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A. Albertyn holds a three-fifth share in a business. His capital is R120 000 and out of the half-year profits he is entitled to 9%
A. Albertyn holds a three-fifth share in a business. His capital is R120 000 and out of the half-year profits he is entitled to 9% share interest per annum on his capital, a bonus of 20% of the profit remaining after changing all interest, and three-fifths of the balance remaining after deducting bonuses and interest. B. Bonthuis whose capital is R80 000 is entitled to interest on his capital of 9% p.a., a bonus of 10% of the profit remaining after deducting bonuses and interest. Drawings: A. Albertyn draws R2 500 and B. Bonthuis R1 500 at the end of each month. The profit for the half year ended 31 December 2005 before charging the above items amounted to R50 286. The partners decide to transfer to reserve R25 000 of their shares of the balance of the profits. Prepare journal entries in respect of the above items, prepare the appropriation account and show the partners' current accounts. The credit balances on the partners' current accounts at 30 June 2005 were: A. Albertyn B. Bonthuis R10 000 R600 Work to the nearest cent
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