Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q2 Dua, Saa and Bortey are in partnership sharing profit and losses in the ratio 4:3:2. Interest on capital is allowed at 15% p.a. Dua

image text in transcribed
Q2 Dua, Saa and Bortey are in partnership sharing profit and losses in the ratio 4:3:2. Interest on capital is allowed at 15% p.a. Dua is entitled to salary of $500 per month. Interest on drawings is at 15% p.a and the amounts of interest are given below. The partners capital accounts were 1F January 2015 were Bortey $35,000, Saa $32,000 the net trading profit of the firm before dealing with any of the above for the year ended 31/12/2014 was $240,400. At 31/12/2014 there was a debit balance of $1,250 and $2,550 on Saa, Bortey current account respectively, whilst Dua's curmt account balance was a crdit of $2,150. Drawings for the year 31/12/2015 amounted to $14,000 for Dua $12,300 Bortey and $27,600 for Saa. Required Prepare for the year ending 31/12/2015 i. The profit and loss appropriation account ii. The partners' current account. Q2 Dua, Saa and Bortey are in partnership sharing profit and losses in the ratio 4:3:2. Interest on capital is allowed at 15% p.a. Dua is entitled to salary of $500 per month. Interest on drawings is at 15% p.a and the amounts of interest are given below. The partners capital accounts were 1F January 2015 were Bortey $35,000, Saa $32,000 the net trading profit of the firm before dealing with any of the above for the year ended 31/12/2014 was $240,400. At 31/12/2014 there was a debit balance of $1,250 and $2,550 on Saa, Bortey current account respectively, whilst Dua's curmt account balance was a crdit of $2,150. Drawings for the year 31/12/2015 amounted to $14,000 for Dua $12,300 Bortey and $27,600 for Saa. Required Prepare for the year ending 31/12/2015 i. The profit and loss appropriation account ii. The partners' current account

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

Business Accounting Uk Gaap Volume 1

Authors: Frank Wood, Alan Sangster

1st Edition

0273718762, 9780273718765

More Books

Students also viewed these Accounting questions

Question

What do you plan on doing upon receiving your graduate degree?

Answered: 1 week ago