Changes in Ownership and Capital Structure · CAPE Accounting Unit 1

23 past-paper questions on Changes in Ownership and Capital Structure, part of Module 2: Preparation of Financial Statements, from every CAPE Accounting Unit 1 paper on Quelpr.

1. 2(i)8 marks· CAPE Accounting Unit 1 · 2006 · Paper 2Prepare the income statement for B & R Distributors for the year ending December 31, 2005, including the appropriation of profits between the partners.
2. 2(ii)3 marks· CAPE Accounting Unit 1 · 2006 · Paper 2Prepare a statement of changes in the partners' capital for the current year.
3. 2(iii)8 marks· CAPE Accounting Unit 1 · 2006 · Paper 2Compute the bonus attributable to Bravo and Rampaul upon the admission of Zandolie to the partnership.
4. 2(iv)12 marks· CAPE Accounting Unit 1 · 2006 · Paper 2Prepare a balance sheet for the partnership immediately following the admission of Zandolie.
5. 2(b)(i)10 marks· CAPE Accounting Unit 1 · 2012 · Paper 2Prepare the Capital Adjustment Account showing charges to the Plant and Machinery Account, Building Account, Goodwill, and the Partners' Capital Accounts immediately prior to Janet's admission.
6. 2(b)(ii)10 marks· CAPE Accounting Unit 1 · 2012 · Paper 2Prepare the Balance Sheet showing the opening position of the new partnership of Kwame, Kendal, and Janet.
7. 2(b)17 marks· CAPE Accounting Unit 1 · 2013 · Paper 2Show how the partnership income of $741 000 is divided among the three partners, indicating clearly the amounts for interest, salaries, and the residual profit distribution.
8. 2(a)10 marks· CAPE Accounting Unit 1 · 2014 · Paper 2Prepare a Statement of Partners' Equity for the current year ended 30 September, assuming no partner made additional investments during the year.
9. 2(b)1 mark· CAPE Accounting Unit 1 · 2014 · Paper 2Assuming Calvin and Sylvia spend the same amount of time in the business, why might Leroy be given the same portion of the profits as the other two partners?
10. 2(c)3 marks· CAPE Accounting Unit 1 · 2014 · Paper 2State THREE factors that the partners should consider when deciding how to distribute the profits of the partnership.
11. 2(a)11 marks· CAPE Accounting Unit 1 · 2015 · Paper 2Prepare the capital accounts of the partnership showing clearly the adjusted balances after the admission of the new partner.
12. 2(b)(i)3 marks· CAPE Accounting Unit 1 · 2016 · Paper 2List THREE possible reasons why a business partnership may be dissolved.
13. 2(b)(ii)4 marks· CAPE Accounting Unit 1 · 2016 · Paper 2Explain the difference between a judicial and a non-judicial dissolution of partnership.
14. 2(b)(iii)3 marks· CAPE Accounting Unit 1 · 2016 · Paper 2Identify THREE steps required to dissolve a partnership.
15. 2(c)(i)2 marks· CAPE Accounting Unit 1 · 2016 · Paper 2Calculate how many shares will be issued if all the rights are taken up. (Show all working.)
16. 2(c)(ii)3 marks· CAPE Accounting Unit 1 · 2016 · Paper 2Prepare the journal entry (without narrative) to record the rights issue transaction.
17. 2(a)(i)7 marks· CAPE Accounting Unit 1 · 2017 · Paper 2Prepare the Revaluation Account.
18. 2(a)(ii)9 marks· CAPE Accounting Unit 1 · 2017 · Paper 2Prepare the partners' Capital Accounts of the old and the new firm.
19. 2(c)(i)9 marks· CAPE Accounting Unit 1 · 2019 · Paper 2Prepare a statement of partners' equity for the current year.
20. 2(c)(ii)2 marks· CAPE Accounting Unit 1 · 2019 · Paper 2On 01 January 2019, Davis retired and sold his interest to Rachel and Grant for $80 000, paid from personal funds. Prepare the journal entry to record the sale of partner's interest.
21. 2(b)5 marks· CAPE Accounting Unit 1 · 2021 · Paper 2Prepare the journal entry to record the formation of the partnership.
22. 2(c)4 marks· CAPE Accounting Unit 1 · 2021 · Paper 2List FOUR additional terms, other than those mentioned in the case, which may be found in the formal partnership agreement.
23. 2(d)(i)11 marks· CAPE Accounting Unit 1 · 2021 · Paper 2Prepare the entries to record the incorporation, assuming that the new company issues all 30,000 of the ordinary shares.