ASSIGNMENT 01 - SECOND SEMESTER (continued) QUESTION 7 respectively Joseph and Jane are in partnership and they share profits and losses in the ratio of 32 respectively. They decided to admit Anton as a partner and a fifth interest in the partnership was sold to him. Joseph and Jane relinquished Anton's interest to him in the proportion of 2:1, Which one of the following alternatives indicates the correct new profit-sharing ratio? Joseph, Jane and Anton's new profit-sharing ratio is 3:2:1, respectively 2. Joseph, Jane and Anton's new profit-sharing ratio is 7:5:3, respectively 3. Joseph, Jane and Anton's new profit-sharing ratio is 12:8:5, respectively 4. Joseph, Jane and Anton's new profit-sharing ratio is 1:1:1, respectively This information relates to questions 8, 9 and 10: Tick and Tack are in partnership, trading as Time Traders, and they share the profits/losses in the ratio of 2:1 respectively. For the purpose of admitting Minnie to the partnership on 1 March 2020 Tick and Tack, valued the partnerships assets as follows: The land and buildings with a carrying amount of R1 650 000 were valued at a fair value of R2 000 000, and the furniture and equipment, with a carrying amount of R640 000, were valued at a fair value of R620 000. Debtors amounted to R60 000. Tick and Tack decided to provide for credit losses of R7 000 on debtors. Bank amounted to R25 000. Minnie contributed a delivery vehicle valued at R460 000 and cash amounting to R140 00 for a one fifth share in a partnership. Tick, Tack and Minnie will share in the profits/losses of the new partnership, which will trade as Nano Traders, in the ratio of 2:2:1 respectively. QUESTION 8 Which one of the following alternative is the correct goodwill calculation for Time Traders? 1. R300 000 2. R302 000 3. R327 000 4. R295 000 QUESTION 9 Only for question 7 assuming that goodwill amounted to 90 000. Which one of the following alternative is the correct goodwill allocation to Time Traders? 1. Debit R 90 000 Credit R 2020 Feb 28 Goodwill Capital: Tick 60 000 30 000 FACT602/101/3/2020 ASSIGNMENT 01 - SECOND SEMESTER - QUESTION continued R Dob R 0 000 30 000 2020 Feb 28 Capital Tick 90 000 Capital Tack Goodwie Credit R Debit R 90 000 2020 Feb 28 Goodwill Capital Tick Capital: Tack Capital Minnie 36 000 35 000 18 000 Credit R 2020 Feb 28 Capital: Tick Capital: Tack Capital Minnie Goodwill Debit R 36 000 36 000 18 000 90 000 QUESTION 10 Which one of the following alternatives discloses the correct entry (narration omitted) in the general Journal of Time Traders to record the valuations to be disclosed in the valuation account? 1 Debit R 350 000 Credit R 2020 Feb 28 Land and buildings Allowance for credit losses Furniture and equipment Valuation account 7 000 20 000 323 000 2. Credit R Debit R 7 000 363 000 2020 Feb 28 Allowance for credit losses Valuation account Land and buildings Furniture and 350 000 20 000 30 ASSIGNMENT 01 - SECOND SEMESTER - QUESTION 10 COMMODO) 3 Dobit Credit 2020 R R 350 000 Feb 28 Land and buildings 20 000 Furniture and equipment 7 000 Allowance for credit 363 000 losses Valuation account Dobit R 377 000 Credit R 2020 Feb 28 Valuation account Allowance for credit losses Land and buildings Furniture and equipment 7 000 350 000 20 000 END OF ASSIGNMENT 01 - SECOND SEMESTER 31 ASSIGNMENT 01 - SECOND SEMESTER (continued) QUESTION 7 respectively Joseph and Jane are in partnership and they share profits and losses in the ratio of 32 respectively. They decided to admit Anton as a partner and a fifth interest in the partnership was sold to him. Joseph and Jane relinquished Anton's interest to him in the proportion of 2:1, Which one of the following alternatives indicates the correct new profit-sharing ratio? Joseph, Jane and Anton's new profit-sharing ratio is 3:2:1, respectively 2. Joseph, Jane and Anton's new profit-sharing ratio is 7:5:3, respectively 3. Joseph, Jane and Anton's new profit-sharing ratio is 12:8:5, respectively 4. Joseph, Jane and Anton's new profit-sharing ratio is 1:1:1, respectively This information relates to questions 8, 9 and 10: Tick and Tack are in partnership, trading as Time Traders, and they share the profits/losses in the ratio of 2:1 respectively. For the purpose of admitting Minnie to the partnership on 1 March 2020 Tick and Tack, valued the partnerships assets as follows: The land and buildings with a carrying amount of R1 650 000 were valued at a fair value of R2 000 000, and the furniture and equipment, with a carrying amount of R640 000, were valued at a fair value of R620 000. Debtors amounted to R60 000. Tick and Tack decided to provide for credit losses of R7 000 on debtors. Bank amounted to R25 000. Minnie contributed a delivery vehicle valued at R460 000 and cash amounting to R140 00 for a one fifth share in a partnership. Tick, Tack and Minnie will share in the profits/losses of the new partnership, which will trade as Nano Traders, in the ratio of 2:2:1 respectively. QUESTION 8 Which one of the following alternative is the correct goodwill calculation for Time Traders? 1. R300 000 2. R302 000 3. R327 000 4. R295 000 QUESTION 9 Only for question 7 assuming that goodwill amounted to 90 000. Which one of the following alternative is the correct goodwill allocation to Time Traders? 1. Debit R 90 000 Credit R 2020 Feb 28 Goodwill Capital: Tick 60 000 30 000 FACT602/101/3/2020 ASSIGNMENT 01 - SECOND SEMESTER - QUESTION continued R Dob R 0 000 30 000 2020 Feb 28 Capital Tick 90 000 Capital Tack Goodwie Credit R Debit R 90 000 2020 Feb 28 Goodwill Capital Tick Capital: Tack Capital Minnie 36 000 35 000 18 000 Credit R 2020 Feb 28 Capital: Tick Capital: Tack Capital Minnie Goodwill Debit R 36 000 36 000 18 000 90 000 QUESTION 10 Which one of the following alternatives discloses the correct entry (narration omitted) in the general Journal of Time Traders to record the valuations to be disclosed in the valuation account? 1 Debit R 350 000 Credit R 2020 Feb 28 Land and buildings Allowance for credit losses Furniture and equipment Valuation account 7 000 20 000 323 000 2. Credit R Debit R 7 000 363 000 2020 Feb 28 Allowance for credit losses Valuation account Land and buildings Furniture and 350 000 20 000 30 ASSIGNMENT 01 - SECOND SEMESTER - QUESTION 10 COMMODO) 3 Dobit Credit 2020 R R 350 000 Feb 28 Land and buildings 20 000 Furniture and equipment 7 000 Allowance for credit 363 000 losses Valuation account Dobit R 377 000 Credit R 2020 Feb 28 Valuation account Allowance for credit losses Land and buildings Furniture and equipment 7 000 350 000 20 000 END OF ASSIGNMENT 01 - SECOND SEMESTER 31