Question4 (15 marks: 27 minutes) These balances were taken from the books of Ami

Question

Question4 (15 marks: 27 minutes) These balances were taken from the books of Amigo CC as at 30 June 20x2. Members contribution: Mpho (60%) 300 000 200 000 arsen (40%) Loan to members 100 000 60000 200 000 180 000 700 000 200 000 Jansen Long-term loan from member- Jansen lant and e ment Net profit-1 July 20x1 sales 900 000 106 000 500 000 500 000 400 000 164 000 250 000 Cost of sales term-investment Inventories Account receivable Bank Accounts Additional information: Mpho and Jansen, the only members, contributed R300 000 and R200 000 respectively during the year. Theses transaction must still be recorded. Interest on the loans is to be accrued as: 1) 2) 1 5% pa 10% pa a. To members b. From members Included in the operating expenses were the salaries of R20 000 and R30 000 paid to Mpho and Jansen respectively Property, plant and equipment were revalued at R300 000 above their carrying value. Members decided to distribute 80% of the profit. Tax must be provided at 28%. 3) 4) 5) You are required to 1) Prepare the statement of profit or loss & other comprehensive income for Amigo CC for the year ended 30 June 20x2. (5 marks) Prepare the members net investment statement. (10 marks) 2)

Explanation / Answer

Answer:- A

Answer:- B

Statement of Profit and Loss Account R Gross Sales                 2,200,000 Less: Cost of Sales                     900,000 Gross Profit                 1,300,000 Less: Operating Expense                       56,000 (Excluding Salary) Net Profit before Salary                 1,244,000 Less: Salary Allowed to Partner                       56,000 Net Profit                 1,188,000 Add: Interest on Loan to Members Mpho                       15,000 Jansen                          9,000 Less: Interest on Loan From Members Jansen                     (18,000)                 1,194,000 Less: Tax @28%                     334,320                     859,680 Less: Profit Distributed                     687,744 Profit Retained                     171,936

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