ACCOUNTING 1B

Based on the given information, complete the following Appropriation Account :

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Focus on the following example to solve the question 7 above:

The solution to question 6.4 is:

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' % Interest Contributions Barry Behr 50% R500 000 (cash and equipment) Doris Daniels 40% R400 000 (cash) Mo Mgotso 10% 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: R1 000 000 Members contributions Retained Earnings (1 August 2019) R236 000 2. With regards to the financial year ending 31 July 2020, the following information was available: 1. 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. 3. The members are entitled to a distribution of profit of R45 000 each, irrespective of how long they have been a member. Required: Open, post to and balance the Appropriation Account for the year ended 31 July 2020. Question 7 PLANE CC GENERAL LEDGER DR APPROPRIATION ACCOUNT CR Date Details Fol. Amount Date Details Fol. Amount The following information relates to Kilfenora Products CC: Prepare the appropriation account for the year ended 28 February 20.8. Note: Ignore VAT and dividend taxes. Question 6.4 . Information on 1 March 20.7: R 420 000 36 000 Members' contributions Retained earnings Balances on 28 February 20.8: Land and buildings (cost price) Equipment (carrying value) Vehicles (carrying value) Trading inventory Debtors control Creditors control Mortgage loan (Idyllic Bank: 20% p.a.) Loan from A Fork: 15% p.a. Accrued income Prepaid expenses Accrued expenses SARS (income tax) (Debit) Bank overdraft Profit and loss (profit for the year before tax) R 465 000 42 750 38 400 123 570 78 900 99 000 90 000 30 000 1 440 1 230 1 020 53 430 2 700 126 000 . Additional information: Income tax payable for the accounting period amounts to R 52 500. . Net profit of R 64 500 must be distributed to the members. Required: General ledger of Kilfenora Products CC F3 Fol. Amount Date Details Fol. 20.8 Feb. 28 Income tax GJ# Distribution to members GJ# Retained earnings GJ# Appropriation account Amount Date Details 20.8 52 500 00 Feb. 28 Profit and loss 64 500 00 Retained earnings 45 000 00 162 000 00 GJ# GJ# 126 000 00 36 000 00 162 000 00