Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 st January 2014, Tom, Mac and Job entered into partnership contributing $200,000,$120,000 and $120,000 respectively and sharing profits in the ratio of 2:1:1.

On 1st January 2014, Tom, Mac and Job entered into partnership contributing $200,000,$120,000 and $120,000 respectively and sharing profits in the ratio of 2:1:1. Mac is to be allowed a salary of $48,000 per year. Interest on capital is to be allowed at 9% per annum. Tom and job are entitled to receive a commission of $20,000. Tom is to be allowed a salary of $ 72,000 per year. During the year, Tom withdrew $20,000 and Job $24,000; interest on the same being 10%.Profit in 2014 before the above mentioned adjustments was $100,000. You are required to prepare the Profit and Loss Appropriation Account and the partners capital Accounts.

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

Students also viewed these Accounting questions