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Solution 2 4

The document outlines a statement of changes in equity for partners Samuel and Etto, detailing their capital accounts, comprehensive income, salaries, and drawings. It calculates each partner's share of total comprehensive income based on a 2:3 profit-sharing ratio, resulting in Samuel receiving 37,800 and Etto receiving 56,700. Additionally, it provides calculations for depreciation on furniture and vehicles, totaling 10,560 and 36,000 per year respectively.

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Lolita Berenice Soldaat
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22 views2 pages

Solution 2 4

The document outlines a statement of changes in equity for partners Samuel and Etto, detailing their capital accounts, comprehensive income, salaries, and drawings. It calculates each partner's share of total comprehensive income based on a 2:3 profit-sharing ratio, resulting in Samuel receiving 37,800 and Etto receiving 56,700. Additionally, it provides calculations for depreciation on furniture and vehicles, totaling 10,560 and 36,000 per year respectively.

Uploaded by

Lolita Berenice Soldaat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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statement of changes in equity

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Question 2 Capital current accounts on account total
Samuel Etto Samuel Etto
Balances 100,000 150,000 36,250 -14,500 272,050 All given
Total comprehensive income 124,500 124,500 All given
Salaries to partners 30,000 -30,000
Drawings -15,000 -19,500 -34,500
Partners share of total comprehensive income 37,800 56,700 -94,500 Calculated
Balances at 31 August 20.5 100,000 150,000 89,050 22,700 0 362,050

to calcutate partners share in total comprehensive income:


assume the ratio is : 2:3 (see page 53, 2.7.3)
(if no profit sharing ratio is defined, assume it will be apportioned in the ratio of their capital contribution)
Then 124 500 - 30 000 = 94 500
Samuel share:
94500 x 2/5 = 37 800
Etto share
94500 x 3/5 = 56 700

Question 4
Old furniture and Equipment 190,000
less New Furniture and Equipment -96,000
94,000
less accumulated depreciation on old furniture -73,200
times 20 percent 20,800
20%
Depreciation of old furniture 4,160
New Furniture and Equipment 96,000
times 20 % 20%
19,200
times 4/12 x 4/12
Depreciation of new furniture 6,400
Depreciation is therefore 4,160
6,400

10,560
Question 5
Vehicles at cost 200,000
less residual -20,000
180,000
Divided by 5 years ÷5
36,000 per year

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