:WSU · Walter Sisulu University WALTER SISULU UNIVERSITY DEGREE AND DIPLOMA EXAMINATIONS: NOV/DEC 2018 SUBJECT : FINANCIAL ACCOUNTING 1 SUBJECT CODE : FAC10P2/FACT1P2 QUALIFICATION : NHC: ACCOUNTANCY NHC: EXTENDED NHC: FINANCIAL INFORMATION SYSTEMS ND: MANAGEMENT ND: LOCAL GOVERNMENT FINANCE ND: OMTEC EXAMINER/S : MODERATOR : F JURIE INSTRUCTIONS : ANSWER ALL QUESTIONS ANNEXURES/ADDENDA : NONE DURATION : 3 HOURS QUESTION PAPER V. MANDINDI S. CYRIAC MARKS : 100 NUMBER OF PAGES : 10 (INCLUDING COVER PAGE) EXAMINATION RULES ARE NOW IN FULL FORCE AND EFFECT. DO NOT TURN THE PAGE BEFORE BEING TOLD TO DO SO. 1 Walter Sisulu University
Read questions carefully, Walter Sisulu University questions and all are COMPULSORY. Number your questions correctly. Show all workings and balance all accounts where necessary. All calculations should be made correct to the nearest Rand. :WSU There are FOUR QUESTION ONE MARKS) (20 1.1 The loss in value of a non-current intangible asset is known as. A. Depreciation B. Capitalisation C. Amortisation D. Research E. Development 1.2 Whereas the loss in value a non-current tangible asset is referred to as A. Capitalisation B. Depreciation C. Amortisation D. Development E. Research 1.3 If a current account of a partner has a debit balance, the interest calculated on this account will be posted to A. the debit side of the appropriation account B. the credit side of the appropriation account C. the debit side of the current account of this partner D. both A and C E. both B and C 1.4 A partnership can respectively have maximum of ...... and a minimum of ... partners. A. 2 to 20 B. 1 to 10 C. unlimited to 2 D. 2 to 50 E. 50 to 7 Use the following information to answer questions 1.5 to 1.8 On 1 January 2015 Furniture and Fixtures were purchased by Siyazi Enterprises for 2 Walter Sisulu University
R18 000. It is expected to have a useful years and a salvage value Walter Sisulu University R2 000. WSU of 1.5 Accumulated depreciation calculated on a straight line method at the end of the third year would be: A. R6 400 B. R9 600 C. R3 200 D. R3 600 E. None of the above 1.6 Calculate depreciation expense using cost method for year three. A. R4 000 B. R4 500 C. R 3 200 D. R3 600 E. None of the above 1.7 Calculate depreciation expense on a reducing balance method at end of year two, if depreciation rate of 25% is used. A. R3 375 B. R3 750 C. R4 500 D. R4 000 E. None of the above 1.8 Calculate depreciation expense using cost method for year three. A. R3 200 B. R3 600 C. R3 375 D. 4 000 E. None of the above 1.9 Accelerated methods are designed to assign higher proportions of depreciable amounts in the earlier years. Two methods depicting this situation are: A. Usage method and straight line method B. Sum of the years digit method and reducing balance method 3