Mugg and Bean Partnership Mugg and Bean are partners with a computer store tradingas MB Computers. They share profits and losses in the ratio 4:3 respectively. On 28February 2019, the following list of balances were obtained from the company'sfinancial records: Land and buildings at cost 300 000 Office furniture at cost 80 000Vehicles at cost 75 000 Accumulated Depreciation: office furniture 26 875 AccumulatedDepreciation: Vehicles 23 750 Long-term loan (Unsecured) 87 500 Accounts receivable48 000 Accounts Payable 218 750 Bank (dr) 35 500 Provision for credit losses 5 000Accrued interest on loan 4 275 Net Income for the year 104 750 Capital Mugg 100 000Capital Bean 75 000 Current account: Mugg (cr) on 1 March 2018 12 500 Currentaccount: Bean (cr) on 1 March 2018 18 750 Drawings: Mugg 62 500 Drawings: Bean37 500 Inventory on hand 1 150 Stationary on hand 37 500 Page 3 of 14 RequiredPrepare the Statement of changes in equity to show the distribution (appropriation) ofprofits for MB Computers for the year ended 28 February 2019.?

The statement of changes in the equity of partners is the changes which have been made and that have…

Answered: Prepare the Statement of changes in…

Prepare the Statement of changes in equity to show the distribution (appropriation) of profits for MB Computers for the year ended 28 February 2019.

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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Question

Mugg and Bean Partnership Mugg and Bean are partners with a computer store trading
as MB Computers. They share profits and losses in the ratio 4:3 respectively. On 28
February 2019, the following list of balances were obtained from the company's
financial records: Land and buildings at cost 300 000 Office furniture at cost 80 000
Vehicles at cost 75 000 Accumulated Depreciation: office furniture 26 875 Accumulated
Depreciation: Vehicles 23 750 Long-term loan (Unsecured) 87 500 Accounts receivable
48 000 Accounts Payable 218 750 Bank (dr) 35 500 Provision for credit losses 5 000
Accrued interest on loan 4 275 Net Income for the year 104 750 Capital Mugg 100 000
Capital Bean 75 000 Current account: Mugg (cr) on 1 March 2018 12 500 Current
account: Bean (cr) on 1 March 2018 18 750 Drawings: Mugg 62 500 Drawings: Bean
37 500 Inventory on hand 1 150 Stationary on hand 37 500 Page 3 of 14 Required
Prepare the Statement of changes in equity to show the distribution (appropriation) of
profits for MB Computers for the year ended 28 February 2019.
?

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