Shoes and Socks 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 2008. Dr 2$ Cr Buildings (cost $105,000) 80,000 Fixtures at cost 4,100 Provision for depreciation: Fixtures 2,100 Debtors 30,700 Creditors 13,295 Cash at bank 3,065 Stock at 01 January 2008 Sales 31,370 181,555.50 Purchases 105,000 Carriage outwards Discounts allowed Loan interest: M. Money Office expenses Salaries and wages 1,705 310 1,950 2,380 28,904.50 Bad debts 816 Provision for doubtful debts 700 Loan from M. Money Capitals: Shoes Socks Current accounts: Shoes 32,500 50,000 37,500 2,050 Socks 600 Drawings: Shoes 15900 Book 14,100 320,300.5 320,300.5 i. Stock, 31 December 2008, $35,105 Expenses to be accrued: Office Expenses $107.50; Wages $360 Depreciate fixtures 15% on reducing balance basis, buildings $2,500 Reduce provision for doubtful debts to $625 Partnership salary: $15,000 to Shoes. Not yet entered ii. ii. iv. V. Interest on drawings: Shoes $450; Socks $300 Interest on capital account balances at 5 percent vi. vii. Required: Prepare a trading and profit and loss appropriation account for the year ended 31 Dec. 2008 a balance sheet extract showing the Financing of the business as of that date.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shoes and Socks 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 2008.
DE
$
Cr
Buildings (cost S105,000)
Fixtures at cost
80,000
4,100
Provision for depreciation: Fixtures
2,100
Debtors
30,700
Creditors
13,295
Cash at bank
3,065
Stock at 01 January 2008
Sales
31,370
181,555.50
Purchases
105,000
Carriage outwards
Discounts allowed
1,705
310
Loan interest: M. Money
Office expenses
Salaries and wages
1,950
2,380
28,904.50
Bad debts
816
Provision for doubtful debts
700
Loan from M. Money
Capitals: Shoes
Socks
32,500
50,000
37,500
Current accounts: Shoes
2,050
Socks
600
Drawings: Shoes
Вook
15900
14,100
320,300.5
320,300.5
i.
Stock, 31 December 2008, $35,105
Expenses to be accrued: Office Expenses $107.50; Wages $360
Depreciate fixtures 15% on reducing balance basis, buildings $2,500
Reduce provision for doubtful debts to $625
Partnership salary: $15,000 to Shoes. Not yet
ii.
iii.
iv.
V.
entered
Interest on drawings: Shoes $450; Socks $300
Interest on capital account balances at 5 percent
vi.
vii.
Required:
Prepare a trading and profit and loss appropriation account for the year ended 31 Dec. 2008
a balance sheet extract showing the Financing of the business as of that date.
Transcribed Image Text:Shoes and Socks 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 2008. DE $ Cr Buildings (cost S105,000) Fixtures at cost 80,000 4,100 Provision for depreciation: Fixtures 2,100 Debtors 30,700 Creditors 13,295 Cash at bank 3,065 Stock at 01 January 2008 Sales 31,370 181,555.50 Purchases 105,000 Carriage outwards Discounts allowed 1,705 310 Loan interest: M. Money Office expenses Salaries and wages 1,950 2,380 28,904.50 Bad debts 816 Provision for doubtful debts 700 Loan from M. Money Capitals: Shoes Socks 32,500 50,000 37,500 Current accounts: Shoes 2,050 Socks 600 Drawings: Shoes Вook 15900 14,100 320,300.5 320,300.5 i. Stock, 31 December 2008, $35,105 Expenses to be accrued: Office Expenses $107.50; Wages $360 Depreciate fixtures 15% on reducing balance basis, buildings $2,500 Reduce provision for doubtful debts to $625 Partnership salary: $15,000 to Shoes. Not yet ii. iii. iv. V. entered Interest on drawings: Shoes $450; Socks $300 Interest on capital account balances at 5 percent vi. vii. Required: Prepare a trading and profit and loss appropriation account for the year ended 31 Dec. 2008 a balance sheet extract showing the Financing of the business as of that date.
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