Sheridan, Wilson and Palmer are partners. They share profits and losses in the ratio of 3 :

Question:

Sheridan, Wilson and Palmer are partners. They share profits and losses in the ratio of 3 : 2 : 1. In the first year of trading, ending 31 December 2016, the partnership earned a net profit of £26,000. They have agreed on the following:

• Interest should be allowed on fixed capital balances at 10% per annum.

• Wilson should receive a partnership salary of £7,000 per annum.

Capital account balances are as follows: image text in transcribed

You are required to draw up the appropriation account of the partnership for the year ended 31 December 2016.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting For Non Accountants

ISBN: 9780749465971

9th Edition

Authors: David Horner

See More Books

Question Posted: Jan 31, 2024 03:05 AM

See More Questions

Explain the meaning of the terms emoluments, employments and office for the purposes of PAYE as you earn systems. 2. Explain the actual receipts basis of assessing the emoluments from the employment...
Grant and Herd are in partnership sharing profits and losses in the ratio 3 to 2. The following information relates to the year to 31 December 20X8: Additional information: 1. The partnership...
Grant and Herd are in partnership sharing profits and losses in the ratio 3 to 2. The following information relates to the year to 31 December 2011: 1 The partnership agreement allows for Herd to be...
Which of the following would be the most frequently occurring daily transaction in a retail shop? (a) Paying salary to the sales assistant (b) Sale of goods (c) Payment of rent for the shop premises...
A coaxial resistor of length l consists of two concentric cylinders. The inner cylinder has radius a and is made of a material with conductivity 1, and the outer cylinder, extending between r...
Valuing Bonds What is the price of a 15-year, zero coupon bond paying $1,000 at maturity if the YTM is: a. 5 percent? b. 10 percent? c. 15 percent?
Comparing hand strength. Is the right hand generally stronger than the left in right-handed people? You can crudely measure hand strength by placing a bathroom scale on a shelf with the end...
Use the expectancy theory model to predict Harry's motivation to achieve high or acceptable performance in his job. Identify and discuss the factors that influence this motivation. Motivation Case:...
On August 31, the balance sheet of Cullumber Company showed Cash $10,000, Accounts Receivable $2,700, Supplies $600, Equipment $6,000, Accounts Payable $4,600, Common Stock $14,100, and Retained...
Mahoney and Sutton are in partnership, sharing profits in the ratio of 3 : 2 respectively. Their capital account balances are as follows: They allow themselves interest on capital at the rate of 8...
From the following data construct a manufacturing account for the year ended 31 December 2015. 1. Rent is to be apportioned between factory overheads and office expenses in a 3:1 ratio. 2. Inventory...
Folklore Music manufactures harmonicas. Folklore uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for July exist. Folklore...
Sams old friend Dot is considering setting up a business offering historical boating trips along the River Thames. Dot thinks that she may be able to make a good living out of this. She has carried...
Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the direct costs of one unit of...
Explain the financial effect (increase, decrease, or no effect) of each of the following transactions on stockholders' equity: a. Purchased supplies for cash. b. Paid an account payable. c. Paid...
What type of account-asset, liability, stockholders' equity, dividend, revenue, or expense-is each of the following accounts? Indicate whether a debit entry or a credit entry increases the balance of...
Is it possible for an accounting transaction to only affect the left side of the accounting equation and still leave the equation in balance? If so, provide an example.
Survey of the top 40 best-paid CEOs shown in Table 2.1. The data on highest degree obtained are summarized in the SPSS printout below. For Information: Refer to the results of the Forbes (April 13,...
Which of the ocean zones shown would be home to each of the following organisms: lobster, coral, mussel, porpoise, and dragonfish? For those organisms you identify as living in the pelagic...
Show the journal entries necessary to record the following items (narratives are not required). (a) Motor van sold on credit to K Hodgson for 355 (b) A debt owing to us by T Fairhurst of 27 is...
Show the journal entries necessary to record the following items (narratives are not required). (a) Bought van on credit for 800 from P Gray (b) The owner withdraws goods from the business worth 75...
Enter the following transactions to the relevant day books, post each transaction to the personal accounts and transfer the monthly totals to the accounts in the general ledger. 2015 May 1 Goods...
essential con Example 15: Mr. Sunil Mukharjee has estimated probable under different macroeconomic conditions for the following three stocks: Stock Current Price (Rs.) Rates of return (%) during...
ABC Corporation has an activity - based costing system with three activity cost pools - Machining, Setting Up , and Other. The company's overhead costs, which consist of equipment depreciation and...
Consolidated Balance Sheets - USD ( $ ) $ in Thousands Dec. 3 1 , 2 0 2 3 Dec. 3 1 , 2 0 2 2 Current assets: Cash and cash equivalents $ 9 8 , 5 0 0 $ 6 3 , 7 6 9 Restricted cash 2 , 5 3 2 Short -...

Sheridan, Wilson and Palmer are partners. They share profits and losses in the ratio of 3 :

Question:

Sheridan Wilson Palmer 10,000 8,000 5,500

Step by Step Answer:

Sheridan Wilson Palmer Appropriation account for yea...View the full answer

Accounting For Non Accountants

Students also viewed these Business questions