Answer to Question #308183 in Accounting for Ben

Question

The following statement of financial position of Kudu CC as at 31 December 2020 2020 2019. 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 Beo 70 000 70 000 Reo 50 000 50 000 Teo 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. You are required to: 1) Calculate the new members interest and show the statement of changes in net members investment and members interest in each of the following instances separately. a) Beo decided to sell 1/5 of his current interest to Reo. The interest is valued at $25 000 of which $15 000 has been deposited into the bank account of the CC as a loan from Beo, the balance of the amount has been paid to Beo as his own funds. b) The CC buy back the interest of Teo for $50 000

Answer 1

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