Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the information provided below to prepare the following for the year ended 28 February 2022: 4.1 Current Account: Tina in the general ledger. Balance
Use the information provided below to prepare the following for the year ended 28 February 2022: 4.1 Current Account: Tina in the general ledger. Balance the account. (7 marks) 4.2 An extract of the Statement of Changes in Equity that reflects the Capital Accounts of each partner. (The total column is not required.) (4 marks) INFORMATION The information given below was extracted from the accounting records of Toti Traders, a partnership business with Toni and Tina as partners. The following must be considered: (a) The net profit for the year, according to the Profit and loss account, amounted to R600 000 . (b) The partners are entitled to interest on capital at 15% per year. Partner Toni increased her capital by R200 000 on 01 June 2021. Partner Tina decreased her capital by R200 000 on the same date. The entries to record the capital changes have been made. (c) In terms of the partnership agreement the partners are entitled to the following monthly salaries: Toni R13 000 Tina R15000 (d) Partner Tina is entitled to a bonus equal to 20% of the net profit in excess of R200 000 . (e) The balance of the profit (shortfall) must be shared between Toni and Tina in the ratio of their capital balances as at the beginning of the financial year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started