FACULTY OF COMMERCE, MANAGEMENT AND LAW On 1 August 20.5, the furniture and fittings were sold for N$42 000 cash. The vehicle was taken over by Pascoe at a mutually agreed value of N$48 000. The inventory was sold for N$30 000 cash. The debtors settled their debts in full by paying N$ 35 000 to the partnership .All the creditors were paid and a settlement discount of N$2 300 was received .N$39 000 was repaid in respect of the long term loan. The liquidation costs were N$ 15 000. All partners have sufficient personal assets to cover any deficits in their capital accounts. You are required to: 3.1 Prepare the Bank and capital ledger accounts in the partnerships records in order to carry out the dissolution. (30 Marks) FACULTY OF COMMERCE, MANAGEMENT AND LAW QUESTION 4 (26 marks) Kalahari CC Statement of Financial Position as at 31 December 2020 ASSETS Non-current assets. Current assets 2020 2019 N$ N$ 220 000 220 000 123 000 77 000 352 000 297 000 CAPITAL AND LIABILITIES Members' contributions: 180 000 180 000 Beo(50%) 70 000 70 000 Reo(35%) 50 000 50 000 Teo(15%) 60 000 60 000 Retained earnings 90 000 65 000 Non-current liabilities 45 000 45 000 Current liabilities 37 000 7 000 352 000 297 000 You are required to: 1. Calculate the new membership interest and show the statement of changes in net membership investment and membership interest in each of the following instances separately. a) Beo decides to tell 1/5 of his current interest to Reo. The interest is valued at N$ 25 000 of which N$ 15 000 has been deposited into the bank account of the CC as a loan from Beo. The balance of the amount has been paid to Beo as his own funds. b) The CC buy back the interest of Teo for N$ 50 000. Page 19 of 25 (17 marks). (6 marks) FACULTY OF COMMERCE, MANAGEMENT AND LAW c) Erica and Ladia, are planning to open a business, however they are not sure as to the type of enterprise suits them, from your knowledge, Is it possible to convert a close corporation into a company? If so, how should they do it