Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need that question to be answered in full because my first question was not complete Topclass Pro Services Extract of relevant account balances as

image text in transcribed

I need that question to be answered in full because my first question was not complete

Topclass Pro Services Extract of relevant account balances as at 30 June 2022 Additional information: The following has been extracted from the partnership agreement: 1. Interest must be calculated and recorded at the following rates at the end of each financial period. All interest must be processed through the current accounts of the partners. Interest rates are as follows: 1.1 Interest on capital must be calculated at 10% per year, 1.2 Interest at 10% per year on current account balances at beginning of the year, 1.3 Interest on drawings accounts balances has been calculated as follows: - Pitso R4500 - Steve R2900 2. The following salaries are payable to the partners for the current year: Pitso: R12 000 per month, and Steve R15 000 per month. Year-end adjustments: 1. On 1 January 2022 Pitso contributed another R90 000 as capital to the partnership. It was agreed that the amount will be included in his fixed capital account. The transaction was correctly recorded as at 30 June 2022. 2. Pitso granted an unsecured loan to the partnership on 1 January 2022. According to the loan agreement, interest will be charged at 10% per year. The loan will be repaid in annual installments beginning 31 December 2026. Interest on the loan is still to be calculated and recorded in the books of the partnership

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Describe in words the surface whose equation is given. r = 5

Answered: 1 week ago