Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please assist in answering all questions below This is the way it is on the Question paper. Is the only information I have Use the

image text in transcribed

image text in transcribed

Please assist in answering all questions below

image text in transcribed

This is the way it is on the Question paper. Is the only information I have

Use the following information to answer questions 25 to 30. Kris Janner was in partnership with Kylie and Kim trading as KKK Skin, the partnership produces and sells skin products. The partners shared profits/losses in the ratio of 5:3:2 respectively. Due to the dispute on matters affecting the day-to-day operations of the business the partners have consequently agreed to dissolve the partnership piecemeal as from 1 July 2021. The following is the trial balance of KKK Skin on 30 June 2021: Trial balance of KKK Skin as at 30 June 2021 R Property, plant and equipment Fixed deposit: Kandal Bank Loan from Kylie Long-term loan Trade debtors Bank (Dr) Capital: Kris Capital: Kylie Capital: Kim Goodwill 242400 100000 14400 96000 126000 18000 156000 120000 96000 24000 Additional Information: 1. The surrender value of the insurance policy taken out on the lives of the partners is currently R50 000 and is to be paid to the partnership on the 07 July 2021. 2. An agreement was reached with all the debtors, that if outstanding balances are settled before 25 July 2021, a discount of 10% will be granted. On 07 July 2021, 90% of debtors had settled their accounts. 3. The partner's loan account is to be transferred to his capital account. 4. The partners agreed to distribute the cash received from the sale of assets immediately, in such a way, that while maximum distribution was to be made to the partners, a partner would under no circumstances be required to refund to the partnership any amount he had received. 5. The assets were sold for cash as follows: Carrying Value R110 0000 Proceeds R110 000 07 July 2021 Fixed deposit 12 July 2021 Vehicles R106 000 R100 000 Using the columnar formal according to the loss-absorption capacity method record the liquidati of KKK Skin from the 01 July to 07 July 2021 and answer the following. QUESTION 25 Which of the following alternatives represents the correct balance in the capital account of Kris at the commencement of the liquidation? A. R 91 200,00 B. R 156 000,00 C. R 112 800,00 D. R 144 000,00 Question 26 Which one of the following alternatives represents the correct amount that must be allocated to Kylie relating to the life insurance? A. R25 000,00 B. R 15 000,00 C. R 10 000,00 D. R 50 000,00 Question 27 Which one of the following alternatives represents the correct the correct amount that must be allocated to Kylie relating to the amounts received from debtors? A. R 11 340,00 B. R 22 680,00 C. R 20 412, 00 D. R2 268,00 Question 28 Which one of the following alternatives represents the correct closing balance in the bank account of KKK Skin on 07 July 2021? A. R 184 060,00 B. R 195 000,00 C. R 224 000,00 D. R208 000,00 Question 29 Which one of the following alternatives represents the correct closing balance for the Capital account for Kris on the 07 July 2021? A. R 156 000,00 B. R 169 000,00 C. R 174 670,00 D. R 150 000,00 Question 30 Which one of the following alternatives represents the correct closing balance in the Assets account of KKK Skin on 07 July 2021? A. R R256 000,00 B. R 245 000,00 C. R 134 060,00 D. R 468 400,00 Use the following information to answer questions 25 to 30. Kris Janner was in partnership with Kylie and Kim trading as KKK Skin, the partnership produces and sells skin products. The partners shared profits/losses in the ratio of 5:3:2 respectively. Due to the dispute on matters affecting the day-to-day operations of the business the partners have consequently agreed to dissolve the partnership piecemeal as from 1 July 2021. The following is the trial balance of KKK Skin on 30 June 2021: Trial balance of KKK Skin as at 30 June 2021 R Property, plant and equipment Fixed deposit: Kandal Bank Loan from Kylie Long-term loan Trade debtors Bank (Dr) Capital: Kris Capital: Kylie Capital: Kim Goodwill 242400 100000 14400 96000 126000 18000 156000 120000 96000 24000 Additional Information: 1. The surrender value of the insurance policy taken out on the lives of the partners is currently R50 000 and is to be paid to the partnership on the 07 July 2021. 2. An agreement was reached with all the debtors, that if outstanding balances are settled before 25 July 2021, a discount of 10% will be granted. On 07 July 2021, 90% of debtors had settled their accounts. 3. The partner's loan account is to be transferred to his capital account. 4. The partners agreed to distribute the cash received from the sale of assets immediately, in such a way, that while maximum distribution was to be made to the partners, a partner would under no circumstances be required to refund to the partnership any amount he had received. 