Peter and Pan are partners in Captain Hook Stationers. The list of balances as at 31...

 

Transcribed Image Text:

Peter and Pan are partners in Captain Hook Stationers. The list of balances as at 31 December 2022, before additional information was considered, is as follows: Description Office furniture and equipment Accumulated depreciation on office furniture and equipment Inventory Bank Debtors control Allowance for credit losses Long-term loan Creditors control Capital: Peter Capital: Pan Current account: Peter Current account: Pan Drawings: Peter Drawings: Pan Profit for the year 1. 2. 3. 4. 5. Additional information: On 1 January 2022 Peter increased his capital to R150 000. The increase was charged to the payables account in error. 6. 7. Amount 525 000 65 000 84 560 675 895 65 875 2675 432 500 45 632 120 000 150 000 Required 2.1. Prepare the current account of Peter as at 31 December 2022 2.2. Prepare the statement of changes in equity as at 31 December 2022 END OF QUESTION PAPER 4 500 12 000 35 000 65 000 628 023 Peter earns a salary of R8 000 per month while Pan earns R4 500 per month. The total salaries paid to Pan was incorrectly recorded in the debtors control account. The salaries paid to Peter was correctly accounted. Interest of 15% per year must be provided for on the capital. Interest on current accounts must be provided at 7.5 % per year on the opening balances. Interest of 5% is charged on the drawings. The partners share profits and losses in the ratio of capital contributed at the start of the financial year. Office furniture and equipment depreciates at 10% per year on the straight-line method. Depreciation was not yet considered. [15] [30] Peter and Pan are partners in Captain Hook Stationers. The list of balances as at 31 December 2022, before additional information was considered, is as follows: Description Office furniture and equipment Accumulated depreciation on office furniture and equipment Inventory Bank Debtors control Allowance for credit losses Long-term loan Creditors control Capital: Peter Capital: Pan Current account: Peter Current account: Pan Drawings: Peter Drawings: Pan Profit for the year 1. 2. 3. 4. 5. Additional information: On 1 January 2022 Peter increased his capital to R150 000. The increase was charged to the payables account in error. 6. 7. Amount 525 000 65 000 84 560 675 895 65 875 2675 432 500 45 632 120 000 150 000 Required 2.1. Prepare the current account of Peter as at 31 December 2022 2.2. Prepare the statement of changes in equity as at 31 December 2022 END OF QUESTION PAPER 4 500 12 000 35 000 65 000 628 023 Peter earns a salary of R8 000 per month while Pan earns R4 500 per month. The total salaries paid to Pan was incorrectly recorded in the debtors control account. The salaries paid to Peter was correctly accounted. Interest of 15% per year must be provided for on the capital. Interest on current accounts must be provided at 7.5 % per year on the opening balances. Interest of 5% is charged on the drawings. The partners share profits and losses in the ratio of capital contributed at the start of the financial year. Office furniture and equipment depreciates at 10% per year on the straight-line method. Depreciation was not yet considered. [15] [30]