Preparing fluctuating capital accounts Jenny and Keith are in partnership, sharing profits and losses in the ratio 2:3. The partners have agreed not to maintain separate current accounts.

On 1 August 2013 the balances on the partners' capital accounts were:

During the year ended 31 July 2014, the partner’s drawings were:

The partners have agreed that Jenny is entitled to a partnership salary of $33 000 per annum and Keith a partnership salary of $18,000 per annum. During the year ended 31 July 2014, the partnership made a loss of $25,000.

Prepare:

a. An appropriation account for the year ended 31 July 2014

b. The partners' capital accounts.

Transcribed Image Text:

$ Jenny 284 570 Keith 345 830 %24