Prepare the statement of changes in equity for Tasnaz’s Pastry for the year ended 30 June2021. You may eliminate the Total column but must include an appropriation column. Showall workings. Round off all calculations to the nearest Rand. Balances in the ledger at 30 June 2021Capital : TasCapital : Naz407 000363 000Current account: Tas credit balance at 1 July 20208 052Current account: Naz: debit balance at 1 July 20202 640Drawings : TasDrawings : NazProfit for the year88 000140 800438 636Additional Information:The partnership agreement provides for the following that needs to be taken into account:1. Partners are entitled to salaries as follows:• Tas - R8 000 per month,• Naz – R10 000 per month.2. Interest on capital accounts are allowed at 12% per year on each partners capital ona pro-rata basis. Note the following that on 1 January 2021:• Tas decreased her capital account by R27 000; and• Naz increase her capital account by R17 000.3. Interest at 10% per year is applicable to the opening balance of each partner'scurrent account.4. Naz is entitled to an annual bonus equal to 2% of the profit for the year before anyappropriation from the profit for the year.5. The remaining profits or losses are shared equally.

Answered: Image /qna-images/answer/79a3d0be-0925-4903-9e12-e39ce6b9df7a.jpg

Answered: must include an appropriation column.…

Business

Accounting

must include an appropriation column. Show all workings. Round off all calculations to the nearest Rand.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 1SEA

