Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help me with this question? Tango and Fanta are partners. Their agreement states that interest shall be allowed on partners' capital accounts {calculated on opening

image text in transcribed

Help me with this question?

image text in transcribed
Tango and Fanta are partners. Their agreement states that interest shall be allowed on partners' capital accounts {calculated on opening balances each year) at 5% per annum and charged on drawings. Prots and losses are shared in the ratio: Tango - two-thirds; Wells - one-third. The following trial balance was extracted from the books as on 31 December 2018 Debitt: (3de Capital: Tango 120,000 Capital: Fanta 100,000 Discount allowed 25,300 Discount received 22,600 Purchaseslsales revenue 978,000 1,286,000 Trade receivablesftrade gaggle; 126,700 98,800 Furniture and ttings 52,000 Wages and salaries 105,800 Rent and rates 8,500 Bad debts 14,700 Returns inward 12,000 Returns outward 8,000 Lease on premises 14,000 General expenses 71,500 Provision for bad debts 6,000 Inventory 154,000 Bank 900 DrawingsTango 48,000 Fanta 30,000 LEE J You are provided with the fottoMng information: - A purchase invoice for 3,300 has been entered twice in the purchases journal in December 2018, and posted twice to the supplier's account, but no payment has been made before the end of the year. (How to solve this information?)

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

Step: 3

blur-text-image

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

Accounting

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

9th edition

1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227

More Books

Students also viewed these Accounting questions

Question

An action plan is prepared.

Answered: 1 week ago