Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i) ii) Attempt the question Write your index number on the cover pages of the question paper and the answer booklet. Question Aboa gye, Eunice
i) ii) Attempt the question Write your index number on the cover pages of the question paper and the answer booklet. Question Aboa gye, Eunice and Ofori are in partnership sharing profit and losses in the ratio 35:7. The partnership agreement further makes provision for the following issues a) A 15% interest on capital of the partners is to be allowed annually. b) Francis is entitled to GHS 450 salary per every two months while Ofori is paid a salary of GHS 600 in every 2 months c) A 15% Per annum interest on drawings is to be charged against partners that benefit from drawings. During the 1/1/2019 to 31/12/2019 financial year, partners withdrew various sums of money on different periods as follows: Partner Amount (GHS) Date of withdrawal Return Date Aboa gye 15,000 1/1/2019 30/6/2019 Eunice 24,000 1/6/2019 Ofori 28.000 1/12/2019 Until otherwise stated (indicated) All the above drawings remained outstanding as at 31/12/2019 Partners' capital accounts as at 1/1/2019 for Aboagye, Eunice and Ofori were GHS 330,000, GHS 450,000 and GHS 360,000 respectively, At 31/12/2018 Abougye and Ofori had credit balances of GHS 45,100 and GHC 70,500 in their current accounts while Eunice had a debit balance of GHS 10.200 in that same account. The net profit before dealing with any of the above for the year ended 31/12/2014 was GHS 120,300 Required: Prepare for the year ending 31/12/2019 i) The Profit and Loss Appropriation account ii) The capital account of the partnership ( 12marks) ( 8marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started