ted Apel and Lawer are in partnership, sharing profits and losses in the ratio 3:2.itQUESTIONS6 Question OneThe following information were taken from their books for the year ended 31December 2015, before the completion of their profit and loss appropriationnt.account.anGH¢Current accounts (1 January 2011)ApelLawer640 (Dr)330 (Cr)Drawings - Apel3,0002,000Lawer6,810Net Profit540Interest on Capital - ApelLawer7202,000Salary - ApelInterest on Drawings - Apel270180LawerPrepare for the year ended 31 December 2015:a. The profit and loss appropriation account of Apel and Lawer.b. The current accounts in the ledger for Apel and Lawer.

The Profit and loss appropriation account in partnership is prepared to adjust the profits and…

it QUESTIONS Question One ted Apel and Lawer are in partnership, sharing profits and losses in the ratio 3:2. The following information were taken from their books for the year ended 31 December 2015, before the completion of their profit and loss appropriation nt. account. art GH¢ Current accounts (1 January 2011) 640 (Dr) 330 (Cr) 3,000 2,000 Apel Lawer Drawings - Apel Lawer 6,810 Net Profit 540 Interest on Capital - Apel Lawer 720 2,000 Salary - Apel Interest on Drawings- Apel 270 180 Lawer Prepare for the year ended 31 December 2015: a. The profit and loss appropriation account of Apel and Lawer. b. The current accounts in the ledger for Apel and Lawer.

