At the end of the financial year ended 30 June 2019, the trial balance of Veronica, Valda and Victoria is as shown below.

Victoria made her advance before 1 July 2018. Veronica and Valda each withdrew $12 000 on 30 September 2018, $8000 on 31 December 2018, $5000 on 31 March 2019, and the remainder on 30 June 2019. Victoria made her drawing on 30 June 2019.

The partnership agreement contains the following provisions in relation to the allocation of profits.

1. A salary of $92 000 p.a. for Veronica and $56 000 p.a. for Valda 

2. Interest of 6% p.a. on capital contributed at the start of each financial year 

3. Interest on advances of 8% p.a.

4. Interest on drawings at 8% p.a.

Required

(a) Prepare the Profit Distribution account for the year ended 30 June 2019.

(b) Prepare the capital accounts for each partner at 30 June 2019.

(c) Prepare the balance sheet as at 30 June 2019.

Transcribed Image Text:

Cash at bank Accounts receivable Inventory Equipment VERONICA, VALDA AND VICTORIA Trial Balance as at 30 June 2019 Accumulated depreciation equipment Goodwill Accounts payable Advance, Victoria (due for payment 31 May 2020) Capital, 30 June 2018 Veronica Valda Victoria Drawings: Veronica Valda Victoria Profit or loss summary Debit $ 162500 248 620 178460 1430 800 360000 Credit $ 462 600 60 000 60000 20000 345 780 320 000 160 000 320 000 640 000 272 000 $2520380 $2520 380