Question one Black, Brown and Cook are partners. They share profits and losses in the ratios of 2/9, 1/3 and 4/9 respectively. For the year ended 31 July 20X2, their capital accounts remained fixed at the following amounts: £ 60,000 40,000 20,000 Black Brown Cook They have agreed to give each other 6 per cent interest per annum on their capital accounts. In addition to the above, partnership salaries of £30,000 for Brown and £18,000 for Cook are to be charged. The net profit of the partnership, before taking any of the above into account was £111,000. Black and Brown withdrew £4,000 and £5,000 worth of goods respectively during the period. The firm charges 10% interest on drawings. You are required to Draw up the appropriation account of the partnership for the year ended 31 July 20X2. Prepare the partners current account Prepare the fluctuating capital account.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question one
Black, Brown and Cook are partners. They share profits and losses in the ratios of 2/9, 1/3 and
4/9 respectively. For the year ended 31 July 20X2, their capital accounts remained fixed at the
following amounts:
Black
60,000
40,000
Cook
20,000
They have agreed to give each other 6 per cent interest per annum on their capital accounts. In
addition to the above, partnership salaries of £30,000 for Brown and £18,000 for Cook are to be
charged. The net profit of the partnership, before taking any of the above into account was
£111,000. Black and Brown withdrew £4,000 and £5,000 worth of goods respectively during the
period. The firm charges 10% interest on drawings. You are required to
Draw up the appropriation account of the partnership for the year ended 31 July 20X2.
Prepare the partners current account
Prepare the fluctuating capital account.
£
Brown
Transcribed Image Text:Question one Black, Brown and Cook are partners. They share profits and losses in the ratios of 2/9, 1/3 and 4/9 respectively. For the year ended 31 July 20X2, their capital accounts remained fixed at the following amounts: Black 60,000 40,000 Cook 20,000 They have agreed to give each other 6 per cent interest per annum on their capital accounts. In addition to the above, partnership salaries of £30,000 for Brown and £18,000 for Cook are to be charged. The net profit of the partnership, before taking any of the above into account was £111,000. Black and Brown withdrew £4,000 and £5,000 worth of goods respectively during the period. The firm charges 10% interest on drawings. You are required to Draw up the appropriation account of the partnership for the year ended 31 July 20X2. Prepare the partners current account Prepare the fluctuating capital account. £ Brown
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