The following information was obtained from therecords of MT Suppliers, a partnership businesswith Mary and Tanya as partners, on 28 February2023 (the end of the financial year): Mary's capitalbalance was R600 000 on 28 February 2023. Sheincreased her capital contribution by R200 000 on01 December 2022 (and this was recorded). Sheearns interest at a rate of 15% per annum. Whichone of the following reflects Mary's interest oncapital for the year ended 28 February 2023?O A. R60 000B. R82 500O C. R90 000OD. R67 500

Mary's interest on capital for the year ended 28 February 2023, can be computed using the formula…

Answered: The following information was obtained…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PB

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The following information was obtained from the records of BV Suppliers, a partnership business with Betty and Valerie, on 29 February 2020 (the end of the financial year): Betty's capital balance was 29 February 2020 was R500 000. She increased her capital contribution by R100 000 on 01 September 2019 (and this was recorded). She earns interest at a rate of 12% per annum. Which one of the following reflects her interest on capital for the year ended 29 February 20207 O A. R66 000 O B. R60 000 OC. R48 000 :D. R54 000 Tpe here to sea ch
The following information was obtained from the records of MT Suppliers, a partnership business with Mary and Tanya as partners, on 28 February 2023 (the end of the financial year): Mary's capital balance was R600 000 on 28 February 2023. She increased her capital contribution by R200 000 on 01 December 2022 (and this was recorded). She earns interest at a rate of 15% per annum. Which one of the following reflects Mary's interest on capital for the year ended 28 February 2023? O A. R60 000 OB. R82 500 O C. R67 500 OD. R90 000 Previous page
The following information was obtained from the records of BV Suppliers, a partnership business with Betty and Valerie, on 29 February 2020 (the end of the financial year): Betty's capital balance was 29 February 2020 was R500 000. She increased her capital contribution by R100 000 on 01 September 2019 (and this was recorded). She earns interest at a rate of 12% per annum. Which one of the following reflects her interest on capital for the year ended 29 February 2020? O A. R66 000 O B. R60 000 OC. R48 000 O D. R54 000
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The information given below was extracted from the accounting records of Total Limited, a partnership business with Glen and Murry as partners. Information: Extract from the ledger of Total Limited on 30 June 2021 R Capital : Glen 400 000 Capital: Murry 300 000 Current a/c: Glen (01 July 2020) 45 000 CR Current a/c: Murry (01 July 2020) 42 000 DR Drawings: Glen 95 000 Drawings: Murry 110 000 The following must be taken into account: 1. On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000. 2. Partners are entitled to interest at 14% p.a. on their capital balances. Note: Glen decreased his capital contribution by R90 000 on 01 July 2020. This capital decrease has been recorded. 3. Partners are entitled to the following monthly salaries: Glen R13 000 for the first ten months of the financial year and R15 000 for the next two months. • Murry R10 000 per month throughout the year. 4. Partner Murry is entitled to a bonus equal to 10% of the net profit before any of…
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