QUESTION 2Which one of the following alternatives represents the correct balance in the capitalaccount of Mrebe after the valuation of assets and prior to the admission of Mqithwa?A. 147 900B. 112 950C. 125 400D. 123 200O O Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners aresharing profits and losses equally. On 30 July 20.1 the following information was extractedfrom the accounting records of the partnership:EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERSCapital - Mrebe..Capital- Johannes...Current account- Mrebe (Cr)..Current account-Johannes (Dr).124 5001103004540028400Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1.Mqithwa will contribute the following to acquire a fifth of the net asset shareof the partnership1. Cash..213002. Farming equipment worth..58000Mrebe and Johannes agreed to relinquish 20% of their share in profits orlosses to Mqithwa in the ratio of 3:1 respectivelyAll other assets were revalued before admitting Mqithwa to the partnership.A valuation loss was correctly calculated at..44000

The answer for the multiple choice question and relevant explanation are presented hereunder : There…

QUESTION 2 Which one of the following alternatives represents the correct balance in the capital account of Mrebe after the valuation of assets and prior to the admission of Mqithwa? A. 147 900 B. 112 950 C. 125 400 D. 123 200 O O

QUESTION 2 Which one of the following alternatives represents the correct balance in the capital account of Mrebe after the valuation of assets and prior to the admission of Mqithwa? A. 147 900 B. 112 950 C. 125 400 D. 123 200 O O

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners are sharing profits and losses equally. On 30 July 20.1 the following information was extracted from the accounting records of the partnership: EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERS R Capital - Mrebe.... Capital - Johannes... Current account - Mrebe (Cr)... Current account - Johannes (Dr).... 124 500 110300 45400 28400 Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1. Mqithwa will contribute the following to acquire a fifth of the net asset share of the partnership 1. Cash.. 2. Farming equipment worth.. 21300 58000 Mrebe and Johannes agreed to relinquish 20% of their share in profits or losses to Mqithwa in the ratio of 3:1 respectively All other assets were revalued before admitting Mqithwa to the partnership. A valuation loss was correctly calculated at.. 44000 QUESTION 1 Which one of the following alternatives represents the new profit-sharing ratio after the admission of…
Given the following information for questions 1- 4: Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners are sharing profits and losses equally. On 30 July 20.1 the following information was extracted from the accounting records of the partnership: EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERS R Capital - Mrebe.. Capital - Johannes.... Current account - Mrebe (Cr).. Current account - Johannes (Dr).. 124 500 110300 45400 28400 Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1. Maithwa will contribute the following to acquire a fifth of the net asset share of the partnership 1. Cash... 2. Farming equipment worth.. 21300 58000 Mrebe and Johannes agreed to relinquish 20% of their share in profits or losses to Mqithwa in the ratio of 3:1 respectively All other assets were revalued before admitting Mqithwa to the partnership. A valuation loss was correctly calculated at. 44000
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