FAC1601 - StudyNotesUnisa · EXAMPLE 3 The following information pertains to African Traders at 30...
96
FAC1601 ACCOUNTING REPORTING
Transcript of FAC1601 - StudyNotesUnisa · EXAMPLE 3 The following information pertains to African Traders at 30...
FAC
1601
AC
CO
UN
TIN
G R
EPO
RTI
NG
RN
NG
CO
BO
RN
NG
CO
BO
E-m
ail:
ngc
obrn
@un
isa.
ac.z
a
Tel N
o: 0
12 4
29 4
454
STU
DY
UN
IT 1
INTR
OD
UC
TIO
N T
O T
HE
PREP
AR
ATI
ON
OF
FIN
AN
CIA
L ST
ATE
MEN
TS
A: T
YPES
OF
FIN
AN
CIA
L ST
ATE
MEN
TS A
ND
NO
TES
Inte
rnat
iona
l Acc
ount
ing
Sta
ndar
ds B
oard
IAS
1 (A
C10
1)
Sta
tem
ents
requ
ired
by IA
S1 (A
C10
1):
–St
atem
ent
offin
anci
alpo
sitio
n:sh
ows
the
finan
cial
stan
ding
[ass
ets,
equi
tyan
dlia
bilit
ies]
ofan
entit
yat
asp
ecifi
cda
te.
–St
atem
ent
ofco
mpr
ehen
sive
inco
me:
show
sth
efin
anci
alre
sult
Stat
emen
tof
com
preh
ensi
vein
com
e:sh
ows
the
finan
cial
resu
lt[d
iffer
ence
betw
een
inco
me
and
expe
nditu
refo
ra
spec
ific
finan
cial
perio
d–
norm
ally
aye
ar.
Stat
emen
tof
chan
ges
ineq
uity
:sh
ows
how
equi
tych
ange
d–
Stat
emen
tof
chan
ges
ineq
uity
:sh
ows
how
equi
tych
ange
ddu
ring
afin
anci
alpe
riod
asa
resu
ltof
trans
actio
nsaf
fect
ing
capi
tal
fund
s.St
tt
fh
flh
hh
td
d–
Stat
emen
tof
cash
flow
s:sh
ows
how
cash
was
gene
rate
dan
dus
edin
oper
atin
g,in
vest
ing
and
finan
cing
activ
ities
durin
gth
eye
ar.
–N
otes
toth
efin
anci
alst
atem
ents
:in
clud
eac
coun
ting
polic
ies
info
rmat
ion
and
addi
tiona
lex
plan
ator
yin
form
atio
nab
out
the
risks
and
unce
rtain
ties
faci
ngth
een
terp
rise.
B: Y
EAR
-EN
D A
DJU
STM
ENTS
1. A
DJU
STM
ENT
OF
THE
ALL
OW
AN
CE
FOR
CR
EDIT
LO
SSES
The
“Allo
wan
cefo
rcr
edit
loss
es”
isan
acco
untin
ges
timat
eof
the
amou
ntof
debt
that
are
likel
yto
bew
ritte
nof
fas
irrec
over
able
.
•Th
e ba
lanc
e of
this
acc
ount
will
alw
ays
be a
CR
EDIT
bal
ance
.•
This
cre
dit b
alan
ce c
an e
ither
INC
REA
SEor
DEC
REA
SE.
An
incr
ease
will
requ
ire th
e fo
llow
ing
acco
untin
g en
tries
in th
e ge
nera
l le
dger
:
Dr –
Cre
dit l
osse
s, a
nd
Cr –
Allo
wan
ce fo
r cre
dit l
osse
s
A d
ecre
ase
will
requ
ire th
e fo
llow
ing
acco
untin
g en
tries
in th
e ge
nera
l le
dger
:
Dr –
Allo
wan
ce fo
r cre
dit l
osse
s, a
ndC
r –C
redi
t los
ses
Clo
sing
-off
proc
edur
e:
Th“C
dit
l”
tii
lt
hih
iTh
e“C
redi
tlo
sses
”ac
coun
tis
ano
min
alac
coun
twhi
chis
clos
edof
fto
the
prof
itor
loss
acco
unt.
The
“Allo
wan
cefo
rcr
edit
loss
es”
acco
unt
isa
cont
raas
set
acco
unt
whi
chis
not
clos
edof
f.Th
eba
lanc
eof
this
acco
unti
sde
duct
edfro
m“T
rade
rece
ivab
les”
figur
ein
the
stat
emen
toff
inan
cial
posi
tion
ford
iscl
osur
epu
rpos
es.
stat
emen
toff
inan
cial
posi
tion
ford
iscl
osur
epu
rpos
es.
EXA
MPL
E 1:
The
follo
win
g in
form
atio
n pe
rtain
s to
Fla
shdi
sks
Fast
:EX
AM
PLE
1:Th
e fo
llow
ing
info
rmat
ion
perta
ins
to F
lash
disk
sFa
st:
Deb
tors
con
trol
R10
000
Allo
wan
ce fo
r cre
dit l
osse
sR
200
0D
ebto
rs c
ontro
lR
10 0
00A
llow
ance
for c
redi
t los
ses
R2
000
The
allo
wan
ce fo
r cre
dit l
osse
s m
ust b
e ad
just
ed to
R2
500.
The
allo
wan
ce fo
r cre
dit l
osse
s m
ust b
e ad
just
ed to
R2
500.
Allo
wan
ce fo
r cre
dit l
osse
sR
Bal
ance
b/d
R 200
0B
alan
ce
b/d
2 00
0
Cdi
tlC
redi
t los
ses
RR
EXA
MPL
E 1
(con
tinue
d):
The
follo
win
g in
form
atio
n pe
rtain
s to
Fla
shdi
sks
Fast
:
Deb
tors
con
trol
R10
000
Allo
wan
ce fo
r cre
dit l
osse
sR
200
0
The
allo
wan
ce fo
r cre
dit l
osse
s m
ust b
e ad
just
ed to
R2
500.
Allo
wan
ce fo
r cre
dit l
osse
sR
Bl
b/d
R 200
0B
alan
ce
b/
d2
000
Cre
dit l
osse
s50
0
Cre
dit l
osse
s
Allo
wan
cefo
r cre
ditl
osse
sR 50
0R
EXA
MPL
E 1
(con
tinue
d):
The
follo
win
g in
form
atio
n pe
rtain
s to
Fla
shdi
sks
Fast
:
Deb
tors
con
trol
R10
000
Allo
wan
ce fo
r cre
dit l
osse
sR
200
0
The
allo
wan
ce fo
r cre
dit l
osse
s m
ust b
e ad
just
ed to
R2
500.
Allo
wan
ce fo
r cre
dit l
osse
s
Bl
/dR 2
500
Bl
b/d
R 200
0B
alan
ce
c
/d
2 50
0B
alan
ce
b/
d2
000
Cre
dit l
osse
s50
02
500
2 50
0B
lb/
d2
500
Bal
ance
b/d
2 50
0
Cre
ditl
osse
sC
redi
t los
ses
Allo
wan
cefo
r cre
ditl
osse
sR 50
0P
rofit
or l
oss
acco
unt
R50
0
EXA
MPL
E2:
The
follo
win
gin
form
atio
npe
rtain
sto
Flas
hdis
ksFa
st:
Deb
tors
con
trol
R
10 0
00A
llow
ance
for c
redi
t los
ses
R2
000
The
allo
wan
ce fo
r cre
dit l
osse
s m
ust b
e ad
just
ed to
R1
200.
Dr
A
llow
ance
for c
redi
t los
ses
Cr
RR
Cre
ditl
osse
s80
0B
alan
ceb/
d2
000
Cre
dit l
osse
s80
0B
alan
ce
b/d
2 00
0
Cre
dit l
osse
sR
RA
llow
ance
forc
redi
tA
llow
ance
for c
redi
t lo
sses
800
EXA
MPL
E2
(con
tinue
d):
The
follo
win
gin
form
atio
npe
rtain
sto
Flas
hdis
ksFa
st:
Deb
tors
con
trol
R
10 0
00A
llow
ance
for c
redi
t los
ses
R2
000
The
allo
wan
ce fo
r cre
dit l
osse
s m
ust b
e ad
just
edto
R1
200.
Dr
Allo
wan
cefo
rcre
ditl
osse
sC
rD
r
A
llow
ance
for c
redi
t los
ses
C
rR
RC
redi
t los
ses
800
Bal
ance
b/d
2 00
0B
alan
cec/
d1
200
Bal
ance
c/d
1 20
02
000
2 00
0B
alan
ce
b/
d1
200
Cre
dit l
osse
sR
RP
rofit
or l
oss
800
Allo
wan
ce fo
r cre
dit
loss
es80
0
The
follo
win
gin
form
atio
npe
rtain
sto
Afri
can
Trad
ers
at30
Apr
il20
5th
een
dof
EXA
MPL
E 3:
The
follo
win
g in
form
atio
n pe
rtain
s to
Afri
can
Trad
ers
at 3
0 A
pril
20.5
, the
end
of
the
finan
cial
yea
r:
Dbt
tl
R20
000
Deb
tors
cont
rol
R20
000
A
llow
ance
for c
redi
t los
ses
R1
000
Add
ition
al in
form
atio
n:O
n1
Apr
il20
.5,
ade
btor
ofth
ebu
sine
ssw
asde
clar
edin
solv
ent.
On
this
date
,the
debt
orha
da
reco
rded
bala
nce
ofR
500
0.Th
isam
ount
isin
clud
edda
te,t
hede
btor
had
are
cord
edba
lanc
eof
R5
000.
This
amou
ntis
incl
uded
inth
eab
ove
debt
ors
cont
rol
figur
eof
R20
000
and
was
not
writ
ten
off
imm
edia
tely
.O
n30
Apr
il20
.5th
ebu
sine
ssre
ceiv
ed20
%of
the
amou
ntow
edth
ede
btor
from
his
esta
te.
An
inco
mpe
tent
acco
unta
nto f
Afri
can
Trad
ers
did
notr
ecor
dth
isca
shre
ceip
tin
the
book
sof
the
busi
ness
.Th
eac
coun
tant
also
negl
ecte
dto
writ
eof
fth
eou
tsta
ndin
gba
lanc
eof
the
debt
or’s
acco
unt
asirr
ecov
erab
le.
Afte
rth
isin
cide
nt,
Afric
anTr
ader
sde
cide
dto
adju
stth
eba
lanc
eof
the
allo
wan
cefo
rcr
edit
loss
esac
coun
tto
R1
500.
Req
uire
d:R
ecor
d th
e ab
ove
info
rmat
ion
in th
e ac
coun
ting
reco
rds
of A
frica
n Tr
ader
s.
2. A
CC
OU
NTI
NG
FO
R D
EPR
ECIA
TIO
N
Di
tii
hth
td
thl
ft
Dep
reci
atio
n is
a n
on-c
ash
expe
nse
that
redu
ces
the
valu
e of
an
asse
t as
a re
sult
of w
ear a
nd te
ar, a
ge o
r obs
oles
cenc
e.
Met
hods
of d
epre
ciat
ion:
1St
raig
ht-li
nem
etho
d:1.
Stra
ight
-line
met
hod:
This
met
hod
assu
mes
that
the
asse
t will
lose
an
equa
l am
ount
of
valu
e on
its
cost
pric
e ea
ch y
ear.
2.D
imin
ishi
ng b
alan
ce m
etho
d:A
giv
en p
erce
ntag
e ra
te is
ded
ucte
d fro
m th
e ca
rryi
ng a
mou
nt
gp
gy
g(o
peni
ng b
alan
ce) i
nste
ad o
f fro
m th
e or
igin
al c
ost t
o ar
rive
at th
e am
ount
of d
epre
ciat
ion
each
yea
r.
AC
CO
UN
TIN
G F
OR
DEP
REC
IATI
ON
Dr
Acc
umul
ated
depr
ecia
tion
Cr
Dr
A
ccum
ulat
ed d
epre
ciat
ion
Cr
RB
alan
ce
b/
dR
000
Dr
Dep
reci
atio
n
C
rR
R
AC
CO
UN
TIN
G F
OR
DEP
REC
IATI
ON
Dr
Acc
umul
ated
depr
ecia
tion
Cr
Dr
A
ccum
ulat
ed d
epre
ciat
ion
Cr
RB
alan
ce
b/
dR
000
Dep
reci
atio
n00
0D
epre
ciat
ion
000
Dr
Dep
reci
atio
n
C
rR
RA
ccum
ulat
edde
prec
iatio
n00
0
CLO
SIN
G-O
FF P
RO
CED
UR
E
Dr
A
ccum
ulat
ed d
epre
ciat
ion
Cr
RR
Bal
ance
c/d
R 000
Bal
ance
b/d
R00
0D
epre
ciat
ion
000
000
000
000
000
Bal
ance
b/d
000
The
“Acc
umul
ated
depr
ecia
tion”
acco
unti
sa
cont
raas
seta
ccou
ntw
hich
The
Acc
umul
ated
dep
reci
atio
n a
ccou
nt is
a c
ontra
ass
et a
ccou
nt w
hich
is
not
clo
sed
off.
