Thabisile and Mike are in a partnership trading as Thami Traders. The partners are sharing profits and losses equally. On 30 July 2020 the equity and profits of Thami Traders was as follows:

Capital - Thabisile R84 000

Capital - Mike R84 000

Current account - Thabisile (Cr) R20 000

Current account - Mike (Cr) R20 000

Thabisile and Mike decided to admit Dineo from 1 August 2020. Dineo will contribute R50 000 cash and a vehicle worth R86 000 to acquire a fifth of the net asset share of the partnership. Thabisile and Mike agreed to relinquish 20% of their share in profits or losses to Dineo in the ratio of 3:1 respectively. All other assets were revalued before admitting Dineo to the partnership and a valuation loss of R28 000 was correctly calculated.

Which one of the following alternatives represents the correct balance in the capital account of Mike after the valuation of assets and prior to the admission of Dineo?

Select one:

a.R 42 000

b.R118 000

c.R 74 000

d.R 62 000

e.R 90 000

Question 57

Question text

Which one of the following alternatives represents the correct fair value of Thami Traders prior to the admission of Dineo?

Select one:

a.R 208 000

b.R 258 000

c.R 316 000

d.R 344 000

e.R 680 000

Question 58

Select one:

a.R 308 000

b.R 366 000

c.R 182 000

d.R 68 000

e.R 364 000