ACCF 121 2021 - Exam 1st Opp Memo

QUESTION 1

Raw Material: Plastic

Opening balance 0.5 62,500 Purchases retuned 8,000 0.5
Work in progress 534,500 0.5
Purchased 0.5 525,000
Closing balance 45,000 0.5
587,500 587,500
2.5
Raw Material: Paint
Opening balance 0.5 8,000 Work in progress 22,000 0.5
Purchases 0.5 11,000
Freight on purchases 0.5 9,000 Closing balance 6,000 0.5

28,000 28,000
2.5

Manufacturing overheads account

Cleaning Materials 10 700(0.5) - 1 750(0.5) 1 8,950 Work in progress 202,450 0.5
Supervisor 6 500(0.5) + 10 000(0.5) 1 88,000
Depreciation: Manufacturing plant 0.5 28,000
Rent Expense 60 000+ (60 000/12(0.5) x 10%(0.5)) 1 60,500
Water and electicity 18 500(0.5) -1500(0.5) 1 17,000
202,450 202,450 5.0

Work in progress
Opening balance 0.5 124,000 Finished goods 1,126,950 0.5 P
Raw Materia: plastic P 0.5 534,500
Raw Material: paint P 0.5 22,000
Direct Labour 1.0 372,000
6200 x 5(0.5) x 12(0.5)
Manufacturing overheads P 0.5 202,450
Closing balance 128,000 0.5

1,254,950 1,254,950 4.0

Finished Goods
Opening balance 0.5 210,000 Cost of goods sold 1,100,000 0.5 given

Work in progress 0.5 P 1,126,950

Closing balance 236,950 0.5 P

1,336,950 1,336,950
2.0

TOTAL 16.0
MAX 15.0
ACCF 121 2021 - Exam 1st Opp Memo
QUESTION 2

Suggested solution:
Marks
Hay Day (Pty) Ltd
Notes to the financial statements for the year ended 30 June 2021
1 Presentation and layout
Agricultural
Land Tractors Aircraft Name + Statement (0.5)
R R R PPE headings + currency (0.5)

3,200,000 1,875,000 1,665,000

Cost 3,200,000 0.5 3,750,000 0.5 1,800,000 0.5 1.5
Accumulated depreciation - (1,875,000) 0.5 (135,000) 0.5P Calc. 3 1

Movements:
Depreciation for the year - (670,000) 3( Calc 2) (249,750) 2.5 6.5
Disposals at carrying amount - (440,000) 1( Calc 2) -
1
Revaluation surplus 300,000 Calc. 1 - 1

3,500,000 765,000 1,415,250

Cost 3,500,000 0.5 3,150,000 1.0 1,800,000 0.5 2.0
Accumulated depreciation - (2,385,000) 1.5P (384,750) 0.5P 2

1 Communication and lay out

14 PPE Note inclusive of calculations
R1 875 000(0.5) + R670 000(0.5) P - R160 000(0.5) P = R2 385 000

R3 750 000 (0,5) - R600 000 (0,5)

 CALCULATIONS

1 Net profit
Net profit before tax P 0.50 995,850

Less: Dividends received 0.50 (522,600)

Add: Traffic fines 0.50 5,500
Less: Interest expense 2.00 (41,250) (725 000 (0,5) + 25 000)(0,5) * 11% (0,5) * 6/12(0.5)
437,500 5.00
Taxation
(437 500 (0,5) P*28% (0,5)) 1.00 (122,500)
Net profit after tax (995850-122500) P 0.50 873,350

5.00
2 Dividends
2.1 Ordinary dividend
Opening number shares 475,000 0.50
Issued shares 100,000 0.50 P
Converted shares 7,500 1.00 P
(150 000 (0,5) P/20 (0,5)) 582,500
582 500 (0,5P)*55C (0,5) 320,375 1.00

Capitalisation issue
320375 (0,5) P * 50% (0,5) (160,188) 1.00
160,188
4.00 4
2.2 Preference dividend
10% Compulsory convertible shares
(2 250 000 (0,5) * 10%) (0,5) *6 /12(0.5) 1.50 112,500
2 250 000 - 100 000 (1,0) * 10% * 2/12(0.5) 1.50 35,833
(750 000 (0,5) *10%) (0,5)*3/12 (0,5) 1.50 18,750
4.5 148,333 4.5