The
bal
ance
of t
his
acco
unt i
s de
duct
ed fr
om th
e co
st p
rice
of a
n as
sett
o ar
rive
at a
car
ryin
g am
ount
that
is d
iscl
osed
as
“Pro
pert
y,
plan
tand
equi
pmen
t”in
the
stat
emen
toff
inan
cial
posi
tion.
Dr
Dep
reci
atio
n
C
rR
R
plan
t and
equ
ipm
ent
in th
e st
atem
ent o
f fin
anci
al p
ositi
on.
Acc
umul
ated
depr
ecia
tion
000
Pro
fit o
r los
s00
0
The
“Dep
reci
atio
n”ac
coun
tis
ano
min
alac
coun
twhi
chis
clos
edof
fto
the
The
Dep
reci
atio
n a
ccou
nt is
a n
omin
al a
ccou
nt w
hich
is c
lose
d of
f to
the
prof
it or
loss
acc
ount
.
EXA
MPL
E 4
(STR
AIG
HT-
LIN
E M
ETH
OD
):
Att
hebe
ginn
ing
ofa
finan
cial
perio
d,a
busi
ness
acqu
ired
equi
pmen
tata
cost
ofR
300
000
with
anex
pect
edus
eful
life
of5
year
sTh
eex
pect
edco
stof
R30
000
0w
ithan
expe
cted
usef
ullif
eof
5ye
ars.
The
expe
cted
resi
dual
valu
eat
the
end
ofth
eus
eful
life
ofth
eeq
uipm
enti
sR
4000
0.C
alcu
late
the
carr
ying
amou
ntof
the
equi
pmen
tatt
heen
dof
year
1an
d2.
YEA
R1:
Dep
reci
atio
nfo
rthe
year
:R
(300
000
–40
000)
/5ye
ars
=R
5200
0ep
ecat
oo
te
yea
(300
000
000
0)/5
yea
s5
000
Acc
umul
ated
depr
ecia
tion:
R52
000
Car
ryin
gam
ount
:R
(300
000
–52
000)
=R
248
000
YEA
R2:
Dep
reci
atio
nfo
rthe
year
:R
(300
000
–40
000)
/5ye
ars
=R
5200
0A
ccum
ulat
edde
prec
iatio
n:R
(52
000
+R
5200
0)=
R10
400
0C
arry
ing
amou
nt:
R30
000
0–
R10
400
0=
R19
600
0
EXA
MPL
E 5
(DIM
INIS
HIN
G B
ALA
NC
E M
ETH
OD
):
Att
hebe
ginn
ing
ofa
finan
cial
perio
d,a
busi
ness
entit
yac
quire
san
equi
pmen
tata
cost
ofR
300
000.
Equ
ipm
enti
sde
prec
iate
dat
20%
p.a.
Usi
ngth
edi
min
ishi
ngba
lanc
em
etho
d.C
alcu
late
the
carr
ying
amou
ntof
the
equi
pmen
tatt
heen
dof
year
1an
d2.
equi
pmen
tatt
heen
dof
year
1an
d2.
YEA
R 1
:D
iti
fth
R30
000
020
%R
6000
0D
epre
ciat
ion
for t
he y
ear:
R30
0 00
0 x
20%
= R
60 0
00A
ccum
ulat
ed d
epre
ciat
ion:
R60
000
Car
ryin
g am
ount
:R
(300
000
–60
000
) = R
240
000
YEA
R 2
:D
epre
ciat
ion
fort
heye
ar:
R(3
0000
0–
6000
0)x
20%
=R
4800
0D
epre
ciat
ion
for t
he y
ear:
R(3
00 0
00
60 0
00) x
20%
R
48 0
00A
ccum
ulat
ed d
epre
ciat
ion:
R(6
0 00
0 +
48 0
00) =
R10
8 00
0C
arry
ing
amou
nt:
R(3
00 0
00 –
108
000)
= R
192
000
EXA
MPL
E 6
(CO
MPR
EHEN
SIVE
):
The
follo
win
gba
lanc
esap
pear
edin
the
acco
untin
gre
cord
sof
Flas
hdis
ksFa
stat
28Fe
brua
ry20
.7:
Veh
icle
atco
stR
168
000
Veh
icle
atco
stR
168
000
Equ
ipm
enta
tcos
tR
4800
0A
ccum
ulat
edde
prec
iatio
n:V
ehic
le(1
Mar
ch20
.6)
R27
900
Acc
umul
ated
depr
ecia
tion:
Equ
ipm
ent(
1M
arch
206)
R8
000
Acc
umul
ated
depr
ecia
tion:
Equ
ipm
ent(
1M
arch
20.6
)R
800
0
Add
ition
alin
form
atio
n:D
epre
ciat
ion
fort
heye
arha
sno
tyet
been
prov
ided
for
Itis
the
acco
untin
gD
epre
ciat
ion
fort
heye
arha
sno
tyet
been
prov
ided
for.
Itis
the
acco
untin
gpo
licy
ofth
ebu
sine
ssto
prov
ide
ford
epre
ciat
ion
asfo
llow
s:
Vehi
cles
:Acc
ordi
ngto
the
stra
ight
-line
met
hod,
at20
%pe
rann
um.
Equi
pmen
t:A
ccor
ding
toth
edi
min
ishi
ngba
lanc
em
etho
d,at
25%
per
annu
m.
Req
uire
d:C
alcu
late
the
amou
ntth
atm
ustb
edi
sclo
sed
asth
eca
rryin
gam
ount
ofth
eve
hicl
ean
deq
uipm
enta
sat
28Fe
brua
ry20
.7in
the
note
perta
inin
gto
the
fii
lt
tt
fFl
hdi
kF
tfin
anci
alst
atem
ents
ofFl
ashd
isks
Fast
.SO
UR
CE:
ACN102N/TL101/3/2007_ASS1_QUEST4
STU
DY
UN
IT 2
ESTA
BLI
SHM
ENT
AN
D F
INA
NC
IAL
STA
TEM
ENTS
OF
A
PAR
TNER
SHIP
A: F
INA
NC
IAL
STA
TEM
ENTS
OF
PAR
TNER
SHIP
S
•Fi
nanc
ials
tate
men
tssh
ould
com
ply
with
IAS
(GA
AP
).
•A
partn
ersh
ipis
anac
coun
ting
entit
yan
dno
tale
gale
ntity
Apa
rtner
ship
isan
acco
untin
gen
tity
and
nota
lega
lent
ity.
•A
partn
ersh
ipdo
esno
tpa
yta
x-
the
partn
ers
pay
tax
inth
eir
pers
onal
capa
city
capa
city
.
•S
alar
ies,
bonu
ses
and
com
mis
sion
sto
partn
ers,
inte
rest
oncu
rren
tand
capi
tal
acco
unts
,an
ddr
awin
gsm
ust
bedi
sclo
sed
inth
est
atem
ent
ofca
pita
lac
coun
ts,
and
draw
ings
mus
tbe
disc
lose
din
the
stat
emen
tof
chan
ges
ineq
uity
.
•In
tere
ston
loan
sto
partn
ers
mus
tbe
disc
lose
din
the
stat
emen
tof
Inte
rest
onlo
ans
topa
rtner
sm
ust
bedi
sclo
sed
inth
est
atem
ent
ofco
mpr
ehen
sive
inco
me
aspa
rtof
“OTH
ERIN
CO
ME”
.
•In
tere
ston
loan
sfro
mpa
rtner
sm
ust
bedi
sclo
sed
inth
est
atem
ent
ofIn
tere
ston
loan
sfro
mpa
rtner
sm
ust
bedi
sclo
sed
inth
est
atem
ent
ofco
mpr
ehen
sive
inco
me
aspa
rtof
“FIN
AN
CE
CO
STS”
.
•I f
ther
eis
noag
reem
ent
onho
wpr
ofits
/loss
esar
esh
ared
,g
p,
prof
its/lo
sses
are
appo
rtion
edto
partn
ers
acco
rdin
gto
thei
rca
pita
lco
ntrib
utio
ns.
AB
CTR
AD
ERS
B: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
E
AB
CTR
AD
ERS
STAT
EMEN
T O
F C
OM
PREH
ENSI
VE IN
CO
ME
FOR
TH
E YE
AR
EN
DED
28
FEB
RU
ARY
20.
9R
Rev
enue
R00
0C
ost o
f sal
es(0
00)
Gro
ss p
rofit
000
Oth
er in
com
e00
0P
rofit
on
sale
of o
ffice
furn
iture
000
Dis
tribu
tion,
adm
inis
trativ
e an
d ot
her e
xpen
ses
(000
)C
redi
t los
ses
000
Ban
k ch
arge
s00
0S
alar
ies
and
wag
es00
0D
epre
ciat
ion
000
Fina
nce
cost
s(0
00)
Inte
rest
on
long
-term
loan
000
Prof
it fo
r the
yea
r00
0O
ther
com
preh
ensi
ve in
com
e fo
r the
yea
r00
0p
yTo
tal c
ompr
ehen
sive
inco
me
for t
he y
ear
000
EXA
MPL
E 1.
1:P
aul a
nd S
hark
are
in p
artn
ersh
ip tr
adin
g as
Pau
l & S
hark
Tra
ders
. The
f
lli
if
tii
tt
df
thti
dft
hfo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
the
partn
ersh
ip a
t 31
Dec
embe
r 20.
8:
Sl
R56
880
0S
ales
R
568
800
Cos
t of s
ales
R23
616
0S
ettle
men
t dis
coun
t gra
nted
R23
100
All
fttl
tdi
tt
dR
1500
0A
llow
ance
for s
ettle
men
t dis
coun
t gra
nted
R15
000
Req
uire
d:P
tht
diti
ith
tt
tf
hi
iP
repa
re th
e tra
ding
sec
tion
in th
e st
atem
ent o
f com
preh
ensi
ve in
com
e of
Pau
l & S
hark
Tra
ders
for t
he y
ear e
nded
31
Dec
embe
r 20.
8.
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
EFO
RTH
EYE
AR
END
ED31
DEC
EMB
ER20
.8RR
Rev
enue
R(5
68 8
00 –
23 1
00)
545
700
Cos
t of s
ales
(236
160
)G
ross
prof
it30
954
0G
ross
prof
it30
9 54
0
EXA
MPL
E 1.
2:Th
efo
llow
ing
info
rmat
ion
isex
tract
edfro
mth
eac
coun
ting
reco
rds
ofP
aul&
The
follo
win
g in
form
atio
n is
ext
ract
ed fr
om th
e ac
coun
ting
reco
rds
of P
aul &
S
hark
Tra
ders
at 3
1 D
ecem
ber 2
0.8,
the
end
of th
e fin
anci
al y
ear:
Allo
wan
cefo
rset
tlem
entd
isco
untr
ecei
ved
R5
000
Allo
wan
cefo
r set
tlem
entd
isco
untr
ecei
ved
R5
000
Inte
rest
on
fixed
dep
osit
R36
100
Pro
fit o
n sa
le o
f veh
icle
R22
000
Req
uire
d:C
alcu
late
the
amou
nt to
be
disc
lose
d as
“oth
er in
com
e” in
the
stat
emen
t of
com
preh
ensi
ve in
com
e at
the
end
of th
e fin
anci
al y
ear.
py
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
EFO
RTH
EYE
AR
END
ED31
DEC
EMB
ER20
.8R
Gfit
309
540
Gro
ss p
rofit
30
9 54
0O
ther
inco
me
58 1
00In
tere
st in
com
e: L
oans
and
rece
ivab
les:
Fix
ed d
epos
it36
100
Pro
fiton
sale
ofve
hicl
e22
000
Pro
fit o
n sa
le o
f veh
icle
22 0
00
EXA
MPL
E 1.
