Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 coun. 50% 5 / 9 QUESTION THREE 1291 Phe and Steve are partes per a les Top Pro Services. The woman that is relevant

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1 coun. 50% 5 / 9 QUESTION THREE 1291 Phe and Steve are partes per a les Top Pro Services. The woman that is relevant to the beaches of the path or they ended 20 e 2000. pro and we are in pros and losses in the of 32 respectively Toptans Pro Service Extract of relevant account balances June 2020 Credit R 270 000 270 000 52 900 Dobil R Capta: P Captat Steve Current account Presne 1 2019 75 600 Current account Steve balance at 1 2019 Drawings for the year. Piso 68 310 Drawings for the year: Steve 43 470 Long term loan from Piso Salaries paid to partners during the year Piso 144 000 Steve 125 000 Pront for the year - Defore taking the any of the actional Information into account Additional information: The following has been extracted from the partnership agreement: 110 000 765 600 1. Interest must be calculated and recorded at the foloang rates at the end of sch financial period A must be processed through the current accounts of the partners Interest rates are as follows: 1.1 interest on capital must be calculated at 105 Der year 12 interest at 10 per year on current account balances beginning of the year 1.Sheeton arawings accounts as nas been acuated as follons . R4 500 . Deve 2 500 2. The owing series are able to be partner for the current year Pits, 1 000 person, and is permo 50% 14 6 / 9 Your and adjustments: 1. On 1 January 2020 Priso contributed another R90 000 as capital to the partnership II was agreed that the amount will be included in his feed capital account. The transactio was correctly recorded as at 30 June 2020. 2. Pitso granted an unsecured loan to the partnership on 1 January 2020. According to the Joan agreement, Interest will be charged at 10% per year. The loan wil be repaid in anual installments beginning 31 December 2024. Interest on the loan is stui to be calculated and recorded in the books of the partnership Required: Take the above information into account and adjust the Profit for the year to show the correct amount to be shared between the partners, Pitso and Steve. Thereafter, prepare the statement of changes in equity for Topclass Pro Services for the year ended 30 June 2020 to clearly show the distribution profits in terms of the partnership agreement. Show all calculations. Use the format suggested below (20) Recommended format: Topclass Pro Services Statement of changes in equity for the year ended 30 June 2020 Capital accounts Pitso R Steve R Total R Balance at 1 July 2019 Additional contratos Balance at 30 June 2020 p! AS yn Window Help BCOMDEG Account 5 / 119. Q QUESTION THREE [20] Pitso and Steve are partners operating a business Topclass Pro Services. The information that follows is relevant to the business activities of the partnership for the year ended 30 June 2020. Pitso and Steve share in profits and losses in the ratio of 3:2 respectively. Topclass Pro Services Extract of relevant account balances as at 30 June 2020 Debit R Credit R 270 000 270 000 76 600 52 900 Capital: Pitso Capital: Steve Current account: Pitso: balance at 1 July 2019 Current account Steve: balance at 1 July 2019 Drawings for the year: Pitso Drawings for the year: Steve Long term loan from Pitso Salaries paid to partners during the year Pits 68 310 43 470 110 000 144 000 FO AB Sign Window Help ols BOOMDEG Accou... X 5/9 1190 a Q Pitso Steve Profit for the year before taking the any of the additional information into account 144 000 126 000 765 500 Additional information: The following has been extracted from the partnership agreement: 2 1. Interest must be calculated and recorded at the following rates at the end of each financial period. All interest must be processed through the current accounts of the partners. Interest rates are as follows 1.1 Interest on capital must be calculated at 10% per year, 1.2 Interest at 10% per year on current account balances at beginning of the year. 1.3 Interest on drawings accounts balances has been calculated as follows: R4 500 Steve R2 900 Pitso x] Pa W mm P 9 AL Sign Window Help ols HCOMDEG Accoun. X 6 / 9 119% 2. The following salaries are payable to the partners for the current year. Pitso: R12 000 per month, and Steve R15 000 per month Year-end adjustments: 1. On 1 January 2020 Pitso contributed another R90 000 as capital to the partnership. It was agreed that the amount will be included in his fixed capital account. The transaction was correctly recorded as at 30 June 2020 2. Pitso granted an unsecured loan to the partnership on 1 January 2020. According to the w P3 AB dos San Window Help ols BCOMDEG Accoun.. K . 6/9 2. Pitso granted an unsecured loan to the partnership on 1 January 2020. According to the loan agreement interest will be charged at 10% per year. The loan will be repaid in annual installments beginning 31 December 2024. Interest on the loan is still to be calculated and recorded in the books of the partnership Required: Take the above information into account and adjust the "Profit for the year I to show the correct amount to be shared between the partners, Pitso and Steve. Thereafter, prepare the statement of changes in equity for Topclass Pro Services for the year ended 30 June 2020 to clearly show the distribution of profits in terms of the partnership agreement Show all calculations. Use the format suggested below. (20) Recommended format: Topclass Pro Services Statement of changes in equity for the year ended 30 June 2020 Sin Window Help Tools BCOMDEG Accoun.. 