 1 / FAC1601-23-S1 / Welcome Message / Assessment 3
,Question 1
Answer saved
Marked out of 1.00 Time left 0:56:18
Dashboard Calendar
Due to the high crime rate in South Africa, Thabo and Nandi have a close corporation trading as Best Security CC. The services
Dashboard / Courses
provided by / UNISA
the CC include / 2023 / Community
VIP protection, Semester 1 security
/ FAC1601-23-S1 / Welcome
services, Surveillance Message and
monitoring / Assessment 3 The close
Access control.
corporation provides services within Gauteng in the Sandton Area. The financial period for the CC ends 28 February.
The following extract of balances as at 28 February 2023 from the accounting records of
Bester CC is presented to you for assistance:
R
Loan to Nandi - 01 March 2020 25,000
Member’s contribution: Thabo 300,000
Member’s contribution: Nandi 275,000
Member’s contribution: Moses ??
Retained earnings (1 March 2022) 272,450
Trade debtors control 161,500
Trade creditors control 158,700
Loan from Thabo - 01 March 2022 120,500
Bank (favourable) 2,876,100
Long-term loan (Times Bank) 4,806,900
SARS (income tax) liability 120,300
Vehicles at cost 3,540,400
Accumulated depreciation: Vehicles (1 March 2022) 427,200
Furniture at cost 120,000
Accumulated depreciation: Furniture (1 March 2022) 26,800
Equipment at cost 1,700,600
Accumulated depreciation: Equipment (1 March 2022) 491,800
Inventory 314,800
Profit before tax (before taking into account the additional information) 3,259,800
Additional information
1. In the financial year ending 2022, Nandi’s father named Moses a professional within the security industry with over 25 years of
experience was admitted to the CC in July 2022 to assist in managing and overseeing a new division. Moses contributed R70 000,00
cash, he further contributed a patrol vehicle to the valued at R150 000.
2. The loan from Thabo was advanced to the CC on the 1st of November 2021 and is repayable on 31 October 2023.
3. On 01 August 2022 the electronic Gun Safe (Equipment) got damaged by floods and was not reparable. This Safe was
acquired on 30 June 2020 at a cost of R150 000.The carrying amount of the Safe on the day of the floods amounted to R95 000. Best
CC received an insurance pay-out of R95 0000 on 15th September 2022.
4. Depreciation for the year ended 28 February 2023 was calculated as follows:
Vehicles: R123 000
Furniture: R12 000
Equipment: R78 000
5. Nandi experienced personal financial problems during the year and borrowed R30 000 from the close corporation. The loan was
granted to Nandi on 31 May 2022 at an interest rate of 13% per annum. The interest on this loan is capitalised. This transaction is still
to be recorded.
6. On 30 November 2022, a profit distribution of R47 000 was made to each member of the close corporation. These amounts
should be regarded as loans from members with interest charged and capitalised at 15% per annum. This transaction is yet to be
accounted for.
7. The Inventory amount relates to the pepper spray, surveillance camera and other protection gear sold to the public. The Net
Realisable Value for the inventory amounted to R320 000,00 at year end.
8. The income tax assessment, received from SARS on 1 March 2023, indicated that the normal income tax for the 2022 financial
year amounted to R278 000.
, 9. All amounts should be rounded off to the nearest Rand.
Use the information above to answer questions 1 to 13.
Question 1
Which one of the following alternatives represents the correct amount of member’s contributions from the new member Moses to be
Dashboard Calendar
included in the statement of changes in net investments of members of Best CC for the year ended 28 February2023?
Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1601-23-S1 / Welcome Message / Assessment 3
A. R 130 000
B. R 70 000
C. R 220 000
D. R 150 000
Clear my choice
Question 2
Answer saved
Marked out of 1.00
Assume the correct members contribution from Moses is R125 000. Which one of the following alternatives represents the correct
total member’s contributions to be included in the statement of changes in net investments of members of Best CC for the year ended
28 February 2023?
A. R 795 000
B. R 575 000
C. R 645 000
D. R 700 000
Clear my choice
Question 3
Answer saved
Marked out of 1.00
Which one of the following alternatives represents the correct total comprehensive income for the year to be disclosed in the
statement of changes in net investments of members of Best CC for the year ended 28 February 2023?
A. R 3 259 800
B. R 2 863 800
C. R 2 861 438
D. R 2 766 438
Clear my choice
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Maddigits. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.20. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
84146 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now