QUESTION 2Which one of the following alternatives represents the correct balance in the capitalaccount of Mrebe after the valuation of assets and prior to the admission of Mqithwa?A. 147 900B. 112 950C. 125 400D. 123 200O O Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners aresharing profits and losses equally. On 30 July 20.1 the following information was extractedfrom the accounting records of the partnership:EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERSCapital - Mrebe..Capital- Johannes...Current account- Mrebe (Cr)..Current account-Johannes (Dr).124 5001103004540028400Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1.Mqithwa will contribute the following to acquire a fifth of the net asset shareof the partnership1. Cash..213002. Farming equipment worth..58000Mrebe and Johannes agreed to relinquish 20% of their share in profits orlosses to Mqithwa in the ratio of 3:1 respectivelyAll other assets were revalued before admitting Mqithwa to the partnership.A valuation loss was correctly calculated at..44000

The answer for the multiple choice question and relevant explanation are presented hereunder : There…

QUESTION 2 Which one of the following alternatives represents the correct balance in the capital account of Mrebe after the valuation of assets and prior to the admission of Mqithwa? A. 147 900 B. 112 950 C. 125 400 D. 123 200 O O

QUESTION 2 Which one of the following alternatives represents the correct balance in the capital account of Mrebe after the valuation of assets and prior to the admission of Mqithwa? A. 147 900 B. 112 950 C. 125 400 D. 123 200 O O

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

100%

Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners are
sharing profits and losses equally. On 30 July 20.1 the following information was extracted
from the accounting records of the partnership:
EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERS
Capital - Mrebe..
Capital- Johannes...
Current account- Mrebe (Cr)..
Current account-Johannes (Dr).
124 500
110300
45400
28400
Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1.
Mqithwa will contribute the following to acquire a fifth of the net asset share
of the partnership
1. Cash..
21300
2. Farming equipment worth..
58000
Mrebe and Johannes agreed to relinquish 20% of their share in profits or
losses to Mqithwa in the ratio of 3:1 respectively
All other assets were revalued before admitting Mqithwa to the partnership.
A valuation loss was correctly calculated at..
44000

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