Frame and French are in partnership sharing profits and losses in the ratio 3:2. The following is

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Frame and French are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2012.

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Required: Prepare an income statement and profit and loss appropriation account for the year ending 30 September 2012, and a statement of financial position as at that date.

(a) Inventory, 30 September 2012, £74,210.

(b) Expenses to be accrued: Office Expenses £215; Wages £720.

(c) Depreciate fixtures 15 per cent on reducing balance basis, buildings £5,000.

(d) Reduce provision for doubtful debts to £1,250.

(e) Partnership salary: £30,000 to Frame. Not yet entered.

(f) Interest on drawings: Frame £900; French £600. (g) Interest on capital account balances at 5 per cent.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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