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

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
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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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. ?
Transcribed Image Text: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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