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  3. on 1 july 206 the members each withdrew c15 000 fr

On 1 July 206 the members each withdrew C15 000 from the corporation, the effect...

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Accounting

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On 1 July 206 the members each withdrew C15 000 from the corporation, the effect thereof being recorded against their loan accounts. There have been no other movements on the loan accounts during the year ended 31 December 20X6. The following information must be taken into account in the preparation of the financial statements: 1. Interest at the rate of 6% per annum is to be provided on the opening balances on the members' loan accounts. 2. Inventory at 31 December 206 amounted to C26 000. 279 3. Members' salaries for the year are as follows: Laurel C20 000 Birch C15 000 OAKTREE CC TRIAL BALANCE AT 31 DECEMBER 20X6 Prepare the statement of financial position of Oaktree CC at 31 December 20X6. 4. Equipment is depreciated at the rate of 10% per annum on cost and the building is depreciated at 5% per annum on cost. The building cost C50 000 . There were no fixed asset acquisitions or disposals during the year. 5. The current tax rate is 30%. 6. The members authorised a distribution of C30 000 for the year ended 31 December 20X6, payable on 15 January 207. All distributions are subject to a dividends tax of 20% You are required to: a. Prepare the statement of profit or loss of Oaktree CC for the year ended 31 December 20X6

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