FAC1602 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 16 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us..
FAC1602 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 16 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us..
FAC1602 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 16 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us..
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,AC1601 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2024 (194456) - DUE 2 September
2024 ; 100% TRUSTED Complete, trusted solutions
Question 1 Not yet answered Marked out of 2.00 Qabaqongo
Oils is a sunfl ower oil production and distribution business,
supplying various retailers and wholesalersthroughout
Mpumalanga. The company is a partnership between Khanyisa
and Zinhle. Below is the relevant informationregarding the
partnership’s fi nancial activities for the year ending 30 June
2024. Extract of balances as at 30 June 2024: R Inventory
R106,600 Bank (positive) R293,600 Trade receivables control
R199,200 Vehicles at cost R708,200 Equipment at cost R209,300
Factory building at cost R575,100 Accumulated depreciation:
Vehicles R41,700 Accumulated depreciation: Equipment
R68,800 Allowance for credit losses R3,000 Trade payables
control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle
R246,700 Current account: Khanyisa (Cr: 1 July 2023) R15,300
Current account: Zinhle (Dr: 1 July 2023) R9,300 2.
Supplementary information: 2.1 Details of the partnership
agreement between the partners: 2.1.1 An annual interest rate
of 6% is applied to the opening balances of the partners’ capital
and current accounts. 2.1.2 Profi ts and losses are shared
equally between Khanyisa and Zinhle. 2.1.3 The monthly
salaries to which the partners are entitled are R15 000 and R20
000 for Khanyisa and Zinhle respectively.As of 30 June 2024, the
salaries paid to the partners were only up to 30 April 2024. 2.2
Adjustments at the end of the year: 2.2.1 The business aimed to
,expand its operations by acquiring additional land for sunfl
ower cultivation. On 30 June 2024,KEN Corp provided a loan of
R468 000 to facilitate the purchase of a farm. The farmland was
acquired on 2 July 2024 at thecost of R468,000. This loan is
classifi ed as long-term, with an 8% annual interest rate, to be
repaid over 6 years with equalinstalments starting from 30 June
2025. This transaction has not yet been recorded. 2.2.1 On 30
June 2023, it was decided that an outstanding debt of R17 000
owed to the business was unlikely to berecovered and should
be written off as bad debt. Which one of the following
alternatives represents the correct amount that must be
disclosed as total equity in the statementof changes in equity of
Qabaqongo Oils for the year ended 30 June 2023? a. R682,100
b. R672,200 c. R681,600 d. R678,200 e. R702,800 f. R684,200
Clear my choice
To determine the correct total equity for Qabaqongo Oils as of
30 June 2023, let's follow these steps:
1. Identify the components of equity:
o Capital: Khanyisa: R431,500
o Capital: Zinhle: R246,700
o Current account: Khanyisa (Cr): R15,300
o Current account: Zinhle (Dr): -R9,300 (since it's a debit
balance, it will reduce equity)
Total Equity (before adjustments) = Capital + Current Accounts
, Total Equity = R431,500R431,500R431,500 +
R246,700R246,700R246,700 + R15,300R15,300R15,300 -
R9,300R9,300R9,300
Total Equity = R684,200R684,200R684,200
2. Consider the adjustments:
a. Interest on capital and current accounts:
o Khanyisa's capital: R431,500×6%=R25,890R431,500 \
times 6\% = R25,890R431,500×6%=R25,890
o Zinhle's capital: R246,700×6%=R14,802R246,700 \
times 6\% = R14,802R246,700×6%=R14,802
o Khanyisa's current account:
R15,300×6%=R918R15,300 \times 6\% =
R918R15,300×6%=R918
o Zinhle's current account: −R9,300×6%=−R558-
R9,300 \times 6\% = -R558−R9,300×6%=−R558
Total interest adjustment = R25,890R25,890R25,890 +
R14,802R14,802R14,802 + R918R918R918 - R558R558R558
Total interest adjustment = R41,052R41,052R41,052
b. Partner's unpaid salaries:
o Khanyisa: R15,000×2R15,000 \times 2R15,000×2 (May
and June) = R30,000R30,000R30,000
o Zinhle: R20,000×2R20,000 \times 2R20,000×2 (May
and June) = R40,000R40,000R40,000
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