0% found this document useful (0 votes)

46 views86 pages

Fac1601 Assignment 3

Uploaded by

rsq8237

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

46 views86 pages

Fac1601 Assignment 3

Uploaded by

rsq8237

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 86

Question 1

Not yet answered

Marked out of 20.00

QUESTION 1 ( marks)( minutes)

Greenfields Fertilizers CC is a fertilizer manufacturing company operating around Broederstroom in the Northwest Province (in the
Witwatersrand, the southern foothills of the Magaliesberg). Raynard and Dikeledi are the two founders and members of this registered
close corporation, and they obtained municipal approval to expand the business into producing and distributing fertilizers for maize
and other crops.

The following EXTRACT of balances as at 31 December 2023 from the accounting records of Greenfields Fertilizers CC is
presented to you for assistance:

Loan to Raynard 23,100

Member’s contribution: Raynard 232,100

Member’s contribution: Dikeledi 195,200

Retained earnings (1 January 2023) (Dr) 505,400

Trade receivables control 202,700

Trade payables control 224,800

Loan from Raynard 150,100

Bank (favourable) 3,803,800

Long-term loan (Broederstroom Fund) 6,029,900

SARS (income tax) 157,700

Vehicles at cost 2,794,200

Accumulated depreciation: Vehicles (1 January 2023) 380,500

Machinery at cost 66,600

Accumulated depreciation: Machinery (1 January 2023) 23,800

Equipment at cost 1,862,900

Accumulated depreciation: Equipment (1 January 2023) 650,500

Inventory 1,273,200

Profit before tax (before taking into account the additional

3,766,100
information)

Additional information
1. Depreciation for the year ended 31 December 2023 was correctly calculated as R93,000, R6,800, and R210,000 for vehicles,
machinery, and equipment, respectively.
2. The income tax assessment, received from SARS on 4 January 2024, indicated that the normal income tax for the 2023 financial
year amounted to R433,000.
3. The loan from Raynard was advanced to the CC in December 2022 and is repayable on 31 May 2024.
4. Dikeledi experienced personal financial problems during the year and borrowed R31,300 from the close corporation. The loan was
granted to Dikeledi on 1 November 2023 at an interest rate of 21% per annum. The interest on this loan is capitalised. This
transaction is still to be recorded.
5. On 1 January 2023, an experienced agricultural scientist by the name of Peter was admitted to the CC in July 2023 to assist in
developing new fertilizer formulations for maize and other crops. In addition to the R39,300 cash contribution, Peter further
contributed laboratory equipment and an old delivery vehicle to the value of R122,000 and R46,000, respectively.
6. On 1 September 2023, a profit distribution of R47,300 was made to each member of the close corporation. These amounts should
be regarded as loans from members with interest charged and capitalised at 18% per annum. This transaction is yet to be
accounted for.
7. On 30 June 2023, one of the fertilizer mixing machines (production equipment) got damaged by an inexperienced technician from a
local service company and was not repairable. This machine was acquired at a cost of R102,000 on 1 May 2019 and had
accumulated depreciation of R60,400 on 30 June 2023 (R42,000 at 1 January 2023). The equipment was insured, and an
insurance pay-out at R41 600 more than the carrying amount of the equipment was paid to the close corporation. The accountant
credited the insurance pay-out to the SARS (income tax) account.
REQUIRED:
Complete the amounts in the EXTRACT of the statement of changes in net investments of members for 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 CHANGES IN NET INVESTMENTS OF MEMBERS FOR THE YEAR ENDED 28 FEBRUARY 2024
Member's
Retained Earnings Loans to members Loans from members Total
contributions

Balances at 1 January 2023 427300 -505400 23100 150100 0

Additional member’s contribution 207300 0 0 0 0

Total comprehensive income for the year 0 1254856 0 0 0

Loans to members advanced during the year 0 0 31300 0 0

Distribution to members 0 -141900 0 0 0

Loans to received members during the year 0 0 0 141900 0

Interest on loans from/to members capitalised 0 0 5947 35532 0

Balances at 31 December 2023 0 0 0 0 0

Question 3

Not yet answered

Marked out of 2.00

GreenFields Fertilizer Ltd is a company incorporated in 2023, specialising in the production and sale of high-performance
fertilizers for maize and other crops. The company has grown steadily over the years due to its innovative approach in
developing sustainable fertilizers tailored to improve crop yield and soil health. Operating out of a state-of-the-art production
facility in Broederstroom, North West Province, GreenFields Fertilizer Ltd serves farmers and agricultural enterprises across
South Africa. The company prides itself on strong research and development capabilities, ensuring its products are aligned
with the latest advancements in agricultural science.

