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QUESTION 3 FunTexd is a partnership betveen Miriam, Janey and Geraldo. They are all professional accountants and provide taxation services to clients across Namibia. The following are the draft balances in the records of FunTaxit as at 30 Apri 2016: Date (25 MARKS) Details Debit Credit 30 Apr16 Property plant and equipment 11,000 36 200 Inventories 30104/2016 Prepald Income Tax Trade receivables 4600 97,760 50,800 37,500 Bank overdraft Drawings Mirian 33,600 30,000 46,400 Drawings Janey Drawings Geraldo Capital Mirlam Capital Janey Capital Geraldo Current account Miriam Current Account Janey Current Account Geraldo 60,000 40,000 50,000 35,500 30,240 53,200 Profit for the year (before appropriation) 239,200 77,500477,500 The partnership agreement of FunTaxit makes provision for the folowing: 1. Capital will remain unchanged, namely: Miriam N$ 60,000 Janey N$ 40,000 Geraldo N$ 50,000 At the end of each year the partners are burdened with interest on their drawings. For the year ended 30 April 2016, interest amounts to NS 3,360, N$ 3,000 and N$ 4.640 for Miriam, Janey and Geraldo respectively Each partner receives interest on his capital at 10% per annum. 2. 3. Page 4 of 7
4. Miriam and Janey both receive salaries of NS 8,000 per annum, but Gerakdo geta N$ 6,000 per annum pide a bonus of 10% of the profit, after interest and salaries have been taken into account 5. The reset of the profit should be divicled in the ratio 120:2 REQUIRED a) Prepare the statement of changes in equity for FunTait for the year ended 30 Apil 2016 (1) b) Prepare the current accounta of the partners for the year ended 30 April 2016 c) Propare the statement of financial position as at 30 Apiril 2010
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Profit & Loss Appropriation A/C By Net Pofit 54 To Interest on Capital Miriam Janey Geraldo To salary Miriam Janey Geraldo To Profit Miriam Janey Geraldo Total 239,200 56 6,000 By Interest on Drawings 4,000 Miriam 5,000 Janey 57 3360 59 Geraldo 4640 11,000 8,000 8,000 27,320 61 62 63 64 115,128 57,564 19,188 67 250,200 Total 250,200 69 70 71 72 73 74 75 76 Calculation of salary & Bonus to Geraldo Geraldo 27, 320 (6000)+(239200+11000-6000-4000-5000-8000-8000-6000)*10% Calculation of Profit Miriam Janey Geraldo Total 115,128 (239200+11000-6000-4000-5000-8000-8000-27320)*12/20 57,564 (239200 11000-6000-4000-5000-8000-8000-27320)*6/20 19,188 (239200+11000-6000-4000-5000-8000-8000-27320) *2/20 191,88079 80 81 82 83 84 85 86 87 Statement of Changes in Equit Particulars Miriam Janey Geraldo Total Capitals Less Debit Balance of Current Add Interest on Capital Salary & Bonus Profit Less Drawings Interest on Drawings Ending Balance 35500 6,000 8,000 115,128 33600 3360 30240 4,000 8,000 57,564 30000 3000 46,324 53200 5,000 27,320 19,188 -118940 43320 191880 110000 11000 116,668 2,732 160,260 89 90 91 92 93 Partners Current Account Particulars Miriam Geraldo Particulars Miriam JaneyGeraldo 6,000 4,000 5,000 8,0008,000 27,320 115,128 57,564 19,188 52,732 129,128 69,564 104,240 Janey To Balance B/d To Drawings To Interest on Drawings To Balance c/d Total 35500 33600 3360 30240 30000 3000 6,324 53200 By Interest on Capital 46400 By Salary 4640 By Profit By Balance c/d 95 96 97 56,668 129,128 69,564 104,240 TotalStatement of Financial Position 100 101 102 103 104 105 106 107 108 109 110 Inventories Prepaid Income Tax Trade Receivable Property Plant & Equipment Partners Current Account Geraldo Total Assets 35200 4600 97760 111000 52,732 301,292 Liabilities & Partners Equity Trade Payable Bank Overdraft Total Liabilities Partners Capital Account Miriam Janey Geraldo Partners Current Account Miriam Janey Total Liabilities & Partners Equity 50800 37500 88300 112 113 114 115 116 60000 40000 50000 150000 56,668 6,324 118 119 120 121 122 62,992 301,292

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