3:
The
follo
win
g in
form
atio
n is
ext
ract
ed fr
om th
e ac
coun
ting
reco
rds
of P
aul &
S
hk
Td
t31
Db
208
thd
fth
fii
lS
hark
Tra
ders
at 3
1 D
ecem
ber 2
0.8,
the
end
of th
e fin
anci
al y
ear:
Sal
arie
s an
d w
ages
R
250
000
Cre
ditl
osse
sR
250
0C
redi
tlos
ses
R2
500
Dra
win
gsR
1350
0A
dditi
onal
info
rmat
ion:
Eac
h pa
rtner
is e
ntitl
ed to
a s
alar
y of
R5
000
per m
onth
. O
nly
R80
000
has
py
py
been
pai
d to
bot
h pa
rtner
s as
sal
arie
s an
d th
is a
mou
nt is
incl
uded
in th
e sa
larie
s an
d w
ages
figu
re.
Req
uire
d:C
ll
tth
ttb
dil
ddi
tib
tid
ii
tti
dth
Cal
cula
te th
e am
ount
to b
e di
sclo
sed
as d
istri
butio
n, a
dmin
istra
tive
and
othe
r ex
pens
es in
the
stat
emen
t of c
ompr
ehen
sive
inco
me
fort
he y
ear e
nded
31
Dec
embe
r 20.
8.
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
EFO
RTH
EYE
AR
END
ED31
DEC
EMB
ER20
.8
RD
istr
ibut
ion,
adm
inis
trat
ive
and
othe
rexp
ense
s(1
7250
0)D
istr
ibut
ion,
adm
inis
trat
ive
and
othe
r exp
ense
s (1
72 5
00)
Sal
arie
s an
d w
ages
(R25
0 00
0 –
80 0
00)
170
000
Cre
dit l
osse
s2
500
EXA
MPL
E 1.
4:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Pau
l &
Sha
rkTr
ader
s, a
t 31
Dec
embe
r 20.
8, th
e en
d of
the
finan
cial
year
:
Long
-term
loan
from
Pau
l
R
150
000
Inte
rest
onba
nkov
erdr
aft
R15
000
Inte
rest
onba
nkov
erdr
aft
R15
000
Add
ition
al in
form
atio
n:P
aul g
rant
ed th
e lo
an o
n 31
Jul
y 20
.8 a
nd in
tere
st is
cal
cula
ted
at 1
5% p
er
gy
pan
num
.
Req
uire
d:C
ff
Cal
cula
te th
e am
ount
to b
e di
sclo
sed
as fi
nanc
e co
sts
in th
e st
atem
ent o
f co
mpr
ehen
sive
inco
me
for t
he y
ear e
nded
31
Dec
embe
r 20.
8.
PAU
L&
SHA
RK
TRA
DER
SPA
UL
& S
HA
RK
TR
AD
ERS
STAT
EMEN
TO
FC
OM
PREH
ENSI
VEIN
CO
ME
FOR
THE
YEA
REN
DED
31D
ECEM
BER
20.8
RRFi
nanc
e co
sts
(24
375)
Inte
rest
on
long
-term
loan
R
(150
000
x 15
%) x
5/1
29
375
Inte
rest
onba
nkov
erdr
aft
1500
0In
tere
ston
ban
k ov
erdr
aft
1500
0
PAU
L&
SHA
RK
TRA
DER
SST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
E FO
R T
HE
YEA
R
END
ED 3
1 D
ECEM
BER
20.
8R
Rev
enue
545
700
Cos
t of s
ales
(236
160
)G
ross
pro
fit30
9 54
0p
Oth
er in
com
e58
100
Inte
rest
inco
me:
Loa
ns a
nd re
ceiv
able
s: F
ixed
dep
osit
36 1
00P
rofit
onsa
leof
vehi
cle
2200
0P
rofit
on s
ale
of v
ehic
le22
000
Dis
tribu
tion,
adm
inis
trativ
e an
d ot
her e
xpen
ses
(172
500
)S
alar
ies
and
wag
es17
0 00
0C
redi
tlos
ses
250
0C
redi
tlos
ses
2 50
0Fi
nanc
e co
sts
(24
375)
Inte
rest
on
long
-term
loan
9 37
5In
tere
ston
bank
over
draf
t15
000
Inte
rest
on b
ank
over
draf
t15
000
Prof
it fo
r the
yea
r17
0 76
5O
ther
com
preh
ensi
ve in
com
e fo
r the
yea
r-
Tota
lcom
preh
ensi
vein
com
efo
rthe
year
170
765
Tota
l com
preh
ensi
ve in
com
e fo
r the
yea
r17
0 76
5
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
AB
C T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
Q
28 F
EBR
UA
RY 2
0.9
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-To
tal
pria
tion
equi
tyG
eorg
eA
man
iG
eorg
eA
man
i
RR
RR
RR
Bal
ance
sat
1
Mar
ch 2
0.8
R 000
R 000
R 000
R (000
)R -
R 000
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
AB
C T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
28 F
EBR
UA
RY 2
0.9
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-i
tiTo
tal it
acco
unts
pria
tion
equi
tyG
eorg
eA
man
iG
eorg
eA
man
i
Bal
ance
sat
R
RR
RR
R1
Mar
ch 2
0.8
000
000
000
(000
)-
000
Tota
lcom
preh
ensi
vein
com
e fo
r the
yea
r00
000
0
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
AB
C T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
28
FEB
RU
ARY
20.
9
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-i
tiTo
tal it
acco
unts
pria
tion
equi
tyG
eorg
eA
man
iG
eorg
eA
man
i
Bal
ance
sat
R
RR
RR
R1
Mar
ch 2
0.8
000
000
000
(000
)-
000
Tota
lcom
preh
ensi
vein
com
e fo
r the
yea
r00
0 00
0S
alar
ies
to p
artn
ers
000
000
(000
)
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
AB
C T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
28
FEB
RU
ARY
20.
9
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-i
tiTo
tal it
acco
unts
pria
tion
equi
tyG
eorg
eA
man
iG
eorg
eA
man
i
Bal
ance
sat
R
RR
RR
R1
Mar
ch 2
0.8
000
000
000
(000
)-
000
Tota
lcom
preh
ensi
vein
com
e fo
r the
yea
r00
000
0S
alar
ies
to p
artn
ers
000
000
(000
)D
raw
ings
(000
)(0
00)
(000
)
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
AB
C T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
28
FEB
RU
ARY
20.
9
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-i
tiTo
tal it
pria
tion
equi
tyG
eorg
eA
man
iG
eorg
eA
man
i
Bal
ance
sat
R
RR
RR
R1
Mar
ch 2
0.8
000
000
000
(000
)-
000
Tota
lcom
preh
ensi
vein
com
e fo
r the
yea
r00
000
0S
alar
ies
to p
artn
ers
000
000
(000
)D
raw
ings
(000
)(0
00)
(000
)In
tere
st o
n ca
pita
l(
)ac
coun
ts00
000
0(0
00)
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
AB
C T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
28
FEB
RU
ARY
20.
9
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-i
tiTo
tal it
pria
tion
equi
tyG
eorg
eA
man
iG
eorg
eA
man
i
Bal
ance
sat
R
RR
RR
R1
Mar
ch 2
0.8
000
000
000
(000
)-
000
Tota
lcom
preh
ensi
vein
com
e fo
r the
yea
r00
000
0S
alar
ies
to p
artn
ers
000
000
(000
)D
raw
ings
(000
)(0
00)
(000
)In
tere
st o
n ca
pita
l(
)ac
coun
ts00
000
0(0
00)
Inte
rest
on
curr
ent
acco
unts
000
(000
)00
0
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
AB
C T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
28
FEB
RU
ARY
20.
9
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-pr
iatio
nTo
tal
equi
tyG
eorg
eA
man
iG
eorg
eA
man
i
Bal
ance
sat
1
Mar
ch 2
0.8
R 000
R 000
R 000
R (000
)R -
R 000
Tota
lcom
preh
ensi
vein
com
e fo
r the
yea
r00
000
0S
alar
ies
to p
artn
ers
000
000
(000
)D
i(0
00)
(000
)(0
00)
Dra
win
gs(0
00)
(000
)(0
00)
Inte
rest
on
capi
tal
acco
unts
000
000
(000
)In
tere
ston
curr
ent
Inte
rest
on
curr
ent
acco
unts
000
(000
)00
0P
artn
ers’
sha
re o
f to
talc
ompr
inco
me
000
000
(000
)to
tal c
ompr
. inc
ome
000
000
(000
)B
alan
ces
at
28 F
ebru
ary
20.9
000
000
000
000
000
000
EXA
MPL
E 1.
1:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Pau
l &
Sha
rkTr
ader
sat
31D
ecem
ber2
08
the
end
ofth
efin
anci
alea
rS
hark
Trad
ers,
at 3
1 D
ecem
ber 2
0.8,
the
end
of th
e fin
anci
al y
ear:
Cap
ital:
Pau
lR
62 5
00C
apita
l:S
hark
R75
000
Cap
ital:
Sha
rkR
75 0
00C
urre
nt a
ccou
nt:
Pau
l (D
r) (1
Jan
uary
20.
8)R
2 50
0C
urre
nt a
ccou
nt:
Sha
rk (C
r) (1
Jan
uary
20.
8)R
6 00
0To
talc
ompr
ehen
sive
inco
me
fort
heye
arR
170
765
Tota
l com
preh
ensi
ve in
com
e fo
r the
yea
rR
170
765
Ban
k ov
erdr
aft
R35
000
Req
uire
d:U
sin g
the
info
rmat
ion
abov
e, p
repa
re a
n ex
tract
of t
he s
tate
men
t of c
hang
es
g,p
pg
in e
quity
for t
he y
ear e
nded
31
Dec
embe
r 20.
8.
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
31
DEC
EMB
ER 2
0.8
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-To
tal
acco
unts
pppr
iatio
neq
uity
Paul
Shar
kPa
ulSh
ark
Bl
tR
RR
RR
RB
alan
ces
at
1 Ja
nuar
y 20
.8R
62 5
00R
75 0
00R
(2 5
00)
R 6 00
0R -
R14
1 00
0
EXA
MPL
E 1.
2:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Pau
l &
Sha
rkTr
ader
sat
31D
ecem
ber2
08
the
end
ofth
efin
anci
alea
rS
hark
Trad
ers,
at 3
1 D
ecem
ber 2
0.8,
the
end
of th
e fin
anci
al y
ear:
Tota
l com
preh
ensi
ve in
com
e fo
r the
yea
rR
170
765
Dra
win
gs:
Pau
lR
450
0D
raw
ings
: P
aul
R4
500
Dra
win
gs: S
hark
R6
000
Sal
arie
s an
d w
ages
R25
0 00
0A
dditi
onal
info
rmat
ion:
Add
ition
al in
form
atio
n:E
ach
partn
er is
ent
itled
to a
sal
ary
of R
500
0 pe
r mon
th.
Req
uire
d:U
sin g
the
info
rmat
ion
abov
e, p
repa
re a
n ex
tract
of t
he s
tate
men
t of c
hang
es
g,p
pg
in e
quity
for t
he y
ear e
nded
31
Dec
embe
r 20.
8.
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
31
DEC
EMB
ER 2
0.8
Ca p
ital
Cur
rent
ac
coun
tsA
ppro
-To
tal
pac
coun
tspp
pria
tion
equi
tyPa
ulSh
ark
Paul
Shar
k
Tt
lh
iR
RR
RR
RTo
talc
ompr
ehen
sive
inco
me
for t
he y
ear
170
765
170
765
Sal
arie
sto
par
tner
s60
000
6000
0(1
20 0
00)
EXA
MPL
E 1.
3:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Pau
l &
Sha
rkTr
ader
sat
31D
ecem
ber2
08
the
end
ofth
efin
anci
alye
ar:
Sha
rkTr
ader
s, a
t 31
Dec
embe
r 20.
8, th
e en
d of
the
finan
cial
yea
r:
Tota
l com
preh
ensi
ve in
com
e fo
r the
yea
rR
170
765
Dra
win
gs:
Pau
lR
450
0D
raw
ings
: P
aul
R4
500
Dra
win
gs:
Sha
rk
R
6 00
0S
alar
ies
and
wag
es
R25
0 00
0A
dditi
onal
info
rmat
ion:
Eac
h pa
rtner
is e
ntitl
ed to
a s
alar
y of
R5
000
per m
onth
. Onl
y R
4000
0 ha
s be
en p
aid
to e
ach
partn
er a
s sa
lary
and
thes
e am
ount
s ar
e in
clud
ed in
the
sala
ries
and
wag
es fi
gure
.
