QUESTION 1: APPROPRIATION AND DISPOSALS Infor…
QUESTION 1: APPROPRIATION AND DISPOSALS Information relating to Lunabugz with partners Amy and Mari. The following balances were extracted from the books of Lunabugz on: 28/02/20 R 01/03/2019 R Capital : Amy 250 000 230 000 Capital : Mari 150 000 180 000 Current account : Amy 48 150 Cr 7 200 Dr Current account : Mari 700 Dr 10 250 Cr Drawings : Amy ? – Drawings : Mari ? – Net profit for the year 224 000 1. Amy received a monthly salary of R6 000 from 1 March 2020 which was increased to R6 400 on 1 December 2019. He has also taken his salary for March 2020 in advance. 2. Mari is entitled to a salary of R50 800 per annum. 3. Amy received a bonus. (You need to calculate/unlock this figure). 4. Partners are entitled to interest on capital at 12% per annum. The changes to capital balances took place on 1 January 2020. 5. The total amount for Amy, once the above entries have been made, amounted to R106 200 (his primary distribution). 6. Profits and losses are shared in the ratio of capital balances at the end of each financial year. 7. An old delivery vehicle was traded in on 1 December 2019 for a new delivery vehicle at a loss of R12 270. The old delivery vehicle was originally purchased on 1 June 2016 for R250 000. Depreciation on vehicles is recorded at 15% per annum using the straight-line method. All entries were made before the net profit for the year was calculated. REQUIRED: 1.1 Use the information provided to make the following notes to the financial statements. 1.1.1 Capital 6 1.1.2 Current accounts 35 1.2 Draw up the Asset Disposal account to clearly show the trade-in value received on the old delivery vehicle. 14