(Marks: 20) Question 5 The following information was taken from the books of Newcastle Enterprises. Balances in the general ledger of Newcastle Enterprises for the financial year ended 29 February 2020. Account Capital: M. Manchester(1 March Fol. Debit(R) Credit(R) 50 000 2019) Capital: L. Liverpool (1 March 2019) Current: M. Manchester (1 March 2019) 18 000 Current: L. Liverpool (1 March 2019) Drawings: M. Manchester Drawings: L. Liverpool Replacement Reserve Profit and Loss Property, plant and equipment 5000 4 000 70 000 8 000 65.000 420 000 670 000 Appropriations according to the partnership agreement for the financial year ended 29 February 2020: 1. Interest on capital must be appropriated at 5% per annum. Capital account balances remain constant. 2. Interest on drawings must be appropriated at 12% per annum. Assume drawings were made 3 months prior to the end of the financial year. 3. Interest on current accounts must be appropriated at 7% per annum (on opening balances). 4. 5. 6. 7. Both partners must receive an annual salary at the end of the financial year as follows: M. Manchester-R65 000 L. Liverpool - R45 000 L. Liverpool must receive an annual bonus of R10 000 at the end of the financial year. R35 000 must be transferred to the replacement reserve at the end of the financial year. The remaining profit must be split between the partners in the following ratio: M. Manchester: 5 L. Liverpool: 3 Required: Open, post to and balance the appropriation account in the general ledger of Newcastle Enterprises for the year ended 29 February 2020. (Round to 2 decimal places) (20) 201 Question 5 (Marks: 20) General ledger of Newcastle Enterprises 29 February 2020 Appropriation Account Date Details Fol. Amount Date Details Fol. Amount Workings