These balances were taken from the books of Amigo CC as at 30 June 20x2:

Additional information:

1. Mpho and Jansen, the only members, contributed R300 000 and R200 000 respectively during the year. These transactions must still be recorded.

2. Interest on the loans is to be accrued as:

3. Included in the operating expenses were the salaries of R20 000 and R30 000 paid to Mpho and Jansen respectively.

4. Property, plant and equipment were revalued at R300 000 above their carrying value.

5. Members decided to distribute 80% of the profit. Tax must be provided at 28%.

You are required to:

1. Prepare the statement of profit or loss & other comprehensive income for Amigo CC for the year ended 30 June 20x2.

2. Prepare the members’ net investment statement.

3. Prepare the note to the statement of profit or loss & other comprehensive income relating to transactions with members of Amigo CC for the year ended 30 June 20x2.

Transcribed Image Text:

Members' contribution Mpho (60%) Jansen (40%) Loans to members Mpho Jansen Long-term loan Loan from member - Jansen Property, plant and equipment Net profit - 1 July 20x1 Gross sales Cost of sales Operating expenses Long-term investment Inventories Accounts receivable Bank Accounts payable 300 000 00 200 000 00 100 000 00 60 000 00 200 000 00 180 000 00 700 000 00 200 000 00 2 000 000 00 900 000 00 106 000 00 500 000 00 500 000 00 400 000 00 164 000 00 250 000 00