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Ann and Bob are partners sharing profits in the ratio 2:3. The partners' balances on the capital and current accounts at the year ended
Ann and Bob are partners sharing profits in the ratio 2:3. The partners' balances on the capital and current accounts at the year ended December 31, 2020 were as followed: Capital Account Current Account Partners S Ann 200,000 Bob 300,000 Notes: S 30,000 CR 25,000 CR During the year, Ann had drawings amounting to $15,000 and Bob $10,000. Ann is allowed an annual salary of $65,500 for extra duties in the company. The net profit of the partnership, before taking any of the above into account was $350,000. Interest allowed on the capital account at the rate of 10% per annum, and interest to be charged on drawing at 10%. Required: a) The Partnership Appropriation Account for the year ended December 31, 2020. (9 marks) b) The Partners' Capital Accounts at 31 December 2020 (2 Marks) c) The Partners' Current Accounts at 31 December 2020 d) Define a Limited Partner. Marks) (7.5 Marks) (1.5 (Total 20 marks)
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