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FAC1601 ASSESSMENT 3 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS
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FAC1601 ASSESSMENT 3 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS. USE IT CAREFULLY FOR PRACTICE AND PREP
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Question 8Incomplete answer
Marked out of 27.00
GreenFields Fertilizer Ltd is a company specialising in the production and distribution of high-quality fertilizers for
maize and other crops. The company operates a large manufacturing plant located in Broederstroom, North West
Province, where it produces a variety of fertilizers tailored to optimise soil nutrients and increase crop yields.
GreenFields Fertilizer Ltd has gained a significant presence in the agricultural sector and serves clients across
Southern Africa.
The company's financial year-end is 28 February, and it has consistently maintained strong financial performance
since its incorporation.
GREENFIELDS FERTILIZER LTD
EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:
R
Investments 376,925
Land and buildings at revaluation (1 March 2023) 1,119,400
Equipment at cost 658,300 OSCAR THE TUTOR
Accumulated depreciation: Equipment 87,900
oscardiura@gmail.com
Revaluation surplus (1 March 2023) 120,200
Inventory (1 March 2023) 46,200 +27737560989
Bank 137,300 for FAC MAC ECS DSC TAX QMI FIN INV BNU
Trade receivables control 283,500 STA tutorials
Petty cash 8,000
Share capital: Ordinary shares (1 March 2023) 755,300
Retained earnings (1 March 2023) 280,700
Loan: Broederstroom Bank 125,500
SARS (income tax) (Dr) 35,300
Sales 3,205,100
Allowance for settlement discount granted 7,400
Carriage on purchases 22,600
Trade payables control 265,900
Income received in advance 8,200
Allowance for credit losses 7,200
Settlement discount granted 5,700
Auditor's remuneration 141,800
Carriage on sales 28,300
Settlement discount received 2,400
Purchases 305,000
Salaries and wages 379,200
Directors’ remuneration 200,100
Stationery 11,400
Telephone 16,600
Additional information:
1. The income tax for the financial year ended 28 February 2024 amounted to R137,800 and must still be
recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus amounting to R118,000.
3. A provision of R59,000 must still be made for depreciation on equipment.
4. Directors made the following resolutions at year-end, which are yet to be recorded:
· Dividends declared at R1.4 per share and will be paid at the end of April 2024.
· A total bonus amounting to R163,000 must be paid to directors on 30 April 2024.
5. The loan from Broederstroom Bank was acquired on 1 March 2023 at an interest rate of 10% per annum.
Interest on all loans for the current financial year has not yet been accounted for. The loan is repayable in five
(5) annual equal instalments with effect from 1 March 2024.
6. Authorised share capital consists of 1000,000 NPV ordinary shares. Share capital stated above consists of
ordinary shares issued at R4.00 per share. On 01 December 2023, the directors issued 50,000 shares at R5.4
per share. The shares were taken up by the public on 27 February 2024, and this transaction has not been
recorded.
7. Inventory on 28 February 2024 consisted of the following:
· Inventory (stock) on hand: R54,400
· Stationery on hand: R5,100
8. The allowance for credit losses must be adjusted to R8,400. A debtor who owes the business R12,200 was
declared insolvent and must be written off as irrecoverable.
9. Investments consist of
· Investment in Mkhaya Institute (Pty) Ltd at a cost of R140,000 – this investment is measured at cost.
, · 17,550 shares in Mkhuluwa Ltd at fair value on 28 February 2023 – this investment is held for trading
and the fair value gain/losses are recognised in profit or loss. These shares were trading at R15.5 per
share on 28 February 2024. On the 27th of February 2024, Mkhuluwa Ltd declared a dividend of R4.5 per
share.
REQUIRED:
Complete the amounts in the EXTRACT (presented below) of the statement of profit or loss and other
comprehensive income of Greenfields Fertilizers CC for the year ended 28 February 2024.
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer. It will be marked incorrect.
3. Do not use any abbreviations.
4. Please remember the brackets around the amounts must be indicated by a negative amount [eg: (50) will be
-50].
GREENFIELDS FERTILIZERS CC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY
2024
R
Revenue 3199400
Cost of sales (317000)
Inventory (opening balance) 46200
Purchases 302600
Carriage on purchases 22600
Inventory (closing) (54400)
Gross profit 2882400
Other income 114075
Fair value adjustment: Listed share investment 35100
Dividend income: Listed share investment 35100
Distribution, administrative and other expenses (1007700)
Salaries and wages (379200)
Director's remuniration (363100)
Auditor's remuniration (141800)
Credit losses (13400)
Depreciation (59000)
OSCAR THE TUTOR
Carriage on sales (28300) oscardiura@gmail.com
+27737560989
Stationery consumed (6300)
for FAC MAC ECS DSC TAX QMI
Telephone expenses (16600) FIN INV BNU STA tutorials
Finance costs (12550)
Interest on loan (12550)
Profit before tax 1976225
Income tax expense (137800)
Profit for the year 1838425
, Other comprehensive income for the year 118000
Revaluation surplus 118000
Total comprehensive income for the year 1956425
Please answer all parts of the question.
, FAC1601-24-S2 Welcome Message Assessment 3
QUIZ
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