must include an appropriation column. Show all workings. Round off all calculations to the nearest Rand.
must include an appropriation column. Show all workings. Round off all calculations to the nearest Rand.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6286ed68-ef18-4883-aad5-2c8497313150%2F79a3d0be-0925-4903-9e12-e39ce6b9df7a%2Ffafif6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Balances in the ledger at 30 June 2021
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.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education