Question
Kgabo Fresh Produce is an entity that operates a farm in Bela-Bela. The following information is taken from the accounting records of the entity, a
Kgabo Fresh Produce is an entity that operates a farm in Bela-Bela. The following information is taken from the accounting records of the entity, a partnership with Seseni, Ramphele and Mboweni as partners in the business, at 29 February 2020 the financial year end of the partnership.
KGABO FRESH PRODUCE EXTRACT OF BALANCES AS AT 29 FEBRUARY 2020 | |
R | |
Capital: Seseni..................................................................... | 75 900 |
Capital: Ramphele .............................................................. | 187 700 |
Capital: Mboweni ............................................................... | 111 000 |
Current account Seseni (Cr) ........................................... | 19 300 |
Current account Ramphele (Dr) ...................................... | 16 000 |
Current account Mbowenl (Dr) ........................................ | 15 400 |
Drawings: Seseni.............................................................. | 46 800 |
Drawings: Ramphele........................................................ | 51 300 |
Land and buildings at cost .............................................. | 500 000 |
Equipment at cost............................................................ | 250 700 |
Accumulated depreciation: Equipment............................ | 25 000 |
Mortgage loan ................................................................ | 76 000 |
Loan from Ramphele ...................................................... | 31 300 |
Loan from Mboweni.......................................................... | 28 500 |
Bank overdraft ................................................................ | 36 300 |
Trade payables control................................................... | 46 900 |
Trade receivables control ............................................. | 48 800 |
Profit for the year ............................................................ | 535 400 |
Additional information
Abstract from terms of the partnership agreement:
- The partners share profits equally
- Each partner is entitled to a monthly salary of R13 100.
- Interest of 6% per annum is charged on the partners capital accounts.
- Interest on current accounts of 5% per annum is charged on the opening balances of the partners current accounts.
- 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:
- Due to the draught and penalties incurred on defective produce, the farm experienced working capital challenges and only managed to pay 40% of the partners annual salaries.
- 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 R17 000. This transaction is yet to be recorded by the accountant.
What is the correct capital amount for Seseni, Mboweni and Rampele in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020?
what is the total salaries and bonus amount for Mboweni, Rampele to be disclosed under current accounts in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020
what is the interest on capital amount for Seseni, Rampele and Mboweni to be disclosed under current accounts in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020?
what is the interest on current account amount for Seseni ?
what is the drawings amount for Seseni to be disclosed under current accounts in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020?
what is the interest on current account amount for Ramphele to be disclosed under current accounts in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020?
drawings amount for Mboweni to be disclosed under current accounts in the statement of changes in equity of Kgabo Fresh Produce for the year ended 29 February 2020?
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