Q.1 S, K and P are in business in Partnership as Machinery Manufacturers. Theyshare Profits as 4:3:3 after allowing for interest at 5% on the balances of theircapital accounts at the beginning of each year and after charging Partnerssalaries at the rate of RO 8,000; RO 6,400; RO 5,600 per annum respectively.They employ a sales manager who is paid a salary of RO 4,800 per annum plusone percent commission on total sales. The following Balances was extracted on31st December 2020.Capital AccountsS23,20013,60012,8006,440300,00013,600KCash at BankPurchase of Raw MaterialDiscount Dr.Rent and Insurance9,240Sundry CreditorsFactory ExpensesOffice ExpensesSundry Debtors25,20038,0002,40012,8006,400600FurnitureTelephoneSales520,00023,60096,000Opening stock of Raw MaterialCarriage inwardsSalaries (Including sales manager 14,400salary)Repairs to BuildingsBad debts800Carriage OutwardsVehicle3,2003,6005,200Drawings9,6008,8008,4004,8004,4005,6007,320KCommission ReceivedVehicle running expensesTravelling expensesAdvertising ExpensesPlant and Machinery19,200Additional Information1. Closing stock was valued at RO 33,6802. The Following expenses were outstanding Office expenses RO 720,Telephone RO 2003. Depreciation to be provided at the following rates Vehicle 20%, Plant andMachinery 12.5% and Furniture 10%4. Bad debts to be raised to 2.5 Percent.You are required to draw up a Final Accounts of the Partnership Firm.

Machinery Manufactures Trading Account…

capital accounts at the beginning of each year and after char salaries at the rate of RO 8,000; RO 6,400; RO 5,600 per annun They employ a sales manager who is paid a salary of RO 4,800 pe one percent commission on total sales. The following Balances wa 31 December 2020. Capital Accounts S 23,200 K 13,600 P 12,800 | 6,440 300,000 13,600 9,240 25,200 38,000 2,400 12,800 6,400 Cash at Bank Purchase of Raw Material Discount Dr. Rent and Insurance Sundry Creditors Factory Expenses Office Expenses Sundry Debtors Furniture Telephone Sales Opening stock of Raw Material Carriage inwards Salaries (Including sales manager 14,400 salary) Repairs to Buildings Bad debts Carriage Outwards Vehicle Drawings 600 520,000 23,600 96,000 800 3,200 3,600 5,200 9,600 8,800 8,400 4,800 |4,400 5,600 7,320 19,200 K P Commission Received Vehicle running expenses Travelling expenses Advertising Expenses Plant and Machinery

capital accounts at the beginning of each year and after char salaries at the rate of RO 8,000; RO 6,400; RO 5,600 per annun They employ a sales manager who is paid a salary of RO 4,800 pe one percent commission on total sales. The following Balances wa 31 December 2020. Capital Accounts S 23,200 K 13,600 P 12,800 | 6,440 300,000 13,600 9,240 25,200 38,000 2,400 12,800 6,400 Cash at Bank Purchase of Raw Material Discount Dr. Rent and Insurance Sundry Creditors Factory Expenses Office Expenses Sundry Debtors Furniture Telephone Sales Opening stock of Raw Material Carriage inwards Salaries (Including sales manager 14,400 salary) Repairs to Buildings Bad debts Carriage Outwards Vehicle Drawings 600 520,000 23,600 96,000 800 3,200 3,600 5,200 9,600 8,800 8,400 4,800 |4,400 5,600 7,320 19,200 K P Commission Received Vehicle running expenses Travelling expenses Advertising Expenses Plant and Machinery

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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