QUESTION 1 Member AMember B Member C Members % interest10%40%50%Members funds:Member contributions R10 000R44 000 R32 000 Retained earnings R28 700 R114 800 R143 500 Total FundsR38 700 R158 800 R175 500 Transaction: Member D joins the CC. His contribution, in the form of a vehicle, is valued at R60 000. A 20% interest in the CC is acquired by him.With Member D joining, there will be a change in members’ interest %: Member AMember B Member C Member D % interest before D is admitted10%40% 50% - Member D joins (2%) (8%) (10%) 20% New interest % 8% 32% 40% 20% Use the information provided above, calculate the change in members’ funds and fill in the missing information in the record below: Member AMember BMember CMember DMember contributionsR10 000R44 000R32 000-Undrawn profitsR28 700R114 800R143 500-Member D joinsMember contributions-- - R60 000Undrawn incomeRRRR57 400The new fund balances will be as follows:Member contributionsR10 000R44 000R32 000R60 000Undrawn profits RR R R New total fundsR R R R

Here in this problems which deal with the allocation membership retained earning while enter into a…

Answered: QUESTION 1 Member A Member B Member…

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 1

	Member A	Member B	Member C
Members % interest	10%	40%	50%
Members funds:
Member contributions	R10 000	R44 000	R32 000
Retained earnings	R28 700	R114 800	R143 500
Total Funds	R38 700	R158 800	R175 500

Transaction: Member D joins the CC. His contribution, in the form of a vehicle, is valued at R60 000. A 20% interest in the CC is acquired by him.

With Member D joining, there will be a change in members’ interest %:

	Member A	Member B	Member C	Member D
% interest before D is admitted	10%	40%	50%	-
Member D joins	(2%)	(8%)	(10%)	20%
New interest %	8%	32%	40%	20%

Use the information provided above, calculate the change in members’ funds and fill in the missing information in the record below:

	Member A	Member B	Member C	Member D
Member contributions	R10 000	R44 000	R32 000	-
Undrawn profits	R28 700	R114 800	R143 500	-
Member D joins
Member contributions	-	-	-	R60 000
Undrawn income	R	R	R	R57 400
The new fund balances will be as follows:
Member contributions	R10 000	R44 000	R32 000	R60 000
Undrawn profits	R	R	R	R
New total funds	R	R	R	R