5. The assets were sold for cash as follows: Carrying Value R110 0000 Proceeds R110 000 07 July 2021 Fixed deposit 12 July 2021 Vehicles R106 000 R100 000 Using the columnar formal according to the loss-absorption capacity method record the liquidation of KKK Skin from the 01 July to 07 July 2021 and answer the following. Use the following information to answer questions 25 to 30. Kris Janner was in partnership with Kylie and Kim trading as KKK Skin, the partnership produces and sells skin products. The partners shared profits/losses in the ratio of 5:3:2 respectively. Due to the dispute on matters affecting the day-to-day operations of the business the partners have consequently agreed to dissolve the partnership piecemeal as from 1 July 2021. The following is the trial balance of KKK Skin on 30 June 2021: Trial balance of KKK Skin as at 30 June 2021 R Property, plant and equipment Fixed deposit: Kandal Bank Loan from Kylie Long-term loan Trade debtors Bank (Dr) Capital: Kris Capital: Kylie Capital: Kim Goodwill 242400 100000 14400 96000 126000 18000 156000 120000 96000 24000 Additional Information: 1. The surrender value of the insurance policy taken out on the lives of the partners is currently R50 000 and is to be paid to the partnership on the 07 July 2021. 2. An agreement was reached with all the debtors, that if outstanding balances are settled before 25 July 2021, a discount of 10% will be granted. On 07 July 2021, 90% of debtors had settled their accounts. 3. The partner's loan account is to be transferred to his capital account. 4. The partners agreed to distribute the cash received from the sale of assets immediately, in such a way, that while maximum distribution was to be made to the partners, a partner would under no circumstances be required to refund to the partnership any amount he had received. 5. The assets were sold for cash as follows: Carrying Value R110 0000 Proceeds R110 000 07 July 2021 Fixed deposit 12 July 2021 Vehicles R106 000 R100 000 Using the columnar formal according to the loss-absorption capacity method record the liquidati of KKK Skin from the 01 July to 07 July 2021 and answer the following. QUESTION 25 Which of the following alternatives represents the correct balance in the capital account of Kris at the commencement of the liquidation? A. R 91 200,00 B. R 156 000,00 C. R 112 800,00 D. R 144 000,00 Question 26 Which one of the following alternatives represents the correct amount that must be allocated to Kylie relating to the life insurance? A. R25 000,00 B. R 15 000,00 C. R 10 000,00 D. R 50 000,00 Question 27 Which one of the following alternatives represents the correct the correct amount that must be allocated to Kylie relating to the amounts received from debtors? A. R 11 340,00 B. R 22 680,00 C. R 20 412, 00 D. R2 268,00 Question 28 Which one of the following alternatives represents the correct closing balance in the bank account of KKK Skin on 07 July 2021? A. R 184 060,00 B. R 195 000,00 C. R 224 000,00 D. R208 000,00 Question 29 Which one of the following alternatives represents the correct closing balance for the Capital account for Kris on the 07 July 2021? A. R 156 000,00 B. R 169 000,00 C. R 174 670,00 D. R 150 000,00 Question 30 Which one of the following alternatives represents the correct closing balance in the Assets account of KKK Skin on 07 July 2021? A. R R256 000,00 B. R 245 000,00 C. R 134 060,00 D. R 468 400,00 Use the following information to answer questions 25 to 30. Kris Janner was in partnership with Kylie and Kim trading as KKK Skin, the partnership produces and sells skin products. The partners shared profits/losses in the ratio of 5:3:2 respectively. Due to the dispute on matters affecting the day-to-day operations of the business the partners have consequently agreed to dissolve the partnership piecemeal as from 1 July 2021. The following is the trial balance of KKK Skin on 30 June 2021: Trial balance of KKK Skin as at 30 June 2021 R Property, plant and equipment Fixed deposit: Kandal Bank Loan from Kylie Long-term loan Trade debtors Bank (Dr) Capital: Kris Capital: Kylie Capital: Kim Goodwill 242400 100000 14400 96000 126000 18000 156000 120000 96000 24000 Additional Information: 1. The surrender value of the insurance policy taken out on the lives of the partners is currently R50 000 and is to be paid to the partnership on the 07 July 2021. 2. An agreement was reached with all the debtors, that if outstanding balances are settled before 25 July 2021, a discount of 10% will be granted. On 07 July 2021, 90% of debtors had settled their accounts. 3. The partner's loan account is to be transferred to his capital account. 4. The partners agreed to distribute the cash received from the sale of assets immediately, in such a way, that while maximum distribution was to be made to the partners, a partner would under no circumstances be required to refund to the partnership any amount he had received. 5. The assets were sold for cash as follows: Carrying Value R110 0000 Proceeds R110 000 07 July 2021 Fixed deposit 12 July 2021 Vehicles R106 000 R100 000 Using the columnar formal according to the loss-absorption capacity method record the liquidation of KKK Skin from the 01 July to 07 July 2021 and answer the following

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_2

Step: 3

blur-text-image_3

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