Error on question 6. R51 040 was paid in full settlement of their account. *NOT R51 540*

Typo on question 8. Minnies contributions R140 000. *NOT R140 00*

Given information for questions 6 and 7: Antoinette, Belinda and Cynthia were in a partnership which traded as Beta Traders, and they shared in the profits/losses of the partnership in the ratio of 5:3.2 respectively. They decided to liquidate the partnership on 1 May 2019 by means of a simultaneous liquidation. On 30 April 2019 the following trial balance was prepared: Debit Credit R R Capital: Antoinette 500 000 Capital: Belinda 300 000 Capital: Cynthia 100 000 Current account: Antoinette 30 400 Current account: Belinda.. 19 200 Current account: Cynthia 9 600 Revaluation surplus. 175 050 Long-term loan. 90 000 Trade payables control... 57 300 Land and buildings at fair value.. 850 000 Equipment at cost..... 300 000 Accumulated depreciation Equipment 108 000 Bank 159 550 1 349 550 1 349 550 On 1 May 2019 the following liquidation transactions took place: Land and buildings were sold for cash, R755 000. Equipment with a carrying amount of R50 000 was taken over but not paid for immediately by Belinda at an agreed amount of R58 000. The remaining equipment was sold for R265 000 in cash. R51 540 was paid to the creditors in full settlement of their accounts. The long term loan was settled at 5% discount. QUESTION 6 Which alternative shows the correct profit/loss made on the liquidation of Beta Traders? 1. R46 760 profit 2. R41 760 profit 3. R46 760 loss 4. R41 760 loss QUESTION 7 Assuming that the profit from liquidation amounted to R50 000 only for this question. Which alternative shows the correct balances on the capital accounts of Antoinette, Belinda and Cynthia immediately after to the profit/loss made on the liquidation of Beta Training was allocated to their capital accounts ? 1. Antoinette: R469 600(cr): Belinda: R274 200(cr): Cynthia: R90 400(cr) 2. Antoinette: R494 600(cr): Belinda: R324 200(cr): Cynthia: R100 600(Cr) 3. Antoinette: R582 125(er): Belinda: R328 715(er): Cynthia: R135 410(er) 4. Antoinette: R557 125(cr); Belinda: R371 715(cr); Cynthia: R125 410(cr) This information relates to questions 8 and 9: 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. R327 000 3. R295 000 4. R302 000 QUESTION 9 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 2020 Feb 28 Allowance for credit losses Valuation account Land and buildings Furniture and equipment Debit R 7 000 363 000 350 000 20 000 3. Credit R 2020 Feb 28 Land and buildings Furniture and equipment Allowance for credit losses Valuation account Debit R 350 000 20 000 7 000 363 000 4. Debit 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 QUESTION 10 Andre, Floyd, and Wlad are in a partnership, selling sports equipment, and they share their profits/losses in the ratio of 2:2:1, respectively. At 31 December 2019, the financial year-end of the partnership, they decided to liquidate the partnership, piecemeal as from 1 January 2020. They agreed that they will start to repay the creditors after the first sale of the assets, and as soon as any cash becomes available for an interim distribution to the partners, it will be distributed according to the loss absorption capacity method. They also agreed that the capital deficit of an insolvent partner will be borne by the remaining solvent partners according to their profit-sharing ratio. At 31 December 2019, the balances of the accounts in the general ledger of the partnership were as follows: Debit Credit R R Capital: Andre 45 000 Capital: Floyd 45 000 Capital: Wlad 45 000 Current account: Andre 15 000 Current account: Floyd 10 000 Current account: Wlad. 8 000 Goodwill... 24 000 Trade payables control.. 140 000 Furniture and equipment at carrying amount 340 000 Accumulated depreciation Equipment 108 000 Bank 2 000 391 000 391 000 Transaction method 1. The furniture and equipment were sold as follows: Carrying amount Selling price R R 15 January 2020 10 000 8 000 22 January 2020 120 000 150 000 31 January 2020 102 000 85 000 232 000 245 000 Taken over by Wlad Cash Cash 2. Five percent discount was received when the creditors were paid. Indicate the alternative that correctly shows the credit balances of the capital accounts, immediately prior to the calculation of the distribution of the available cash in respect of the first interim repayment to the partners on 22 January 2020. 1. Andre, R8 400; Floyd, R13 400 and Wlad, R32 200 2. Andre, R20 400; Floyd, R25 400 and Wlad, R48 200 3. Andre, R34 400; Floyd, R39 400 and Wlad, R47 200 4. Andre, R35 200; Floyd, R40 200 and Wlad, R45 600