26 Total
1 Com mark
25 SOCE
ACCF 121 2021 - Exam 1st Opp Memo
QUESTION 3.2

Tru- Trailers Ltd

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021

2021
12 Profit before tax IAS1.104 R 1.00
MAX:1
Profit from operations is arrived at after taking into account the following:

Revenue from:
Rent income 55,750 0.50

Expenses

Auditors remuneration
Audit fees 895,000 0.50

Depreciation IAS1.104
Equipment 20,500 0.50
Vehicles 19,000 0.50

Remuneration
Administrative 144,800 0.50
Staff - sales agents 60,700 0.50
Directors emoluments
Executive directors
For services as directors 1,350,500 0.50

Non-executive directors
For services as directors 1,620,000 0.50

Credit losses 20,700 0.50

5.50
MAX:4

Trade and other payables

Interest expense payable 41,250 0.50 P
Shareholders for dividends 253,224 If no note, half of calc mark to be given
SARS: Dividends tax 55,297 If no note, half of calc mark to be given

SARS: Withholding tax

160188 (0,5) P*80% (0,5)*20% (0,5) 20.00 25,630 1.00
160188 (0,5)-25630 (0,5) 80.00 134,558 1.00 P

148333 (0,5)*20% (0,2) 20.00 29,667 1.00

80.00 118,666 0.50
3.5
MAX:4
Question 2:

Primrose Ltd Group 0.5

Consolidated statement of financial position as at 28 February 2020 0.5 (correct layout)

Primrose
Ltd Group Give 0.5 for next to each other or shown in brackets)
2020
R
ASSETS
Non-current assets
Property, plant and equipment 700,000 200,000 900,000 1 (0.5 for adding each amount)
Land and buildings 1,200,000 640,000 1,840,000 1 (0.5 for adding each amount)
Investment in Sunflower Ltd (520 000 - 520 000) - - 0 0.5 P

Current assets
Cash and cash equivalents 66,000 190,000 256,000 1 (0.5 for adding each amount)
Total assets 2,996,000

EQUITY AND LIABILITIES

Equity
Share capital 800,000 800,000 0.5 For only showing Primrose Ltd
Retained earnings (736 000 + 11 600 (gain on bargain purchase)) 736,000 747,600 1 For only showing Primrose Ltd
General reserve 230,000 230,000 0.5 For only showing Primrose Ltd
Non-controlling interest 354,400 0.5 P

Liabilities
Creditors 720,000 144,000 864,000 1 (0.5 for adding each amount)

Total equity and liabilities 2,996,000 -

Available 8.0
Max 8.0
 2. Cashflow Statement
RAINBOW LTD
Statement of cash flow
For the year ended 31 December 2020 0.5 for heading
R
2020
Cash flow from operating activities 0.5 for layout
Cash received from customers 778,500 0.5 P
Cash paid to suppliers and employees (554,663) 0.5 P
Cash generated from operations 223,837
Dividends received 417,950 0.5
Interest (91,250) 0.5
Tax (231,737) 0.5+0.5+0.5 (31 538 + 236 375 - 36 175)
Dividends paid (104,525) 0.5+0.5+0.5 (56 250 + 142 025 - 93 750)
Net cash flow from operating activities 214,275

Cash flow from investing activities (93,375)

Purchase of equipment: Replacement (170,625) 0.5
Fixed deposit(510 000 -432 750) 77,250 1.0
Cash flow from financing activities 19,150
Proceeds on issue of shares 285,775 0.5
Redemption of debentures (300,000) 0.5
Proceeds from long-term loans (ABBA) 147,500 0.5+0.5 (166 250 - 18 750)
Repayment of long-term loans (Africa) (114,125) see calc

Net inflow of cash and cash equivalents 140,050

Cash and cash equivalents at beginning of year 244,500 0.5
Cash and cash equivalents at end of year 384,550 Total CFS 10.0

Total marks 20.5

Max 20