Please don't provide answer in image format thank you Terrilson Trading is a company in the business of manufacturing parts for train wagons. Terri and Nilson formed this company in 2015 after they were both retrenched from their employment. The following information pertains to the business activities of the partnership for the year ended 31 August 2022. Extract from the statement of financial position as at 31 August 2022: 2022 2021 R R Land and buildings (at cost) 1,010,600 660,600 Equipment (at cost) 624,900 569,400 Accumulated depreciation: Equipment 175,200 74,400 Long-term loan 283,600 198,200 Members’ contributions 1,276,500 1,080,100 Retained earnings 231,200 79,700 Loans to members 98,100 34,100 Loans from members 118,700 - Distribution to members payable 78,200 108,600 Inventory 59,100 33,200 Dividend receivable 21,600 101,200 Trade payables control 137,000 66,900 Accrued security expenses 7,700 3,400 Current tax payable 62,200 40,000 Accrued rental income 6,200 5,500 Trade receivables control 108,600 101,800 Prepaid advertising expense 20,800 17,100 Investment (at cost) 202,900 - Bank 198,000 276,900 Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2022:
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.
Please don't provide answer in image format thank you
Terrilson Trading is a company in the business of manufacturing parts for train wagons. Terri and Nilson formed this company in 2015 after they were both retrenched from their employment. The following information pertains to the business activities of the partnership for the year ended 31 August 2022.
Extract from the
2022 2021
R R
Land and buildings (at cost) 1,010,600 660,600
Equipment (at cost) 624,900 569,400
Long-term loan 283,600 198,200
Members’ contributions 1,276,500 1,080,100
Loans to members 98,100 34,100
Loans from members 118,700 -
Distribution to members payable 78,200 108,600
Inventory 59,100 33,200
Dividend receivable 21,600 101,200
Trade payables control 137,000 66,900
Accrued security expenses 7,700 3,400
Current tax payable 62,200 40,000
Accrued rental income 6,200 5,500
Trade receivables control 108,600 101,800
Prepaid advertising expense 20,800 17,100
Investment (at cost) 202,900 -
Bank 198,000 276,900
Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2022:
R
Revenue from parts sold 832,200
Cost of sales 389,300
Fair value gain on listed investments 20,000
Investment income: dividend income 14,300
Rental income 41,100
Interest income on loans to members 13,700
Loss on sale of machinery 8,900
Other operating expenses 23,400
Telephone expenses 31,200
Interest expense on loans from members 16,400
Interest expense on long term loans 13,300
Income tax expense 124,600
Water and electricity 53,100
Repairs and maintenance 28,500
Depreciation on equipment 93,600
Additional information
1.
2. Interest on loans advanced to and received from members is capitalised. All loans to members are immediately callable whilst the total amount owing to members is payable on 31 August 2024.
3. Equipment with a cost price of R32 200 and accumulated depreciation of R10 100 was sold for cash. A replacement equipment was bought on 30 June 2020.
4. The additional member’s contributions include a piece of land worth R90 000.
5. Investments consist of the following:
· R58 900 Fixed deposit at Langa Bank (Maturity date – 30 Nov 2028)
· 18 000 Ordinary shares in Kingston Limited, held for trading.
6. Profit distribution to members amounted to R44 000.
7. All inventories are purchased and sold on credit.
Which of the following alternatives represents the correct amount that must be disclosed as cash receipts from customers under cash flows from operating activities section in the statement of cash flows for Terrilson Trading CC for the year ended 31 August 2022?
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