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
31
DEC
20.
8
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-pr
iatio
nTo
tal
equi
tyPa
ulSh
ark
Paul
Shar
kR
RR
RR
RTo
talc
ompr
ehen
sive
RR
RR
RR
inco
me
for t
he y
ear
170
765
170
765
Sal
arie
sto
par
tner
s60
000
6000
0(1
20 0
00)
Dra
win
gs(4
450
0)(4
600
0)(9
0 50
0)
EXA
MPL
E 1.
4:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Pau
l &
Sha
rkTr
ader
sat
31D
ecem
ber2
08
the
end
ofth
efin
anci
alye
ar:
Sha
rkTr
ader
s, a
t 31
Dec
embe
r 20.
8, th
e en
d of
the
finan
cial
yea
r:
Cap
ital:
Pau
lR
62 5
00C
apita
l: S
hark
R75
000
pC
urre
nt a
ccou
nt:
Pau
l (D
r) (1
Jan
uary
20.
8)R
2 50
0C
urre
nt a
ccou
nt:
Sha
rk (C
r) (1
Jan
uary
20.
8)R
6 00
0
Thhi
il
hf
lli
The
partn
ersh
ip a
gree
men
t stip
ulat
es th
e fo
llow
ing:
•Inte
rest
on
capi
tal a
t a ra
te o
f 10%
per
ann
um.
•Inte
rest
on
the
open
ing
bala
nces
of t
he c
urre
nt a
ccou
nts
at 5
% p
er a
nnum
.R
equi
red:
Req
uire
d:U
sing
the
info
rmat
ion
abov
e, p
repa
re a
n ex
tract
of t
he s
tate
men
t of c
hang
es in
eq
uity
for t
he y
ear e
nded
31
Dec
embe
r 20.
8.
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
FOR
TH
EYE
AR
EN
DED
31
DEC
20.
8
Cap
ital
Cur
rent
tA
ppro
-To
tal
Cap
ital
acco
unts
App
ropr
iatio
nTo
tal
equi
tyPa
ulSh
ark
Paul
Shar
k
Inte
rest
onca
pita
lR
RR 625
0R 7
500
R(1
375
0)R
Inte
rest
on c
apita
l6
250
7 50
0(1
3 75
0)In
tere
st o
n cu
rren
t acc
ount
s(1
25)
300
(175
)
AP
PR
OP
RIA
TIO
NA
CC
OU
NT
AP
PR
OP
RIA
TIO
N A
CC
OU
NT
TOTA
LC
OM
PREH
ENSI
VEIN
CO
ME
TOTA
L C
OM
PREH
ENSI
VE IN
CO
ME
+/-T
RA
NSA
CTI
ON
S W
ITH
PA
RTN
ERS
MIN
US
TRA
NSF
ERS
TOTR
AN
SFER
S TO
R
ESER
VES
APP
OR
TIO
NA
PPO
RTI
ON
B
ETW
EEN
PA
RTN
ERS
EXA
MPL
E 1.
5:A
ssum
ing
that
Pau
l & S
hark
sha
re p
rofit
s an
d lo
sses
in th
e ra
tio o
f 3:2
resp
ectiv
ely,
l
lt
hth
ii
bl
ith
iti
till
bh
d
PAU
L &
SH
AR
K T
RA
DER
SST
ATEM
ENT
OF
CH
AN
GES
INEQ
UIT
YFO
RTH
EYE
AR
END
ED31
DEC
208
calc
ulat
e ho
w th
e re
mai
ning
bal
ance
in th
e ap
prop
riatio
n ac
coun
t will
be
shar
ed
betw
een
the
partn
ers
and
disc
lose
d in
the
stat
emen
t of c
hang
es in
equ
ity.
STAT
EMEN
T O
F C
HA
NG
ES IN
EQ
UIT
Y FO
R T
HE
YEA
R E
ND
ED 3
1 D
EC 2
0.8
Cap
ital
Cur
rent
ac
coun
tsA
ppro
-pr
iatio
nTo
tal
equi
tyPa
ulSh
ark
Paul
Shar
kPa
ulSh
ark
Paul
Shar
kB
alan
ces
at
1 Ja
nuar
y 20
.8R
62 5
00R
75 0
00R
(2 5
00)
R 6 00
0R -
R14
1 00
0To
talc
ompr
ehen
sive
pin
com
e fo
r the
yea
r17
0 76
517
0 76
5S
alar
ies
to p
artn
ers
60 0
0060
000
(120
000
)D
raw
ings
(44
500)
(46
000)
(90
500)
Inte
rest
on
capi
tal
6 25
07
500
(13
750)
Inte
rest
on
curr
ent
acco
unts
(125
)30
0(1
75)
Par
tner
s’sh
are
ofto
tal
Par
tner
s s
hare
of t
otal
com
preh
ensi
vein
com
e22
104
14 7
36(3
6 84
0)B
alan
ces
at
31D
ecem
ber2
0.8
6250
075
000
4122
942
536
-22
126
531
Dec
embe
r 20.
862
500
75 0
0041
229
42 5
3622
1 26
5
AB
CTR
AD
ERS
D: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
FIN
AN
CIA
L PO
SITI
ON
AB
CTR
AD
ERS
STAT
EMEN
T O
F FI
NA
NC
IAL
POSI
TIO
N A
S AT
28
FEB
RU
ARY
20.
9
ASS
ETS
RA
SSET
SN
on-c
urre
ntas
sets
000
Pro
perty
,pla
nt a
nd e
quip
men
t00
0...
000
...
000
Cur
rent
ass
ets
Inve
ntor
ies
000
Trad
ere
ceiv
able
s00
0Tr
ade
rece
ivab
les
000
...To
tal a
sset
s00
0
AB
CTR
AD
ERS
STAT
EMEN
T O
F FI
NA
NC
IAL
POSI
TIO
N A
S AT
28
FEB
RU
ARY
20.
9 RA
SSET
SR
Non
-cur
rent
asse
ts00
0P
rope
rtypl
anta
ndeq
uipm
ent
000
Pro
perty
,pla
nt a
nd e
quip
men
t00
0C
urre
nt a
sset
sIn
vent
orie
s00
0Tr
ade
rece
ivab
les
000
Trad
e re
ceiv
able
s00
0To
tal a
sset
s00
0
EQU
ITY
AN
DLI
AB
ILIT
IES
EQU
ITY
AN
D L
IAB
ILIT
IES
Tota
lequ
ity00
0C
apita
l (A
:R00
0; B
: R00
0; C
: R00
0)00
0C
urre
ntac
coun
ts(A
:R00
0;B
:R00
0;C
:R00
0)00
0C
urre
nt a
ccou
nts
(A:R
000;
B: R
000;
C: R
000)
000
Oth
er c
ompo
nent
s of
equ
ity00
0To
tal l
iabi
litie
s00
0N
tli
bilit
i00
0N
on-c
urre
nt li
abili
ties
000
Long
-term
borr
owin
gs00
0C
urre
nt li
abili
ties
000
Td
dh
bl00
0Tr
ade
and
othe
rpay
able
s00
0C
urre
ntpo
rtion
of l
ong-
term
bor
row
ings
000
Tota
l equ
ity a
nd li
abili
ties
000
EXA
MPL
E 1.
6:PA
UL
& S
HA
RK
TR
AD
ERS
STAT
EMEN
T O
F C
HA
NG
ES IN
EQ
UIT
Y FO
R T
HE
YEA
R E
ND
ED
31 D
ECEM
BER
20.
8
Cap
ital
Cur
rent
tA
ppro
-To
tal
Cap
ital
acco
unts
App
ropr
iatio
nTo
tal
equi
tyPa
ulSh
ark
Paul
Shar
kB
alan
ces
at
1Ja
nuar
y20
8R
6250
0R
7500
0R
(250
0)R 6
000
RR
141
000
1 Ja
nuar
y 20
.862
500
75 0
00(2
500
)6
000
-14
1 00
0…
……
.…
……
.…
……
.……
….
……
….
……
….
……
….
……
….
……
….
……
….…
……
.…
……
.…
……
.…
……
.B
alan
ces
atB
alan
ces
at
31 D
ecem
ber 2
0.8
62 5
0075
000
33 8
6149
904
-22
1 26
5
PAU
L&
SHA
RK
TRA
DER
S
R
PAU
L&
SHA
RK
TRA
DER
SST
ATEM
ENT
OF
FIN
AN
CIA
L PO
SITI
ON
AS
AT 3
1 D
ECEM
BER
20.
8 (e
xtra
ct)
REQ
UIT
YA
ND
LIA
BIL
ITIE
STo
tale
quity
221
265
Cap
ital(
Pau
l:R
6250
0;S
hark
:R75
000)
137
500
Cap
ital (
Pau
l: R
62 5
00; S
hark
: R75
000
)13
7 50
0C
urre
nt a
ccou
nts
(Pau
l: R
33 8
61; S
hark
: R49
904
)83
765
EXA
MPL
E 1.
7:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Pau
l &
Sha
rk T
rade
rs, a
t 31
Dec
embe
r 20.
8, th
e en
d of
the
finan
cial
yea
r:
Cre
dito
rs c
ontro
lR
140
000
Set
tlem
ent d
isco
unt g
rant
edR
2 50
0f
Allo
wan
ce fo
r set
tlem
ent d
isco
unt r
ecei
ved
R6
000
Long
-term
loan
from
Pau
lR
150
000
Req
uire
d:U
sing
the
info
rmat
ion
abov
epr
epar
ean
extra
ctof
the
stat
emen
toff
inan
cial
PAU
L&
SHA
RK
TRA
DER
S
Usi
ng th
e in
form
atio
n ab
ove,
pre
pare
an
extra
ct o
f the
sta
tem
ent o
f fin
anci
al
posi
tion
as a
t 31
Dec
embe
r 20.
8.
EQU
ITY
AN
D L
IAB
ILIT
IES
RTo
tale
quity
221
265
STAT
EMEN
T O
F FI
NA
NC
IAL
POSI
TIO
N A
S AT
31
DEC
EMB
ER 2
0.8
(ext
ract
)
Tota
lequ
ity22
126
5C
apita
l (P
aul:
R62
500
; Sha
rk: R
75 0
00)
137
500
Cur
rent
acc
ount
s (P
aul:
R33
861
; Sha
rk: R
49 9
04 )
83 7
65To
tall
iabi
litie
s28
400
0To
tal l
iabi
litie
s28
4 00
0N
on-c
urre
nt li
abili
ties
150
000
Long
-term
borr
owin
gs15
0 00
0C
urre
ntlia
bilit
ies
134
000
Cur
rent
liab
ilitie
s13
4 00
0Tr
ade
and
othe
rpay
able
s R
(140
000
–6
000)
134
000
Tota
l equ
ity a
nd li
abili
ties
505
265
STU
DY
UN
IT 3
CH
AN
GES
INTH
EO
WN
ERSH
IPST
RU
CTU
RE
OF
CH
AN
GES
IN T
HE
OW
NER
SHIP
STR
UC
TUR
E O
F PA
RTN
ERSH
IPS
A: R
ECO
RD
ING
VA
LUA
TIO
N A
DJU
STM
ENTS
Exis
ting
part
ners
’an
dVa
luat
ion
acco
unt
gp
Cap
ital A
ccou
nts
Valu
atio
n
Dr:
Dec
reas
esin
valu
eof
App
ropr
iate
the
bala
ncin
g
Valu
atio
n A
djus
tmen
ts
Dr:
Dec
reas
es in
val
ue o
f as
sets
Cr:
Inc
reas
es in
val
ue o
f
App
ropr
iate
the
bala
ncin
g fig
ure
of th
e “V
alua
tion
acco
unt”
to p
artn
ers
acco
rdin
g to
thei
r as
sets
pg
prof
it-sh
arin
g ra
tio
EXA
MPL
E 1:
A a
nd B
wer
e in
par
tner
ship
trad
ing
as A
B T
rade
rs a
nd s
harin
g pr
ofits
and
lo
sses
in th
e ra
tio 3
:1 re
spec
tivel
y. T
hey
deci
ded
to a
dmit
C w
ith e
ffect
from
1Ja
nuar
y20
.7.
The
follo
win
gin
form
atio
nap
pear
edin
the
acco
untin
gre
cord
sof
1 Ja
nuar
y 20
.7.
