Acc 732 Assign 2022

MODULE: ACCOUNTING 732
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 30
QUESTION TWO 30
QUESTION THREE 30
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 10
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)
Benson Limited is constructing a Power Plant which was completed on 31st December 2019.
The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct
the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the
following loans outstanding:
I. 18% 5-year loan Note of R1,500,000
II. 14% Debentures of R1,000,000
Expenditures on the project were made as follows:
I. On the 31st March 2019, R600,000 was incurred;
II. R800,000 was incurred on 30th June 2019;
III. The final expenditure incurred was R300,000 on 31st December 2019.
During the year Benson Limited invested R400,000 of the bank loan for 2 months at an
interest of 9% per annum.
Required: Determine the amount of borrowing costs to be capitalized and expensed.
QUESTION TWO (30 MARKS)
Petro Ltd acquired 60% of Carlos Ltd’s 500,000 R1 equity shares on 1st January 2019 for a
consideration of R5 cash per share. At the date of acquisition, net assets and liabilities in
Carlos Ltd were valued at R1,600,000 and the fair value of the non-controlling interest was
R800,000.
Required:
1. Determine the acquisition date.
2. Calculate goodwill or gain on bargain purchase if any using Proportionate of Net
Assets Method
3. Calculate goodwill or gain on bargain purchase if any using Fair Value Method
QUESTION THREE (30 MARKS)
KK Ltd regularly sells goods to its wholly-owned subsidiary company Ash Ltd, which it has
owned since Ash Ltd.'s incorporation. The statement of financial position of the two
companies on 28th February 2020 is given below.
Required: Prepare a consolidated account for the group that ended 28 th February 2020.
STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2020
Ash Ltd
KK Ltd (R) (R)
Assets
Non-Current Assets 90,000 60,000
PPE 35,000 60,000
Investments in 55,000 shares in Ash Ltd at cost 55,000
Current Assets 55,000 51,000
Inventory 16,000 27,000
Trade receivable: Ash Ltd 2,000
Other 21,000 24,000
Bank 16,000
Total Assets 145,000 111,000
Equity and Liability
Members' interest and reserves 116,000 69,000

55,000 R1 ordinary shares 55,000
85,000 R1 ordinary shares 85,000
Retained earnings 31,000 14,000
Non-Current Liabilities
Current Liabilities
Bank overdraft 8,000
Trade payables: KK Ltd 2,000
Other 29,000 32,000
Total Liabilities 29,000 42,000
Total Equity and Liabilities 145,000 111,000

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MODULE: ACCOUNTING 732

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

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

2. Assignment questions are on page 3.

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.

• Present and communicate information reliably and coherently.

Instructions and guidelines for writing assignments

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

QUESTION TWO (30 MARKS)

STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2020

Non-Current Assets 90,000 60,000

PPE 35,000 60,000

Investments in 55,000 shares in Ash Ltd at cost 55,000

Current Assets 55,000 51,000

Inventory 16,000 27,000

Trade receivable: Ash Ltd 2,000

Other 21,000 24,000

Total Assets 145,000 111,000

Equity and Liability

Members' interest and reserves 116,000 69,000

85,000 R1 ordinary shares 85,000

Retained earnings 31,000 14,000

Bank overdraft 8,000

Trade payables: KK Ltd 2,000

Other 29,000 32,000

Total Liabilities 29,000 42,000

Total Equity and Liabilities 145,000 111,000

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Name & Surname: ITS No: ___

Qualification: ______________ Year: _ Module Name: ________________

Elective: ___________ Assignment Due Date: _

ID Number: __ Date submitted: Semester: _

Name of the Examiner: Name of the Moderator: