Answer to Question #309017 in Accounting for Ben

Question

The following abrideged statement of financial position of kudu CC as at 31 December 2020 2020 2019 ASSETS Non-current assets 220 000 220 000 current assets 123 000 77 000 352 000 297 000 CAPITAL AND LIABILITIES members contribution: 180 000 180 000 Berry (50%) 70 000 70 000 Rita (35%) 50 000 50 000 Tom (15%) 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. Required to: 1) Calculate the new members interest and show the statement of changes in net membership investments and membership interest in each of the following instances separately. (a) Berry decided to sell 1/5 of his current interest to Rita. 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 Berry. The balance of the amount has been paid to Berry as his own funds. (b) The CC buy back the interest of Tom for 50 000.

Answer 1

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