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FAC1602 ASSIGNEMNT 2 SEMESTER 2 2024 What happens to the capital accounts of partners when goodwill is recorded for the first time upon the admission of a new partner? a. They are closed off and reopened with goodwill allocations b. They remain unchanged $2.95
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Elementary Financial Accounting and Reporting (FEC1602)
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FAC1602 ASSIGNEMNT 2 SEMESTER 2 2024 What happens to the capital accounts of partners when goodwill is recorded for the first time upon the admission of a new partner? a. They are closed off and reopened with goodwill allocations b. They remain unchanged
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Course
Elementary Financial Accounting and Reporting (FEC1602)
Institution
University Of South Africa (Unisa)
FAC1602 ASSIGNEMNT 2 SEMESTER 2 2024
What happens to the capital accounts of partners when goodwill is recorded for the first time upon the admission of a new
partner?
a. They are closed off and reopened with goodwill allocations
b. They remain unchanged
c. They are adjusted based on the new p...
Elementary Financial Accounting and Reporting (FEC1602)
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DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS NOT
PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A POSSIBLE
SOLUTION TO THE TASK CONSISTENT WITH THEORY. THIS ASSIGNMENT IS
INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT,
AND IN NO CASE THIS DOCUMENT SHOULD BE USED FOR CHEATING. WE BELIEVE
THIS WILL BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR TEAM OF
PROFESSIONAL PRIVATE TUTORS WHO ARE EXPERTS IN THE FIELD, AND IT WAS
PREPARED USING VARIOUS SOURCES. ANY SIMILARITY WITH ANY EXISTING
THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED. THE AUTHORS
HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF
THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER GUIDELINE
ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE IN GENERAL,
CONTACT PASSMATE TUTORIALS.
Didi and Chomi are running a business, VaalPure Innovations, a company that specialises in developing cutting-edge water
filtration systems for industrial use. VaalPure Innovations operates in the environmental technology sector, focusing on
providing sustainable solutions to industries dealing with water scarcity and pollution. Didi and Chomi are in a partnership
and share profits and losses in a ratio of 3:2 respectively.
On 30 July 2024 the following information was extracted from the accounting records of the partnership:
R
Capital - Didi R183,800
Capital - Chomi R168,700
Current account - Didi (cr) R33,000
Current account - Chomi (cr) R44,000
Additional information:
1. On 1 August 2024, Didi and Chomi decided to admit Lebo to the business as a new partner. Lebo will contribute the
following to acquire a fifth of the net asset share of the partnership
Cash…................................................... R 55 000
2. Didi and Chomi agreed to relinquish 20% of their share in profits or losses to Lebo in the ratio of 3:1 respectively
3. All other assets were revalued before admitting Lebo to the partnership.
4. A valuation loss was correctly calculated at R18 000.
Correct balance which represents the correct amount of goodwill in the accounting records of VaalPure Innovations after the
admission of Lebo?
Instructions:
1. Round off to the nearest Rand (eg: 50.56 is 51)
2. Only show the amount, do not show the R (eg: 12000)
What happens to the capital accounts of partners when goodwill is recorded for the first time upon the admission of a new
partner?
a. They are closed off and reopened with goodwill allocations
b. They remain unchanged
c. They are adjusted based on the new partner’s contribution
d. They are credited with goodwill based on the old profit-sharing ratio
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