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Question 16,3 Apple, Pear and Orange have been in partnership sharing profits 5:3:2. The trial balance of the partnership as at 31 December 2018 is as follows: TRIAL BALANCE as at 31 December 2018 Credit Debit e 27,000 9,000 18,000 6,300 Motor vehicles Fixtures and fittings Accumulated depreciation - motor vehicles Accumulated depreciation - fixtures and fittings Bank Receivables Payables Inventory at 31 December 2018 Provision for doubtful debts 1,020 40.430 34,500 43,500 2.050 continued overleaf caret. An Introduction to Financial Accounting Chartered Accountants Ireland, 2015. ProQuest Ebook Central ebookcentral proquest.com/bluecie-ebooks/detail action?docid-5973837 mucie ebooks on 2000-07-28 01:05:35 358 AN INTRODUCTION TO FINANCIAL ACCOUNTING Debit Credit Current account Apple 2.250 Pear 3,450 Orange 1,500 Capital account Apple 5,000 Pear 10,000 Orange 8,000 Drawing Apple 12,000 Pear 10,000 Orange 5.000 Profit for the year ended 31 December 2018 56,900 147,950 147,950 Additional information: 1. Interest on drawings for the year ended 31 December 2018 have been calculated as follows: Apple 600, Pear 500, and Orange 300. 2. Interest on capital is payable at a rate of 10%. 3. On 1 January 2019 a new partner, Banana, was admitted to the partnership. Banana introduced 20,00 in cash. 4. Goodwill, which is estimated at 15,000, is not to be shown in the financial statements for the ya ended 31 December 2018, 5. Motor vehicles are to be revalued to 8,000 and fixtures to 6,000. These revaluations are to be incorporated in the financial statements for the year ended 31 December 2018. 6. The partners will share profits equally from 1 January 2019. 7. The current accounts are to be cleared to the capital accounts and any amount in excess of 15,000 is to be transferred to a loan account. Requirement: (a) Prepare the profit appropriation account for the year ended 31 December 2018, 5 Minutes (b) Prepare the partners' current accounts at 31 December 2018, 7 Minutes (c) Prepare the revaluation account and the entries for goodwill at 1 January 2019. 5 Minutes (d) Prepare the partners' capital accounts at 1 January 2019. 7 Minutes (c) Prepare the statement of financial position of Apple, Pear, Orange and Banana at 1 January 2019. 5 Minutes 01