Answer to Question #184249 in Accounting for Edward

Question

The following abridged statement of financial position of Ark cc as at 31 December 2019 2019 2018 ASSETS Non-current assets 220 000 220 000 Current assets 132 000 77 000 352 000 297 000 CAPITAL AND LIABILITIES Members contribution: 180 000 180 000 Sally 70 000 70 000 Anne 50 000 50 000 Nick 60 000 60 000 Retained earnings 90 000 65 000 Non-current liabilities 45 000 45 000 Current liabilities 37 000 7 000 352 000 297 000 Additional information: One of the members, Sally took a decision to sell 1/5 of her interest to at a value of N$ 25 000, of which N$ 15 000 was paid into the bank account of the CC as a loan to the credit of Sally. Anne paid the balance of the selling price to Sally from private funds. You are required to: 1. Calculate member’s interest. (6 marks) 2. Prepare a statement of financial position for the CC after the change in membership’s interest. (11 marks). (No comparison figures or notes are required).

Answer 1

i)

ii) ASSETS

NON-CURRENT ASSETS- 220,000

CURRENT ASSETS - 122,000

Total. 342,000

CAPITAL & LIABILITIES

Members contribution 166,000

Sally 56,000

Anne 50,000

Nick 60,000

Retained Earnings 79,000

Non Current Liabilities 45,000

Current Liabilities 52,000

Total 342,000