Dean and sumit have been in partnership for some years running a manufacturing business. Dean receivea a
Question:
Dean and sumit have been in partnership for some years running a manufacturing business. Dean receivea a salary of R70 000 a year from the partnership. Interest on salary paid at the rate of 10% and profits are split in the ratio of 3:2. The partners agreement also providEd for interest on drawings. on 1 January 2015, their balances were as follows:
Capital account: Dean- R1 000 000, sumit R1 500 000. Current accounts: Dean- R21 000 credits- sumit R69 000 debit. the following further info was Available for the year ended 31 December 2015:
profit for the year- R640 000
Drawings: Dean R190 000, sumit R120 000.
Interest on drawings: Dean R18 000, sumit R12 000
Required: prepare the current accounts of Dean and sumit for the year ended 31 December 2015. Balance the accounts and bring down the balance on 1 January 2016.
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone