The following Trial Balance was drafted by the accountant of Back to Back CC Stores for...

  

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The following Trial Balance was drafted by the accountant of Back to Back CC Stores for the June 2020: year Dr Cr N$ N$ Members contributions 90 000 5 000 Revaluation surplus on land buildings Loans from members : Jassy 50 000 : Sassy 100 000 Long-term loan 45 000 Land and buildings 61 050 Investments 30 000 Inventory 282 000 Debtors 451 450 Creditors 321 546 Bank 15 687 Sales 1 800 500 Cost of sales 900 250 Accounting fees Administrative fees 54 015 1801 18 005 Advertising Credit Losses 9 003 Depreciation 27 008 Rent 72 020 Office expenses 9 903 Salaries and wages 450 125 Travel and subsistence cost 2 701 Interest received 19 802 Interest paid 61 217 Retained earnings 14 385 2 446 233 2 446 233 1.. The two (2) members contributed 50/50 to the CC. The remaining profit minus N$5 000 should be allocated to the members by means of members' salaries in the above mentioned ratio. 2. An additional N$60 000 member contribution was made during the course of the year (refer to the above-mentioned ratio). 3. 4. Land and buildings were valued by Jack Valuations. The value according to them was N$80 000. A payment amounting to N$15 000 was paid to Sassy that will be considered as loan to member. A provision for taxation should be made at 30% of the profit for the year. 5. 6. An instruction from the accounting officer was made to the CC to make provision for salaries and wages for one of the member's son for N$9 256. You are required to: 2.1 Journalize the above transactions and narrations are required 2.2 Name any eight (8) circumstances under which a member can lose their limited liability in a close corporation 2.3 Mention four advantages of a close corporation Activ 2.4 Which Authority in Namibia is responsible for the registration of entity and briefy explain the proceduresto involved when registering a Close Corporation (CC). The following Trial Balance was drafted by the accountant of Back to Back CC Stores for the June 2020: year Dr Cr N$ N$ Members contributions 90 000 5 000 Revaluation surplus on land buildings Loans from members : Jassy 50 000 : Sassy 100 000 Long-term loan 45 000 Land and buildings 61 050 Investments 30 000 Inventory 282 000 Debtors 451 450 Creditors 321 546 Bank 15 687 Sales 1 800 500 Cost of sales 900 250 Accounting fees Administrative fees 54 015 1801 18 005 Advertising Credit Losses 9 003 Depreciation 27 008 Rent 72 020 Office expenses 9 903 Salaries and wages 450 125 Travel and subsistence cost 2 701 Interest received 19 802 Interest paid 61 217 Retained earnings 14 385 2 446 233 2 446 233 1.. The two (2) members contributed 50/50 to the CC. The remaining profit minus N$5 000 should be allocated to the members by means of members' salaries in the above mentioned ratio. 2. An additional N$60 000 member contribution was made during the course of the year (refer to the above-mentioned ratio). 3. 4. Land and buildings were valued by Jack Valuations. The value according to them was N$80 000. A payment amounting to N$15 000 was paid to Sassy that will be considered as loan to member. A provision for taxation should be made at 30% of the profit for the year. 5. 6. An instruction from the accounting officer was made to the CC to make provision for salaries and wages for one of the member's son for N$9 256. You are required to: 2.1 Journalize the above transactions and narrations are required 2.2 Name any eight (8) circumstances under which a member can lose their limited liability in a close corporation 2.3 Mention four advantages of a close corporation Activ 2.4 Which Authority in Namibia is responsible for the registration of entity and briefy explain the proceduresto involved when registering a Close Corporation (CC).

Answer rating: 100% (QA)

Step 1 of 6 Pass necessary journal entries in the books of Back to Back CC Stores Date Account Dr Cr Bank 600000 Jassy 300000 Sassy 300000 To record the additional capital introduced Date Account Dr C... View the full answer