2020 (Marks: 10) Question 7 Plane CC was registered on 1 August 2015. The founding statement of the Close Corporation (CC) sets out the following: The nature of the business - a spare parts retailer Names of the members and their interests and contributions made on 1 August 2015: Members Barry Behr Doris Daniels Mo Mgotso % Interest 50% 40% 10% Contributions R500 000 (cash and equipment) R400 000 (cash) R100 000 (cash) The following balances, amongst others, appeared in the CC's books at the end of the current financial year, 31 July 2020: Members contributions Retained Earnings (1 August 2019) R1 000 000 R236 000 With regards to the financial year ending 31 July 2020, the following information was available: 1. 2. On 31 July 2020, the CC recorded a profit of R940 000. This profit was after taking into account transactions with members like remuneration. The income tax for the year is calculated at R260 000. The members are entitled to a distribution of profit of R45 000 each, irrespective of how long they have been a member. 3. Required: Open, post to and balance the Appropriation Account for the year ended 31 July 2020. (10) 2010 Question 7 (Marks: 10) PLANE CC GENERAL LEDGER DR APPROPRIATION ACCOUNT CR Date Details Fol. Amount Date Details Fol. Amount END OF ANSWER BOOK