Vusi and Vuma are in partnership trading as VV Traders specialising in manufacturing protective wear related to COVID-19. The partners share profits equally. The following information pertains to the business activities of the partnership for the year ended 30 June 20.2: VV TRADERS EXTRACT OF FINANCIAL INFORMATION AS AT 30 JUNE 20.2 Note R Loan to Vusi Land and buildings (at cost) Machinery (at cost) Vehicles (at cost) Accumulated depreciation: Machinery Accumulated depreciation: Vehicles Allowance for credit losses Capital contribution: Vusi Capital contribution: Vuma Allowance for settlement discount granted Long-term loan Inventory Trade receivables control Trade payables control Bank Petty cash Current account: Vusi (1 July 20.1) Current account: Vuma (1 July 20.1) Profit before year-end adjustments 92 650 462 330 160 690 201 580 29 220 9 810 Cell Styles 3 710 350 280 350 280 8 940 70 850 49 490 97 450 41 530 84 590 1 570 42 840 63 220 170 370 Additional information 1. The long-term loan was acquired from Gqeberha Bank on 1 July 20.1. The capital portion of the loan is repayable in annual installments of R10 000 and the first installment is payable on 31 December 20.2. 2. On 1 July 20.2 VV Traders received an invoice amounting to R3 200 for delivery expenses of inventory delivered on 25 June 20.2. 3. On 1 January 20.2 VV Traders made a loan advance to Vusi. According to the loan agreement, the loan bears interest at 10% per annum and is capitalized. The interest is not yet recorded. The loan is fully repayable on 31 January 20.3. 4. Depreciation for the year is to be provided for as follows: • Machinery - R8 800 • Vehicles - R18 500 5. On 1 January 20.2, VV Traders concluded an insurance contract with Namba Insurers. According to the contract, the premium is payable annually in advance. The amount paid on the same date amounted to R18 000 and must still be recorded.
Vusi and Vuma are in partnership trading as VV Traders specialising in manufacturing protective wear related to COVID-19. The partners share profits equally. The following information pertains to the business activities of the partnership for the year ended 30 June 20.2: VV TRADERS EXTRACT OF FINANCIAL INFORMATION AS AT 30 JUNE 20.2 Note R Loan to Vusi Land and buildings (at cost) Machinery (at cost) Vehicles (at cost) Accumulated depreciation: Machinery Accumulated depreciation: Vehicles Allowance for credit losses Capital contribution: Vusi Capital contribution: Vuma Allowance for settlement discount granted Long-term loan Inventory Trade receivables control Trade payables control Bank Petty cash Current account: Vusi (1 July 20.1) Current account: Vuma (1 July 20.1) Profit before year-end adjustments 92 650 462 330 160 690 201 580 29 220 9 810 Cell Styles 3 710 350 280 350 280 8 940 70 850 49 490 97 450 41 530 84 590 1 570 42 840 63 220 170 370 Additional information 1. The long-term loan was acquired from Gqeberha Bank on 1 July 20.1. The capital portion of the loan is repayable in annual installments of R10 000 and the first installment is payable on 31 December 20.2. 2. On 1 July 20.2 VV Traders received an invoice amounting to R3 200 for delivery expenses of inventory delivered on 25 June 20.2. 3. On 1 January 20.2 VV Traders made a loan advance to Vusi. According to the loan agreement, the loan bears interest at 10% per annum and is capitalized. The interest is not yet recorded. The loan is fully repayable on 31 January 20.3. 4. Depreciation for the year is to be provided for as follows: • Machinery - R8 800 • Vehicles - R18 500 5. On 1 January 20.2, VV Traders concluded an insurance contract with Namba Insurers. According to the contract, the premium is payable annually in advance. The amount paid on the same date amounted to R18 000 and must still be recorded.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter23: Accounting For Partnerships
Section: Chapter Questions
Problem 1CP
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