The company's authorised share capital includes 1,300,000 NPV ordinary shares and 650,000 10% preference shares of R5.9
each. With a financial year-end on 30 June, GreenFields Fertilizer Ltd has consistently demonstrated financial prudence,
leading to robust shareholder returns.

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,500 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 194,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

On 31 August 2024, the board of GreenFields Fertilizer Ltd declared an interim ordinary dividend of R1.5 per share payable
during November 2024. The company met the liquidity and solvency requirements, and on 1 December 2024, payment was
made to the shareholders in respect of the dividends.

Assume that the total number of capitalisation shares issued is 300 000. Calculate the correct value of the capitalisation
shares to be issued by GreenFields Fertilizer Ltd on 31 July 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].

Answer: 2070000
Question 2

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,500 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 194,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Calculate the correct total number of ordinary shares issued by GreenFields Fertilizer Ltd as at 30 June 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].

Answer: 426300
UNISA  2024  FAC1601-24-S2  Welcome Message  Assessment 3

QUIZ

Time left 1:26:40

Question 6

Not yet answered

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 359,375
Land and buildings at revaluation (1 March 2023) 1,119,500
Equipment at cost 658,200
Accumulated depreciation: Equipment 88,000
Revaluation surplus (1 March 2023) 120,100
Inventory (1 March 2023) 46,300
Bank 137,200
Trade receivables control 283,600
Petty cash 7,900
Share capital: Ordinary shares (1 March 2023) 755,400
Retained earnings (1 March 2023) 280,600
Loan: Broederstroom Bank 125,600
SARS (income tax) (Dr) 35,200
Sales 3,205,200
Allowance for settlement discount granted 7,300
Carriage on purchases 22,700
Trade payables control 265,800
Income received in advance 8,100
Allowance for credit losses 7,100
Settlement discount granted 5,600
Auditor's remuneration 141,700
Carriage on sales 28,400
Settlement discount received 2,300
Purchases 305,100
Salaries and wages 379,100
Directors’ remuneration 200,200
Stationery 11,300
Telephone 16,700

Additional information:

1. The income tax for the financial year ended 28 February 2024 amounted to R138,000 and must still be recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus amounting to R114,000.

3. A provision of R53,000 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: R50,000

· 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

Revenue 3192300

Cost of sales -321800

Inventory (opening) 46300

Purchases 302800

Carriage on purchases 22700

Inventory (closing) -50000

Gross profit 2870500

Other income 131625

Fair value adjustment: Listed share investment 52650

Dividend income: Listed share investment 78975

Distribution, administrative and other expenses -838800

Salaries and wages 379100

Director's remuneration 200200

Auditor's remuneration 141700

Credit losses 13500

Depreciation 53000

Carriage on sales 28400

Stationery consumed 6200

Telephone expenses 16700

Finance costs -12560

Interest on loan 12560

Profit before tax 2150765

Income tax expense -138000

Profit for the year 2012765

Other comprehensive income for the year 114000

Revaluation surplus 114000

Total comprehensive income for the year 2126765

UNISA  2024  FAC1601-24-S2  Welcome Message  Assessment 3

QUIZ

Time left 1:07:04

Question 7

Not yet answered

Marked out of 34.00

GREENFIELDS FERTILIZER LTD

EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:

Additional information:

3. A provision of R53,000 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.

· Inventory (stock) on hand: R50,000

· 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.

