Loan to Aluwani 28,500 Member's contribution: Ambani ? Member's contribution: Adivhaho 240,500 Member's contribution: Aluwani 281,200 Retained earnings (1 January 2024) 539,300 Trade debtors control 254,400 Trade creditors control 277,800 Loan from Adivhaho 153,200 Bank (favourable) 5,964,200 Long-term loan (Mayden Wharf Fund) 6,785,600 SARS (income tax) liability 175,300 Vehicles at cost 3,394,000 Accumulated depreciation: Vehicles (1 January 2024) 421,300 Furniture at cost 110,100 Accumulated depreciation: Furniture (1 January 2024) 24,000 Machinery at cost 2,835,800 Accumulated depreciation: Machinery (1 January 2024) 860,400 Inventory 1,486,100 Profit before tax (before taking into account the additional information) 5,515,600 Additional information 1. On 1 January 2024, a seasoned expert named Ambani was admitted to the CC to assist in the business development. In addition to a R67 000 cash contribution, Ambani further contributed specialised manufacturing machinery valued at R108 000 and other office equipment valued at R22 000, significantly boosting the operational capacity of the business. 2. On 30 June 2024 one of the manufacturing machinery got damaged and was not reparable. This machinery was acquired at a cost of R240 000 on 1 May 2020 and an accumulated depreciation of R121 800 on 30 June 2024 (R98 200 at 1 January 2024). The machinery was insured and an insurance pay-out equal to the carrying amount of the equipment was paid to the close corporation. The accountant credited the insurance pay-out to the SARS(income tax) account. 5. On 30 September 2024, a profit distribution of R74 000 was made to each member of the close corporation. These amounts should be regarded as loans from members with interest charged and capitalised at 15% per annum. This transaction is yet to be accounted for. 6. The loan from Aluwani was advanced to the CC in December 2023 and is repayable on 31 May 2025. 6. The income tax assessment, received from SARS on 4 January 2025, indicated that the normal income tax for the 2024 financial year amounted to R422 700. 7. Adivhaho experienced personal financial problems during the year and borrowed R53 000 from the close corporation. The loan was granted to Adivhaho on 1 December 2024 at an interest rate of 18% per annum. The interest on this loan is capitalised. This transactions is still to be recorded. 8. Depreciation for the year ended 31 December 2024 was correctly calculated as R123 900, R7 400 and R213 000 for vehicles, furniture and machinery respectively. REQUIRED: With regard to Ndalamo CC: Prepare the statement of statement of changes in net investment of (25) members for the year ended 31 December 2024.
Added by Lungile N.
Close
Step 1
Ambani contributed R67,000 in cash, R108,000 in machinery, and R22,000 in office equipment. \[ \text{Ambani's total contribution} = 67,000 + 108,000 + 22,000 = 197,000 \] Show more…
Show all steps
Your feedback will help us improve your experience
Anand Jangid and 54 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
The following information pertains to the business activities as of February 28, 2025: Extract of given amounts as at 28 February 2025: R Land and buildings at cost 1,276,300 Machinery at cost 941,400 Accumulated depreciation: Machinery 354,900 Vehicles at cost 716,700 Accumulated depreciation: Vehicles 354,900 Inventory (1 March 2024) 214,400 Bank (positive balance) 994,900 Trade receivables control 548,000 Trade payables control 430,400 Long-term loan (Mbombela Bank) 1,338,300 Capital: Khanyisile 361,700 Capital: Tinyiko 368,400 Drawings: Khanyisile 95,400 Drawings: Tinyiko 94,300 Interest on loan ? Depreciation 129,300 Delivery cost on sales Water and electricity 103,200 Purchases 2,027,100 Security expenses 32,200 Salaries and wages 474,600 Delivery cost on purchases 27,900 Bank charges 16,800 Sales 3,126,800 Stationery consumed 27,200 Settlement discount received 41,400 Settlement discount granted Additional information: 1.1 Partnership agreement: 1.1.1 An annual interest rate of 12% is applied to the capital account balances. 1.1.2 Khanyisile and Tinyiko agreed to share profits and losses equally. 1.1.3 Each partner has a monthly salary entitlement of R12,000. 2 Year-end adjustments: 2.1. The security expenses billed to the business every month include a R700 monthly fee for security at Tinyiko’s private house. The security bill amounting to R2 900 for February 2025 has not yet been accounted for. 2.2. The long-term loan with Mbombela Bank secured by land and buildings, bearing a 11.4% annual interest rate, was secured on June 1, 2024, with interest payments due semi-annually at the end of December and May. During the year, 3 helmets valued at R5 500 each were borrowed to Khanyisile’s friend for a weekend ride as part of marketing campaign. After the weekend, Khanyisile decided to take two of the helmets for her personal use for weekend rides. This adjustment is yet to be made. 2.4. The inventory's value was calculated to be R209 000 as of February 28, 2025. 2.5. Khanyisile withdrew his salary from March-2024 to December-2024, whilst Tinyiko withdrew her salary for only 8 months of the financial year. The total amounts paid was debited to the salaries and wages account. REQUIRED: calculate total drawing
Roee S.
