Question
can someone please help me with this. X, Y and Z are in partnership called Best Start and sharing profits and losses in the ratio
can someone please help me with this.
X, Y and Z are in partnership called Best Start and sharing profits and losses in the ratio 2:2:1 respectively. The following is the trial balance of the partnership as at 31st March 2019:
| Debit | Credit |
Allowance for Doubtful Debts as at 1/4/2018 | 1,200 | |
Bank | 40,200 | |
Capital Accounts as at 1/4/2018: X | 20,000 | |
Y | 20,000 | |
Z | 15,000 | |
Current accounts as at 1/4/2018: X | 3,000 | |
Y | 3,000 | |
Z | 1,000 | |
Accounts Receivable | 25,000 | |
Accounts Payable | 34,000 | |
Buildings | 70,000 | |
Motor Vehicles | 40,000 | |
Accumulated depreciation: Buildings | 25,000 | |
Motor Vehicles | 20,000 | |
Staff Salaries | 6,000 | |
Postage expenses | 4,000 | |
Sales | 180,000 | |
Marketing Expenses | 18,000 | |
Stock as at 1/4//2018 opening stock | 25,000 | |
Purchases | 100,000 | |
Loan from Y | 15,000 | |
Drawings: X | 3,500 | |
Y | 3,000 | |
Z
Total | 2,500 | |
337,200 | 337,200 |
Additional information:
- The cost of stock as at 31/3/2019 was $40,000. Its net realizable value at that date was $35,000.
- Depreciation on non-current assets was provided on the following basis:
- Buildings : 3% per annum on cost straight line depreciation
- Motor vehicles : 10% per annum on reducing balance basis iii) At 31st March 2019 an amount of $1,000 was owing for marketing expenses.
- Postage expenses were prepaid by $2,000.
- Provision for doubtful debts was to be made at 3% of debtors outstanding as at 31/3/2019.
- The partnership agreement covers the following terms:
- X is to be allowed a salary of $5,000 per annum
- Z is to be allowed a salary of $8,000 per annum
- Interest of 5% is allowed on the capital account balances outstanding as at 1/4/2018No interest is allowed on current accounts
- Interest at 8% is charged on drawings irrespective of when the drawings were made
- Interest of 7% is allowed on any loan made by the partners
Required:
- Profit & Loss Account for the year ended 31/3/2022.
- the Profit and Loss Appropriation Account for the year ended 31/3/2022.
- the Statement of Financial Position of the partnership as at 31/3/2022.
(You are not required to show any journal entries or T-accounts in your answer, except (a), (b) and (c) above).
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