Question 1Maxine and Paula are partners who share profits and losses in the ratio 3:1. Their trial balance asat 2018 December 31 was as follows:A.B.i.11.iii.iv.V.SalesOffice salariesOffice expensesMortgage interestPurchasesvi.Stock at 2018 January 01BankBatikAdditional information:CreditorsDebtorsFixturesProvision for depreciation on fixturesBuildingMortgage 10%Capital - Maxine- PaulaCurrent account - Maxine- PaulaDrawings - Maxine- PaulaMotor vehicleCommission received$25 00012 6308.000245 50070 00024 00022 000100 0007 5003 5008 50010 50050 000587 130Stock at 2018 December 31 is $120 000.Interest on capital is to be paid at 5%.Interest on drawings is to be charged at 5%.$295 50042 18022 3506 60080 00060 00060 00020 500587 130Commission received is prepaid by $2 500.Provide for depreciation of fixtures 10% using the reducing balance meth d and motorvehicle at 10% using the straight-line method.Paula is to be paid a salary of $10 000.Prepare a partnership Income Statement and Appropriations Account for period ending2018 December 31.Prepare the current account of each partner.||

A partnership appears to be a business structure in which more than one person runs the company,…

Maxine and Paula are partners who share profits and losses in the ratio 3:1. Their trial balance as at 2018 December 31 was as follows: Sales Office salaries Office expenses Mortgage interest Purchases Stock at 2018 January 01 Bank Creditors Debtors Fixtures Provision for depreciation on fixtures 25 000 12 630 8.000 245 500 70 000 24 000 22 000 295 500 42 180 22 350 6600

Maxine and Paula are partners who share profits and losses in the ratio 3:1. Their trial balance as at 2018 December 31 was as follows: Sales Office salaries Office expenses Mortgage interest Purchases Stock at 2018 January 01 Bank Creditors Debtors Fixtures Provision for depreciation on fixtures 25 000 12 630 8.000 245 500 70 000 24 000 22 000 295 500 42 180 22 350 6600

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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