Answer to Question #310364 in Accounting for EDDY

Question

Kalahari CC Statement of Financial Position as at 31 December 2020 2020 N$ 2019 N$ ASSETS 220 000 220 000 Non-current assets 123 000 77 000 Current assets 352 000 297 000 CAPITAL AND LIABILITIES Members’ contributions: 180 000 180 000 Beo(50%) 70 000 70 000 Reo(35%) 50 000 50 000 Teo(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 You are required to: 1. Calculate the new membership interest and show the statement of changes in net membership investment and membership interest in each of the following instances separately. a) Beo decides to tell 1/5 of his current interest to Reo. The interest is valued at N$ 25 000 of which N$ 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. (17 marks). b) The CC buy back the interest of Teo for N$ 50 000

Answer 1

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