By agreement, partners are entitled to interest on capital at rate of 5 percent perannumOn 1st may 2012 by mutual agreement, A increased his capital by paying furtherTZS 2,000,000 into the partnership bank account whilst B reduced his capitalto TZs 6,000,000 but left his withdraw capital in the partnership as a loanbearing interest at the rate of 5 percent per annum.Partners are allowed to withdraw from current accounts at any time during thefinancial year but are charged interest on the amounts involved. Details of thedrawing made and interest charge able in respect of each partner for the financialyear ended 31st October 2012 are as here under:DrawingCurrent accountTZSTZSA2,400,00090,000B1,800,00030,0003,000,00025,000Bis remunerated, for his participation in the running of the .partnership, by anannual salary of TZS 2,500,000. The statement of financial performance-profit (before interest) of recreational suppliers for the year ended 31st October2012 was TZS 19,905,000REQUIRED: For the year ended 31st October 2012, prepare profit and lossappropriation statement for the partnership and post to and balance the capital.and current accounts of the individual partners. A, B, and C are in partnership as recreational suppliers, sharing residual profitsor losses in the ratio of 5:2:3 respectively. At 1st November 2011 their capital andcurrent balances were:Capital accountCurrent accountTZSTZSA8,000,000580,000 Cr10,000,000350,000 Dr12,000,000210,000 CrAvitus Dominick: Msc Finance and Investment, CPA (T ) & BAC (0714-336097)16

Answered: Image /qna-images/answer/ca0ae03b-7b45-445e-a7d9-c1eeac607803.jpg

REQUIRED: For the year ended 31st October 2012, prepare profit and loss appropriation statement for the partnership and post to and balance the capital. and current accounts of the individual partners.

REQUIRED: For the year ended 31st October 2012, prepare profit and loss appropriation statement for the partnership and post to and balance the capital. and current accounts of the individual partners.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Present in good accounting form AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AAA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. AAA is personally insolvent. The gain or loss on realization is: a. -125,000 b. 625,000 c. -625,000 d. 125,000
According to Profil and Loss Account, the net profit for the year is OMR250,000. The total interest on partner's capital is OMR BOLO00 and interest on partner's drawings is OMR 30.000 The net profit as per Profit and Loss Appropriation Account will be OMR 110.000 (Prolit) OMR 200,000(Loss) OMR 200,000(Protit) OMR 200000 (Profit)
A, B and C were partners sharing profits and losses in the proportion 5:3:2 respectively. Their balance sheet as at 31.3.2013 was - BALANCE SHEET as at 31.3.2013 Liabilities $ Assets 2,000 20,000 1,00,000 20,000 58,000 Creditors Bank 22,000 18,000 General Reserve Debtors Profit and Loss A/c A's Capital B's Capital C's Capital 10,000 50,000 50,000 Building Plant and Machinery Patents 50,000 2,00,000 2,00,000 On the same date C retired on following terms: - (i) Building is to be increased to 140%. (ii) Plant and Machinery to be decreased to 80%. (iii) $25,000 is to be transferred to C's loan and balance is to paid through bank. For this purpose loan is to be taken over from bank. (iv) The Capital of the entire firm is fixed at $ 1,50,000 and is to be divided amongst remaining partners in their new profit sharing ratio. The balance is to be adjusted through their current accounts. Prepare Revaluation Account, Partners' capital Accounts and Balance Sheet immediately after C's retirement.
A, B and C are in partnership sharing profits and losses at the ratio of 5: 3:2. The balance sheet of the firm on 31.12.2021 was as follows: Liabilities Capital A/cs A B C Bank Loan Trade payables Balance Sheet Assets Sundry Fixed Assets Inventories 50,000 40,000 Trade receivables 30,000 Joint Life Policy 40,000 Bank 30,000 1,90,000 80,000 50,000 30,000 20,000 10,000 1,90,000 On 1.1.2022, A wants to retire, B and C agreed to continue at 2:1. Joint Life Policy was taken on 1.1.2016 for 1,00,000 and its surrender value as on 31.12.2021 was 25,000. For the purpose of A's retirement goodwill was raised for ₹1,00,000. Sundry Fixed Assets was revalued for 1,10,000. But B and C did not prefer to show such increase in assets in the Balance Sheet. Also they agreed to bring necessary cash to discharge 50% of the A's claim, to make the bank balance 25,000 and to make their capital proportionate. Prepare necessary journal entries.
The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of /R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? O A. R108 000 OB. R24 000 O C. R120 000 O D. R972 000
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 375000 x Capital A/c 112500 Y Capital A/c 50000 Sundry creditors 100000 Sales (net) 50000 Discount Land and Buildings Plant and Machinery 125000 75000 Wages 62500 Opening Stock of Finished Goods 812500 Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors 6250 45000 Provision for bad debts 3750 125000 Commission 3750 Y's Loan A/c 2250 25000 Carriage inwards 75000 Carriage outwards Factory Expenses 18750 Royalties 3750 Purchase of Raw material (net) 187500 16250 7250 10000 Factory rent & taxes Discount Office rent Insurance 5000 3750 18750 30000 20500 1185000 The following additional information is to be taken into consideration: Bad debts Office Expenses Salaries of works manager Cash at bank…
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 187500 x Capital A/c 56250 Y Capital A/c 25000 Sundry creditors 50000 Sales (net) 25000 Discount 22500 Provision for bad debts 62500 37500 Plant and Machinery Wages 31250 Opening Stock of Finished Goods 406250 3125 Opening Stock of Raw material Opening Stock of Work in Progress 1875 Sundry debtors 62500 Commission 12500 Carriage inwards 1875 Y's Loan A/c 37500 Carriage outwards 1125 Factory Expenses 9375 Royalties 1875 Purchase of Raw material (net) 93750 Factory rent & taxes 8125 Discount 3625 Office rent 5000 Insurance 2500 Bad debts 1875 Office Expenses 9375 Salaries of works manager 15000 Cash at bank 10250 592500 The following additional information is to be taken into consideration: 592500…
The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? • A. R24 000 O B. R108 000 O C. R972 000 O D. R120 000
GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
The following Information was obtained from the records of Alben Traders, a partnership business with Albert and Bennile as partners, after the net profit was appropriated between the partners. Partners' salaries 240 000 Interest on drawings 3 000 Interest on capital 60 000 Total share of remaining loss 24 000 Drawings 180 000 Which one of the following reflects the net profit? A. R279 000 B.R273 000 C.R327 000 D. R453 000 ipe here to search
Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: NBV 24 10,000 4,000 4.000 Cost Depreciation. Non-Current Assets Premises 42,000 14,000 6.000 32,000 10,000 2.000 44.000 Motor Vehicles Furniture and Fittings 62.000 18,000 Current Assets Inventory 24,000 Trade Receivables 6,800 30.800 48.800 Capital and Liabilities Capitals: 7,000 7,000 Mary Jane Susan 4.000 18,000 Current A/es Mary Jane 6,800 5,000 3.400 Susan 15.200 33,200 6,000 Loan from Toby Current Liabilities: Trade Payables Bank overdraft 7,800 1.800 9,600 48.800 On 31 December 2018 the partners decide to terminate the business. The following took place: i. Mary took over one of the motor vehicles for $5,000 Stock was taken over by Susan for $12,000 Premises, inventory, the remaining motor vehicles, fumiture and fittings were sold for $9000, $12000, $1000 and S1000 respectively Receivables realised $6,450 and Payables…
AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AAA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. AAA is personally insolvent. The gain or loss on realization is: -625,000 625,000 125,000 -125,000