The
follo
win
g in
form
atio
n ap
pear
ed in
the
acco
untin
g re
cord
s of
AB
Tra
ders
as
at 3
1 D
ecem
ber 2
0.6:
Cap
ital:
AR
126
000
Cap
ital:
AR
126
000
Cap
ital:
BR
42 0
00To
tal a
sset
s: (E
quip
men
t R11
1 00
0 an
d in
vent
ory
R57
000
)R
168
000
In p
repa
ratio
n fo
r the
cha
nge
in th
e ow
ners
hip
stru
ctur
e of
AB
Tra
ders
, th
e pa
rtner
s ag
reed
that
equ
ipm
ent b
e va
lued
at R
126
000
and
inve
ntor
y at
R52
000
.
Req
uire
d:
Pre
pare
the
valu
atio
n ac
coun
t to
reco
rd th
e va
luat
ion
adju
stm
ent o
n 31
Dec
20.
6.p
j
EXA
MPL
E 1
(con
tinue
d):
A a
nd B
wer
e in
par
tner
ship
trad
ing
as A
B T
rade
rs a
nd s
harin
g pr
ofits
and
lo
sses
in th
e ra
tio 3
:1 re
spec
tivel
y. T
hey
deci
ded
to a
dmit
C w
ith e
ffect
from
1 Ja
nuar
y 20
.7. T
he fo
llow
ing
info
rmat
ion
appe
ared
in th
e ac
coun
ting
reco
rds
ofA
B T
rade
rs a
s at
31
Dec
embe
r 20.
6:
Cap
ital:
AR
126
000
Cap
ital:
BR
42 0
00p
Tota
l ass
ets:
(Equ
ipm
ent R
111
000
and
inve
ntor
y R
57 0
00)
R
168
000
In p
repa
ratio
n fo
r the
cha
nge
in th
e ow
ners
hip
stru
ctur
e of
AB
Tra
ders
, th
e pa
rtner
s p
pg
p,
pag
reed
that
equ
ipm
ent b
e va
lued
at R
126
000
and
inve
ntor
y at
R52
000
.
Req
uire
d:
qP
repa
re th
e va
luat
ion
acco
unt t
o re
cord
the
valu
atio
n ad
just
men
t on
31 D
ec 2
0.6.
Dr
Valu
atio
n ac
coun
t
Cr
RR
RR
Inve
ntor
y5
000
Equ
ipm
ent
15 0
00
EXA
MPL
E 1
(con
tinue
d):
A a
nd B
wer
e in
par
tner
ship
trad
ing
as A
B T
rade
rs a
nd s
harin
g pr
ofits
and
l
ith
ti3
1ti
lTh
did
dt
dit
Cith
fftf
loss
es in
the
ratio
3:1
resp
ectiv
ely.
The
y de
cide
d to
adm
it C
with
effe
ct fr
om1
Janu
ary
20.7
. Th
e fo
llow
ing
info
rmat
ion
appe
ared
in th
e ac
coun
ting
reco
rds
ofA
B T
rade
rs a
s at
31
Dec
embe
r 20.
6:
Cap
ital:
AR
126
000
Cap
ital:
BR
42 0
00To
tala
sset
s:(E
quip
men
tR11
100
0an
din
vent
ory
R57
000)
R16
800
0To
tal a
sset
s: (E
quip
men
t R11
1 00
0 an
d in
vent
ory
R57
000
)R
168
000
In p
repa
ratio
n fo
r the
cha
nge
in th
e ow
ners
hip
stru
ctur
e of
AB
Tra
ders
, th
e pa
rtner
s ag
reed
that
equi
pmen
tbe
valu
edat
R12
600
0an
din
vent
ory
atR
5200
0.ag
reed
that
equ
ipm
ent b
e va
lued
at R
126
000
and
inve
ntor
y at
R52
000
.
Req
uire
d:
Pre
pare
the
valu
atio
n ac
coun
t to
reco
rd th
e va
luat
ion
adju
stm
ent o
n 31
Dec
20.
6.p
j
Dr
Valu
atio
n ac
coun
t
Cr
RR
It
500
0E
it
1500
0In
vent
ory
5 00
0E
quip
men
t15
000
Cap
ital:
A (3
/4 x
R10
000
)7
500
Cap
ital:
B (1
/4 x
R10
000
)2
500
15 0
0015
000
B: C
ALC
ULA
TIO
N O
F G
OO
DW
ILL
AC
QU
IRED
The
capi
tal c
ontri
butio
n of
the
inco
min
g pa
rtner
MU
LTIP
LIED
BY
MU
LTIP
LIED
BY
Inve
rse
of th
e in
com
ing
partn
er’s
sha
re
Tota
l equ
ity o
f exi
stin
g pa
rtner
s(i
li
fl
tidj
tt
)
MIN
US
(incl
usiv
e of
val
uatio
n ad
just
men
ts)
AN
D
Cap
ital c
ontri
butio
n by
the
inco
min
g pa
rtner
==G
OO
DW
ILL
EXA
MPL
E2:
Aan
dB
wer
ein
partn
ersh
iptra
ding
asAB
Trad
ers
and
shar
ing
prof
itsan
dlo
sses
inth
eti
31
til
Thd
idd
td
itC
ithth
fftf
1J
207
Cra
tio3:
1re
spec
tivel
y.Th
eyde
cide
dto
adm
itC
with
the
effe
ctfro
m1
Janu
ary
20.7
.C
will
pay
R30
000
cash
and
cont
ribut
eeq
uipm
ent
toth
eva
lue
ofR
4000
0fo
rhi
s20
%in
tere
stin
the
fair
valu
eof
the
net
asse
tsof
the
new
partn
ersh
ip.
The
follo
win
gin
form
atio
nap
pear
edin
the
acco
untin
gre
cord
sof
the
partn
ersh
ipat
31D
ecem
ber2
0.6:
info
rmat
ion
appe
ared
inth
eac
coun
ting
reco
rds
ofth
epa
rtner
ship
at31
Dec
embe
r20.
6:
Cap
ital:
AR
126
000
Cap
ital:
BR
42 0
00T
l(E
iR
111
000
di
R00
0)R
168
000
Tota
l ass
ets:
(Equ
ipm
ent R
111
000
and
inve
ntor
y R
57 0
00)
R16
8 00
0
In p
repa
ratio
n fo
r the
cha
nge
in th
e ow
ners
hip
stru
ctur
e of
the
partn
ersh
ip,
the
partn
ers
agre
edth
ateq
uipm
ents
houl
dbe
valu
edat
R12
600
0an
din
vent
ory
atR
5200
0ag
reed
that
equ
ipm
ent s
houl
d be
val
ued
at R
126
000
and
inve
ntor
y at
R52
000
.
Req
uire
d:
Cal
cula
te th
e go
odw
ill of
the
partn
ersh
ip o
n 31
Dec
embe
r 20.
6.
CA
PITA
L C
ON
TRIB
UTI
ON
OF
C T
IMES
INVE
RSE
OF
C’S
SH
AR
E:
R(3
0 00
0 +
40 0
00) x
5/1
= R
350
000
EQU
ITY
OF
A, B
AN
D C
: R
[(126
000
+ 7
500
) + (4
2 00
0 +
2 50
0) +
(30
000
+ 40
000
)] =
R24
8 00
0
GO
OD
WIL
L =
R10
2 00
0
C: R
ECO
RD
ING
GO
OD
WIL
L
RR
Cap
ital:
A76
500Goo
dwill
Cap
ital:
B25
500
102
000
RR
Bl
b/d
126
000
Cap
ital:
A
Bal
ance
b/d
126
000
Valu
atio
n ac
coun
t7
500
Goo
dwill
76 5
0021
0 00
0C
apita
l: B
RR
RR
Bal
ance
b/d
42 0
00Va
luat
ion
acco
unt
2 50
0G
oodw
ill25
500
Goo
dwill
25 5
0070
000
STU
DY
UN
IT 4
THE
LIQ
UID
ATI
ON
OF
APA
RTN
ERSH
IPTH
E LI
QU
IDA
TIO
N O
F A
PA
RTN
ERSH
IP
A: L
IQU
IDAT
ION
MET
HO
DS
1.Si
mul
tane
ous
liqui
datio
n:
Ass
ets
ofth
epa
rtner
ship
are
sold
and
liabi
litie
sse
ttled
over
ash
ortp
erio
dof
time.
Any
rem
aini
ngca
shis
dist
ribut
edto
the
partn
ers
acco
rdin
gto
thei
rca
shis
dist
ribut
edto
the
partn
ers
acco
rdin
gto
thei
rca
pita
lacc
ount
bala
nces
.
2.Pi
ecem
eal l
iqui
datio
n:
Ass
ets
are
sold
inpi
ecem
ealf
ashi
onan
dav
aila
ble
pca
shis
first
used
tose
ttle
liabi
litie
s,an
don
ceth
elia
bilit
ies
have
been
paid
infu
ll,th
ere
mai
ning
cash
ispa
idto
the
partn
ers.
pp
B: S
IMU
LTA
NEO
US
LIQ
UID
ATI
ON
OF
A P
AR
TNER
SHIP
Liqu
idat
ion
Acc
ount
Ban
kA
ccou
ntPa
rtne
rsC
apita
l Acc
ount
s
All
asse
ts,
liabi
litie
s (e
xcep
t B
ank)
and
Cas
h re
ceiv
ed o
n l
ft
dA
sset
s an
d li
bilit
it
kB
ank)
and
co
ntra
acc
ount
s of
ass
ets
are
tf
dt
sale
of a
sset
s an
d ca
sh p
aid
in
settl
emen
t of
liabi
litie
s ta
ken
over
by
partn
ers.
trans
ferr
ed to
th
is a
ccou
ntlia
bilit
ies
(Con
tra
to li
quid
atio
n ac
coun
t)
Sha
re o
f pr
ofits
/loss
es fr
om
liqui
datio
n ac
coun
tC
ontra
from
ba
nk a
ccou
ntFi
nal s
ettle
men
t Fi
nal s
ettle
men
t
IMPO
RTA
NT
Ass
et re
plac
emen
t res
erve
and
goo
dwill
acco
unts
are
NO
T tra
nsfe
rred
to th
e “L
iqui
datio
n ac
coun
t” b
ut c
lose
d of
f to
partn
ers’
cap
ital a
ccou
nts
QU
ESTI
ON
1
Mar
kan
dFi
shar
ein
partn
ersh
ip,
shar
ing
prof
itsan
dlo
sses
inth
era
tioof
2:1
pp,
gp
resp
ectiv
ely.
They
deci
ded
todi
ssol
veth
epa
rtner
ship
sim
ulta
neou
sly
atth
een
dof
the
curr
ent
finan
cial
year
and
the
follo
win
gin
form
atio
nis
extra
cted
from
the
partn
ersh
ipac
coun
ting
reco
rds
onth
isda
te.
RRC
apita
l:M
ark
330
000
Cap
ital:
Fish
280
000
L and
and
build
ings
atco
st33
000
0a
da
dbu
dgs
aco
s33
000
0Fu
rnitu
reat
cost
4500
0A
ccum
ulat
edde
prec
iatio
n10
000
Goo
dwill
135
000
At
lt
105
000
Ass
etre
plac
emen
tres
erve
105
000
Deb
tors
cont
rol
160
000
Ban
k(d
ebit)
140
000
Long
-term
loan
(AB
CB
ank)
8500
0Lo
ngte
rmlo
an(A
BC
Ban
k)85
000
Add
ition
al in
form
atio
n:(1
)The
land
and
build
ings
wer
eso
ldfo
rR45
000
0ca
sh.
(2)T
helo
ng-te
rmlo
anw
asre
paid
infu
ll.(3
)The
furn
iture
was
sold
forc
ash
ata
prof
itof
R3
000.
(4)9
5%of
the
debt
ors
settl
edth
eir
acco
unts
ata
disc
ount
of10
%.
The
outs
tand
ing
bala
nce
of5%
was
rega
rded
asirr
ecov
erab
leba
lanc
eof
5%w
asre
gard
edas
irrec
over
able
.(5
)The
liqui
datio
nco
sts
amou
nted
toR
600
0,an
dw
ere
paid
fori
nca
sh.
Req
uire
d: P
repa
re th
e ac
coun
ts in
the
gene
ral l
edge
r to
diss
olve
the
partn
ersh
ip.
CA
LCU
LATI
ON
1
Allo
catio
n of
goo
dwill
to p
artn
ers:
•M
ark
=R
135
000
x 2/
3 =
R90
000
gp
•Fi
sh=
R13
5 00
0 x
1/3
= R
45 0
00
QU
ESTI
ON
1 (c
ontin
ued)
:
Mar
kan
dFi
shar
ein
partn
ersh
ip,
shar
ing
prof
itsan
dlo
sses
inth
era
tioof
2:1
resp
ectiv
ely.
