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Ann and Bindu have been in partnership for some years. On 1 March 2016 the balances on their current accounts were as follows; Ann 5000
Ann and Bindu have been in partnership for some years. On 1 March 2016 the balances on their current accounts were as follows; Ann 5000 debit, Bindu 3000 credit. The partnership agreement provides for: Interest on capital of 10%, Interest on drawings 5%. A partnership salary for Ann of $4000 per annum. Profit and losses to be shared between Ann and Bindu in a ratio of 3:2. The following additional information is available: Capital accounts at 1 March 2016 Ann $30000, Bindu $25000. For the year ended 28 Feb 2017: Profit for the year $24500. Drawings Ann $12500, Bindu $10000. Prepare the partnership appropriation account for the year ended 28 February 2017
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