See similar textbooks

Similar questions

1. As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: Cash P 15,000 P 38,000Accounts Receivable 680,000 255,000Allowance for doubtful accounts (140,000) (30,000)Merchandise Inventory 202,000Machinery and Equipment 150,000 270,000Total P705,000 P735,000 Accounts Payable 135,000 240,000MM, capital 570,000AA, capital - 495,000Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement…
As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: Cash Accounts Receivable Allowance for doubtful accounts Merchandise Inventory Machinery and Equipment Total P705,000 MM AA P 38,000 255,000 (30,000) 202,000 270,000 P735,000 240,000 495,000 P735,000 P 15,000 680,000 (140,000) - 150,000 Accounts Payable MM, capital AA, capital Total P705,000 135,000 570,000 - The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of 60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?
The partnership of X and Y was formed on June 1, 2021. At that date the following assets were contributed: Cash Merchandise inventory 250,000 4,500,000 Building Furniture and equipment P150,000 550,000 Building is subject to a mortgage loan of P1,500,000 which is to be assumed by the partnership. Partnership agreement provides that X and Y on profit and loss of 25% and 75 % respectively. How much is the total assets of the partnership of Y?
On March 1, 2020, EE and FF decided to combine their business and form a partnership. Their balance sheets onMarch 1 before adjustments showed the following: 1. Compute the net (debit)/credit adjustment for EE anf FF. EE FF EE FFA. 28,700 ; 28,200 C. (8,700) ; 1,800B. (28,700) ; (28,200) D. 8,700 ; (1,800) 2. Compute the total assets after the formation.A. 1,607,650 C. 1,579,850B. 1,570,850 D. 1,568,750 3. If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,700 4. If If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship with EE’s capital to be used as a basis, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,700
The accounts of the partnership of A, B and C at the end of its fiscal year 011 October 31, 2021 are as follows: Cash 78,750 Other Non-Cash Assets 682,500 Liabilities P262,500 Loan to B 26,250 Loan from C 52,500 A, Capital (30%) 236,250 B, Capital (50%) 157,500 C, capital (20%) 78,750 8. If P90,000 is available for distribution to partners after all non-partner liabilities are paid, how much should A receive? 9. If in the first distribution, B received 6,250, how much should C have received at this point? 10. If in the first distribution, A received 172,500, how much should B have received? 11. If in the first distribution, C received 37,500, how much is the total cash distributed? 12. If in the first distribution, A…
Missouri, Connecticut, and Oklahoma have been partners throughout 2021. Their average balances and their balances at the end of the year before closing the nominal accounts are as follows: Partner Average Balances Balances, 12/31/21 Missouri P97,500 P70,000 Connecticut 7,300 11,800 Oklahoma 4,250 1,700 (debit balance) The income for 2021 is P103,500 before charging partners’ salary allowances and before payment of interest on average balances at the agreed rate of 4% per annum. Annual salary allocations are P12,500 to Missouri, P8,750 to Connecticut, and P6,250 to Oklahoma. The balance of the profits is to be allocated at the rate of 60% to Missouri, 10% to Connecticut, and 30% to Oklahoma. It is intended to distribute cash to the partners so that, after credits and allocations have been made as indicated in the preceding paragraph, the balances in the partners’ accounts will be…
19 AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1 P270,000 P280,000 February 28 P80,000 March 1 120,000 April 30 160,000 June 1 P100,000 August 1 140,000 September 30 40,000 October 31 40,000 The partnership agreement provides for the following: Interest of 9% is to be provided to AA Salaries of P4,000 is to be given to BB per quarter A bonus of 25% is to be given to AA based on net income after interest and salaries Remaining balance is to be allocated on a ratio of 40:60. The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022. How much is the…
A and B decided to form a partnership on January I, 2021. Their Statements ofFinancial Position on this date were: A B Cash 62,625 164,063 Accounts Receivable 1,487,500 896,875 Merchandise Inventory 875,000 885,938 Equipment 656,250 1,268,750 Total 3,084,375 3,215,625 A B Accounts payable 459,375 1,159,375 A, Capital 2,625,000 B, Capital 2,056,250 Total 3,084,375 3,215,625 They agreed the following adjustments shall be made:- Equipment of A is under depreciated by P87,500 and that B is over depreciated byP131,250.- Allowance for doubtful accounts is to be set up amounting to P297,500 for A andP196,875 for B.- Inventories of P21, 875 and P15,312 are worthless in the books of A and Brespectively.- The partnership agreement provides for a profit and loss ratio of 70% to A and 30%to B Upon the formation of the partnership, how much is the capital of A and B,respectively?
A and B decided to form a partnership on January I, 2021. Their Statements ofFinancial Position on this date were: A B Cash 62,625 164,063 Accounts Receivable 1,487,500 896,875 Merchandise Inventory 875,000 885,938 Equipment 656,250 1,268,750 Total 3,084,375 3,215,625 A B Accounts payable 459,375 1,159,375 A, Capital 2,625,000 B, Capital 2,056,250 Total 3,084,375 3,215,625 They agreed the following adjustments shall be made:- Equipment of A is under depreciated by P87,500 and that B is over depreciated byP131,250.- Allowance for doubtful accounts is to be set up amounting to P297,500 for A andP196,875 for B.- Inventories of P21, 875 and P15,312 are worthless in the books of A and Brespectively.- The partnership agreement provides for a profit and loss ratio of 70% to A and 30%to B Compute for the total assets of the partnership
A and B decided to form a partnership on January I, 2021. Their Statements ofFinancial Position on this date were: A B Cash 62,625 164,063 Accounts Receivable 1,487,500 896,875 Merchandise Inventory 875,000 885,938 Equipment 656,250 1,268,750 Total 3,084,375 3,215,625 A B Accounts payable 459,375 1,159,375 A, Capital 2,625,000 B, Capital 2,056,250 Total 3,084,375 3,215,625 They agreed the following adjustments shall be made:- Equipment of A is under depreciated by P87,500 and that B is over depreciated byP131,250.- Allowance for doubtful accounts is to be set up amounting to P297,500 for A andP196,875 for B.- Inventories of P21, 875 and P15,312 are worthless in the books of A and Brespectively.- The partnership agreement provides for a profit and loss ratio of 70% to A and 30%to B Assuming that B is to invest a certain amount of cash such that his capital balance will be 10% higher than A’s. How much should B invest?
A and B decided to form a partnership on January I, 2021. Their Statements ofFinancial Position on this date were: A B Cash 62,625 164,063 Accounts Receivable 1,487,500 896,875 Merchandise Inventory 875,000 885,938 Equipment 656,250 1,268,750 Total 3,084,375 3,215,625 A B Accounts payable 459,375 1,159,375 A, Capital 2,625,000 B, Capital 2,056,250 Total 3,084,375 3,215,625 They agreed the following adjustments shall be made:- Equipment of A is under depreciated by P87,500 and that B is over depreciated byP131,250.- Allowance for doubtful accounts is to be set up amounting to P297,500 for A andP196,875 for B.- Inventories of P21, 875 and P15,312 are worthless in the books of A and Brespectively.- The partnership agreement provides for a profit and loss ratio of 70% to A and 30%to B Assuming that the capital balances are to be equaled to their P&L Ratio, how much is the capital of A and B, respectively?
Adam and Boru are partners sharing profit and loss in the ratio of 1:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and B Partnership Statement of Financial Position As at 31st December 2020 ASSETS 2020 Current Assets Kshs'000 Kshs'000 Cash and Cash Equivalent 43,500 Short Term Deposits - Prepaid Insurance 1,000 Debtors 20,500 Less Provision for Doubtful Debts (1,000) 19,500 Inventories 30,000 94,000 Non Current Assets Machinery 22,000 Less:Accumulated Depreciation - 22,000 Buildings 30,000 Less:Accumulated Depreciation - 30,000…