1195 @ Show all calculations. Use the format suggested below. (20) Recommended format: Topclass Pro Services Statement of changes in equity for the year ended 30 June 2020 Capital accounts Pitso Steve R R Balance at 1 July 2019 Additional contributions Balance at 30 June 2020 Total R 1 coun. 50% 5 / 9 QUESTION THREE 1291 Phe and Steve are partes per a les Top Pro Services. The woman that is relevant to the beaches of the path or they ended 20 e 2000. pro and we are in pros and losses in the of 32 respectively Toptans Pro Service Extract of relevant account balances June 2020 Credit R 270 000 270 000 52 900 Dobil R Capta: P Captat Steve Current account Presne 1 2019 75 600 Current account Steve balance at 1 2019 Drawings for the year. Piso 68 310 Drawings for the year: Steve 43 470 Long term loan from Piso Salaries paid to partners during the year Piso 144 000 Steve 125 000 Pront for the year - Defore taking the any of the actional Information into account Additional information: The following has been extracted from the partnership agreement: 110 000 765 600 1. Interest must be calculated and recorded at the foloang rates at the end of sch financial period A must be processed through the current accounts of the partners Interest rates are as follows: 1.1 interest on capital must be calculated at 105 Der year 12 interest at 10 per year on current account balances beginning of the year 1.Sheeton arawings accounts as nas been acuated as follons . R4 500 . Deve 2 500 2. The owing series are able to be partner for the current year Pits, 1 000 person, and is permo 50% 14 6 / 9 Your and adjustments: 1. On 1 January 2020 Priso contributed another R90 000 as capital to the partnership II was agreed that the amount will be included in his feed capital account. The transactio was correctly recorded as at 30 June 2020. 2. Pitso granted an unsecured loan to the partnership on 1 January 2020. According to the Joan agreement, Interest will be charged at 10% per year. The loan wil be repaid in anual installments beginning 31 December 2024. Interest on the loan is stui to be calculated and recorded in the books of the partnership Required: Take the above information into account and adjust the Profit for the year to show the correct amount to be shared between the partners, Pitso and Steve. Thereafter, prepare the statement of changes in equity for Topclass Pro Services for the year ended 30 June 2020 to clearly show the distribution profits in terms of the partnership agreement. Show all calculations. Use the format suggested below (20) Recommended format: Topclass Pro Services Statement of changes in equity for the year ended 30 June 2020 Capital accounts Pitso R Steve R Total R Balance at 1 July 2019 Additional contratos Balance at 30 June 2020 p! AS yn Window Help BCOMDEG Account 5 / 119. Q QUESTION THREE [20] Pitso and Steve are partners operating a business Topclass Pro Services. The information that follows is relevant to the business activities of the partnership for the year ended 30 June 2020. Pitso and Steve share in profits and losses in the ratio of 3:2 respectively. Topclass Pro Services Extract of relevant account balances as at 30 June 2020 Debit R Credit R 270 000 270 000 76 600 52 900 Capital: Pitso Capital: Steve Current account: Pitso: balance at 1 July 2019 Current account Steve: balance at 1 July 2019 Drawings for the year: Pitso Drawings for the year: Steve Long term loan from Pitso Salaries paid to partners during the year Pits 68 310 43 470 110 000 144 000 FO AB Sign Window Help ols BOOMDEG Accou... X 5/9 1190 a Q Pitso Steve Profit for the year before taking the any of the additional information into account 144 000 126 000 765 500 Additional information: The following has been extracted from the partnership agreement: 2 1. Interest must be calculated and recorded at the following rates at the end of each financial period. All interest must be processed through the current accounts of the partners. Interest rates are as follows 1.1 Interest on capital must be calculated at 10% per year, 1.2 Interest at 10% per year on current account balances at beginning of the year. 1.3 Interest on drawings accounts balances has been calculated as follows: R4 500 Steve R2 900 Pitso x] Pa W mm P 9 AL Sign Window Help ols HCOMDEG Accoun. X 6 / 9 119% 2. The following salaries are payable to the partners for the current year. Pitso: R12 000 per month, and Steve R15 000 per month Year-end adjustments: 1. On 1 January 2020 Pitso contributed another R90 000 as capital to the partnership. It was agreed that the amount will be included in his fixed capital account. The transaction was correctly recorded as at 30 June 2020 2. Pitso granted an unsecured loan to the partnership on 1 January 2020. According to the w P3 AB dos San Window Help ols BCOMDEG Accoun.. K . 6/9 2. Pitso granted an unsecured loan to the partnership on 1 January 2020. According to the loan agreement interest will be charged at 10% per year. The loan will be repaid in annual installments beginning 31 December 2024. Interest on the loan is still to be calculated and recorded in the books of the partnership Required: Take the above information into account and adjust the "Profit for the year I to show the correct amount to be shared between the partners, Pitso and Steve. Thereafter, prepare the statement of changes in equity for Topclass Pro Services for the year ended 30 June 2020 to clearly show the distribution of profits in terms of the partnership agreement Show all calculations. Use the format suggested below. (20) Recommended format: Topclass Pro Services Statement of changes in equity for the year ended 30 June 2020 Sin Window Help Tools BCOMDEG Accoun.. 1195 @ Show all calculations. Use the format suggested below. (20) Recommended format: Topclass Pro Services Statement of changes in equity for the year ended 30 June 2020 Capital accounts Pitso Steve R R Balance at 1 July 2019 Additional contributions Balance at 30 June 2020 Total R

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

Students also viewed these Finance questions