10. Assume the correct amount of total comprehensive income for the year is R600,000.

REQUIRED:
Complete the amounts in the EXTRACT (presented below) of the statement of financial position of Greenfields Fertilizers
Ltd at 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 Ltd

STATEMENT OF FINANCIAL POSITION AT 28 FEBRUARY 2024
R
ASSETS

Non-current assets 1890700

Property, plant and equipment 1750700

Investments - Unlisted 140000

Current assets 737225

Inventories 50000

Trade and other receivables 270100

Cash and cash equivalents 145100

Listed share investment 272025

Total assets 2627925

EQUITY AND LIABILITIES

Total equity 2140100

Share capital 1025400

Retained earnings 880600

Other components of equity 234100

Total liabilities 634200

Non-current liabilities 100480

Long-term borrowings 100480

Current liabilities 533720

Trade and other payables 265800

Dividends payable 140000

Current tax payable 102800

Current portion of long-term loan 25120

Total equity and liabilities 2774300

Question 5

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,500 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 194,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Assume that the total number of ordinary shares issued before the capitalisation is 500 000. Calculate the correct number of
capitalisation shares to be issued by GreenFields Fertilizer Ltd on 31 May 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].

Answer: 200000
UNISA  2024  FAC1601-24-S2  Welcome Message  Assessment 3

QUIZ

Time left 1:04:50

Question 8

Not yet answered

Marked out of 5.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,500 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 194,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Calculate the correct amount of preference share dividend by GreenFields Fertilizer Ltd on 31 August 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].

Answer: 72755
UNISA  2024  FAC1601-24-S2  Welcome Message  Assessment 3

QUIZ

Time left 1:03:24

Question 4

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,000 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 190,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Assume that the total number of shares issued before the capitalisation and the capitalisation shares issued is 550 000 and
330 000 respectively. Calculate the correct amount of ordinary share dividend by GreenFields Fertilizer Ltd on 31 August
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].

Answer: 1320000
Question 2

Not yet answered

Marked out of 5.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,000 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 190,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Calculate the correct amount of preference share dividend by GreenFields Fertilizer Ltd on 31 August 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].

Answer: 71705
Question 3

Not yet answered

Marked out of 20.00

The following EXTRACT of balances as at 31 December 2023 from the accounting records of Greenfields Fertilizers CC is
presented to you for assistance:

Loan to Raynard 23,700

Member’s contribution: Raynard 232,500

Member’s contribution: Dikeledi 195,200

Retained earnings (1 January 2023) (Dr) 505,100

Trade receivables control 202,700

Trade payables control 224,800

Loan from Raynard 150,500

Bank (favourable) 3,803,800

Long-term loan (Broederstroom Fund) 6,029,900

SARS (income tax) 157,700

Vehicles at cost 2,794,200

Accumulated depreciation: Vehicles (1 January 2023) 380,500

Machinery at cost 66,600

Accumulated depreciation: Machinery (1 January 2023) 23,800

Equipment at cost 1,862,900

Accumulated depreciation: Equipment (1 January 2023) 650,500

Inventory 1,273,200

Profit before tax (before taking into account the additional

3,766,600
information)

Additional information
1. Depreciation for the year ended 31 December 2023 was correctly calculated as R93,000, R6,800, and R210,000 for vehicles,
machinery, and equipment, respectively.
2. The income tax assessment, received from SARS on 4 January 2024, indicated that the normal income tax for the 2023 financial
year amounted to R433,000.
3. The loan from Raynard was advanced to the CC in December 2022 and is repayable on 31 May 2024.
4. Dikeledi experienced personal financial problems during the year and borrowed R31,000 from the close corporation. The loan was
granted to Dikeledi on 1 November 2023 at an interest rate of 21% per annum. The interest on this loan is capitalised. This
transaction is still to be recorded.
5. On 1 January 2023, an experienced agricultural scientist by the name of Peter was admitted to the CC in July 2023 to assist in
developing new fertilizer formulations for maize and other crops. In addition to the R39,000 cash contribution, Peter further
contributed laboratory equipment and an old delivery vehicle to the value of R122,000 and R46,000, respectively.
6. On 1 September 2023, a profit distribution of R47,000 was made to each member of the close corporation. These amounts should
be regarded as loans from members with interest charged and capitalised at 18% per annum. This transaction is yet to be
accounted for.
7. On 30 June 2023, one of the fertilizer mixing machines (production equipment) got damaged by an inexperienced technician from a
local service company and was not repairable. This machine was acquired at a cost of R102,000 on 1 May 2019 and had
accumulated depreciation of R60,400 on 30 June 2023 (R42,000 at 1 January 2023). The equipment was insured, and an
insurance pay-out at R41 600 more than the carrying amount of the equipment was paid to the close corporation. The accountant
credited the insurance pay-out to the SARS (income tax) account.

