Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. Prepare the partners' current accounts for the year ended 28 February 2017. Balance the accounts and bring down the balances on 1 March 2017

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions