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9 marksChanges in Ownership and Capital Structure

CAPE Accounting Unit 1 · 2019 · Paper 2 · Question 2(c)(i)

Davis, Grant and Rachel are partners in Southside Auto Repairs, sharing profits in the ratio 1/4, 1/4 and 1/2. Capital balances at 31 December 2018: Davis 60 000, Grant 70 000, Rachel 100 000; Drawings balances: Davis 13 000, Grant 14 000, Rachel 23 000. Net income for the year ended 31 December 2018 was $80 000.

Prepare a statement of partners' equity for the current year.

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Other parts of this question

  1. 2(a)Prepare a multi-step statement of comprehensive income for Cutting Ltd in accordance with IAS 1 and IFRS for SMEs.[16 marks]
  2. 2(b)Distinguish between 'corporations' and 'cooperatives'.[8 marks]
  3. 2(c)(ii)On 01 January 2019, Davis retired and sold his interest to Rachel and Grant for…[2 marks]

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