Use the information provided below to prepare the Statement of Net Investment of Partners for the financial
Question:
Use the information provided below to prepare the Statement of Net Investment of Partners for the financial year ended 28 February 2023: INFORMATION The information given below was extracted from the accounting records of Blueberry Traders, a partnership business with Blue and Berry as partners, at the end of the financial year 28 February 2023: Extract from the ledger of Blueberry Traders as at 28 February 2023 Debit (R) Credit (R)
Capital: Blue 500000
Capital: Berry 300000
Current a/c: Blue (01 March 2022) 28 000
Current a/c: Berry (01 March 2022) 26 000
Drawings: Blue 75 000
Drawings: Berry 120 000 The following must be considered: (a) The net profit for the financial year ended 28 February 2023 amounted to R500 000. (b) The partners are entitled to interest at 12% per annum on their capital balances for the first six months of the financial year and 15% per annum for the remaining six months. (c) The partners are entitled to the following monthly salaries: Blue R8 000 Berry R8 500
(d) Berry is entitled to a bonus equal to 5% of the net profit before taking any of the above appropriations into account. (e) (1) The balance of the profit must be shared equally between Blue and Berry. The drawings account of each partner must be transferred to their respective current accounts.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill