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Calculate the change in interest

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Question 1 - Sorcers CC was registered on 1 September 2019. The founding statement sets out the following:

Name % Interest Contributions

G Gube 45% R 175 000

S Sidney 55% R 225 000

Additional Information: At the end of the year, N Ngobe is admitted into the CC and he will receive a 20% share in the close corporation.

Required - Calculate the change in interest when N Ngobe is admitted as a member.

Question 2 - The owner of Greenseal Traders requested you to calculate the net profit for the year ended 30 June 2020. Mr Green, the owner, has not been very diligent in keeping records. He is able to present you with the following information:

His assets and liabilities 1 July 2019 were as follows:

Vehicles at carrying value R185 000

Trading inventory R150 000

Cash in bank R72 000

Creditors R12 500

Loan: Uni Bank (12%) R80 000

The bank statement show a credit balance of R88 900 as at 30 June 2020.

All the cash received has been deposited.

A stock-take performed on 30 June 2020, showed inventory on hand with a cost price of R170 000.

The creditors balance at year-end is R38 000.

Vehicles was purchased during the year at a cost price of R25 000.

Depreciation on vehicles for the year amounted to R20 000.

The owner took R15 000 in cash for personal use during the year ended 30 June 2020.

R15 000 was repaid on the loan during the year.

Required - Calculate the profit or loss for the period.

Reference no: EM132767879

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