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Question 1 Study the scenario and complete the question that follows: Mugg and Bean Partnership Mugg and Bean are partners with a computer store trading
Question Study the scenario and complete the question that follows: Mugg and Bean Partnership Mugg and Bean are partners with a computer store trading as MB Computers. They share profits and losses in the ratio : respectively. On February the following list of balances were obtained from the company's financial records: tableLand and buildings at costOffice furniture at costVehicles at costAccumulated Depreciation: office furniture,Accumulated Depreciation: Vehicles,Longterm loan UnsecuredAccounts receivable,Accounts Payable,Bank drProvision for credit losses,Accrued interest on loan,Net Income for the year Mugg,Capital CapitalCurrent account: Mugg cr on March Current account: Bean cr on March Drawings: Mugg,Drawings: Bean,Inventory on hand,Stationary on hand, Page of Additional information A further R from accounts receivable must be written off as irrecoverable and a provision for credit losses must be maintained at of the outstanding accounts receivable balances. The partnership agreement states the following: Interest on per year is paid on fixed capitals. Interest of per year is to be paid or charged on the opening balances of current accounts. A bonus of is to be paid to Mugg. Source: Waka, L Required Prepare the Statement of changes in equity to show the distribution appropriation of profits for MB Computers for the year ended February Marks
Question
Study the scenario and complete the question that follows:
Mugg and Bean Partnership
Mugg and Bean are partners with a computer store trading as MB Computers. They share profits and losses in the ratio : respectively.
On February the following list of balances were obtained from the company's financial records:
tableLand and buildings at costOffice furniture at costVehicles at costAccumulated Depreciation: office furniture,Accumulated Depreciation: Vehicles,Longterm loan UnsecuredAccounts receivable,Accounts Payable,Bank drProvision for credit losses,Accrued interest on loan,Net Income for the year Mugg,Capital CapitalCurrent account: Mugg cr on March Current account: Bean cr on March Drawings: Mugg,Drawings: Bean,Inventory on hand,Stationary on hand,
Page of
Additional information
A further R from accounts receivable must be written off as irrecoverable and a provision for credit losses must be maintained at of the outstanding accounts receivable balances.
The partnership agreement states the following:
Interest on per year is paid on fixed capitals.
Interest of per year is to be paid or charged on the opening balances of current accounts.
A bonus of is to be paid to Mugg.
Source: Waka, L
Required
Prepare the Statement of changes in equity to show the distribution appropriation of profits for MB Computers for the year ended February
Marks
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