FINANCIAL ACCOUNTING

Required: 1. Open, post to and balance the following accounts in the general ledger of Fengu & Gundo Creations for the year ended 31 December 2019. Appropriation account Current: F. Fengu Current: G. Gundo 2. Present the Equity section Notes to the statement of financial statement for Fengu & Gundo Creations as at 31 December 2019.QUESTION 1 The following information was taken from the books of Fengu & Gundo Creations December 2019. Account Debit (Rand) Credit (Rand) Capital: F. Fengu (1 January 2019) 690 560 Capital: M. Naido (1 January 2019) 610 280 Current: F. Fengu (1 January 2019) 138 112 Current: G. Gundo (1 January 2019) 122 056 Drawings: F. Fengu 69 056 Drawings: G. Gundo 61 028 Net Profit for the year (Profit and Loss) 3 902 520 Property, Plant and Equipment 5 057 220 Appropriations according to the partnership agreement at the financial year end 31 December 2019: i. Interest on capital must be appropriated at 8.00% per annum. Capital account balances remain constant ii. Interest on drawings must be appropriated at 10.50% per annum, as if the drawings were made months prior to the end of the financial year. iii. Interest on current accounts must be appropriated at 9.00% per annum (on opening balances) IV. Both partners must receive an annual salary at the end of the financial year: F. Fengu - R468 302.40 G. Gundo - R390 252.00 V . G. Gundo must receive an annual bonus at the end of the financial year: R78 050.40 vi. The remaining profit must be split between the partners in the following ratio: F. Fengu - 3 G. Gundo - 2