They
deci
ded
todi
ssol
veth
epa
rtner
ship
sim
ulta
neou
sly
atth
een
dof
the
curr
ent
finan
cial
year
and
the
follo
win
gin
form
atio
nis
extra
cted
from
the
partn
ersh
ipac
coun
ting
reco
rds
onth
isda
te.
RRC
apita
l:M
ark
330
000
Cap
ital:
Fish
280
000
Land
and
build
ings
atco
st33
000
0Fu
rnitu
reat
cost
4500
0A
ccum
ulat
edde
prec
iatio
n10
000
Goo
dwill
135
000
Ass
etre
plac
emen
tres
erve
105
000
Ass
etre
plac
emen
tres
erve
105
000
Deb
tors
cont
rol
160
000
Ban
k(d
ebit)
140
000
Lon g
-term
loan
(AB
CB
ank)
8500
0g
()
Add
ition
al in
form
atio
n:(1
)The
land
and
build
ings
wer
eso
ldfo
rR45
000
0ca
sh.
(2)T
helo
ngte
rmlo
anw
asre
paid
infu
ll(2
)The
long
-term
loan
was
repa
idin
full.
(3)T
hefu
rnitu
rew
asso
ldfo
rcas
hat
apr
ofit
ofR
300
0.(4
)95%
ofth
ede
btor
sse
ttled
thei
rac
coun
tsat
adi
scou
ntof
10%
.Th
eou
tsta
ndin
gba
lanc
eof
5%w
asre
gard
edas
irrec
over
able
.g
(5)T
heliq
uida
tion
cost
sam
ount
edto
R6
000,
and
wer
epa
idfo
rin
cash
.
Req
uire
d: P
repa
re th
e ac
coun
ts in
the
gene
ral l
edge
r to
diss
olve
the
partn
ersh
ip.
CA
LCU
LATI
ON
2
Allo
catio
n of
goo
dwill
to p
artn
ers:
•M
ark
=R
135
000
x 2/
3 =
R90
000
gp
•Fi
sh=
R13
5 00
0 x
1/3
= R
45 0
00
Allo
catio
n of
“A
sset
rep
lace
men
t res
erve
” to
par
tner
s:
•M
ark
=R
105
000
x 2/
3 =
R70
000
•Fi
sh=
R10
5 00
0 x
1/3
= R
35 0
00
QU
ESTI
ON
1 (c
ontin
ued)
:
Mar
kan
dFi
shar
ein
partn
ersh
ip,
shar
ing
prof
itsan
dlo
sses
inth
era
tioof
2:1
resp
ectiv
ely.
They
deci
ded
todi
ssol
veth
epa
rtner
ship
sim
ulta
neou
sly
atth
een
dof
the
curr
ent
finan
cial
year
and
the
follo
win
gin
form
atio
nis
extra
cted
from
the
partn
ersh
ipac
coun
ting
reco
rds
onth
isda
te.
RRC
apita
l:M
ark
330
000
Cap
ital:
Fish
280
000
Land
and
build
ings
atco
st33
000
0Fu
rnitu
reat
cost
4500
0A
ccum
ulat
edde
prec
iatio
n10
000
Goo
dwill
135
000
Ass
etre
plac
emen
tres
erve
105
000
Ass
etre
plac
emen
tres
erve
105
000
Deb
tors
cont
rol
160
000
Ban
k(d
ebit)
140
000
Lon g
-term
loan
(AB
CB
ank)
8500
0g
()
Add
ition
al in
form
atio
n:(1
)The
land
and
build
ings
wer
eso
ldfo
rR45
000
0ca
sh.
(2)T
helo
ngte
rmlo
anw
asre
paid
infu
ll(2
)The
long
-term
loan
was
repa
idin
full.
(3)T
hefu
rnitu
rew
asso
ldfo
rcas
hat
apr
ofit
ofR
300
0.(4
)95%
ofth
ede
btor
sse
ttled
thei
rac
coun
tsat
adi
scou
ntof
10%
.Th
eou
tsta
ndin
gba
lanc
eof
5%w
asre
gard
edas
irrec
over
able
.g
(5)T
heliq
uida
tion
cost
sam
ount
edto
R6
000,
and
wer
epa
idfo
rin
cash
.
Req
uire
d: P
repa
re th
e ac
coun
ts in
the
gene
ral l
edge
r to
diss
olve
the
partn
ersh
ip.
CA
LCU
LATI
ON
3
Proc
eeds
onsa
leof
furn
iture
:R
Bal
ance
(at c
ost) −
(giv
en)
45 0
00
Proc
eeds
on
sale
of f
urni
ture
:
Less
: A
ccum
ulat
ed d
epre
ciat
ion −
(giv
en)
(1
0 00
0)C
arry
ing
amou
nt a
t dat
e of
liqu
idat
ion
35 0
00A
dd:
Prof
iton
sale
–(g
iven
)3
000
Add
: Pr
ofit
on s
ale
(g
iven
)3
000
Proc
eeds
on
sale
of f
urni
ture
38 0
00
QU
ESTI
ON
1 (c
ontin
ued)
:
Mar
kan
dFi
shar
ein
partn
ersh
ip,
shar
ing
prof
itsan
dlo
sses
inth
era
tioof
2:1
resp
ectiv
ely.
They
deci
ded
todi
ssol
veth
epa
rtner
ship
sim
ulta
neou
sly
atth
een
dof
the
curr
ent
finan
cial
year
and
the
follo
win
gin
form
atio
nis
extra
cted
from
the
partn
ersh
ipac
coun
ting
reco
rds
onth
isda
te.
RRC
apita
l:M
ark
330
000
Cap
ital:
Fish
280
000
Land
and
build
ings
atco
st33
000
0g
Furn
iture
atco
st45
000
Acc
umul
ated
depr
ecia
tion
1000
0G
oodw
ill13
500
0A
tl
t10
500
0A
sset
repl
acem
entr
eser
ve10
500
0D
ebto
rsco
ntro
l16
000
0B
ank
(deb
it)14
000
0Lo
ng-te
rmlo
an(A
BC
Ban
k)85
000
Long
term
loan
(AB
CB
ank)
8500
0
Add
ition
al in
form
atio
n:(1
)The
land
and
build
ings
wer
eso
ldfo
rR45
000
0ca
sh.
(2)T
helo
ng-te
rmlo
anw
asre
paid
infu
ll.(3
)The
furn
iture
was
sold
forc
ash
ata
prof
itof
R3
000.
(4)9
5%of
the
debt
ors
settl
edth
eir
acco
unts
ata
disc
ount
of10
%.
The
outs
tand
ing
bl
f5%
dd
ibl
bala
nce
of5%
was
rega
rded
asirr
ecov
erab
le.
(5)T
heliq
uida
tion
cost
sam
ount
edto
R6
000,
and
wer
epa
idfo
rin
cash
.R
equi
red:
Pre
pare
the
acco
unts
in th
e ge
nera
l led
ger t
o di
ssol
ve th
e pa
rtner
ship
.
C: P
IEC
EMEA
L LI
QU
IDA
TIO
N
Ass
ets
are
sold
in p
iece
mea
l fas
hion
(bit
by b
it) a
nd
ilbl
hi
fit
dt
ttlli
bilit
id
Ass
ets
are
sold
in p
iece
mea
l fas
hion
(bit
by b
it) a
nd
ilbl
hi
fit
dt
ttlli
bilit
id
avai
labl
e ca
sh is
firs
t use
d to
set
tle li
abili
ties
and
ther
eafte
r pai
d ou
t as
inte
rim re
paym
ents
to p
artn
ers.
avai
labl
e ca
sh is
firs
t use
d to
set
tle li
abili
ties
and
ther
eafte
r pai
d ou
t as
inte
rim re
paym
ents
to p
artn
ers.
D: P
IEC
EMEA
L LI
QU
IDA
TIO
N -
GO
LDEN
RU
LES
•O
pen
the
appl
icab
leac
coun
tsin
colu
mna
rfor
mw
ithba
lanc
es;
ppp
;
•C
lose
off“
Res
erve
and
Goo
dwill”
acco
unts
topa
rtner
sca
pita
lacc
ount
s;
•A
ppor
tion
prof
itsor
loss
esfro
mea
chre
alis
atio
nof
asse
tsto
capi
tala
ccou
nts;
App
ortio
npr
ofits
orlo
sses
from
each
real
isat
ion
ofas
sets
toca
pita
lacc
ount
s;
•W
hen
cash
beco
mes
avai
labl
e,al
llia
bilit
ies
mus
tbe
paid
until
they
are
fully
settl
edbe
fore
partn
ers
geta
nyam
ount
asca
pita
lrep
aym
ent;
•O
nce
the
liabi
litie
sar
efu
llyse
ttled
,a
calc
ulat
ion
isdo
neto
dete
rmin
eho
win
terim
repa
ymen
tsm
ustb
em
ade
topa
rtner
s,if
cash
isav
aila
ble:
oC
omm
ence
with
the
bala
nces
atth
eda
tew
hen
cash
isav
aila
ble
for
dist
ribut
ion;
oA
ssum
eth
atun
sold
asse
tsar
ew
orth
less
and
appo
rtion
the
pote
ntia
ldef
icit
ppp
toth
epa
rtner
s’ca
pita
lacc
ount
sac
cord
ing
toth
eirp
rofit
-sha
ring
ratio
;
oIf
apa
rtner
’sca
pita
lacc
ount
resu
ltsin
ade
ficit,
assu
me
that
the
partn
eris
inso
lven
tan
dtra
nsfe
rth
ede
ficit
toth
eot
her
partn
ers
acco
rdin
gtotheir
prof
it-sh
arin
gra
tio;
oTh
esu
mo f
the
bala
nces
ofth
eso
lven
tpa
rtner
s’ca
pita
lac
coun
tssh
ould
pp
equa
lthe
cash
that
isav
aila
ble
ford
istri
butio
nto
the
solv
entp
artn
ers.
