B. Changes to Capital contributions: T…
B. Changes to Capital contributions: The following transactions were correctly recorded: ● On 1 November 2018 partner H. Pollard deposit R250 000 to increase his capital contribution. ● On 1 December 2018 partner E. Jantjies decreased his capital by R150 000. The following transaction was not recorded: ● On 28 February 2019, H. Pollard decreased his capital by R50 000. C. Provisions of the partnership agreement: Interest on capital: ● Pollard is entitled to 12% p.a. on his capital balance. ● Jantjies is entitled to R49 500 in total for the year. Salary allowance: ● Jantjies will receive R144 000 for the year. ● Pollard’s monthly salary is R2 000 less than Jantjies. Annual bonus: ● Pollard receives an annual bonus of R15 000. Share in remaining profit: ● The remaining profit of R16 000 must be divided in the ratio 3:2 to Pollard and Jantjies respectively. D. The loan from FR Finkom was received on 1 May 2017. It is to be repaid in equal monthly instalments over a period of 6 years. Interest is not capitalised, and all payments (including the current financial year) are up to date. E. Details of an employee omitted from the February 2019 Salaries Journal are as follows: Gross Salary Deductions Employers Contribution Net Salary Pension fund UIF SARS: PAYE TOTAL Pension fund UIF R12 000 ? R120 ? R3 800 R1 440 R120 R8 200 ● The business contributes R1,50 for R1 to the Pension fund and R1 for R1 to UIF.