Wilson, Keppel and Betty were in partnership and shared profits and losses equally. Current Accounts are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wilson, Keppel and Betty were in partnership and shared profits and losses equally. Current Accounts are not operated. On 30 April 2005 their Capital Accounts showed the following balances: Wilson $40 000 Keppel $30 000 Betty $15 000 Keppel retired from the partnership on 1 May 2005 and at that time goodwill was valued at $24 000. Fixed assets were revalued as follows: Premises increased in value by $10 000; Fixtures increased in value by $4 000; Vehicles decreased in value by $2 000. It was also agreed that neither a Goodwill Account nor a Revaluation Account would be shown in the partnership books. Keppel received cash for his of the partnership, and Wilson and Betty continued to run the partnership still sharing the profits equally. Drawings during the year ended 30 April 2006 were: Wilson $46 000 and Betty $45 000 while net profit for the year was $120 000. a) b) Draw up the partners' Capital Accounts for the year ended 30 April 2006, in columnar form. [11] Imogen joined the partnership on 1 November 2006, bringing in capital of $12 000 and $8 000 as her share of goodwill. No Goodwill Account was opened. Profit was now shared on the following basis: Wilson ³/₁, Betty ³/ and Imogen ¹/7. During the year ended 30 April 2007, partners' drawings were: Wilson $52 000, Betty $48 000 and Imogen $20 000. Profits for the year amounted to $140 000 and accumulated at a regular rate throughout the year. The partnership was sold on 1 May 2007 for $128 000. The partnership was dissolved and all of the partners took the money due to them. Draw the partners' Capital Accounts for the period 1 May 2006 to 1 May 2007, in columnar form. [14] Wilson, Keppel and Betty were in partnership and shared profits and losses equally. Current Accounts are not operated. On 30 April 2005 their Capital Accounts showed the following balances: Wilson $40 000 Keppel $30 000 Betty $15 000 Keppel retired from the partnership on 1 May 2005 and at that time goodwill was valued at $24 000. Fixed assets were revalued as follows: Premises increased in value by $10 000; Fixtures increased in value by $4 000; Vehicles decreased in value by $2 000. It was also agreed that neither a Goodwill Account nor a Revaluation Account would be shown in the partnership books. Keppel received cash for his of the partnership, and Wilson and Betty continued to run the partnership still sharing the profits equally. Drawings during the year ended 30 April 2006 were: Wilson $46 000 and Betty $45 000 while net profit for the year was $120 000. a) b) Draw up the partners' Capital Accounts for the year ended 30 April 2006, in columnar form. [11] Imogen joined the partnership on 1 November 2006, bringing in capital of $12 000 and $8 000 as her share of goodwill. No Goodwill Account was opened. Profit was now shared on the following basis: Wilson ³/₁, Betty ³/ and Imogen ¹/7. During the year ended 30 April 2007, partners' drawings were: Wilson $52 000, Betty $48 000 and Imogen $20 000. Profits for the year amounted to $140 000 and accumulated at a regular rate throughout the year. The partnership was sold on 1 May 2007 for $128 000. The partnership was dissolved and all of the partners took the money due to them. Draw the partners' Capital Accounts for the period 1 May 2006 to 1 May 2007, in columnar form. [14]
Expert Answer:
Answer rating: 100% (QA)
a Partners Capital Accounts Wilson 30 April 2005 Balance bd 40000 add Share of net profit for th... View the full answer
Related Book For
Cambridge IGCSE And O Level Accounting Coursebook
ISBN: 9781316502778
2nd Edition
Authors: Catherine Coucom
Posted Date:
Students also viewed these accounting questions
-
A firm had merchandise inventory of 52,500 on January 1 2016 and had purchases of 60,000 freight in of 300 purchases returns and allowances of 3,800 and purchases discounts of 1,400 during 2016 The...
-
The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years. If the prize money is guaranteed by AAA bonds yielding 6% and is placed into...
-
Question 17 Not yet saved Marked out of 1.00 1 Flag question Previous page A change in which of the following values does NOT change the position of the IS curve Select one: b a. b. Re c. f d. a e....
-
Jason and Mary Wells, friends of yours, were married on December 30, 2020. They know you are studying taxes and have sent you an e-mail with a question concerning their filing status. Jason and Mary...
-
Suppose that X1, . . . , Xn form a random sample from a normal distribution for which the mean is known and the variance is unknown. Construct an efficient estimator that is not identically equal to...
-
Suppose that you are designing a computer-based system that plays a multiplayer game online. Which UML diagrams you will choose to design the system? Why?
-
The following table presents the number of grams of protein and the number of calories per 100 grams for each of 18 fast-food products. a. Compute the least-squares regression line for predicting...
-
X plc manufactures Product X using three different raw materials. The product details are as follows: It is company policy to hold stocks of finished goods at the end of each month equal to 50 per...
-
State a conceptualized service that can be easily created for students. With product specification.
-
On September 1, 201X, Dan Potter opened an auto repair shop. Here is his chart of accounts: Assets Liabilities Equity 101 Cash 201 Accounts Payable 301 Dan Potter, Capital 102 Accounts Receivable 302...
-
You are called in to consult for the Clothing International Company (CIC). The company is a database marketing / mail order firm that takes orders by mail or, with an 800 number, by phone. CIC has...
-
4.A Tim Hortons location is having frequent issues with scaling in their coffee makers and have hired you to design a softening system. They specify that you must use excess lime softening. You have...
-
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18 Activities Beginning inventory...
-
During an up-elevator ride, would the magnitude of change in force observed be the same between subjects? That is, if you observed a 20 lb difference in 'body weight' during an up-elevator ride,...
-
Because of the expansion possibilities brought about by the effects of deregulation and a good demand forecast, you are considering adding a salesperson to your staff. A competing airline, which is...
-
(a) Was there any crowding out of lifeguard coverage following the introduction of local government spending on lifeguard duty in 2023? Explain why or why not. (3 points) ( b ) For lifeguard duty...
-
Sally earns $107,000 (Gross Salary) and is currently single with no dependents. Using the 2021 standard deduction of $12,550 determine her taxable income, marginal tax rate, due tax and average tax...
-
Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the...
-
Jai is a trader. The following balances appeared in his books on 31 March 208. $ Sales .........................................86,000 Purchases ................................51,500 Bank overdraft...
-
Tebogo owns an advertising agency. His financial year ends on 31 May. He provided the following information for the year ended 31 May 201: $ Fees received from clients...
-
Mahela is a trader. He took goods costing $100 for his own use. How would Mahela record this in his ledger? Account to be debited Account to be credited A drawings inventory drawings purchases C...
-
How does a business know when to create an invoice and when to create a sales receipt?
-
Why are cash receipts initially recorded as undeposited funds?
-
How does a firm account for a transfer of funds from one bank to another bank in QuickBooks Accountant?
Study smarter with the SolutionInn App