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
st li
q)2
500
(2 5
00)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pay
men
t to
cred
itors
(500
)50
0 y
()
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pay
men
t to
cred
itors
(500
)50
0 y
()
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
st li
q)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pay
men
t to
cred
itors
(500
)50
0 y
()
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
rint
. rep
aym
ents
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pay
men
t to
cred
itors
(500
)50
0 y
()
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
. rep
aym
ents
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)A
sset
s “w
ritte
n of
f”(9
900
)4
950
2 97
0 1
980
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pay
men
t to
cred
itors
(500
)50
0 y
()
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
erim
4
500
-9
900
(7 7
00)
(4 8
20)
(1 8
80)
repa
ymen
tsA
sset
s “w
ritte
n of
f”(9
900
)4
950
2 97
0 1
980
4 50
0 -
-(2
750
)(1
850
)10
0
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pay
men
t to
cred
itors
(500
)50
0 y
()
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
.rep
aym
ents
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)A
sset
s “w
ritte
n of
f”(9
900
)4
950
2 97
0 1
980
4 50
0 -
-(2
750
)(1
850
)10
0 A
lloca
tion
of “c
apita
l def
icit”
62
38
(100
)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
st li
q)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pay
men
t to
cred
itors
(500
)50
0 y
()
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
. rep
aym
ents
4 50
0 -
9 90
0 (7
700
)(4
820
)(1
880
)A
sset
s “w
ritte
n of
f”(9
900
)4
950
2 97
0 1
980
4 50
0 -
-(2
750
)(1
850
)10
0 A
lloca
tion
of “c
apita
l def
icit”
62
38
(100
)4
500
(268
8)(1
812)
4 50
0-
-(2
688
)(1
812
)-
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
eB
ltt
hB
alan
ce a
t the
com
men
ce-
men
tof l
iqui
datio
n(3
000
)18
000
(8
000
)(5
000
)(2
000
)S
ale
of a
sset
s (1
stliq
)2
500
(2 5
00)
Pay
men
tto
cred
itors
(250
0)2
500
Pay
men
t to
cred
itors
(2 5
00)
2 50
0S
ale
of a
sset
s (2
ndliq
) and
al
loca
tion
of lo
ss5
000
(5 6
00)
300
180
120
Pa y
men
t to
cred
itors
(500
)50
0 y
()
4 50
0 −
9 90
0 (7
700
)(4
820
)(1
880
)Fi
rst i
nter
imre
paym
ents
( 450
0)−
−2
688
1 81
2−
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
. rep
aym
ents
4 50
0 −
9 90
0 (7
700
)(4
820
)(1
880
)A
sset
s “w
ritte
n of
f”(9
900
)4
950
2 97
0 1
980
4 50
0 −
-(2
750
)(1
850
)10
0 A
lloca
tion
of “c
apita
l def
icit”
62
38
(100
)4
500
−−
(2 6
88)
(1 8
12)
−
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Cre
dC
apita
l:C
apita
l:C
apita
l:B
ank
Cre
d.co
ntro
lPP
EC
apita
l: Pa
trys
Cap
ital:
Pine
Cap
ital:
Prom
ise
Bal
ance
sbr
ough
t for
war
d-
-9
900
(5 0
12)
(300
8)(1
880
)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Cre
dC
apita
l:C
apita
l:C
apita
l:B
ank
Cre
d.co
ntro
lPP
EC
apita
l: Pa
trys
Cap
ital:
Pine
Cap
ital:
Prom
ise
Bal
ance
sbr
ough
t for
war
d-
-9
900
(5 0
12)
(300
8)(1
880
)S
ale
ofas
sets
(3rd
liq)
600
0(6
000)
Sal
e of
ass
ets
(3liq
)6
000
(6 0
00)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Cre
dC
apita
l:C
apita
l:C
apita
l:B
ank
Cre
d.co
ntro
lPP
EC
apita
l: Pa
trys
Cap
ital:
Pine
Cap
ital:
Prom
ise
Bal
ance
sbr
ough
t for
war
d-
-9
900
(5 0
12)
(300
8)(1
880
)S
ale
ofas
sets
(3rd
liq)
600
0(6
000)
Sal
e of
ass
ets
(3liq
)6
000
(6 0
00)
Bal
ance
s br
ough
t for
war
d6
000
3 90
0(5
012
)(3
008
)(1
880
)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Cre
dC
apita
l:C
apita
l:C
apita
l:B
ank
Cre
d.co
ntro
lPP
EC
apita
l: Pa
trys
Cap
ital:
Pine
Cap
ital:
Prom
ise
Bal
ance
sbr
ough
t for
war
d-
-9
900
(5 0
12)
(300
8)(1
880
)S
ale
ofas
sets
(3rd
liq)
600
0(6
000)
Sal
e of
ass
ets
(3liq
)6
000
(6 0
00)
Bal
ance
s br
ough
t for
war
d6
000
3 90
0(5
012
)(3
008
)(1
880
)
It
it
(lb
tiit
thd)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
. rep
aym
ents
6 00
0 -
3 90
0 (5
012
)(3
008
)(1
880
)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
e
Bal
ance
sbr
ough
tfor
war
d-
-9
900
(501
2)(3
008)
(188
0)B
alan
ces
brou
ght f
orw
ard
9 90
0(5
012
)(3
008)
(1 8
80)
Sal
e of
ass
ets
(3rd
liq)
6 00
0(6
000
)B
alan
ces
brou
ght f
orw
ard
600
03
900
(5 0
12)
(3 0
08)
(1 8
80)
It
it
(lb
tiit
thd)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
. rep
aym
ents
6 00
0 -
3 90
0 (5
012
)(3
008
)(1
880
)A
t“
ittff”
(390
0)1
950
117
078
0A
sset
s “w
ritte
n of
f”(3
900
)1
950
1 17
078
0
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Ban
kC
red.
cont
rol
PPE
Cap
ital:
Patr
ysC
apita
l: Pi
neC
apita
l: Pr
omis
e
Bal
ance
sbr
ough
tfor
war
d-
-9
900
(501
2)(3
008)
(188
0)B
alan
ces
brou
ght f
orw
ard
9 90
0 (5
012
)(3
008)
(1 8
80)
Sal
e of
ass
ets
(3rd
liq)
6 00
0(6
000
)B
alan
ces
brou
ght f
orw
ard
600
03
900
(5 0
12)
(3 0
08)
(1 8
80)
It
it
(lb
tiit
thd)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
. rep
aym
ents
6 00
0 -
3 90
0 (5
012
)(3
008
)(1
880
)A
t“
ittff”
(390
0)1
950
117
078
0A
sset
s “w
ritte
n of
f”(3
900
)1
950
1 17
078
06
000
--
(3 0
62)
(1 8
38)
(1 1
00)
EXA
MPL
E: P
IEC
EMEA
L LI
QU
IDAT
ION
OF
A PA
RTN
ERSH
IP(E
XAM
PLE
4.3,
pag
e 66
of S
tudy
Gui
de)
Cre
dC
apita
l:C
apita
l:C
apita
l:B
ank
Cre
d.co
ntro
lPP
EC
apita
l: Pa
trys
Cap
ital:
Pine
Cap
ital:
Prom
ise
Bal
ance
sbr
ough
t for
war
d-
-9
900
(5 0
12)
(300
8)(1
880
)S
ale
ofas
sets
(3rd
liq)
600
0(6
000)
Sal
e of
ass
ets
(3liq
)6
000
(6 0
00)
Bal
ance
sbr
ough
t for
war
d6
000
3 90
0(5
012
)(3
008
)(1
880
)In
terim
repa
ymen
ts(6
000
)-
-3
062
1 83
81
100
It
it
(lb
tiit
thd)
Inte
rimre
paym
ents
(los
s-ab
sorp
tion-
capa
city
met
hod)
Bal
ance
s w
hen
cash
is
avai
labl
e fo
r int
. rep
aym
ents
6 00
0 -
3 90
0 (5
012
)(3
008
)(1
880
)A
sset
s“w
ritte
nof
f”(3
900)
195
01
170
780
Ass
ets
writ
ten
off
(3 9
00)
1 95
01
170
780
6 00
0-
-(3
062
)(1
838
)(1
100
)
E: S
UM
MA
RY:
PIE
CEM
EAL
LIQ
UID
ATI
ON
-G
OLD
EN R
ULE
S
•O
pen
the
appl
icab
leac
coun
tsin
colu
mna
rfor
mw
ithba
lanc
es;
Ope
nth
eap
plic
able
acco
unts
inco
lum
narf
orm
with
bala
nces
;
•C
lose
off“
Res
erve
and
Goo
dwill”
acco
unts
topa
rtner
sca
pita
lacc
ount
s;
•A
ppor
tion
prof
itsor
loss
esfro
mea
chre
alis
atio
nof
asse
tsto
capi
tala
ccou
nts;
•A
ppor
tion
prof
itsor
loss
esfro
mea
chre
alis
atio
nof
asse
tsto
capi
tala
ccou
nts;
•W
hen
cash
beco
mes
avai
labl
e,al
llia
bilit
ies
mus
tbe
paid
until
they
are
fully
settl
edbe
fore
partn
ers
may
geta
nyam
ount
asca
pita
lrep
aym
ent;
py
gy
pp
y
•O
nce
liabi
litie
sar
efu
llyse
ttled
,and
cash
isav
aila
ble,
inte
rimca
shre
paym
ents
can
bem
ade
topa
rtner
sby
appl
ying
the
loss
-abs
orpt
ion
capa
city
met
hod;
oC
omm
ence
with
the
bala
nces
atth
eda
tew
hen
cash
isav
aila
ble
for
dist
ribut
ion;
oA
ssum
eth
atun
sold
asse
tsar
ew
orth
less
and
appo
rtion
the
pote
ntia
ldef
icit
toth
epa
rtner
s’ca
pita
lacc
ount
sac
cord
ing
toth
eirp
rofit
-sha
ring
ratio
;
oIf
apa
rtner
’sca
pita
lacc
ount
resu
ltsin
ade
ficit
assu
me
that
the
partn
eris
oIf
apa
rtner
sca
pita
lacc
ount
resu
ltsin
ade
ficit,
assu
me
that
the
partn
eris
inso
lven
tan
dtra
nsfe
rth
ede
ficit
toth
eot
her
partn
ers
acco
rdin
gtotheir
prof
it-sh
arin
gra
tio;
oTh
esu
mof
the
bala
nces
ofth
eso
lven
tpa
rtner
s’ca
pita
lac
coun
tssh
ould
equa
lthe
cash
that
isav
aila
ble
ford
istri
butio
nto
the
solv
entp
artn
ers.
STU
DY
UN
IT 5
CLO
SEC
OR
POR
ATI
ON
SC
LOSE
CO
RPO
RA
TIO
NS
PITS
OC
C
A: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
E
PITS
OC
CST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
E FO
R T
HE
YEA
R
END
ED 2
8 FE
BR
UA
RY 2
0.9
RR
even
ueR
000
Cos
t of s
ales
(000
)G
ross
prof
it00
0G
ross
pro
fit00
0O
ther
inco
me
000
Pro
fit o
n sa
le o
f offi
ce fu
rnitu
re00
0D
istri
butio
nad
min
istra
tive
and
othe
rexp
ense
s(0
00)
Dis
tribu
tion,
adm
inis
trativ
e an
d ot
her e
xpen
ses
(000
)R
emun
erat
ion:
Acc
ount
ing
offic
er00
Sal
arie
san
d w
ages
00S
alar
ies
tom
embe
rs00
0S
alar
ies
to m
embe
rs00
0D
epre
ciat
ion
000
Fina
nce
cost
s(0
0)In
tere
st o
n lo
ng-te
rm lo
an00
gPr
ofit
befo
re ta
x00
0In
com
eta
x ex
pens
e(0
00)
Prof
it fo
r the
yea
r00
0 O
ther
com
preh
ensi
ve in
com
e fo
r the
yea
r00
Tota
l com
preh
ensi
ve in
com
e fo
r the
yea
r00
0
EXA
MPL
E 1.
1:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Tra
velg
ate
CC
at 2
8 Fe
brua
ry 2
0.9,
the
end
of th
e fin
anci
al y
ear:
Sal
arie
s an
d w
ages
R25
000
0C
redi
tlos
ses
R2
500
Add
ition
al in
form
atio
n:M
rTra
vel,
a m
embe
r of t
he c
orpo
ratio
n, is
ent
itled
to a
sal
ary
of R
60 0
00 fo
r his
sp
ecia
lised
man
agem
ent s
ervi
ce to
the
corp
orat
ion.
Thi
s am
ount
is in
clud
ed in
th
li
dfi
bth
e sa
larie
s an
d w
ages
figu
re a
bove
.
Req
uire
d:C
alcu
late
the
amou
ntto
bedi
sclo
sed
asdi
strib
utio
nad
min
istra
tive
and
othe
rC
alcu
late
the
amou
nt to
be
disc
lose
d as
dis
tribu
tion,
adm
inis
trativ
e an
d ot
her
expe
nses
in th
e st
atem
ent o
f com
preh
ensi
ve in
com
e fo
r the
yea
r end
ed
28 F
ebru
ary
20.9
.
TRAV
ELG
ATE
CC
TRAV
ELG
ATE
CC
STAT
EMEN
T O
F C
OM
PREH
ENSI
VE IN
CO
ME
FOR
TH
E YE
AR
END
ED
28 F
EBR
UA
RY20
.9 (E
XTR
AC
T)RR
Dis
trib
utio
n, a
dmin
istr
ativ
e an
d ot
her e
xpen
ses
(262
500
)S
alar
ies
and
wag
es R
(250
000
–60
000
)19
000
0S
alar
ies
to m
embe
rs60
000
Cre
dit l
osse
s2
500
EXA
MPL
E 1.
2:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Tra
velg
ate
CC
at 2
8 Fe
b 20
.9, t
he e
nd o
f the
fina
ncia
l yea
r:
SA
RS
(Inc
ome
Tax)
R
5000
0 (D
r)P
rofit
befo
reta
xR
398
000
Add
ition
al in
form
atio
n:Th
e S
A no
rmal
inco
me
tax
asse
ssm
ent f
or th
e fin
anci
al y
ear w
as re
ceiv
ed o
n 1
Mar
ch20
9in
dica
ting
aba
lanc
eof
R61
440
owin
gby
the
corp
orat
ion
1 M
arch
20.
9, in
dica
ting
a ba
lanc
e of
R61
440
ow
ing
by th
e co
rpor
atio
n.
Req
uire
d:W
ith re
gard
to T
rave
lgat
eC
C, c
alcu
late
the
tota
l com
preh
ensi
ve in
com
e fo
r g
g,
pth
e ye
ar e
nded
28
Febr
uary
20.
