Scot and Joplin are in partnership. They share profits in the ratio: Scot 70 per cent; Joplin

Question:

Scot and Joplin are in partnership. They share profits in the ratio: Scot 70 per cent; Joplin 30 per cent. The following trial balance was extracted as at 31 December 2017:

image text in transcribed

Required:
Draw up a set of financial statements for the year ending 31 December 2017 for the partnership. The following notes are applicable at 31 December 2017:

(a) Inventory, 31 December 2017 £41,312.

(b) Office expenses owing £240.

(c) Provide for depreciation: motor 25 per cent of cost, office equipment 20 per cent of cost.

(d) Charge interest on capitals at 5 per cent.

(e) Charge interest on drawings; Scot £300; Joplin £200.

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: