FAC
exam pack from 2015 to 2017.pdf

3 any account not part of the required columns is

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3. Any account not part of the required columns is entered under sundries. 4. All VAT calculations are done using the factor 14/114 since the given payments are inclusive of VAT. If the given amount was exclusive of VAT, we could have used 14/100. 5. When an invoice is received as on the transaction on 4 March, no cash is paid on that date. An invoice is a source document for credit purchases. 7 | P a g e
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FAC1502 2014 8 | P a g e
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FAC1502 2014 9 | P a g e
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FAC1502 2014 SOLUTION 2: STATEMENT OF CHANGES IN EQUITY BOPA STORES Statement of changes in equity for the year ended 30 April 20.9 Balance at beginning of the year 500 000 Additional Equity Contributions (Bank & Equipment: 100 000+45000) 145 000 Drawings (15 000) Total Comprehensive Loss for the year (77 000) Balance @ end of year 553 000 NOTES a) The entries on the debit side of the capital account represent reductions in equity whilst those appearing on the credit side represent increases in equity. b) Total comprehensive loss reduces the owner`s equity whilst total comprehensive income increases the owner`s equity. SOLUTION 3: NOTE TO FINANCIAL STATEMENTS BERTA TRADERS NOTES AS AT 28 FEBRUARY 2009 NOTE ON PROPERTY PLANT & EQUIPMENT LAND & BUILDINGS VEHICLES EQUIPMENT TOTAL Carrying amount at beginning of year 500000 145000 79000 724000 Cost 500000 240000 130000 870000 Accumulated depreciation - (95000) (51000) (146000) Additions 200000 120000 1 25000 345000 Depreciation - (60000) (26000) (86000) Disposals @ carrying amount - (22000) 2 (19000) 3 (41000) Carrying amount at end of year Cost 700000 183000 59000 942000 700000 295000 125000 1120000 Accumulated depreciation - (112000) (66000) 178000 HINTS a) Disposals should be recorded @ carrying amount that is cast minus accumulated depreciation. b) Any assets bought during the year are recorded as additions. c) The depreciation per line item of assets refers to the total depreciation as added in the Accumulated Depreciation account. 10 | P a g e
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FAC1502 2014 d) Assets acquired in previous years are recorded as an opening balance so as their related accumulated depreciations. e) The cost prices of assets disposed and so as their related accumulated depreciations are subtracted when finding the closing balance. f) The carrying amount at the end of the year is determined by subtracting the accumulated depreciation at the end of the year, which is the balance brought forward at the end of the year in the respective accumulated depreciation accounts from the cost at the end of the year which is the balance brought down in the assets at cost accounts at the end of the year. Calculations 1 Additions: Vehicles Gumbi Motors 90 000 China Cycles 30 000 120 000 2 Cost of Vehicles sold (Vehicles at cost account shown as realisation) 65 000 Accumulated Depreciation: shown as realisation 43 000 Carrying amount upon disposal 22 000 3 Cost of Equipment sold (Equipment at cost account shown as realisation 30 000 Accumulated Depreciation: shown as realisation 11 000 Carrying amount upon disposal 19 000 11 | P a g e
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FAC1502 2014 12 | P a g e
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FAC1502 2014 SOLUTION 4: STATEMENT OF COMPREHENSIVE INCOME Robot Traders General Journal DR CR (a) Inventory (trading): Statement of Financial Position 12800 Trading Account 12800 Inventory :stationery 345 Stationery 345 (b) Prepaid expenses 200 Insurances 200 (c) Interest paid (50000x12% x 6 12 ) 3000 Accrued expenses 3000
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