Balances in the ledger at 30 June 2021 R |Capital : Tas |Capital : Naz 407 000 363 000 Current account: Tas credit balance at 1 July 2020 8 052 Current account: Naz: debit balance at 1 July 2020 2 640 Drawings : Tas Drawings : Naz Profit for the year 88 000 140 800 438 636 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 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's current account. 4. Naz is entitled 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 profits or losses are shared equally. Required: Prepare the statement of changes in equity for Tasnaz's Pastry for the year ended 30 June 2021. You may eliminate the Total column but must include an appropriation column. Show all workings. Round off all calculations to the nearest Rand.
Balances in the ledger at 30 June 2021 R |Capital : Tas |Capital : Naz 407 000 363 000 Current account: Tas credit balance at 1 July 2020 8 052 Current account: Naz: debit balance at 1 July 2020 2 640 Drawings : Tas Drawings : Naz Profit for the year 88 000 140 800 438 636 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 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's current account. 4. Naz is entitled 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 profits or losses are shared equally. Required: Prepare the statement of changes in equity for Tasnaz's Pastry for the year ended 30 June 2021. You may eliminate the Total column but must include an appropriation column. Show all workings. Round off all calculations to the nearest Rand.
Chapter1: The Individual Income Tax Return
Section: Chapter Questions
Problem 3MCQ
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
Question
Transcribed Image Text:Balances in the ledger at 30 June 2021
R
Capital : Tas
Capital : Naz
407 000
363 000
Current account: Tas credit balance at 1 July 2020
8 052
Current account: Naz: debit balance at 1 July 2020
2 640
Drawings : Tas
Drawings : Naz
Profit for the year
88 000
140 800
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 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's
current account.
4. Naz is entitled 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 profits or losses are shared equally.
Required:
Prepare the statement of changes in equity for Tasnaz's Pastry for the year ended 30 June
2021. You may eliminate the Total column but must include an appropriation column. Show
all workings. Round off all calculations to the nearest Rand.
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