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.