REQUIRED:
Complete the amounts in the EXTRACT of the statement of changes in net investments of members for 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 CHANGES IN NET INVESTMENTS OF MEMBERS FOR THE YEAR ENDED 28 FEBRUARY 2024
Member's Loans from
Retained Earnings Loans to members Total
contributions members

Balances at 1 January 2023 427700 -505100 23700 150500 96800

Additional member’s contribution 207000 0 0 0 207000

Total comprehensive income for the year 0 3023800 0 0 3023800

Loans to members advanced during the year 0 0 31000 0 31000

Distribution to members 0 -141000 0 0 -141000

Loans to received members during the year 0 0 0 141000 141000

Interest on loans from/to members capitalised 0 0 7147 39780 46927

Balances at 31 December 2023 634700 2377700 61847 331280 3405527

Question 1

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,000 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 190,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

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].

Answer: 1320000
Question 4

Not yet answered

Marked out of 34.00

GREENFIELDS FERTILIZER LTD

EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:

R
Investments 368,150
Land and buildings at revaluation (1 March 2023) 1,120,100
Equipment at cost 657,600
Accumulated depreciation: Equipment 88,600
Revaluation surplus (1 March 2023) 119,500
Inventory (1 March 2023) 46,900
Bank 136,600
Trade receivables control 284,200
Petty cash 7,300
Share capital: Ordinary shares (1 March 2023) 756,000
Retained earnings (1 March 2023) 280,000
Loan: Broederstroom Bank 126,200
SARS (income tax) (Dr) 34,600
Sales 3,205,800
Allowance for settlement discount granted 6,700
Carriage on purchases 23,300
Trade payables control 265,200
Income received in advance 7,500
Allowance for credit losses 6,500
Settlement discount granted 5,000
Auditor's remuneration 141,100
Carriage on sales 29,000
Settlement discount received 1,700
Purchases 305,700
Salaries and wages 378,500
Directors’ remuneration 200,800
Stationery 10,700
Telephone 17,300

Additional information:

1. The income tax for the financial year ended 28 February 2024 amounted to R137,700 and must still be recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus amounting to R118,400.

3. A provision of R59,300 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.

· Inventory (stock) on hand: R54,000

· 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.

10. Assume the correct amount of total comprehensive income for the year is R600,000.

GREENFIELDS FERTILIZERS Ltd

STATEMENT OF FINANCIAL POSITION AT 28 FEBRUARY 2024

ASSETS

Non-current assets 1888200

Property, plant and equipment 1748200

Investments - Unlisted 140000

Current assets 824100

Inventories 59100

Trade and other receivables 349075

Cash and cash equivalents 143900

Listed share investment 272025

Total assets 2712300

EQUITY AND LIABILITIES

Total equity 2143900

Share capital 1026000

Retained earnings 880000

Other components of equity 237900

Total liabilities 999600

Non-current liabilities 100960

Long-term borrowings 100960

Current liabilities 898640

Trade and other payables 435700

Dividends payable 334600

Current tax payable 103100

Current portion of long-term loan 25240

Total equity and liabilities 3143500

Question 8

Not yet answered

Marked out of 27.00

GREENFIELDS FERTILIZER LTD

EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:

R
Investments 350,600
Land and buildings at revaluation (1 March 2023) 1,119,600
Equipment at cost 658,100
Accumulated depreciation: Equipment 88,100
Revaluation surplus (1 March 2023) 120,000
Inventory (1 March 2023) 46,400
Bank 137,100
Trade receivables control 283,700
Petty cash 7,800
Share capital: Ordinary shares (1 March 2023) 755,500
Retained earnings (1 March 2023) 280,500
Loan: Broederstroom Bank 125,700
SARS (income tax) (Dr) 35,100
Sales 3,205,300
Allowance for settlement discount granted 7,200
Carriage on purchases 22,800
Trade payables control 265,700
Income received in advance 8,000
Allowance for credit losses 7,000
Settlement discount granted 5,500
Auditor's remuneration 141,600
Carriage on sales 28,500
Settlement discount received 2,200
Purchases 305,200
Salaries and wages 379,000
Directors’ remuneration 200,300
Stationery 11,200
Telephone 16,800

Additional information:

1. The income tax for the financial year ended 28 February 2024 amounted to R138,700 and must still be recorded.
2. The revaluation of land for the current year resulted in a revaluation surplus amounting to R114,800.

