Anna and Thomas are in partnership sharing profits and losses equally. The partnership agreement provides for an

Question:

Anna and Thomas are in partnership sharing profits and losses equally. The partnership agreement provides for an annual salary to Anna of £57,000. It also provides for interest on capital of 10 per cent per annum and interest on drawings of 12 per cent per annum. The following additional information relates to the accounting year ending 30 June 20X3:

Anna and Thomas are in partnership sharing profits and losses

The profit for the year shown in the statement of profit and loss for the year ended 30 June 20X3 was £180,000.
Required
Prepare the following accounts:
i. Appropriation account
ii. Capital accounts
iii. Current accounts

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Financial Accounting

ISBN: 978-0077138448

7th edition

Authors: Anne Marie Ward, Andrew Thomas

Question Posted: