Answer to Question #146132 in Accounting for Thabisile

Question

Members’ % Interest Contributions
Barry Behr 50% R500 000 (cash and equipment)
Doris Daniels 40% R400 000 (cash)
Mo Mgotso 10% R100 000 (cash)
The following balances, amongst others, appeared in the CC’s books at the end of the current
financial year, 31 July 2020:
Members contributions R1 000 000
Retained Earnings (1 August 2019) R236 000

With regards to the financial year ending 31 July 2020, the following information was available:
1. On 31 July 2020, the CC recorded a profit of R940 000. This profit was after taking into
account transactions with members like remuneration.
2. The income tax for the year is calculated at R260 000.
3. The members are entitled to a distribution of profit of R45 000 each, irrespective of how
long they have been a member.
Required:
Open, post to and balance the Appropriation Account for the year ended
31 July 2020.

Answer 1

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