Q, S and T are partners in Quesentee. The partnership agreement provides for the following: 1. Capital remain unchanged at:
Q, S and T are partners in Quesentee. The partnership agreement provides for the following:
1. Capital remain unchanged at:
2 When dividing profits and losses, this information must be taken into account:
a. Q and S each receive a salary of R2 000 per year. T receives R3 000 plus a bonus of 10% of the profits, after providing for all interests and salaries.
b. Each partner earns interest on capital at 6% per annum. Interest on current accounts is calculated at 10% per annum.
c. Interest on drawings is calculated at 6% per annum. In the current year, drawings were as follows: Q, R350; S, R200; T, R400.
d. R2 250 of the profit must be transferred to the general reserve account.
e. The remaining profit must be divided in the ratio 6 : 3 : 1.
• Net profit for the year amounted to R21 850.
• Balance on the current accounts:
You are required to:
Record all the transactions above in the general journal of Quesentee for the year ending 30 June 20x5. (Narrations should be included.)
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