MODULE: ACCOUNTING 512

ASSIGNMENT COVER SHEET

Name & Surname: ______________________ ITS No: _________________________

Qualification: __________________ Year: _______ Module Name: __________________

Elective: _________________________ Assignment Due Date: _______________

ID Number: __________________ Date submitted: __________ Semester: _______________

MARK EXAMINER’S MODERATOR’S

ASSESSMENT CRITERIA REMARKS
ALLOCATION MARK MARKS
MARKS FOR CONTENT
QUESTION ONE
QUESTION TWO
QUESTION THREE
QUESTION FOUR
QUESTION FIVE
TOTAL MARKS
MARKS FOR TECHNICAL ASPECTS
1. TABLE OF CONTENTS
Accurate numbering according to the
numbering in text and page numbers
2. LAYOUT AND SPELLING
Font – Calibri 12
Line Spacing -1.0
Margin should be Justified
3. REFERENCE
According to the Harvard Method
TOTAL MARKS
TOTAL MARKS FOR ASSIGNMENT 100
EXAMINER’S COMMENTS

MODERATOR’S COMMENTS

Name of the Examiner: __________________ Name of the Moderator: __________________

Signature of Examiner: __________________ Signature of Moderator: __________________
Date: ___________________ Date: ____________________
Instructions and guidelines

NB: 1. Candidates are advised to read the guide lines in the study guide.

2. Assignment questions are on page 3.

3. For reference use prescribed, recommended books and other resources you may come
across.

4. Correct Harvard referencing carries (5 Marks).

The purpose of an assignment is to ensure that the Student is able to:

• Use methods of enquiry and research in a disciplined field.

• Interpret and evaluate text.

• Have a sound understanding of key principles and theories, rules and awareness.

• Solve unfamiliar problems using correct procedures as well as investigate and critically analyse
information and report thereof.

• Present and communicate information reliably and coherently.

Instructions and guidelines for writing assignments

1. Use the correct cover page provided by the institution.

2. All essay type assignments must include the following:
2.1. Table of contents
2.2. Introduction
2.3. Main body with subheadings
2.4. Recommendations and Conclusions
2.5. Bibliography
3. The length of the entire assignment must have minimum of 10 pages. Typed with font size 11
Calibri. 1.5 spacing
4. The quality of work submitted is more important than the number of assigned pages.
5. Copying is a serious offence which attracts a severe penalty and must be avoided at all costs. If
any student transgresses this rule, the lecturer will retain the assignments and ask the affected
students to resubmit a new assignment which will be capped at 50%.
6. Use the Harvard referencing method.
7. Please note that these guidelines are not applicable to quantitative subjects like Accounting and
Statistics.
QUESTION ONE (30 MARKS)

The following information was taken from the books of Nhlakanipho & Shaun: Balances in the
general ledger of Nhlakanipho & Shaun at the financial year end – 31 March 2019

Account Debit (R) Credit (R)

Capital: Nhlakanipho (1 April 2016) 95 000.00
Capital: Shaun (1 April 2016) 80 000.00
Current: Nhlakanipho (1 April 2016) 19 000.00
Current: Shaun (1 April 2016) 16 000.00
Drawings: Nhlakanipho 9 500.00
Drawings: Shaun 8 000.00
Replacement reserve 105 000.00
Profit and loss 525 000.00
Property, plant and equipment 784 500.00

Appropriations according to the partnership agreement at the financial year end 31 March 2019:
1. Interest on capital must be appropriated at 8% per annum. Capital account balances remain
constant.
2. Interest on drawings must be appropriated at 15% per annum, as if the drawings were made
7 months prior to the end of the financial year.
3. Interest on current accounts must be appropriated at 11% per annum (on opening
balances).
4. Both partners must receive an annual salary at the end of the financial year:
• Nhlakanipho – R 36 750.00
• Shaun – R 73 500.00

5. Shaun must receive an annual bonus at the end of the financial year: R 42 000.00
6. R 63 000.00 is to be transferred to the general reserve at the financial year-end.
7. The remaining profit must be split between the partners in the following ratio:
• Nhlakanipho – 4
• Shaun – 3

REQUIRED:
Open, post to and balance the following accounts in the general ledger of Nhlakanipho & Shaun
for the year ended 31 March 2019.
1.1. Appropriation account (10)
1.2. Current: Nhlakanipho (10)
1.3. Current: Shaun (10)
QUESTION TWO (30 MARKS)
The accountant of Richfield Pty Ltd did not provide for the depreciation on non-current assets in the
current financial year. He approached you to assist her in calculating the depreciation and with the
disclosure of property, plant and equipment in the financial statements for the year ended 30 June
2018.

The following balances were extracted from the records of Richfield Pty Ltd on 30 June 2018
Machinery at cost R660 000
Accumulated depreciation on machinery R131 250
Vehicles at cost R360 000
Accumulated depreciation on vehicles R21 600
Equipment at cost R480 000
Accumulated depreciation on equipment R70 000

Additional information
1. A manufacturing machine was purchased on 31 July 2016 at a cost of R660 000. The estimated
production capacity of the machine is 180 000 units over the useful life of the machine. The
estimated residual value at the end of its useful life is R30 000. During the financial year, 42 000
units (2017: 37 500 units) were manufactured by the machine.
2. Depreciation on vehicles is provided at 30% per annum on the carrying amount method. A new
vehicle with a cost of R216 000 was purchased on 31 August 2017 and correctly recorded.
The other vehicles were purchased on 1 January 2017.
3. Equipment with an estimated economic useful life of six years was depreciated using straight-line
method. New equipment with a cost of R120 000 was purchased on 1 April 2018 and is included in
the balance on 30 June 2018. The other equipment was purchased on 1 May 2016.

REQUIRED:
Disclose property, plant and equipment on the statement of financial position and in the notes to
the financial statements of Richfield Pty Ltd on 30 June 2018.
QUESTION THREE (30 MARKS)
Using the information below calculate the following ratios for MTN Corporation. Information from
the December 31, 2012 Statement of Financial Position is presented below.
Item 2012 (R )
Sales 909 000
Cost of sales (319 813)
Gross Profit 589 187
Add Other Income 1 432
Gross Income 590 619
Operating Expenses (474 732)
Operating Profit (Earnings before Interest and Tax) 115 887
less Interest Expense (21 000)
Profit before tax 94 887
Income tax expense (27 517)
Net Profit for the Year 67 370

Statement of Financial Position 31 December 2012

Item 2012 (R )
ASSETS R
Non-Current Assets 512 690
Current Assets 102 157
Inventories 12 100
Trade Receivables 85 757
Cash and Cash Equivalents 4 300
TOTAL ASSETS 614 847
EQUITY AND LIABILITIES
Total Equity 422 486
Non-Current Liabilities 96 000
Current Liabilities 96 361
Total Equity and Liabilities 614 847
Calculate:
3.1. Current Ratio (6)
3.2. Acid Test Ratio (6)
3.3. Debt to Equity Ratio (6)
3.4. ROA (6)
3.5. ROE (6)