The trial balance of Kenedy and William, trading as partners and sharing profits in the ratio...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The trial balance of Kenedy and William, trading as partners and sharing profits in the ratio 2:3 as at 31 December 2016 is as follows: Capital: Kenedy William Factory building Furniture at cost Factory equipment at cost Director's car at cost Provision for depreciation Depreciation expense Debtors and prepayments Stocks as at 31st December 2016 Creditors and accruals Balance at bank Gross profit on trading Rent and rates Office salaries Partners salaries Advertising costs Transport costs Deposit on new equipment Short term investment Sh. 5,000,000 750,000 2,000,000 1,000,000 115,000 1,050,000 1,042,000 720,000 300,000 826,000 600,000 210,000 236,000 100,000 600,000 14.549,000 Sh. 3,600,000 5,221,000 710,000 853,000 4,165,000 14.549.000 The following additional information is provided: 1. 2. 3. 4. Rent and rates are for fifteen months to 31 March 2017. The partners had contracted to purchase new equipment for the factory at a cost of Sh.500,000. A debt of Sh.100,000 was paid during December 2016 and the remainder was paid during January 2017 when it was expected. The factory building has been revalued from Sh.4,000,000 The partnership started operating on 1st January 2016 5. Partnership salaries are taken equally 6. Interest on capital was provided at 10% on balance given. Required: (a) Taxable partnership profit for the year of income 2016. (b) Show the allocation between partners. The trial balance of Kenedy and William, trading as partners and sharing profits in the ratio 2:3 as at 31 December 2016 is as follows: Capital: Kenedy William Factory building Furniture at cost Factory equipment at cost Director's car at cost Provision for depreciation Depreciation expense Debtors and prepayments Stocks as at 31st December 2016 Creditors and accruals Balance at bank Gross profit on trading Rent and rates Office salaries Partners salaries Advertising costs Transport costs Deposit on new equipment Short term investment Sh. 5,000,000 750,000 2,000,000 1,000,000 115,000 1,050,000 1,042,000 720,000 300,000 826,000 600,000 210,000 236,000 100,000 600,000 14.549,000 Sh. 3,600,000 5,221,000 710,000 853,000 4,165,000 14.549.000 The following additional information is provided: 1. 2. 3. 4. Rent and rates are for fifteen months to 31 March 2017. The partners had contracted to purchase new equipment for the factory at a cost of Sh.500,000. A debt of Sh.100,000 was paid during December 2016 and the remainder was paid during January 2017 when it was expected. The factory building has been revalued from Sh.4,000,000 The partnership started operating on 1st January 2016 5. Partnership salaries are taken equally 6. Interest on capital was provided at 10% on balance given. Required: (a) Taxable partnership profit for the year of income 2016. (b) Show the allocation between partners.
Expert Answer:
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Posted Date:
Students also viewed these accounting questions
-
The trial balance of Building Blocks Child Care, Inc., does not balance. The following errors are detected: a. Cash is understated by $4,000. b. A $2,000 debit to Accounts receivable was posted as a...
-
At December 31, 2010, the trial balance of Olpe Company contained the following amounts before adjustment. Instructions (a) Prepare the adjusting entry at December 31, 2010, to record bad debts...
-
At December 31, 2010, the trial balance of Stine Company contained the following amounts before adjustment. Instructions (a) Based on the information given, which method of accounting for bad debts...
-
A solid cubical block of side length 0.6 m is suspended from a spring balance. When the block is in water, the spring balance reads 80% of the reading when the block is in air. Determine the density...
-
Briefly describe the elements of a business case for a new information systems project under the SDLC methodology.
-
As a general matter, when a company undertakes a complex or controversial restructuring program, what issues should management be concerned about in designing the company's disclosure strategy? In...
-
Pick any three of the sources of prospects discussed in the chapter and pick a product or service you like. Develop several ideas for how you would use each source to locate leads for the product or...
-
Assume that the following information is known about the current spot exchange rate between the U.S. dollar and the British pound (), inflation rates in Britain and the United States, and the real...
-
Present a brief history of the American home products and the formation of the company .how it grew through the 30s and 50s?
-
Pension data for Barry Financial Services Inc., include the following: Required: 1. Determine pension expense for 2021.2. Prepare the journal entries to record? (a) Pension expense (b) Gains and...
-
How do you calculate the time for a single period from 15 revolutions that took 8.14 s with a radius of 0.25 m. Then the expected value and the percent error? Radius (m) Time per 15 revolutions (s)...
-
Recently elected to the city council are a lady lawyer, an Indian CPA, and two businessmen. Revise the following sentences to reduce bias (e.g., gender, racial, ethnic, age, and disability).
-
The attorney tried to obfuscate the issue with extraneous and superfluous data. Revise the following sentences to use plain language and familiar words.
-
Why should projects be linked to the organisation's Strategic Plan?
-
Explain the role projects play in the delivery of an organisation's strategy
-
What are important considerations in designing a project approach?
-
What is the present value of a series of payments received each year forever, starting with $500 paid one year from now and the payment growing in each subsequent year by 3%? Assume a discount rate...
-
What are three disadvantages of using the direct write-off method?
-
The secretary of the Woodland Hockey Club gives you the following summary of his cashbook for the year ended 31 May 20X1: The secretary also gives you the following information: On 31 May 20W9 the...
-
The following particulars relating to the year ended 31 March 20X9 have been extracted from the books of a trader: Prepare the sales ledger control account for the year ended 31 March 20X9, using...
-
The following figures relating to the year ended 31 March 20X9 have been extracted from the books of a manufacturer: The balances on the control accounts, as shown above, have been included in the...
-
Suppose a species of bacteria divides once every 20 minutes. You start with a single bacterium on your unrefrigerated egg-and-baloney sandwich at 8:00 am. Show that when you sit down to lunch at...
-
The lightest and heaviest flying birds are the bee hummingbird of Cuba, which weighs about 1.6 grams, and the great bustard of Europe and Asia, which can weigh as much as 21 kilograms. Show that the...
-
What is a chemoautotroph? What does a chemoautotroph have in common with a plant? How does a chemoautotroph differ from a plant in how it obtains food?
Study smarter with the SolutionInn App