The company has three members: P holds 50 000 shares; Q and R hold 20 000 shares
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Question:
Required
(a) Show the contribution and undrawn profits attributable to each member.
(b) Calculate the tax liability on conversion and the date by which it must be paid.
(c) Draft the balance sheet of the CC on 1 October 2008.
(d) Show the amount available for distribution to members of the CC on conversion and how it is distributed, and the financial interest account of each member.
(e) State what advantage, if any, there is in making the conversion during the specified period in reference to the 2008 company's assessment year.
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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