Ahmed and Mohammed Partnership Firm

Trial Balance for the year ending 31 December 2019

Dr Cr

OMR OMR

Capital - Ahmed16,000

Capital - Mohammed8,000

Stock (inventory) 10,000

Vehicles (cost) 2,000

Vehicles (depreciation provision)800

Purchases 60,000

Rent, rates and insurance 4,000

Land and buildings 20,000

Sales80,000

General expenses 4,000

Wages 5,200

Debtors (accounts/trade receivables) 8,000

Creditors (accounts/trade payables)4,000

Discount received400

Discount allowed 200

Fittings (cost) 1,000

Fittings (depreciation provision)200

Cash 1,000

Current account - Ahmed4,000

Current account - Mohammed2,000

115,400 115,400

Adjustments:

1. Closing stock is valued at OMR 12,000

2. Rent, rates and insurance of OMR 100 is prepaid at the end of the year.

3. Wages of OMR 40 are accrued at the end of the year.

4. Depreciation is to be taken;

(a) Vehicles 20% per annum on cost

(b) Fittings 10% per annum on cost

5. Salaries of the Partner:

(a) Ahmed: OMR 2,000

(b) Mohammed: OMR 1,600

6. Profit should be shared equally between the partners

7. Interest allowed on capital is 10% per annum

8. The current account opening balance as on 1 January 2019 was;

(a) Ahmed: OMR 6,000 less drawings of OMR 2,000

(b) Mohammed: OMR 4,000 less drawings of OMR 2,000

You are required to compare the essential features of each financial account

LO2 Prepare final accounts for sole-traders, partnerships and limited companies in

accordance with appropriate principles, conventions and standards

P3 Prepare final

accounts from

given trial balance.

P4 Produce final

accounts for a

range of examples

that include sole-

traders,

partnerships or

limited companies.

M2 Make adjustments to

balances of sum accounts for

example, accruals,

depreciation and prepayments

before preparing the final

accounts.

D2 Compare the essential features

of each financial account statement

to analyse the differences between

them in terms purpose, structure

and content.