840 000 Capital account: Maria 500 000 Current account: Wanda (Debit balance at 1 July 2020) 35 000 Current account: Maria (Credit balance at 1
Mawa Traders is a business, owned by partners Wanda and Melon. The following
extract of information relates to the
| R | |
| Capital account: Wanda | 840 000 |
| Capital account: Maria | 500 000 |
| Current account: Wanda (Debit balance at 1 July 2020) | 35 000 |
| Current account: Maria (Credit balance at 1 July 2020) | 92 000 |
| Drawings: Wanda | 87 000 |
| Drawings: Maria | 82 000 |
| Profit for the year | 640 000 |
Additional information (still to be taken into account):
1. The partners were paid the following monthly salaries:
- Wanda R10 000 per month for 12 months
- Maria R15 000 per month for 12 months
Salaries paid to the partners were allocated to the “Salaries and wages” expense
account that was used to calculate the profit for the year shown above.
2. Wanda withdrew R5 000 from the business bank account to pay for her mother’s
medical expenses. This has not been recorded as yet.
3. The partnership agreement provides for the following:
• The partners are allowed interest on capital at 6% per year. Wanda increased
her capital by R140 000 on 31 December 2020. This has been recorded correctly
and is included in the figures above.
• Current account debit and credit balances attract interest at 5% per year,
calculated on the opening balances of the current accounts.
• Interest on drawings for the year is as follows:
o Wanda R4 250
o Maria R4 000
• Wanda is entitled to a bonus of 10% of the profit for the year before any
appropriation in terms of the partnership agreement.
• Remaining
Prepare the following general ledger accounts for Mawa Traders for the year ended 30
June 2021:
-Appropriation account
-Current account : Wanda
Step by step
Solved in 4 steps
