+61480015851
COEN4206 - Fundamentals of Accounting Assignment - Balance Sheet
Download Solution
Order New Solution
Assignment Task
Question
1. Ndlovu and Makamure are in a partnership and share profits and losses in the ratio of 5:3 respectively. The income statement of the partnership for the year ended 31 December 2022 is as follows:
| Income | US$ |
| Gross revenue | 400,000 |
| Bad debt recovered | 36,00 |
| Expenses | 220,000 |
| Purchase of second hand delivery van | 75,00 |
| Purchase of second hand computer | 14,000 |
| Rent paid | 28,16 |
| Annuities | 14,800 |
| Goodwill | 15,200 |
| Salaries: Ndlovu | 18,000 |
| Makamure | 14,400 |
| Retirement annuity fund contribution (note 6) | 16,000 |
| Makamure | 30,20 |
| Medical fund contribution (note 7): Ndlovu | 32,00 |
| Makamure | 11,200 |
Notes
1. The bad debts are debts Ndlovu incurred while trading as a sole trader.
2. The delivery van was purchased on 1 September 2022, no capital allowances were deducted.
3. On 1 April 2021, a five-year lease was entered into for the renting of a warehouse. A lease premium of $ 4,600 and a monthly rental of $ 2,000 are payable under the agreement. Lease improvements to be effected by the partnership for $ 10,000. They were however completed at a cost of $14 000 and brought into use on 1 June 2020.
4. The annuities figure is made up of $816 for Mrs Zuma (the wife of a former employee) and her two children and a $2 000 contractual annuity to Miss D Moyo, a former employee.
5. The final payment of the purchase price for the business (goodwill of $ 14,800) was paid.
6. Retirement annuity fund and medical contributions are in terms of the partnership agreement.
7. The insurance figure is comprised of $ 4,020 for a joint survivorship policy of partners, $4 000 separate life policy for Joy, $2 000 for fire insurance, and $1 180 for public liability.
Questions
2. a. Lupane Pvt Ltd constructed a commercial building and staff housing in the first year of their trade and used these for the purposes of trade on 1 October 2022. The commercial building cost $5 000 000 and the staff housing cost $20 000. Lupane Pvt Ltd also acquired furniture and fittings for $ 7,000 in June 2022.
b. In January 2020 Strata Ltd bought a truck for $20 000 which was used for the purposes of trade. Strata Ltd has always claimed maximum allowance where possible. In September 2022 the truck was scrapped as it was involved in a car accident and could not be repaired. Strata Ltd sold the damaged truck at a price of $ 4,000.
c. Jojet Enterprises purchased the following assets in the 2021 tax year, a passenger motor vehicle for $20 000 and Machinery for $65 000. During the year 2022, the company sold the assets for $9 000 and $30 000 respectively.
This COEN4206 – Accounting has been solved by our PHD Experts at My Uni Paper.