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You have given the following information relating to a partnership of Tom and John. The partners profit sharing ratio is 3:2. The partnership has recorded

You have given the following information relating to a partnership of Tom and John. 

The partner’s profit sharing ratio is 3:2. The partnership has recorded a profit of P65,460. 

The following information also relates to the partnership:

Both partners received salaries: Tom P9,000 and John P5,000 The partners are receiving an interest 5% on their capital opening balances.

They will also be charged 8% as interest on drawings made.


Tom

John

Drawings

P18,000

P31,000

Capital

P120,000 (Cr)

P80,000 (Cr)

Current Account

P15,655 (Cr)

P4,137 (Dr)

The following information relating to Tom and John’s drawings, as well as current account and capital balances was made available.


Required: Based on the information given above:

Prepare the Partnership Appropriation Account.

Draw up the partners’ current accounts.

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