SCHOOL OF EDUCATION Accounting Education 420 EDAC 420 BACHELOR OF EDUCATION CATCH-UP TEST 1 ANSWER BOOKLET NAME : Andile Gcabashe STUDENT NUMBER : 218034547 November, 2021 Marks: 90. Duration: 120 minutes INSTRUCTIONS TO CANDIDATES 1. 2. 3. 4. 5. Answer TWO (2) questions Question ONE (1) is compulsory. Thereafter, answer question TWO (2) OR THREE (3) Show all calculations in order to earn part marks. Non-programmable calculators may be used. 6 . Use the information given in the table below as a guide when answering the question paper and try not to deviate from it. Partnership Marks QUESTION 1 2 Admission 66 Profit-Sharing Ratio OR 24 Score Remarks 3 Piecemeal Liquidation - Cash distribution TOTAL 24 90 General ledger of Exclusive Stores Dr 17 +2 Revaluation Account Cr Date Details Amount Date Details Goodwill Vehicles(2600000-185000 75000 (1050000*20/100) Equipment(195000150000) 45000 Investment Property (800000Inventory(62700-50000) 12700 775000) Bad debts 5950 Administration 3750 Capital:J James(217600*8/21 82895 Capital:Z.Zulu217600*6/21) 62171 Capital:N Nsele(217000*7/21) 72533 360000 Amount 210000 125000 25000 360000 30 270 Dr Date Details 12 Capital Account: J James Amount Date Details 2020 Dec Cr Amount 2020 Drawings 14300 Balance c/d 534895 Dec Balance b/d General Reserve(128100*8/21 Current Account Revaluation 400000 48800 17500 82895 549195 549195 2021 Jan Balance b/d 534895 65780065 Dr Date 2020 Dec 12 Capital Account: Z Zulu Amount Date Details Details Current account 4250 Drawings Balance c/d 6050 388471 398771 2020 Dec 2021 Jan Dr Date 2020 Dec 12 Details DRAWINGS 4500 Balaance c/d 465983 470 483 2021 Jan Dr Date 2020 Dec 11 Details Amount Balance b/d General Reseve(128100*6/21) Revaluation 300000 BALANCE B/D 388471 Capital Account: N Nsele Amount Date Details 2020 Dec Cr 36600 62171 398771 Cr Amount BALANCE 350000 GENERAL RESERVE(128100*7/21) 42700 Current Account 5250 Revaluation 72533 470 483 BAL B/D Capital Account: Y. Ysuf Amount Date Details 465 983 Cr Amount 2021 Creditors Balance c/d 57300 Dec 779100 836400 2020 Jan Balance b/d 350000 Inventory 106500 Debtors 89900 Vehicles 165000 Bank ( 475000-350000) 125000 836400 Balance b/d 779100 Dr Date Details 2020 Bills Dec receivable Capital 11 Bank Account Amount Date Details 2020 900 Dec Balance b/d 125000 Balance c/d 125900 2021 Jan Balance b/d Profit sharing ratio 12 Existing Ratio Q 2.1 Old Partnership Zia: 43200 82700 125900 82700 Shezi: Mia: Shezi: Mia: Old profit sharing New Partnership Zia: Cr Amount Total Old less new Therefore: Q 2.2 10 Name Old Luke Andrew James new John New ratio John ratio =6/18 New profit sharing ratio Cash distribution Q3 24 Silver Trader Sun Moon Earth Cash Distribution Workings Total Star Capital Balances 148 650 72 000 50594 37124 10968 Property loss ( 1:1:1:1) -40000 -10000 -10000 -10000 -10000 Capital Balances 108 650 62000 40 594 27 124 986 -59 600 -11 920 -23 840 -5960 -17880 49050 50080 Others assumed loss on: (2:4:1:3) Equipment 20000 Inventory 30000 Trade debtors 8000 Bank 1600 Capital Balances Ronni, Nisei & Mina settle Boma’s losses equally to the nearest Rand Capital Balances 16754 21164 -16894 +16894 0 -5631 -5631 -5631 49050 2274 2283 7183 0