Extract of given amounts as at 28 February 2025: Land and buildings at cost 1,276,300 Machinery at cost 941,400 Accumulated depreciation: Machinery 354,900 Vehicles at cost 716,700 Accumulated depreciation: Vehicles 354,900 Inventory (1 March 2024) 214,400 Bank (positive balance) 994,900 Trade receivables control 548,000 Trade payables control 430,400 Long-term loan (Mbombela Bank) 1,338,400 Capital: Khanyisile 361,700 Capital: Tinyiko 368,400 Drawings: Khanyisile 95,500 Drawings: Tinyiko 94,300 Interest on loan ? Depreciation Delivery cost on sales 61,200 Water and electricity 103,200 Purchases 2,027,100 Security expenses 32,300 Salaries and wages 474,600 Delivery cost on purchases 27,900 Bank charges 16,800 Sales 3,126,800 Stationery consumed 27,200 Settlement discount received 41,500 Settlement discount granted 27,200 Additional information: 1.1 Partnership agreement: 1.1.1 An annual interest rate of 12% is applied to the capital account balances. 1.1.2 Khanyisile and Tinyiko agreed to share profits and losses equally. 1.1.3 Each partner has a monthly salary entitlement of R12,000. Year-end adjustments: 2.1. The security expenses billed to the business every month include a R700 monthly fee for security at Tinyiko’s private house. The security bill amounting to R2 900 for February 2025 has not yet been accounted for. 2.2. The long-term loan with Mbombela Bank secured by land and buildings, bearing a 11.4% annual interest rate, was secured on June 1, 2024, with interest payments due semi-annually at the end of December and May. 2.3. During the year, 3 helmets valued at R5 500 each were borrowed to Khanyisile’s friends for a weekend ride as part of marketing campaign. After the weekend, Khanyisile decided to take two of the helmets for her personal use for weekend rides. This adjustment is yet to be made. The inventory's value was calculated to be R209 000 as of February 28, 2025. 2.5. Khanyisile withdrew his salary from March-2024 to December-2024, whilst Tinyiko withdrew her salary for only 8 months of the financial year. The total amounts paid was debited to the salaries and wages account. REQUIRED: What is the correct amount that must be disclosed as cost of sales in the statement of profit
Below is the relevant information regarding the partnership’s financial activities for the year ending 30 June 2024.Balances as at 30 June 2024: RInventory 108,400Bank (positive) 293,600Trade receivables control 199,200Vehicles at cost 708,200Equipment at cost 209,300Warehouse building at cost 575,100Accumulated depreciation: Vehicles 41,700Accumulated depreciation: Equipment 64,500Allowance for credit losses 3,000Trade payables control 119,800Capital: Khanyisile 431,500Capital: Tinyiko 246,700Current account: Khanyisile (Cr: 1 July 2023) 13,400Current account: Tinyiko (Dr: 1 July 2023) 9,400 Supplementary information:2.1 Details of the partnership agreement between the partners:2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners’ capital and current accounts.2.1.2 Profits and losses are shared equally between Khanyisile and Tinyiko.2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisile and Tinyiko respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024.Adjustments at the end of the year:2.2.1 The business aimed to expand its operations by acquiring additional warehouse for new range of helmets. On 30 June 2024, Mbombela Bank provided a loan of R468 000 to facilitate the purchase of the warehouse. The warehouse was acquired on 2 July 2024 at the cost of R468,000. This loan is classified as long-term, with an 8% annual interest rate, to be repaid over 6 years with equal instalments starting from 30 June 2025. This transaction has not yet been recorded.2.2.1 On 30 June 2023, it was decided that an outstanding debt of R21 800 owed to the business was unlikely to be recovered and should be written off as bad debt.REQUIRED:Assuming that the profit available for distribution to partners amounted to R560 000. What is the correct balance of current account for Tinyiko as at 30 June 2024?
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD