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Partnership Agreement for Richard and Lionel Business Assignment
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Assignment Task
Xyz Traders: Data-Set Provided For The Year Ended 31 December 2022
|
Account |
Debit |
Credit |
|
Bank charges |
1 300 |
|
|
Cleaning |
1 500 |
|
|
Computer equipment |
12 500 |
|
|
Cost of sales |
32 000 |
|
|
Credit losses |
420 |
|
|
Depreciation |
2 300 |
|
|
Fuel and oil |
56 000 |
|
|
Garden maintenance |
1 300 |
|
|
Goods sold |
|
125 000 |
|
Interest on loan |
2 600 |
|
|
Interest received |
|
5 800 |
|
Municipal services |
6 850 |
|
|
Printing and stationery |
16 715 |
|
|
Repairs and maintenance: Building |
5 200 |
|
|
Repairs and maintenance: Vehicles |
6 850 |
|
|
Salaries and wages |
35 850 |
|
|
Services rendered |
|
560 000 |
|
Staff welfare |
650 |
|
|
Telephone |
18 600 |
|
|
Capital: Mr Richard |
|
450 000 |
|
Capital: Mr Lionel |
|
375 000 |
|
Drawings: Mr Richard |
35 000 |
|
|
Drawings: Mr Lionel |
27 000 |
|
|
Current account: Mr Richard |
2 500 |
|
|
Current account: Mr Lionel |
|
6 400 |
|
Retained income |
|
42 500 |
|
Land |
400 000 |
|
|
Buildings |
850 000 |
|
|
Accumulated depreciation on buildings |
|
21 000 |
|
Vehicles |
130 000 |
|
|
Accumulated depreciation on vehicles |
|
65 000 |
|
Equipment and electronics |
52 000 |
|
|
Accumulated depreciation on equipment and electronics |
|
2 200 |
|
11% Long-term loan |
|
156 000 |
|
Bank: FNB |
2 500 |
|
|
Bank: ABSA |
125 665 |
|
|
Debtors control account |
60 000 |
|
|
Allowance for credit losses |
|
7 400 |
|
Creditors control account |
|
90 000 |
|
Petty cash |
5 600 |
|
|
Inventory: Stationery |
4 000 |
|
|
Inventory: Materials |
25 000 |
|
|
SARS: Provisional Tax paid |
15 000 |
|
|
SARS: VAT |
|
5 600 |
|
SARS: Tax payable |
23 000 |
|
|
|
1 934 900 |
1 934 900 |
Additional Information
The partnership agreement stipulates that:
- Interest of 3,5% is paid to the partners on the current account balances as at the first day of the financial
- The interest on the capital accounts is calculated at 13%. Mr Richard contributed an additional R150 000 on his capital account on 1 July 2022, while Mr Lionel reduced his capital with R25 000 on the same
- Mr Richard is entitled to a bonus of R75 000 before any profit shares are calculated. He opted to have it set-off against his drawings account annually. The bonus has not been awarded yet.
- The partners share profits equally. Due to the set-off in the drawings accounts the agreement stipulate that partners can roll their drawings balances for a maximum of 6 months into the new financial year. You can assume that the profits before appropriations amounted to R425
The following transactions have not been accounted for:
- The computer equipment purchased during the year was debited to the computer equipment expense account. The items were purchased on the last day of the financial year and should be depreciated at 33%.
- The final income tax assessment was received and recorded at R23 000. Provisional tax payments have been recorded for the
- Defective materials inclusive of VAT at 15% to the value of R1 500 was returned to a A debit note was received but the transaction has not been recorded yet.
- A customer returned goods sold for R5 300 for a credit on her account. The company has a 15% markup
- Richard’s bank card has been stolen and he needed to settle the school account on/before the examinations could be finalised. The partners agreed that the payment could be affected by the accountant. The debit of R 5 000 was passed to the salaries and wages account.
- The loan is repayable in 3 equal instalments with the first instalment due on 30 June
Question
1. Record the additional information transactions in the general journal for the year ended 31 December 2022.
2. Prepare the statement of changes in equity of XYZ Traders as at 31 December 2022.
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