3. A provision of R53,900 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.

· Inventory (stock) on hand: R50,400

· 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.

GREENFIELDS FERTILIZERS CC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2024

Revenue 3192600

Cost of sales -321800

Inventory (opening balance) 46400

Purchases 303000

Carriage on purchases 22800

Inventory (closing) -50400

Gross profit 2870800

Other income 140400

Fair value adjustment: Listed share investment 61425

Dividend income: Listed share investment 78975

Distribution, administrative and other expenses -1002800

Salaries and wages 379000

Director's remuniration 363300

Auditor's remuniration 141600

Credit losses 13600

Depreciation 53900

Carriage on sales 28500

Stationery consumed 6100

Telephone expenses 16800

Finance costs -12570

Interest on loan 12570

Profit before tax 1995830

Income tax expense 138700

Profit for the year 1857130

Other comprehensive income for the year 114800

Revaluation surplus 114800

Total comprehensive income for the year 1971930

Question 5

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,000 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 190,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Assume that the total number of capitalisation shares issued is 330 000. Calculate the correct value of the capitalisation
shares to be issued by GreenFields Fertilizer Ltd on 31 July 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].

Answer: 2277000
Question 6

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,000 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 190,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Assume that the total number of ordinary shares issued before the capitalisation is 550 000. Calculate the correct number of
capitalisation shares to be issued by GreenFields Fertilizer Ltd on 31 May 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].

Answer: 220000
Question 7

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,000 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 190,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Calculate the correct total number of ordinary shares issued by GreenFields Fertilizer Ltd as at 30 June 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].

Answer: 683200
UNISA  2024  FAC1601-24-S2  Welcome Message  Assessment 3

QUIZ

Time left 1:49:54

Question 3

Not yet answered

Marked out of 20.00

The following EXTRACT of balances as at 31 December 2023 from the accounting records of Greenfields Fertilizers CC is
presented to you for assistance:

Loan to Raynard 23,700

Member’s contribution: Raynard 232,500

Member’s contribution: Dikeledi 195,200

Retained earnings (1 January 2023) (Dr) 505,100

Trade receivables control 202,700

Trade payables control 224,800

Loan from Raynard 150,500

Bank (favourable) 3,803,800

Long-term loan (Broederstroom Fund) 6,029,900

SARS (income tax) 157,700

Vehicles at cost 2,794,200

Accumulated depreciation: Vehicles (1 January 2023) 380,500

Machinery at cost 66,600

Accumulated depreciation: Machinery (1 January 2023) 23,800

Equipment at cost 1,862,900

Accumulated depreciation: Equipment (1 January 2023) 650,500

Inventory 1,273,200

Profit before tax (before taking into account the additional

3,766,600
information)

Additional information
1. Depreciation for the year ended 31 December 2023 was correctly calculated as R93,000, R6,800, and R210,000 for vehicles,
machinery, and equipment, respectively.
2. The income tax assessment, received from SARS on 4 January 2024, indicated that the normal income tax for the 2023 financial
year amounted to R433,000.
3. The loan from Raynard was advanced to the CC in December 2022 and is repayable on 31 May 2024.
4. Dikeledi experienced personal financial problems during the year and borrowed R31,000 from the close corporation. The loan was
granted to Dikeledi on 1 November 2023 at an interest rate of 21% per annum. The interest on this loan is capitalised. This
transaction is still to be recorded.
5. On 1 January 2023, an experienced agricultural scientist by the name of Peter was admitted to the CC in July 2023 to assist in
developing new fertilizer formulations for maize and other crops. In addition to the R39,000 cash contribution, Peter further
contributed laboratory equipment and an old delivery vehicle to the value of R122,000 and R46,000, respectively.
6. On 1 September 2023, a profit distribution of R47,000 was made to each member of the close corporation. These amounts should
be regarded as loans from members with interest charged and capitalised at 18% per annum. This transaction is yet to be
accounted for.
7. On 30 June 2023, one of the fertilizer mixing machines (production equipment) got damaged by an inexperienced technician from a
local service company and was not repairable. This machine was acquired at a cost of R102,000 on 1 May 2019 and had
accumulated depreciation of R60,400 on 30 June 2023 (R42,000 at 1 January 2023). The equipment was insured, and an
insurance pay-out at R41 600 more than the carrying amount of the equipment was paid to the close corporation. The accountant
credited the insurance pay-out to the SARS (income tax) account.

