Not yet
answered Gill and Zaahir are in the business of supplying and installing solar panels in the form of a partnership trading as Solar Installations. Gill and Zaahir share profits and losses in the ratio
1:2 respectively. On 31 May 2023 the following information was extracted from the accounting records of the partnership:
Marked out of
3.00
Additional information
- Gill and Zaahir agreed to admit Brian as a new partner from 1 June 2023.
- Brain will contribute the following to acquire a third of the net asset share of the partnership:
Solar Installation Equipment…........................R130 000
- Gill and Zaahir agreed to relinquish the 1/3 share equally.
- All other assets were revalued before admitting Brian to the partnership.
- A valuation profit was correctly calculated at R68 400
Which one of the following alternatives represents the new profit-sharing ratio after the admission of Brian into the new partnership?
a. 1:3:2 Gill = 1/3 -(1/2 x 1/3) = 1/6
Zaahir = 2/3 - (1/2 x 1/3) = 3/6
b. 2:3:1
Brain = 1/3 = 2/6
c. 2:1:2
ratio = 1/6:3/6:2/6 = 1:3:2
d. 3:2:1
Question2
Not yet
answered Assuming Gill and Zaahir agree to relinquish the 1/3rd share in terms of their existing profit-sharing ratio, which one of the following alternatives represent the new profit-sharing
ratio after the admission of Brian into the new partnership?
Marked out of
2.00
a. 2:4:3
Gill = 1/3 -(1/3 x 1/3) = 2/9
b. 2:3:1 Zaahir = 2/3 - (2/3 x 1/3) = 4/9
Brain = 1/3 = 3/9
c. 3:2:1
d. 1:3:2 ratio = 2/9:4/9:3/9 = 2:4:3
Question3
Not yet
answered
Which one of the following alternatives represents the correct balance in the capital account of Gill after the valuation of assets and prior to the admission of Brian?
Marked out of
2.00
a. R112 100
96 500 -7 200 + 1/3x64 800
b. R68 500
c. R167 450
d. R148 600
Clear my choice
Question4
Not yet
answered Which one of the following alternatives represents the correct balance in the capital account of Zaahir after the valuation of assets and prior to the admission of Brian?
Marked out of
2.00
a. R122 350
b. R147 700 108 600 - 6 500 x 2/3 x 64 800
c. R71 700
d. R140 150
Downloaded by Vincent Cosmas (vincentcosmas92@gmail.com)
Clear my choice
, lOMoARcPSD|32110785
Question5
Not yet
answered
Which one of the following alternatives represents the correct amount of goodwill in the accounting records of Solar Installations after the admission of Brian?
Marked out of
3.00 Dashboard Calendar
a. R46 600
Dashboard / My courses /b. R153
FAC1601-23-S1
200 / Welcome Message / Assessment 5 brain capital = 130 000 + 23 500 = 153 200
c. R459 600
d. R273 000 Goodwill = (153 200 x 3/1) - 153 200 - 112 100(Q3) - 147 700(Q4) = 46 600
Clear my choice
Question6
Not yet
answered Which of the following journal entries is correct for recording the capital contribution of Brian on the 1st June 2023:
Marked out of
2.00
a. Debit Capital: Brian R153 200; Credit – Equipment R153200
b. Debit – Bank R153 200; Credit Capital: Brian R153 200
c. Debit Capital: Brian R153 200; Credit – Bank R23 200; Credit – Equipment R130 000
d. Debit - Bank R23 200; Debit - Equipment R130 000; Credit Capital: Brian R153 200
Clear my choice
Time left 3:20:39
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