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11 marksChanges in Ownership and Capital Structure

CAPE Accounting Unit 1 · 2015 · Paper 2 · Question 2(a)

Amar and Mohan are equal partners in a retail clothing business, each contributing 240 000. Lee joins sharing profits equally. Goodwill valued at 180 000 is not to be maintained in the accounts. Lee brought in cash of $160 000.

Prepare the capital accounts of the partnership showing clearly the adjusted balances after the admission of the new partner.

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Other parts of this question

  1. 2(b)(i)Distinguish between 'corporations' and 'co-operatives' in terms of transferability of ownership interest.[2 marks]
  2. 2(b)(ii)Distinguish between 'corporations' and 'co-operatives' in terms of voting rights.[2 marks]
  3. 2(b)(iii)Distinguish between 'corporations' and 'co-operatives' in terms of purpose.[2 marks]
  4. 2(b)(iv)Distinguish between 'corporations' and 'co-operatives' in terms of legislation.[2 marks]
  5. 2(c)(i)Prepare a Statement of Comprehensive Income for Point Dex Ltd for the year ended 31 May 2014.[11 marks]
  6. 2(c)(ii)a)Identify the figures to be included in current assets which would appear in the Statement of Financial Position as at 31 May 2014.[3 marks]
  7. 2(c)(ii)b)Identify the figures to be included in current liabilities which would appear in the Statement of Financial Position as at 31 May 2014.[2 marks]

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