Gray, Wilkes and Booth are partners. They share profits and losses in the ratios of 3 /8,
Question:
Gray, Wilkes and Booth are partners. They share profits and losses in the ratios of 3/8, 3/8 and 1/4 respectively.
For the year ended 31 December 20X3 their capital accounts remained fixed at the following amounts:
They have agreed to give each other 5 per cent interest per annum on their capital accounts.
In addition to the above, partnership salaries of £32,000 for Wilkes and £14,000 for Booth are to be charged.
The net profit of the partnership before taking any of the above into account was £84,800.
Required:
Draw up the appropriation account of the partnership for the year ended 31 December 20X3.
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Related Book For
Frank Woods Business Accounting Volume 1
ISBN: 9780273681496
10th Edition
Authors: Frank Wood, Alan Sangster
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