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Ndlovu Attorneys Partnerships and Companies Assignment
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Assignment Task
Question
1. Ndlovu Attorneys is a partnership between Nomthemba, Nandi, Njabulo and Ndumiso. The partners share profits in the ratio 1:2:4:5 respectively. On 31 July 2021, Nandi approached the partners to retire from the partnership. The trial balance of Ndlovu Attorneys on 31 July 2021 is shown below.
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Ndlovu Attorneys Trial balance as at 31 July 2021 |
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|
|
DR |
CR |
|
|
R |
R |
|
Capital account – Nomthemba |
|
20 000 |
|
Capital account – Nandi |
|
40 000 |
|
Capital account - Njabulo |
|
80 000 |
|
Capital account - Ndumiso |
|
100 000 |
|
Current account – Nomthemba |
10 000 |
|
|
Current account – Nandi |
|
6 000 |
|
Current account – Njabulo |
2 000 |
|
|
Current account - Ndumiso |
10 000 |
|
|
Land and buildings |
900 000 |
|
|
Plant and equipment |
150 000 |
|
|
Furniture |
12 000 |
|
|
Trade receivables |
16 000 |
|
|
Trade payables |
|
28 000 |
|
Bank overdraft |
|
5 000 |
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Sales |
|
1 299 000 |
|
Cost of sales |
475 000 |
|
|
Stationery |
1 500 |
|
|
Interest expense |
1 500 |
|
|
|
1 578 000 |
1 578 000 |
The partnership decided that goodwill should not appear in the accounts of the partnership and that no private exchange will take place between the partners.
On Nandi’s retirement from the partnership on 31 July 2021, the following was discovered:
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Land and buildings are considered to be valued at R1 250 000
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Plant and machinery are considered to be valued at R120 000
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Nomthemba, Njabulo and Ndumiso will shares profits in the ratio of 2:2:1
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The partnership is considered to be worth R750 000
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Nandi will be paid out in cash upon leaving the partnership
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Nonthemba will contribute R150 000 more cash to the partnership after Nandi retires
2. Ignore dividend tax
CalQlate Ltd is a calculator manufacturing company based in Durban. The company distributes its products to various wholesalers and retailers across South Africa. The following information relates to the company for the year ended 28 February 2021:
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CalQlate Ltd Extract from the Statement of Financial Position As at 28 February 2021 |
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2021 R |
2020 R |
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Equity and Liabilities |
|
|
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Share Capital: Class A |
25 000 000 |
13 500 000 |
|
Retained Earnings |
? |
18 000 000 |
|
Loan (10%) |
5 750 000 |
7 187 500 |
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Total equity and liabilities |
? |
38 687 500 |
|
Total assets |
53 250 000 |
? |
|
|
|
|
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CalQlate Ltd Extract from notes to the financial statements as at 28 February 2021 |
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|
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2021 Number of shares |
2020 Number of shares |
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Authorised share capital |
|
|
|
Class A shares |
1 000 000 |
1 000 000 |
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Issued share capital (Number of shares currently in issue) |
|
|
|
Class A shares |
? |
500 000 |
|
|
|
|
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