9.TR
AVEL
GAT
EC
CST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
EFO
RTH
EYE
AR
END
EDST
ATEM
ENT
OF
CO
MPR
EHEN
SIVE
INC
OM
E FO
R T
HE
YEA
R E
ND
ED
28 F
EBR
UA
RY 2
0.9
(E
XTR
AC
T)Fi
nanc
e co
sts
-In
tere
ston
long
-term
loan
-In
tere
st o
n lo
ngte
rm lo
anPr
ofit
befo
re ta
x39
8 00
0In
com
eta
x ex
pens
e R
(50
000
+ 61
440
)(1
11 4
40)
Prof
it fo
r the
yea
r28
6 56
0 y
Oth
er c
ompr
ehen
sive
inco
me
for t
he y
ear
-To
tal c
ompr
ehen
sive
inco
me
for t
he y
ear
286
560
EXA
MPL
E 1.
3:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Tr
avel
gate
CC
at 2
8 Fe
b 20
.9, t
he e
nd o
f the
fina
ncia
l yea
r:
SA
RS
(Inc
ome
Tax)
R
5000
0 (D
r)P
rofit
befo
reta
xR
398
000
Add
ition
al in
form
atio
n:Th
e in
com
e ta
x as
sess
men
t for
the
finan
cial
yea
r was
rece
ived
on
1 M
arch
20.
9 in
dica
ting
that
the
actu
al n
orm
al in
com
e ta
x fo
r the
fina
ncia
l yea
r am
ount
ed to
R
111
440
R11
1 44
0.
Req
uire
d:W
ithre
gard
toTr
avel
gate
CC
calc
ulat
eth
eto
talc
ompr
ehen
sive
inco
me
fort
heye
arW
ith re
gard
to T
rave
lgat
eC
C, c
alcu
late
the
tota
l com
preh
ensi
ve in
com
e fo
r the
yea
r en
ded
28 F
ebru
ary
20.9
.
TRAV
ELG
ATE
CC
STAT
EMEN
T O
F C
OM
PREH
ENSI
VE IN
CO
ME
FOR
TH
E YE
AR
EN
DED
28
FEB
RU
ARY
20.
9
(EXT
RA
CT)
Fina
nce
cost
s-
Inte
rest
on
long
-term
loan
-Pr
ofit
befo
re ta
x39
8 00
0In
com
eta
x ex
pens
e(1
11 4
40)
Prof
it fo
r the
yea
r28
6 56
0 O
ther
com
preh
ensi
ve in
com
e fo
r the
yea
r-
Tota
l com
preh
ensi
ve in
com
e fo
r the
yea
r28
6 56
0
B: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
CH
AN
GES
IN N
ET
INVE
STM
ENT
OF
MEM
BER
S
PITS
O C
CST
ATEM
ENT
OF
CH
AN
GES
INN
ETIN
VEST
MEN
TO
FM
EMB
ERS
FOR
THE
STAT
EMEN
T O
F C
HA
NG
ES IN
NET
INVE
STM
ENT
OF
MEM
BER
S FO
R T
HE
YEA
R E
ND
ED 2
8 FE
BR
UA
RY 2
0.9
Mem
bers
’ co
ntrib
uR
etai
ned
Loan
sfr
om
Ass
et
repl
ace-
Tota
lco
ntrib
u-tio
nsea
rnin
gsfr
om
mem
bers
p men
tre
serv
e
Tota
l
RR
RR
RB
alan
ces
at
1 M
arch
20.
8R
000
R00
0 R
000
R00
0R
000
Tota
lcom
preh
ensi
vei
fth
000
000
inco
me
for t
he y
ear
000
000
Tran
sfer
to a
sset
repl
acem
ent r
eser
ve(0
00)
000
Dis
tribu
tion
tom
embe
rs(0
00)
(000
)D
istri
butio
nto
mem
bers
(000
)(0
00)
Loan
s fro
m m
embe
rs00
000
0B
alan
ces
at
28Fe
brua
ry20
900
000
000
000
000
028
Feb
ruar
y 20
.900
000
000
000
000
0N
on-c
urre
nt li
abili
ty00
0C
urre
nt li
abili
ty00
EXA
MPL
E 2.
1:Th
e fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Tr
avel
gate
CC
at28
Febr
uary
209
the
end
ofth
efin
anci
alye
ar:
Trav
elga
teC
C, a
t 28
Febr
uary
20.
9, th
e en
d of
the
finan
cial
yea
r:
Mem
ber’s
con
tribu
tion:
T T
rave
lR
62 5
00M
embe
r’sco
ntrib
utio
n:G
Gat
eR
7500
0M
embe
rs c
ontri
butio
n: G
Gat
eR
75 0
00R
etai
ned
earn
ings
(1 M
arch
20.
8)R
318
900
Ass
et re
plac
emen
t res
erve
(1 M
arch
20.
8)
R22
500
Req
uire
d:U
sing
the
info
rmat
ion
abov
e, p
repa
re a
n ex
tract
of t
he s
tate
men
t of c
hang
es
in n
et in
vest
men
t of m
embe
rs fo
r the
yea
r end
ed 2
8 Fe
brua
ry 2
0.9.
TRAV
ELG
ATE
CC
STAT
EMEN
T O
F C
HA
NG
ES IN
NET
INVE
STM
ENT
OF
MEM
BER
S FO
R
THE
YEA
R E
ND
ED 2
8 FE
BR
UA
RY 2
0.9
(EXT
RA
CT)
Mem
bers
’R
ti
dA
sset
l
Mem
bers
co
ntrib
u-tio
ns
Ret
aine
d ea
rnin
gsre
plac
e-m
ent
rese
rve
Tota
l
Bal
ance
sat
1 M
arch
20.
8R
137
500
R 318
900
R 22 5
00R
478
900
EXA
MPL
E 2.
2: T
he fo
llow
ing
info
rmat
ion
is e
xtra
cted
from
the
acco
untin
g re
cord
s of
Tra
velg
ate
CC
, at 2
8 Fe
brua
ry 2
0.9,
the
end
of th
e fin
anci
al y
ear:
Tota
l com
preh
ensi
ve in
com
e fo
r the
yea
rR
286
560
Inte
rim p
rofit
dis
tribu
tion
to m
embe
rsR
20 0
00
Add
ition
al in
form
atio
n:•
A fu
rther
pro
fit d
istri
butio
n of
R5
000
was
mad
e to
the
mem
bers
.•
The
mem
bers
agr
eed
that
R35
000
of t
he to
tal c
ompr
ehen
sive
inco
me
for t
he
year
mus
tbe
trans
ferre
dto
the
asse
trep
lace
men
tres
erve
year
mus
t be
trans
ferre
d to
the
asse
t rep
lace
men
t res
erve
.
Req
uire
d:U
sing
the
info
rmat
ion
abov
e, p
repa
re a
n ex
tract
of t
he s
tate
men
t of c
hang
es in
net
in
vest
men
t of m
embe
rs fo
r the
yea
r end
ed 2
8 Fe
brua
ry 2
0.9.
TRAV
ELG
ATE
CC
STAT
EMEN
TO
FC
HA
NG
ESIN
NET
INVE
STM
ENT
OF
MEM
BER
SFO
RTH
EST
ATEM
ENT
OF
CH
AN
GES
IN N
ET IN
VEST
MEN
T O
F M
EMB
ERS
FOR
TH
EYE
AR
EN
DED
28
FEB
RU
ARY
20.
9 (E
XTR
AC
T)M
embe
rs’
cont
ribu-
Ret
aine
d ea
rnin
gs
Ass
et
repl
acem
ent
Tota
l tio
nsea
rnin
gsre
serv
e
Tota
lcom
preh
ensi
ve in
com
e fo
rthe
year
RR 28
656
0R
Rfo
r the
yea
r28
6 56
0D
istri
butio
n to
mem
bers
(25
000)
(25
000)
Tran
sfer
to a
sset
repl
. res
.(3
5 00
0)35
000
TRAV
ELG
ATE
CC
STAT
EMEN
T O
F C
HA
NG
ES IN
NET
INVE
STM
ENT
OF
MEM
BER
S FO
R
THE
YEA
REN
DED
28FE
BR
UA
RY20
9TH
EYE
AR
EN
DED
28
FEB
RU
ARY
20.
9
Mem
bers
’ co
ntrib
u-R
etai
ned
earn
ings
Ass
et
repl
ace-
men
tTo
tal
tions
earn
ings
men
tre
serv
eR
RR
RB
alan
ces
at 1
Mar
ch 2
0.8
137
500
318
900
22 5
0047
8 90
0To
talc
ompr
ehen
sive
inco
me
for t
he y
ear
286
560
286
560
Dis
tribu
tion
to m
embe
rs(2
5 00
0)(2
5 00
0)Tr
ansf
er to
ass
etre
plac
emen
t res
erve
(35
000)
35 0
00B
alan
ces
at 2
8 Fe
b. 2
0.9
137
500
545
460
57 5
0074
0 46
0
C: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
FIN
AN
CIA
L PO
SITI
ON
: ASS
ETS
PITS
OC
CST
ATEM
ENT
OF
FIN
AN
CIA
LPO
SITI
ON
AS
AT 2
8 FE
BR
UA
RY 2
0.9
(EXT
RA
CT)
()
ASS
ETS
R
Non
-cur
rent
asse
ts0
000
Pro
perty
,pla
nt a
nd e
quip
men
t00
0Fi
nanc
iala
sset
s00
0C
urre
nt a
sset
s0
000
Inve
ntor
ies
000
Trad
e re
ceiv
able
s00
0P
repa
ymen
ts00
0O
ther
finan
cial
ass
ets
000
Cas
h an
d ca
sh e
quiv
alen
tsTo
tal a
sset
s0
000
D: F
RA
MEW
OR
K O
F TH
E ST
ATEM
ENT
OF
FIN
AN
CIA
L PO
SITI
ON
: EQ
UIT
Y A
ND
LIA
BIL
ITIE
S
PITS
OC
CST
ATEM
ENT
OF
FIN
AN
CIA
LPO
SITI
ON
AS
AT 2
8 FE
BR
UA
RY 2
0.9
((EXT
RA
CT)
Tota
lass
ets
000
0To
tal a
sset
s0
000
EQU
ITY
AN
D L
IAB
ILIT
IES
Tota
lequ
ity0
000
qy
Mem
bers
’ con
tribu
tions
000
Ret
aine
d ea
rnin
gs00
0
Oth
erco
mpo
nent
s of
equ
ity00
0
Tota
l lia
bilit
ies
0 00
0
Non
-cur
rent
liabi
litie
s00
0N
on-c
urre
nt li
abili
ties
000
Long
-term
borr
owin
gs00
0
Cur
rent
liab
ilitie
s0
000
Trad
e an
d ot
herp
ayab
les
000
Dis
tribu
tion
to m
embe
rs p
ayab
le00
0
Cbl
000
Cur
rent
tax
paya
ble
000
Tota
l equ
ity a
nd li
abili
ties
0 00
0
E: P
RES
ENTA
TIO
N O
F TH
E “T
OTA
L EQ
UIT
Y” S
ECTI
ON
IN T
HE
STAT
EMEN
T O
F FI
NA
NC
IAL
POSI
TIO
N
TRAV
ELG
ATE
CC
STAT
EMEN
T O
F C
HA
NG
ES IN
NET
INVE
STM
ENT
OF
MEM
BER
S FO
R T
HE
YEA
REN
DED
28FE
BR
UA
RY20
.9YE
AR
EN
DED
28
FEB
RU
ARY
20.
9 Mem
bers
’ co
ntrib
u-tio
ns
Ret
aine
d ea
rnin
gs
Ass
et
repl
acem
ent
rese
rve
Tota
l
Bal
ance
sat
1 M
arch
20.
8R 13
7 50
0R 31
890
0R 22
500
R47
8 90
0To
talc
ompr
ehen
sive
inco
me
for t
he y
ear
286
560
286
560
Dis
tribu
tion
to m
embe
rs(2
5 00
0)(2
5 00
0)Tr
ansf
er to
ass
etre
plac
emen
tre
serv
e(3
500
0)35
000
EQU
ITY
AN
DLI
AB
ILIT
IES
rese
rve
(35
000)
35 0
00B
alan
ces
at 2
8 Fe
b. 2
0.9
137
500
545
460
57 5
0074
0 46
0
EQU
ITY
AN
D L
IAB
ILIT
IES
Tota
lequ
ity74
0 46
0M
embe
rs’ c
ontri
butio
ns13
7 50
0R
etai
ned
earn
ings
545
460
Ret
aine
d ea
rnin
gs54
5 46
0O
ther
com
pone
nts
of e
quity
57 5
00
