1. Rene and Edith are partners in Allo Allo. Their partnership agreement included the following: Interest...

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1. Rene and Edith are partners in Allo Allo. Their partnership agreement included the following: Interest on drawings is to be charged at 10% p.a. Interest on capital is to be paid at 5% p.a. Rene is to be paid a salary of 8,000 p.a. Profit or loss is to be shared in the same ratio as their capital The following trial balance was extracted AFTER the calculation of the net income for the year ending December 31, 2015: DETAILS Net profit for the year Cash Bank Creditors Debtors Fixtures Provision for depreciation on fixtures Building Provision for depreciation on building Loan Capital Rene Edith Drawings Rene Edith Current account Rene Edith Motor vehicle Provision for depreciation on motor vehicle Commission owing Rent expense owing Closing stock DR 6,200 25,000 60,000 180,000 12,000 24,000 3,600 80,000 5,000 51,500 447,300 CR 28,500 40,350 11,600 12,000 21,500 200,650 75,000 25,000 8,200 16,000 8,500 447,300 Required: Write up the appropriation account and the current account for the year, and the statement of financial position extract showing equity only as at year end. 1. Rene and Edith are partners in Allo Allo. Their partnership agreement included the following: Interest on drawings is to be charged at 10% p.a. Interest on capital is to be paid at 5% p.a. Rene is to be paid a salary of 8,000 p.a. Profit or loss is to be shared in the same ratio as their capital The following trial balance was extracted AFTER the calculation of the net income for the year ending December 31, 2015: DETAILS Net profit for the year Cash Bank Creditors Debtors Fixtures Provision for depreciation on fixtures Building Provision for depreciation on building Loan Capital Rene Edith Drawings Rene Edith Current account Rene Edith Motor vehicle Provision for depreciation on motor vehicle Commission owing Rent expense owing Closing stock DR 6,200 25,000 60,000 180,000 12,000 24,000 3,600 80,000 5,000 51,500 447,300 CR 28,500 40,350 11,600 12,000 21,500 200,650 75,000 25,000 8,200 16,000 8,500 447,300 Required: Write up the appropriation account and the current account for the year, and the statement of financial position extract showing equity only as at year end.

Answer rating: 100% (QA)

ANSWER One of the most basic difference between the two bills is that Appropriation Bill deals ... View the full answer