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

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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 2013.

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Required: Draw up a set of financial statements for the year ending 31 December 2013 for the partnership. The following notes are applicable at 31 December 2013.

(a) Inventory, 31 December 2013 £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.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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