Question: Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. The partnership was established on
Dave and Anna are partners in GNU Bricks, a partnership business in the manufacturing of clay paving bricks in Bergville. The partnership was established on May
The following information pertains to the business activities as of February :
Balances as at February :
R
Land and buildings at cost
Machinery at cost
Accumulated depreciation: Machinery
Vehicles at cost
Accumulated depreciation: Vehicles
Inventory March
Bank Dr
Trade receivables control
Trade payables control
Longterm loan Burg Bank
Capital: Dave
Capital: Anna
Drawings: Dave
Drawings: Anna
Interest on loan
Depreciation
Delivery cost on sales
Water and electricity
Purchases
Security expenses
Salaries and wages
Delivery cost on purchases
Bank charges
Sales
Stationery consumed
Settlement discount received
Settlement discount granted
Additional information:
Partnership agreement:
An annual interest rate of is applied to the capital account balances.
Dave and Anna agreed to share profits and losses equally.
Each partner has a monthly salary entitlement of R
Yearend adjustments:
The security expenses billed to the business every month include a R monthly fee for security at Annas private house. The security bill amounting to R for February has not yet been accounted for.
The longterm loan with Burg Bank secured by land and buildings, bearing a annual interest rate, was secured on April with interest payments due semiannually at the end of September and March.
During the year, red paver bricks valued at R were taken from the inventory and used to pave the additional parking lot for customers. After the completion of the project, of the bricks werent used and Dave took the remaining bricks to build a fireplace at his house. This adjustment is yet to be made.
The inventory's value was calculated to be R as of February
Dave withdrew his salary from March to May as he had personal financial challenges. The total amount paid was debited to the salaries and wages account.
Which one of the following alternatives represents the correct amount of halfyearly interest payment by GNU Bricks on September
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
