The partnership of Alistair, Brian and Clyde does not keep separate capital and current accounts for the

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The partnership of Alistair, Brian and Clyde does not keep separate capital and current accounts for the partners. The partnership agreement provided for:

1. Annual salaries to be paid to: Alistair R12 000, Brian R10 000 and Clyde R8 000.

2. Interest to be allowed or charged on opening capital account balances at 18% per annum.

3. Profits and losses to be shared in this ratio:

This information is for the financial year ended 28 February 20x6: (Ignore VAT.)

• Profit for the year before allowing/charging interest on capital accounts but after allowing for partners’ salaries amounted to R15 360.

• The salaries have not yet been withdrawn by the partners.


You are required to:

Prepare the partners’ capital accounts in the general ledger for the year ended 28 February 20x6.

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Related Book For  answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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