Cameron Payne and Michael Draper formed a partnership on July 1 2022 by investing $330,000 and...

 

 

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Cameron Payne and Michael Draper formed a partnership on July 1 2022 by investing $330,000 and $280,000 respectively. At the end of the first year (June 30 2022) the partnership had a final profit of $162,000. The partners agree to recognise $20,000 per year salary allowance to Payne and $18,000 per year salary allowance to Draper. Each partner is entitled to 10% interest per annum on their original investment, and any remaining profits are to be shared equally. Payne and Draper use method 1 procedures when accounting for the partnership. Required: a. Complete the following partnership distribution table to distribute the profit to the partners at 30 June 2022: Paragraph V BIU Salary Allowance Interest on Capital (10%) Remainder TOTAL 00 Payne Draper Total Question 11 (4 points) Saved b. Prepare the journal entries to distribute the profit to the partners at 30 June 2022. Paragraph B I UA General Journal of Payne and Draper Date Particulars Debit Credit ... 20 Cameron Payne and Michael Draper formed a partnership on July 1 2022 by investing $330,000 and $280,000 respectively. At the end of the first year (June 30 2022) the partnership had a final profit of $162,000. The partners agree to recognise $20,000 per year salary allowance to Payne and $18,000 per year salary allowance to Draper. Each partner is entitled to 10% interest per annum on their original investment, and any remaining profits are to be shared equally. Payne and Draper use method 1 procedures when accounting for the partnership. Required: a. Complete the following partnership distribution table to distribute the profit to the partners at 30 June 2022: Paragraph V BIU Salary Allowance Interest on Capital (10%) Remainder TOTAL 00 Payne Draper Total Question 11 (4 points) Saved b. Prepare the journal entries to distribute the profit to the partners at 30 June 2022. Paragraph B I UA General Journal of Payne and Draper Date Particulars Debit Credit ... 20