Question 5

Marsha and Kay operate M & K store as a partnership and shared profit and losses in the ratio of 3:2 respectively. The following balances appeared on the books as at December 31, 2019.

Capital Account Balances
Monique	$250,000 CR
Karen	$120,000 CR
Current Account
Monique	$ 50,000 DR
Karen	$ 30,000 CR

The following also applies to the partners:

1. The partnership agreement provides that interest on capital and drawings be charged at 10% per annum; the partners should receive salaries as follows: Marsha $6,000 and Kay $7,200.
2. The partners drawings for the year amounted to: Marsha $9,000 and

Kay $10,000.

3. The net profit of the partnership at the end of the year amounted to $240,000.

Required:

a. The Profit and Loss Appropriation account for the period ended December 2019

b. The Partners Capital Account as at January 1, 2019

c. The Current account for the period ended December 31, 2019

PLEASE TYPE