A- Calculate the members contribution from the new member FetakgomoB-calculate total comprehensive incomeC-calculate retained earnings in statement of changes in net investment Mohlaletse CC is a wedding and venue arrangement services company operating around the SekhukhuneDistrict Municipality of Limpopo province. Makola and Bulelwe are the two founders and members of thisregistered a close corporation and obtained municipal approval to expand the business into proving cookedmeals from an establishment in the community.The following extract of balances as at 31 December 2021 from the accountingrecords of Mohlaletse CC is presented to you for assistance:Loan to MakolaMember's contribution: FetakgomoMember's contribution: MakolaMember's contribution: BulelweRetained earnings (1 January 2021)Trade debtors controlTrade creditors controlLoan from MakolaBank (favourable)Long-term loan (Mohlaletse Fund)SARS (income tax) liabilityVehicles at costAccumulated depreciation: Vehicles (1 January 2021)Furniture at costAccumulated depreciation: Furniture (1 January 2021)Equipment at costAccumulated depreciation: Equipment (1 January 2021)InventoryProfit before tax (before taking into account the additionalinformation)R17 900?164 100135 500381 900161 500158 700104 5002 876 1004 806 900111 3001 940 400287 60053 00016 8001 293 600491 8001 014 9002 659 800Additional information1. On 1 January 2021, a renowned wedding planner and choreographer by the name of Fetakgomo wasadmitted to the CC in July 2021 to assist in developing a new wedding themes and contemporary weddingdance moves. In addition to the R35 000 cash contribution, Fetakgomo further contributed music equipmentand an old delivery vehicle to the value of R99 000 and R39 000 respectively.2. On 30 June 2021 one of the music system (music equipment) got damaged by an inexperienced local DJfrom Zebediela and was not reparable. This system was acquired at a cost of R120 000 on 1 May 2019 andan accumulated depreciation of R66 100 on 30 June 2021 (R50 000 at 1 January 2021). The equipment wasinsured and an insurance pay-out equal to the carrying amount of the equipment was paid to the closecorporation. The accountant credited the insurance pay-out to the SARS(income tax) account.5. On 30 September 2021, a profit distribution of R55 000 was made to each member of the closecorporation. These amounts should be regarded as loans from members with interest charged andcapitalised at 15% per annum. This transaction is yet to be accounted for.6. The loan from Makola was advanced to the CC in December 2020 and is repayable on 31 May 2022.6. The income tax assessment, received from SARS on 4 January 2022, indicated that the normal incometax for the 2021 financial year amounted to R388 000.7. Bulelwe experienced personal financial problems during the year and borrowed R21 000 from the closecorporation. The loan was granted to Bulelwe on 1 December 2021 at an interest rate of 18% per annum. Theinterest on this loan is capitalised. This transactions is still to be recorded.8. Depreciation for the year ended 31 December 2021 was correctly calculated as R78 000, R3 400 andR185 000 for vehicles, furniture and equipment respectively.

First of all, We have to identify the assets to be considered for valuation of Fetakgomo's…

Answered: Calculate the members contribution from…

Business

Accounting

Calculate the members contribution from the new member Fetakgomo B-calculate total comprehensive income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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