Assignment Cover Page (Autosaved)- WordERTDESIGNPAGE LAYOUTREFERENCESMAILINGSREVIEWVIEWFOXIT READER PDFB RulesMatch Fieldsil- Recipients Recipient List Merge Fields BlockO Find RecipientR Check for ErrorsSelectEditHighlight Address Greeting Insert MergePreviewFinish &LineField -e Update LabelsResultsMerge -Start Mail MergeWrite & Insert FieldsPreview ResultsFinishQUESTION THREE [20]Adax Designs Services is a partnership with Adam and Max as partners. Thepartnership has been operating successfully for a number of years now. The partnershave a written partnership agreement. The following information was extracted from theaccounting records of Adax. Design Services for the financial year ended 28 February2021:Balances in the ledger as at 28 February 2021Land and buildings at costAccumulated depreciation: buildingsEquipment at carrying amountDebtors835 000(65 000)270 000103 000Capital- AndileCapital- SiphoCurrent account- Andile Credit balance (1 March 2020)Current account -Sipho Debit balance (1 March 2020Drawings - Andile: GeneralDrawings - Sipho: GeneralNet profit for the year ended 28 February 2021The following must still be taken into account:1. The partnership agreement makes provision for the following:• Interest on capital must be provided at 12% per year on the balances in the400 000300 00040 00020 000130 000102 000800 000to searchDesktop22°C 6 RulesEditHighlight Address Greeting Insert MergeMatch FiekdsFind RecipientPreviewats - Recipient List Merge Fields Blockl MergeLineField -là Update LabelsCheck for ErrorsFinish &ResultsMergeWrite & Insert FieldsPreview ResultsFinish1. The partnership agreement makes provision for the following:• Interest on capital must be provided at 12% per year on the balances in thecapital accounts for the period 1 March 2020 to 31 August 2020. The interest rateincreases to 15% per year for the remainder of the year ie 1 September 2020 to28 February 2021. The capital accounts remained unchanged.• Interest on current accounts must be provided at 12% per year on the openingbalances of the current accounts.• The partners are entitled to the following monthly salaries:Andile R18 000 per month for a full year.Sipho R20 000 per year for the fullyear.Andile and Sipho withdrew 50% of their monthly salaries in cash as drawings.These amounts are not included in the drawings account shown above.Sipho is entitled to a special bonus equal to 2,5% of the net profit for the year.Andile and Sipho share profits and losses in the ratio of 3:2 respectively.Required:Use the information provided above to prepare the statement of changes in equity(current accounts only) for the year ended 28 February 2021.Use the following format: Capital accounts section is NOT required.1nquity for the vear ended 28 February 2021

A partnership appears to be a group of people who have opted to distribute the profits from a…

QUESTION THREE [20] Adax Designs Services is a partnership with Adam and Max as partners. The partnership has been operating successfully for a number of years now. The partners have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021:

QUESTION THREE [20] Adax Designs Services is a partnership with Adam and Max as partners. The partnership has been operating successfully for a number of years now. The partners have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021:

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 SIX The following trial balance has been extracted from the books of Gum and Mum as at 31 March 2021; Gum and Mum are in partnership sharing profits and losses in the ratio 3 to 2: Capital accounts: K K Gum 10,000 Mum 5,000 Cash at bank 1,550 Accounts payable 500 Current accounts:…
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Required information Problem 12-3A (Algo) Allocating partnership income LO P2 Skip to question [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions.
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