GREENFIELDS FERTILIZERS CC
STATEMENT OF CHANGES IN NET INVESTMENTS OF MEMBERS FOR THE YEAR ENDED 28 FEBRUARY 2024
Member's Loans from
Retained Earnings Loans to members Total
contributions members

Balances at 1 January 2023 427700 -505100 23700 150500 96800

Additional member’s contribution 207000 0 0 0 207000

Total comprehensive income for the year 0 2882800 0 0 28828000

Loans to members advanced during the year 0 0 31000 0 31000

Distribution to members 0 -141000 0 0 -141000

Loans to received members during the year 0 0 0 141000 141000

Interest on loans from/to members capitalised 0 0 7147 39780 46927

Balances at 31 December 2023 634700 2236700 61847 331280 3264527

Question 2

Incomplete answer

Marked out of 34.00

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
Accumulated depreciation: Equipment 87,900
Revaluation surplus (1 March 2023) 120,200
Inventory (1 March 2023) 46,200
Bank 137,300
Trade receivables control 283,500
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.

10. Assume the correct amount of total comprehensive income for the year is
R600,000.

REQUIRED:
Complete the amounts in the EXTRACT (presented below) of the statement of
financial position of Greenfields Fertilizers Ltd at 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 LTD

STATEMENT OF FINANCIAL POSITION AT 28 FEBRUARY 2024

ASSETS

Non-current assets 1888800

Property, plant and equipment 1748800

Investments - Unlisted 140000

Current assets 825900

Inventories 59500

Trade and other receivables 349075

Cash and cash equivalents 145300

Listed share investment 272025

Total assets 2714700

EQUITY AND LIABILITIES

Total equity 2144200

Share capital 1025300

Retained earnings 880700

Other components of equity 238200

Total liabilities 999455

Non-current liabilities 100400

Long-term borrowings 100400

Current liabilities 899055

Trade and other payables 437100

Dividends payable 334355

Current tax payable 102500

Current portion of long-term loan 25100

Total equity and liabilities 3143655

Please answer all parts of the question.

Question 4

Not yet answered

Marked out of 2.00

The company financial year end is 28 February.

Below are the share transactions recorded for GreenFields Fertilizer Ltd since its incorporation:

On 1 March 2023, 99,500 ordinary shares were issued to subscribers at R6.5 per share.

On 5 April 2023, 184,000 ordinary shares and 194,000 10% preference shares were issued to the public at R7.9 each and
R6.3 each, respectively.

On 15 January 2024, the share capital for ordinary shares increased by R1,947,500. These shares were issued at R9.5
each.

On 1 June 2024, 74,000 10% preference shares were issued at R11.8 each.

On 31 May 2024, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R6.9 per share.

Assume that the total number of shares issued before the capitalisation and the capitalisation shares issued is 500 000 and
300 000 respectively. Calculate the correct amount of ordinary share dividend by GreenFields Fertilizer Ltd on 31 August
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].

Answer: 5520000
Question 5

Not yet answered

Marked out of 27.00

GREENFIELDS FERTILIZER LTD

EXTRACT OF BALANCES AS AT 28 FEBRUARY 2024:

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.

· 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.

GREENFIELDS FERTILIZERS CC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2024

Revenue 3192000

Cost of sales -317000

Inventory (opening balance) 46200

Purchases 302600

Carriage on purchases 22600

Inventory (closing) -54400

Gross profit 2875000

Other income 114075

Fair value adjustment: Listed share investment 35100

Dividend income: Listed share investment 78975

Distribution, administrative and other expenses -1007700

Salaries and wages 379200

Director's remuniration 363100

Auditor's remuniration 141800

Credit losses 13400

Depreciation 59000

Carriage on sales 28300

Stationery consumed 6300

Telephone expenses 16600

Finance costs -12550

Interest on loan 12550

Profit before tax 1968825

Income tax expense -137800

Profit for the year 1831025

Other comprehensive income for the year 118000

Revaluation surplus 118000

Total comprehensive income for the year 1949025