Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a Balance Sheet The following information relates to the first year operations of Casey and Datal partners. Casey and Dacal have been trading successfully in

image text in transcribed

a Balance Sheet The following information relates to the first year operations of Casey and Datal partners. Casey and Dacal have been trading successfully in their first year and have recorded a Net Profit of $600,000, for the year ended 30th September 2020. Their Partnership Agreement specifies that each partner is to receive 10% interest on their initial capital investment of $500,000, and salary allowances of $150,000 and $100,000 respectively. The partners salaries are to be treated as an allocation of profit. At the end of the first year - 30th September 2020, the trial balance of the business include the following balances $ $ Dr S Cr$ 600.000 28,000 Accounts Profit and Loss Account Retained Earnings Account - Casey Retained Earnings Account - Datal Capital Account - Casey Capital Account - Daval Drawings - Casey Drawings - Darah 60,000 500,000 500,000 3,000 4,000 Required: a. Prepare the Profit and Loss Appropriation Statement for the year ended 30 September 2020. b. An extract of the Balance Sheet as at 30 September 2020, showing Partners Equity. Profit and loss Appropriation Statement $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

5th Edition

0471542830, 9780471542834

More Books

Students also viewed these Accounting questions

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago