1.1 Refer to information A. The bookkeeper has recorded all the entries regarding fixed assets in the books. Complete the amounts decided by (i) to (iii) on the Fixed Asset Note. 1.2 Refer to information C and D. Calculate the correct net profit after tax for the year ended 29 February 2024. Indicate (+) for increase and (-) for decrease, next to each amount. 1.3 Complete the Statement of Financial Position on 29 February 2024. NOTE: Some amounts are provided in the ANSWER BOOK. INFORMATION: A. Fixed assets: Carrying value: (01/03/2023) Cost Accumulated depreciation Movements: Additions (at cost) Disposals (at carrying value) Depreciation Carrying value (29/02/2024) Cost Accumulated depreciation - Depreciation is calculated as follows: - Buildings: 15% p.a. on cost - Equipment: 20% on the diminishing-balance method. - A new vehicle was bought on 1 October 2023. Extract from the Fixed Assets Register in respect of equipment sold: KINOPA MWALIMU 234 Cost price: R80 000 Date purchased: 1 September 2021 Date sold: 31 May 2023 Selling price: R53 000 28 February 2022 R72 000 31 May 2023 R57 600 CARRYING VALUE

Photo AI

1.1 Refer to information A - NSC Accounting - Question 1 - 2024 - Paper 1

Question 1

1.1 Refer to information A. The bookkeeper has recorded all the entries regarding fixed assets in the books. Complete the amounts decided by (i) to (iii) on the Fix... show full transcript

Worked Solution & Example Answer:1.1 Refer to information A - NSC Accounting - Question 1 - 2024 - Paper 1

Step 1

Calculate: Cost price of buildings at the beginning of the year

96%

114 rated

Answer

To find the cost price of the buildings at the beginning of the year, we can refer to the carrying value provided at the start of the period plus any disposals or adjustments made during the year. Thus, using the formula:

$Cost = Carrying Value + Accumulated Depreciation$

$Cost = 9,421,300 + 420,000 = 9,841,300$

Step 2

Calculate: Depreciation on vehicles

99%

104 rated

Answer

For the depreciation of vehicles, we apply the given depreciation rate. The carrying value before depreciation is determined from the information provided:

$ext{Old Depreciation} = 526,000 imes rac{15 ext{%} imes 5}{12} = 78,900$

So the new vehicle depreciation is:

$ext{New Depreciation} = 260,000 imes rac{15 ext{%}}{12} = 32,500$

Total vehicle depreciation:

$ext{Total Depreciation} = 78,900 + 32,500 = 111,400$

Step 3

Calculate: Carrying value on equipment sold

96%

101 rated

Answer

The carrying value of the equipment sold can be calculated using the selling price adjusted for accumulated depreciation:

$ext{Carrying Value Sold} = Selling Price - ext{Depreciation on Equipment}$

Using the given numbers:

$ext{Depreciation} = 57,600 imes rac{20 ext{%}}{3} = 3,840$

So:

$ext{Carrying Value} = 57,600 - 3,840 = 53,760$

Step 4

Correct net profit after tax for the year ended 29 February 2024

98%

120 rated

Answer

To find the correct net profit after tax, we first calculate the incorrect net profit before tax, adjusting for the necessary deductions such as audit fees and other items. If the incorrect net profit before tax is R1,150,000 and after adjustments:

$ext{Net Profit Before Tax} = R1,195,000 - R45,600 - R11,050$

Thus:

$ext{Net Profit After Tax} = R1,195,000 - ext{Income Tax}$

Step 5

Complete the Statement of Financial Position on 29 February 2024

97%

117 rated

Answer

In completing the Statement of Financial Position, one needs to list the total assets, equity, liabilities, including the non-current and current liabilities. Accordingly:

Total non-current assets = 10,377,480
Current assets: cash, inventories, etc. Ultimately giving:

$ext{Total Assets} = Non-Current + Current$

Thus, providing a complete overview of the financial position as of 29 February 2024.

1.1 Refer to information A - NSC Accounting - Question 1 - 2024 - Paper 1

Worked Solution & Example Answer:1.1 Refer to information A - NSC Accounting - Question 1 - 2024 - Paper 1

Calculate: Cost price of buildings at the beginning of the year

Calculate: Depreciation on vehicles

Calculate: Carrying value on equipment sold

Correct net profit after tax for the year ended 29 February 2024

Complete the Statement of Financial Position on 29 February 2024

Join the NSC students using SimpleStudy...