FINANCIAL ACCOUNTING

Question two Fresh Meats CC was registered on 1 August 2015. The founding statement of the CC sets out the following: Names of members, their interests and contributions: Name % interest Contribution N. Moeti 50% R260 B. Faith 50% R240 ii. The accounting date: 30 June. The following abbreviated trial balance of the close corporation was available on 30 June 2017: Debit Credit Members' 500 00 Retained earnings 200 00 Mortgage bond 2 000 00 Loan to B. Faith 60 00 Land and buildings 2 500 00 Bank 140 00 R2 700 00 R2 700 00 ii. With regard to the 2017/2018 financial year the following was available: N. Moeti transferred 20.00 % (nominal value R 52 000) of her contribution on 30 June 2018 to B. Faith. N. Moeti lent the CC R 40 000, repayable on 30 June 2019. " . . On 31 March 2018, the land and buildings were re-valued at R 3 000 000. All interest was paid and received promptly on 30 June. Retained earnings for the year ended 30 June 2018 amounted to R 300 000. The distribution of income is equal to 50.00 % of retained earnings at the end of the financial year. Required 1. Calculate the change in members' % interest and members' funds at 30 June 2018. (15 marks) 2. Calculate the values of the members' net investment at 30 June 2018