it QUESTIONS Question One ted Apel and Lawer are in partnership, sharing profits and losses in the ratio 3:2. The following information were taken from their books for the year ended 31 December 2015, before the completion of their profit and loss appropriation nt. account. art GH¢ Current accounts (1 January 2011) 640 (Dr) 330 (Cr) 3,000 2,000 Apel Lawer Drawings - Apel Lawer 6,810 Net Profit 540 Interest on Capital - Apel Lawer 720 2,000 Salary - Apel Interest on Drawings- Apel 270 180 Lawer Prepare for the year ended 31 December 2015: a. The profit and loss appropriation account of Apel and Lawer. b. The current accounts in the ledger for Apel and Lawer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following were the balance of the partnership between Reynolds and Wynter as at December 31, 2015. DR $ CR $ Capital on January 1, 2015 Reynolds 35,000 Wynter  35,000 Current accounts on January 1, 2015 Reynolds 1,700 Wynter 400 Drawings during the year Reynolds 8000 Wynter 6400 Land and building .........................................160 000 Equipment .......................................................15000 Cash and bank .................................................20000 Bank loan .................................................................. 90,000 Electricity ..........................................................1400 Office salaries .................................................40000…
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
X and Y were partners in a firm with a profit sharing ratio of 7:5. During the year ended 31.12.2012 Y makes the drawings as under: Date Amount ($) 01.02.2012 14,000 01.05.2012 10,000 30.06.2012 5,000 31.10.2012 12,000 31.12.2012 4,000 Partnership deed provides that partners are to be charged interest on drawings @ 10% per annum. Calculate the interest chargeable to Y by using Simple Interest Method and Product Method.
Yaw, Mary, and Hanna have been in partnership for a number of years sharing profit in the ratio 6:5:3. Work-in-progress was not brought into the accounts. The balance sheet of the partnership as at 31" March 2020 showed the following position: GH c000 GH c000 Tangible Assets 25,000.00 G oodwill Capital account: 22,400.00 Y aw 12,950.00 Maгy 18,000.00 D ebto rs 73,500.00 Hanna 8,700.00 balance at bank 10,450.00 Sundry C reditors 67,600.00 119,300.00 119,300.00 On 31" March 2020, Yaw retired from the partnership, and it was agreed to admit Osei as a partner on the following terms: i. Goodwill in the old partnership was to be revalued to two years purchase of the average profit over the last three years. The profit of the last three years have been GHC12,400,000; GHC13,600,000; GHC14,005,000. Goodwill was to be written off in the new partnership. ii. Yaw is to take his car out of the partnership assets at an agreed value of GHC1,000,000. The car had been included in the accounts as at 31…
GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
John and Peter are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively.The following is their trial balance as of 31 December 2007.Dr Cr$ $Buildings (cost $105,000) 80,000Fixtures at cost 4,100Provision for depreciation: Fixtures 2,100Debtors 30,700Creditors 13,295Cash at bank 3,065Stock at 01 January 2008 31,370Sales 181,555.50Purchases 105,000Carriage outwards 1,705Discounts allowed 310Loan interest: M. Money 1,950Office expenses 2,380Salaries and wages 28,904.50Bad debts 816Provision for doubtful debts 700Loan from M. Money 32,500Capitals: Shoes 50,000Socks 37,500Current accounts: Shoes 2,050Socks 600Drawings: Shoes 15900Book 14,100320,300.5 320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings:…
The information below relates to “NOT partnership business” for the year ended 31st December, 2019Nyamekye Oliver TwistGH¢’000 GH¢’000 GH¢’000Capital Introduced 20,000 30,000 40,000Drawings 10,000 15,000 20,000i. Nyamekye is entitled to a salaries amounted to GH¢ 9,350,000 per annum, sharing Profit or loss on the basis of capital contributed.ii. Net profit for the period ended 31st December, 2019 was GH¢ 38,500,000. Interest on drawings and Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly.iii. Oliver advanced a loan amounted to GH¢ 300,000,000 to “NOT Partnership Business” on 1stSeptember, 2019 but charged an interest of 12.5% per annum on the loan.iv. Twist Retired on 31st December, 2019 but granted his net worth in the partnership business as a loan to the business charging Interest of 9% per annum on the loan.Required a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019. b. Partners’ Capital Account for the year ended 31/12/2019…
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? A. R12 000 DR O B. R116 000 DR OC. R52 000 CR O D. R12 000 CR
The following s the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount 76500 Provision for bad debts 212500 Commission 6375 Y's Loan A/c 212500 Plant and Machinery 127500 Wages Opening Stock of Finished Goods Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors Carriage inwards Carriage outwards Factory Expenses Royalties 106250 1381250 10625 6375 42500 127500 3825 31875 6375 Purchase of Raw material (net) 318750 Factory rent & taxes Discount 27625 0. 12325 17000 8500 0. Office rent Insurance Bad debts Office Expenses Salaries of works manager 6375 31875 S1000 Cash at bank 34850 2014500 The following additional information is to be taken into…
Crush and Ni are in partnership and prepare their accounts to December 31 each year.On July 1, 2015, Sir joined the partnership. Profit sharing arrangements are:6 months toJune 30, 20156 months toDecember 31, 2015Salary Allowances Crush P15,000 P25,000Share in residual profit Crush 60% 40%Ni 40% 40%Sir - 20%The partnership’s net income for the year ended December 31, 2015 was P350,000accruing evenly over the year. What are the partner’s total profit shares for the yearended December 31, 2015?Peeta, Katniss and Gale formed a partnership on January 1, 2015 and contributed P150,000,P200,000 and P250,000, respectively. Their articles of co-partnership provide that the operatingincome be shared among the partners as follows: as salary, P24,000 for Peeta, P18,000 for Katnissand P12,000 for Gale; interest of 12% on the average capital during 2015 of the three partners andthe remainder in the ratio of 4:2:4, respectively. The operating income for the year-ended December31, 2015 amounted to…
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 187500 x Capital A/c 56250 Y Capital A/c 25000 Sundry creditors 50000 Sales (net) 25000 Discount 22500 Provision for bad debts 62500 37500 Plant and Machinery Wages 31250 Opening Stock of Finished Goods 406250 3125 Opening Stock of Raw material Opening Stock of Work in Progress 1875 Sundry debtors 62500 Commission 12500 Carriage inwards 1875 Y's Loan A/c 37500 Carriage outwards 1125 Factory Expenses 9375 Royalties 1875 Purchase of Raw material (net) 93750 Factory rent & taxes 8125 Discount 3625 Office rent 5000 Insurance 2500 Bad debts 1875 Office Expenses 9375 Salaries of works manager 15000 Cash at bank 10250 592500 The following additional information is to be taken into consideration: 592500…
A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.