Calculate the values of the members net investment at June

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Reference no: EM132757274

Question - Fresh Meats CC was registered on 1 August 2015. The founding statement of the CC sets out the following:

i. Names of members, their interests and contributions:

Name	% interest	Contribution
N. Moeti	50%	R260
B. Faith	50%	R240

ii. The accounting date: 30 June.

The following abbreviated trial balance of the close corporation was available on 30 June 2017:

	Debit		Credit
Members'			500	00
Retained earnings			200	00
Mortgage bond			2000	00
Loan to B. Faith	60	00
Land and buildings	2500	00
Bank	140	00
	R2700	00	R2700	00

iii. With regard to the 2017/2018 financial year the following was available:

N. Moeti transferred 20.00 % (nominal value R 52 000) of her contribution on 30 June 2018 to B. Faith.

N. Moeti lent the CC R 40 000, repayable on 30 June 2019.

On 31 March 2018, the land and buildings were re-valued at R 3 000 000.

All interest was paid and received promptly on 30 June.

Retained earnings for the year ended 30 June 2018 amounted to R 300 000.

The distribution of income is equal to 50.00 % of retained earnings at the end of the financial year.

Required -

1. Calculate the change in members' % interest and members' funds at 30 June 2018.

2. Calculate the values of the members' net investment at 30 June 2018.

Reference no: EM132757274

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