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FA1602 ASSESSMENT 5 SEMESTER 1 2024 Kroonz Steel CC, is a close corporation based in Kroonstad, Free State Province. The CC specialises in the manufacturing of a wide variety of steel building materials, catering to both the local and regional markets. T$2.84
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Elementary Financial Accounting and Reporting - FA (FAC1602)
Exam (elaborations)
FA1602 ASSESSMENT 5 SEMESTER 1 2024 Kroonz Steel CC, is a close corporation based in Kroonstad, Free State Province. The CC specialises in the manufacturing of a wide variety of steel building materials, catering to both the local and regional markets. T
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Course
Elementary Financial Accounting and Reporting - FA (FAC1602)
Institution
University Of South Africa (Unisa)
Book
FAC1601
FA1602 ASSESSMENT 5 SEMESTER 1 2024
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Written for
University of South Africa (Unisa)
Elementary Financial Accounting and Reporting - FA (FAC1602)
The information below relates to questions 1 – 20.
Kroonz Steel CC, is a close corporation based in Kroonstad, Free State Province. The
CC specialises in the manufacturing of a wide variety of steel building materials,
catering to both the local and regional markets. The company prides itself on its
commitment to quality and innovation in steel products, which include beams,
columns, and custom steel fabrications for various construction projects.
The following information has been presented to assist in the preparation of the
statement of cash flows, using the direct method, for the previous financial year
ended 31 August 2023:
Extract from the statement of financial position as at 31 August 2023:
2023 2022
R R
Trade receivables control 97,700 93,200
Prepaid advertising expense 19,400 16,800
Bank 184,200 270,700
Inventory 54,800 32,700
Dividend receivable 19,600 92,400
Investment (at fair value) 182,300 42,300
Fixed deposit 23,900 16,900
Machinery (at cost) 561,500 519,700
Accumulated depreciation: Machinery 162,900 73,000
Land and buildings (at cost) 1,026,000 669,200
Loans to members 130,000 48,000
Trade payables control 175,200 87,800
Current tax payable 82,200 56,300
Long-term loan 362,600 260,000
Accrued security expenses 7,100 3,200
Members’ contributions 1,631,900 1,416,300
Retained earnings 306,000 112,000
Distribution to members payable 100,100 142,700
Loans from members 152,000 0
Extract from the statement of profit or loss and other comprehensive income for
the year ended 31 August 2023:
R
Product sales 955,100
Sales delivery expenses 18,400
Cost of goods sold 446,900
Investment income: dividend income 17,600
Fair value gain on listed investments 23,200
Interest income on loans to members 15,800
Interest expense on loans from members 18,200
Interest expense on long term loans 13,700
Income tax expense 128,800
Profit on sale of machinery 10,100
Rental expenses 24,400
Machine repairs and maintenance 29,500
Travel expenses 34,700
Water and electricity 55,000
Depreciation on machinery 103,900
Additional information
1. All inventories are purchased and sold on credit.
2. The fixed deposit at KR Bank maturity date is 30 September 2027
, 6/10/24, 8:35 PM Assessment 5 (page 1 of 3)
3. Investments consist of the following:
9 000 Ordinary shares in Mjozini Limited - held for trading and recognised
through profit and loss.
4. 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 2026.
5. Machinery with a cost price of R40 500 and accumulated depreciation of
R19 200 was sold for cash. A replacement machinery was bought on 30 June 2023.
6. The additional member’s contributions include a piece of land worth R90 800.
7. Profit distribution to members amounted to R65 000.
Which of the following alternatives represents the correct amount that must be
disclosed as cash receipts from customers under cash flows from operating
activities section in the statement of cash flows for Kroonz Steel CC for the year
ended 31 August 2023?
a. R 950,600
b. R 959,600
c. R 955,100
d. R 959,000
Clear my choice
Question 2
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Which of the following alternatives represents the correct amount that must be
disclosed as additional loans advanced to members under cash flows from
investing activities section in the statement of cash flows for Kroonz Steel CC for
the year ended 31 August 2023?
a. R (66,200)
b. R 0
c. R (97,800)
d. R (82,000)
Clear my choice
Question 3
Answer saved
Marked out of 2.50
Which of the following alternatives represents the correct amount that must be
disclosed as additional loans advanced to members under cash flows from
operating activities section in the statement of cash flows for Kroonz Steel CC for
the year ended 31 August 2023?
a. R(97,800)
b. R(82,000)
c. R 0
d. R(66,200)
Clear my choice
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