Answer all questions Question 1 Gari, Beans and K)k)) are in a partnership sharing profits and losses in the ratio, 2:2:1. They agreed to dissolve their partnership on 31 December, 2019 when their statement of financial position is as follows: GHC Non-Current Assets Premises Plant and Machinery Vehicles (3 cars) GHC 520,000 80,000 60.000 660,000 Current Assets Inventory Receivables Cash 90,000 60,000 40,000 190,000 (20,000) Current Liabilities: Payables 170,000 830.000 Capital Accounts: Gari Beans K))) 250,000 250,000 200.000 700,000 Current Accounts Gari Beans Kk)) 10,000 12,000 8.000 Loan - Beans 30.000 730,000 100,000 830.000 The following information are relevant: i. Various assets were sold for cash as follows: Premises 650,000 Plant and Machinery 35.000 Inventory 7,500 ii. The vehicles are taken over by the partners at the following agreed values: Car 1 by Gari 17,000 Car 2 by Beans 35,000 Car 3 by K)k)) 10,000 The receivables paid 57,000 in full settlement of the total amount due from them iv. The payables were settled in full with 16.500 Dissolution expenses amounted to 15,000 Required: Prepare the realisation account, cash account and capital accounts of the partners to close off the partnership books. 111. V. Question 2 Mensah and Asamoah have been in partnership for several years. Up to 30th September 2015 the partnership agreement stated that there should be no partners' salaries and partners should not receive any interest on capital put into the business. It was agreed that profit and losses were shared equally between Mensah and Asamoah. Asamoah made a loan to the partnership during the year ended 31st May 2015 and no repayments have been made. From 1st October 2015, the partners decided to change the partnership agreement and the terms were as follows. i. I. in. IV. V Interest on the partner's loan account is to be 4% per annum. Interest on partners' capital accounts is to be 6% per annum. Interest on partners' total drawings is to be charged at 3% per annum. Mensah's partnership salary is to be GH13,200 per annum. Profits and losses will be split between Mensah and Asamoah in the proportion 3:1 respectively. No account has been taken of the interest on Asamoah's loan. The draft profit for the year ended 31st May 2016 was GH 38,760. Profits were accrued evenly before allowing for loan interest The following balances were extracted from the books of account for the year ended 31st May 2016. vi. vii. Capital accounts Drawings for the year Current accounts at 1st June 2015 Partner's loan account Mensah GHE 94,200 27,100 10 520 Asamoah GHE 74,300 21,100 (8 276) 10,800 Required: 1. Prepare the partners' appropriation account for the year ended 31st May 2016, showing clearly the appropriation of profit for the periods: a. Ist June 2015 - 30th September 2015 and b. Ist October 2015 - 31st May 2016. 2. Prepare the partners' current account at the end of the period. Question 3 Lestie-Effson Company Limited registered their business in 2016 with 50,000 ordinary shares. On 3rd February, 2016, the company issued 30,000 shares at GH 5.00 each to be subscribed to by the general public, and payment terms are as follows; On application 45% On allotment 35% On 19 call 20% The company received subscriptions for 45,000 shares. After deliberations by management and directors, the lowing was agreed: (1) to reject the subscription of 5,000 shares for late application (ii) to fully allot to a local institutional investor the 10,000shares it applied for to share the remaining shares on pro-rata basis. All the members paid up all amounts in full on the stipulated dates except for Merya who failed to pay the call money for the 1.200 shares that was allotted to her. This was re-issued to Freda a week after for 3.50per share and he immediately paid the amount in full You are required to show the journal entries for all transactions, make ledger entries for all transactions and provide a statement of financial position extract as at that date. Answer all questions Question 1 Gari, Beans and K)k)) are in a partnership sharing profits and losses in the ratio, 2:2:1. They agreed to dissolve their partnership on 31 December, 2019 when their statement of financial position is as follows: GHC Non-Current Assets Premises Plant and Machinery Vehicles (3 cars) GHC 520,000 80,000 60.000 660,000 Current Assets Inventory Receivables Cash 90,000 60,000 40,000 190,000 (20,000) Current Liabilities: Payables 170,000 830.000 Capital Accounts: Gari Beans K))) 250,000 250,000 200.000 700,000 Current Accounts Gari Beans Kk)) 10,000 12,000 8.000 Loan - Beans 30.000 730,000 100,000 830.000 The following information are relevant: i. Various assets were sold for cash as follows: Premises 650,000 Plant and Machinery 35.000 Inventory 7,500 ii. The vehicles are taken over by the partners at the following agreed values: Car 1 by Gari 17,000 Car 2 by Beans 35,000 Car 3 by K)k)) 10,000 The receivables paid 57,000 in full settlement of the total amount due from them iv. The payables were settled in full with 16.500 Dissolution expenses amounted to 15,000 Required: Prepare the realisation account, cash account and capital accounts of the partners to close off the partnership books. 111. V. Question 2 Mensah and Asamoah have been in partnership for several years. Up to 30th September 2015 the partnership agreement stated that there should be no partners' salaries and partners should not receive any interest on capital put into the business. It was agreed that profit and losses were shared equally between Mensah and Asamoah. Asamoah made a loan to the partnership during the year ended 31st May 2015 and no repayments have been made. From 1st October 2015, the partners decided to change the partnership agreement and the terms were as follows. i. I. in. IV. V Interest on the partner's loan account is to be 4% per annum. Interest on partners' capital accounts is to be 6% per annum. Interest on partners' total drawings is to be charged at 3% per annum. Mensah's partnership salary is to be GH13,200 per annum. Profits and losses will be split between Mensah and Asamoah in the proportion 3:1 respectively. No account has been taken of the interest on Asamoah's loan. The draft profit for the year ended 31st May 2016 was GH 38,760. Profits were accrued evenly before allowing for loan interest The following balances were extracted from the books of account for the year ended 31st May 2016. vi. vii. Capital accounts Drawings for the year Current accounts at 1st June 2015 Partner's loan account Mensah GHE 94,200 27,100 10 520 Asamoah GHE 74,300 21,100 (8 276) 10,800 Required: 1. Prepare the partners' appropriation account for the year ended 31st May 2016, showing clearly the appropriation of profit for the periods: a. Ist June 2015 - 30th September 2015 and b. Ist October 2015 - 31st May 2016. 2. Prepare the partners' current account at the end of the period. Question 3 Lestie-Effson Company Limited registered their business in 2016 with 50,000 ordinary shares. On 3rd February, 2016, the company issued 30,000 shares at GH 5.00 each to be subscribed to by the general public, and payment terms are as follows; On application 45% On allotment 35% On 19 call 20% The company received subscriptions for 45,000 shares. After deliberations by management and directors, the lowing was agreed: (1) to reject the subscription of 5,000 shares for late application (ii) to fully allot to a local institutional investor the 10,000shares it applied for to share the remaining shares on pro-rata basis. All the members paid up all amounts in full on the stipulated dates except for Merya who failed to pay the call money for the 1.200 shares that was allotted to her. This was re-issued to Freda a week after for 3.50per share and he immediately paid the amount in full You are required to show the journal entries for all transactions, make ledger entries for all transactions and provide a statement of financial position extract as at that date