QUESTION 1

Assignment BIA712 Introduction to Accounting

[40 MARKS]

[20 MARKS]

The following balances appeared on 30 June 2005 in the ledger of two dentists who practice in partnership.

Capital Capital Drawings Drawings Services Rendered Salaries of nurses Rent of consulting rooms Other expenses Consulting room equipment (at cost) Accumulated depreciation on consulting room equipment

Debtors Payables Bank Total

Credit

(Pula) 160,000 170,000

1,200,000

120,000

Debit (Pula)

200,000 180,000

180,000 120,000 160,000 500,000

220,000 30,000

120,000 1,680,000

1,680,000

Additional Information The partners share profits equally after interest of 8% per annum on capital has been taken into account. Depreciation of 10% per annum on cost of consulting room equipment still has to be provided for. Required: