Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

KGABO FRESH PRODUCE EXTRACT OF BALANCES AS AT 29 FEBRUARY 2020 Capital: Seseni. R Capital: Ramphele Capital: Mboweni 75900 Current account Seseni (Cr) Current account

image text in transcribed

image text in transcribed

image text in transcribed

KGABO FRESH PRODUCE EXTRACT OF BALANCES AS AT 29 FEBRUARY 2020 Capital: Seseni. R Capital: Ramphele Capital: Mboweni 75900 Current account Seseni (Cr) Current account Ramphele (Dr) Current account Mbowenl (Dr) Drawings: Seseni. Drawings: Ramphele. Land and buildings at cost Equipment at cost.. Accumulated depreciation: Equipment. Mortgage loan Loan from Ramphele Loan from Mboweni. Bank overdraft Trade payables control. Trade receivables control Profit for the year 535400 4. Interest on current accounts of 5% per annum is charged on the opening balances of the partners current accounts. 5. As a well-known wagyu beef expert in the country, Mboweni is entitled to an annual bonus equal to 18% of her annual salary. Year-end adjustments: 1. Due to the draught and penalties incurred on defective produce, the farm experienced working capital challenges and only managed to pay 40% of the partner's annual salaries. 5. As a well-known wagyu beef expert in the country, Mboweni is entitled to an annual bonus equal to 18% of her annual salary. Year-end adjustments: 1. Due to the draught and penalties incurred on defective produce, the farm experienced working capital challenges and only managed to pay 40% of the partner's annual salaries. 2. On 31 October 2019, Seseni made an additional capital contribution to the partnership comprising of an old tractor valued at R33 000 and cash amount of R17000. This transaction is yet to be recorded by the accountant. Which one of the following alternatives represents the correct capital amount for Seseni in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020? KGABO FRESH PRODUCE EXTRACT OF BALANCES AS AT 29 FEBRUARY 2020 Capital: Seseni. R Capital: Ramphele Capital: Mboweni 75900 Current account Seseni (Cr) Current account Ramphele (Dr) Current account Mbowenl (Dr) Drawings: Seseni. Drawings: Ramphele. Land and buildings at cost Equipment at cost.. Accumulated depreciation: Equipment. Mortgage loan Loan from Ramphele Loan from Mboweni. Bank overdraft Trade payables control. Trade receivables control Profit for the year 535400 4. Interest on current accounts of 5% per annum is charged on the opening balances of the partners current accounts. 5. As a well-known wagyu beef expert in the country, Mboweni is entitled to an annual bonus equal to 18% of her annual salary. Year-end adjustments: 1. Due to the draught and penalties incurred on defective produce, the farm experienced working capital challenges and only managed to pay 40% of the partner's annual salaries. 5. As a well-known wagyu beef expert in the country, Mboweni is entitled to an annual bonus equal to 18% of her annual salary. Year-end adjustments: 1. Due to the draught and penalties incurred on defective produce, the farm experienced working capital challenges and only managed to pay 40% of the partner's annual salaries. 2. On 31 October 2019, Seseni made an additional capital contribution to the partnership comprising of an old tractor valued at R33 000 and cash amount of R17000. This transaction is yet to be recorded by the accountant. Which one of the following alternatives represents the correct capital amount for Seseni in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020

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

Auditing And Assurance Services

Authors: William MessierSteven Glover

7th Edition

0073527084, 9780073527086

More Books

Students also viewed these Accounting questions