QUESTION 7

Which one of the following alternatives represents the correct amount for salary: Junior disclosed in the statement of changes in equity of JO Suppliers for the year ended 30 September 20.4?

A. 203 280

B. 168 000

C. 14 000

D. 15 400

E. 184 800

F. 16 940

QUESTION 8

Which one of the following alternatives represents the correct drawings: Owami disclosed in the statement of changes in equity of JO Suppliers for the year ended 30 September 20.4?

A. (25 210)

B. (5 000)

C. (25 100)

D. (25 000)

E. (5 210)

F. (5 100)

QUESTION 9

Which one of the following alternatives represents the correct drawings: Junior disclosed in the statement of changes in equity of JO Suppliers for the year ended 30 September 20.4?

A. (8 160)

B. (8 000)

C. (32 000)

D. (8 330)

E. (32 160)

F. (32 330)

QUESTION 10

Which one of the following alternatives represents the correct partners share of total comprehensive income: Owami disclosed in the statement of changes in equity of JO Suppliers for the year ended 30 September 20.4?

A. 60 643

B. 47 943

C. 47 540

D. 47 500

E. 60 400

F. 47 900

Junior and Owami are the partners of JO Suppliers and the following information is presented to assist in the preparation of the financial statements for the year ended 30 September 20.4. EXTRACT OF BALANCES AT 20 SEPTEMBER 20.4: R Capital: Junior (1 August 20-3) Cr 992 200 Capital: Owami (1 August 20-3) Cr 749 090 Current account: Junior (1 August 20.3) Cr 74 910 Current account: Owami (1 August 20.3) Dr 46 820 Drawings: Junior 8 330 Drawings: Owami 5210 Allowance for credit losses 2 500 Equipment 99 360 Profit for the year 619 460 Accumulated depreciation 14 680 Land and buildings 1 513 790 Trade receivables control 93 960 Long-term loan from Junior 65 970 6% 7% 1. Terms of the partnership agreement: 1.1 Interest charged per annum on the opening balances of the partners' capital accounts. 1.2 Interest charged per annum on the opening balances of the partners' current accounts. 1.3. Partner's monthly salaries are as follows 1.3.1. Junior salary 1.3.2. Owami salary 1.4. Junior and Owami share profits in the ratio of 3.2 respectively. 16 940 12 490 2. Year-end adjustments: 2.1 The long-term loan from Junior was acquired at 1 August 20.2 and bears interest at a rate of 10% per annum payable on 1 September every year. The loan will be repaid in full on 30 September 20.4 On 30 September 20.4, a bonus amounting to R20 000 was paid to each partners' personal bank account. On the same date, Junior decided to transfer his bonus to the partnership's capital account. This transaction is not recorded. 2.3 2.4. On 15 September 20.4, Junior paid R10 000 and R4 000 for entertaining clients and his family respectively using the partnership credit card. This transaction is not recorded