Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 question 2 question 3 question 4 question 5 question 6 question7 Nciba CC is a business entity founded and registered as a close

image text in transcribed
image text in transcribed
Question 1
image text in transcribed
question 2
image text in transcribed
question 3
image text in transcribed
question 4
image text in transcribed
question 5
image text in transcribed
question 6
image text in transcribed
question7
image text in transcribed
Nciba CC is a business entity founded and registered as a close corporation by the two members Odwa and Makhwabe. The CC obtained municipal approval to cook and sell traditional dishes to the Gcuwa community. The following accounting information is presented to you for your assistance: EXTRACT OF BALANCES AS AT 31 DECEMBER 2019 Additional information (a) On 30 June 2019 one of the cooking equipment burst and got damaged beyond repair. This equipment was acquired at a cost of R:92 000 on 1 May 2016 and the accumulated depreciation of R56000 was correcty accounted for on 30 June 2019 . The equipment was insured and an insurance payout equal to the carrying amount of the equipment was paid to the close corporation. The accountant credised the insurance payout to the SARS (income tax) account. (b) On 31 August 2019, a profit distribution of R51 000 was made to each member of the close corporation. These amounts should be regarded as loans from members with interest charged and capitalised at 18% per annum. This transaction is yet to be accounted for. (c) On 2 March 2019, a well-regarded chef from eKomani by the name of Masonwabe was admitted to the CC to assist in developing a new recipe for one of the dishes. In addition to the R38 000 cash contribution, Masonwabe further contributed cooking equipment and an old vehicle to the value of R110 000 and R75 000 respectively. (d) The loan from Odwa was advanced to the CC in 1 December 2018 and is repayable on 31 May 2020. (e) Makhwabe experienced personal financial problems during the year and borrowed R15 800 from the close corporation. The loan was granted to Makhwabe on 31 December 2019 at an interest rate of 15% per annum. The interest on this loan is capitalised. This information is still to be recorded. (f) The income tax assessment, received from SARS on 4 January 2020 , indicated that the income tax for the 2019 financial year amounted to R542 000 . Which one of the following alternatives represents the correct member's contributions for Odwa to be presented in the statement of changes in net investments of members of Nciba CC for the year ended 31 December 2019? Select one: a. R 182100 b. R 172000 c. R172700 d. R 187000 e. R 223100 Clear my choice Which one of the following alternatives represents the correct member's contributions for Khayisa to be presented in the statement of changes in net investments of members of Nciba CC for the year ended 31 December 2019 ? Select one: a. R 223100 b. R 172000 c. R 182100 d. R 142600 e. R 149000 Clear my choice Which one of the following alternatives represents the correct member's contributions for Masonwabe to be included in the statement of changes in net investments of members of Nciba CC for the year ended 31 December 2019? Select one: a. R 209000 b. R 223100 c. R 223000 d. R 182100 e. R 172000 Clear my choice Which one of the following alternatives represents the correct total comprehensive income for the year to be presented in the statement of changes in net investments of members of Nciba CC for the year ended 31 December 2019? Select one: a. R 2258820 b. R 2181500 c. R 2268000 d. R 2232000 e. R 2268100 Assume the correct total comprehensive income for the year is R1 700000 . Which one of the following alternatives represents the correct retained earnings to be presented in the statement of changes in net investments of members of Nciba CC for the year ended 31 December 2019? Select one: a. R 2105500 b. R 2511320 c. R 2057900 d. R 401900 e. R 1952500 Which one of the following alternatives represents the correct loans to members to be presented in the statement of changes in net investments of members of Nciba CC for the year ended 31 December 2019 ? Select one: a. R18100 b. R 36900 c. R 36800 d. R 36000 e. R 21100 Which one of the following alternatives represents the correct loans from members to be presented in the statement of changes in net investments of members of Nciba CC for the year ended 31 December 2019? Select one: a. R 99900 b. R 252900 c. R 262080 d. R 257600 e. R 162180

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

Auditing Principles And Techniques

Authors: Prof. A.R. Solanki

1st Edition

9350533979, 9789350533970

More Books

Students also viewed these Accounting questions