QUESTION FOUR Peter and Paul are in partnership sharing profits and losses in the ratio 3 2 The following is their trial balance as at 30 September 2018 DR CR GHC GHC Buildings (cost GHC210,000) 160,000 Fixtures at cost 8,200 Provision for depreciation Fixtures 4,200 Accounts receivable 61,400 Accounts payable 26,590 Cash at bank 6,130 Inventory at 30 September 2011 62,740 Sales 363,111 Purchases 210,000 Carriage Outwards 3410 Discounts allowed 620 Loan interest P Prince 3,900 Office expenses 4,760 Salaries and wages 57,809 Bad debts 1,632 Allowance for doubtful debts 1400 Loan from P Prince 65,000 Capital Peter 100,000 Paul 75,000 Current accounts Peter 4,100 Paul 1,200 Drawings Peter 31,800 Paul 28,2000 640,601 640,601 Additional Information Inventory, 30 September 2018, GHC74,210 Expenses to be accrued Office Expenses GHC215 Wages GHC720 Depreciate fixtures 15 on reducing balance basis, buildings GHC5,000 Reduce provision for doubtful debts to GH1,250 Partnership salary GHC30,000 to Peter Not yet entered Interest on drawings Peter GHC900 Paul GHC600 Interest on capital account balances at 5 Required Prepare an income statement and profit and loss appropriation account for the year ending 30 September 2018, and a statement of financial position as at that date

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

QUESTION FOUR Peter and Paul are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30

QUESTION FOUR

Peter and Paul are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2018

	DR	CR
	GHC	GHC
Buildings (cost GHC210,000)	160,000
Fixtures at cost	8,200
Provision for depreciation: Fixtures		4,200
Accounts receivable	61,400
Accounts payable		26,590
Cash at bank	6,130
Inventory at 30 September 2011	62,740
Sales		363,111
Purchases	210,000
Carriage Outwards	3410
Discounts allowed	620
Loan interest: P. Prince	3,900
Office expenses	4,760
Salaries and wages	57,809
Bad debts	1,632
Allowance for doubtful debts		1400
Loan from P. Prince		65,000
Capital: Peter		100,000
Paul		75,000
Current accounts: Peter		4,100
Paul		1,200
Drawings: Peter	31,800
Paul	28,2000	_______
	640,601	640,601

Additional Information

Inventory, 30 September 2018, GHC74,210
Expenses to be accrued: Office Expenses GHC215; Wages GHC720
Depreciate fixtures 15% on reducing balance basis, buildings GHC5,000
Reduce provision for doubtful debts to GH1,250
Partnership salary: GHC30,000 to Peter. Not yet entered
Interest on drawings: Peter GHC900; Paul GHC600.
Interest on capital account balances at 5%.

Required:

Prepare an income statement and profit and loss appropriation account for the year ending 30 September 2018, and a statement of financial position as at that date.