Tasneem and Nazreen were friends with simlar hobbles. They formed a partnershlp with a written partnership agreement to trade in pastry and related products as Tasnaz's Pastry. Required: Prepare the statement of changes In equity for Tasnaz's Pastry for the year ended 30 June 2021. You may elminate the Total column but must include an appropriation column. Show all workings. Round off all calculations to the nearest Rand. 3.1Tasneem and Nazreen were friends with simlar hobbles. They formed a partnershlpwith a written partnership agreement to trade in pastry and related products asTasnaz's Pastry. The following were extracted from their accounting records;Balances In the ledger at 30 June 2021RCapital : Tas407 000Capital : Naz363 000Current account: Tas credit balance at 1 July 20208 052Current account: Naz: debit balanoe at1 July 20202 640Drawings : TasDrawings : Naz88 000140 800Proft for the year438 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 capltal account by R27 000; and• Naz Increase her capital account by R17 00.3. Interest at 10% per year is applicable to the opening balance of each partner'scurrent account.4. Naz is entitied to an annual bonus equal to 2% of the profit for the year before anyappropriation from the profit for the year.5. The remaining profts or losses are shared equaly. Required:Prepare the statement of changes In equity for Tasnaz's Pastry for the year ended 30 June2021. You may elminate the Total column but must include an appropriation column. Showall workings. Round off all calculations to the nearest Rand.Use the following format:Statement of changes In equityCapital accounts:Balance atBalance atCurrent accounts:AppropriationBalance atAppropriations:Balance at3.2Discuss the advantages and disadvantages of forming a partnership as opposed to asole proprietor.| |

Answered: simlar hobbles. They formed a…

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 1CP

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Tasneem and Nazreen were friends with simlar hobbles. They formed a partnershlp with a written partnership agreement to trade in pastry and related products as Tasnaz's Pastry.

Required: Prepare the statement of changes In equity for Tasnaz's Pastry for the year ended 30 June 2021. You may elminate the Total column but must include an appropriation column. Show all workings. Round off all calculations to the nearest Rand.

3.1
Tasneem and Nazreen were friends with simlar hobbles. They formed a partnershlp
with a written partnership agreement to trade in pastry and related products as
Tasnaz's Pastry. The following were extracted from their accounting records;
Balances In the ledger at 30 June 2021
R
Capital : Tas
407 000
Capital : Naz
363 000
Current account: Tas credit balance at 1 July 2020
8 052
Current account: Naz: debit balanoe at1 July 2020
2 640
Drawings : Tas
Drawings : Naz
88 000
140 800
Proft for the year
438 636
Additional 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 on
a pro-rata basis. Note the following that on 1 January 2021:
• Tas decreased her capltal account by R27 000; and
• Naz Increase her capital account by R17 00.
3. Interest at 10% per year is applicable to the opening balance of each partner's
current account.
4. Naz is entitied to an annual bonus equal to 2% of the profit for the year before any
appropriation from the profit for the year.
5. The remaining profts or losses are shared equaly.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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