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Trial Question Leon and Mark The following balances are in the accounting records of a partnership as at 31 December 2025: Notes (1) Until 30
Trial Question Leon and Mark The following balances are in the accounting records of a partnership as at 31 December 2025: Notes (1) Until 30 June 2025, Leon had run the business as a sole trader. Mark joined him on 1 July 2025 introducing capital of GHc200,000. (2) The following profit-sharing arrangements were agreed from that date: (i) Both partners to receive interest on their capital account balances at 5% per year (ii) Mark to receive a salary of GHc20,000 per year (iii) Balance of profit to be shared - Leon 60%, Mark 40%. (3) The profit for the year ended 31 December 2025 was GHc250,000. It was agreed that this profit had accrued one third in the six months ended 30 June 2025 and two thirds in the six months ended 31 December 2025, except for an irrecoverable debt of GHc20,000 charged in arriving at the profit which was to be regarded as occurring in the six months ended 30 June 2025. Required: Prepare a statement showing the division of the profit and prepare the partners' current accounts for the year ended 31 December 2025
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