Tensbi, Jiao and Minh are in partnership with profits shared in the ratio of their original...
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Tensbi, Jiao and Minh are in partnership with profits shared in the ratio of their original capital investments. The partnership agreement provides the following: • Interest on capital to be credited at 10% p.a. • Interest on drawings to be charged at 15% p.a. • Minh is to receive a salary in addition to any profit share • Loans by partners to the business are at an interest rate of 6% p.a. The following information relates to the 30 June EOFY account balances before applying any interest payments and before the profit distribution. Capital - Tenshi Capital - Jiao Capital - Minh Retained earnings - Tenshi Retained earnings - Jiao Retained earnings - Minh Gross profit Operating expenses Salary due to Minh Drawings - Tenshi Drawings - Jiao 50,000 50,000 25,000 35,000 30,000 20,000 560,000 110,000 50,000 58,000 38,000 Drawings - Minh 90,000 In addition Tenshi made a short-term loan to the business of $30,000 on January 1 that year. Required: Using T' account ledger format Prepare the Profit and Loss Summary Account il. Prepare the Profit Distribution Account ilI. Prepare the partners Retained Earnings Accounts QUESTION 3 Part A Profit and Loss Summary 30/6 30/6 Profit Distribution 30/6 30/6 30/6 30/6 Teosbl, Retained Earnings 1/7 Balance $35 000 30/6 30/6 Jlao, Retained Earnings 30/6 1/7 Balance $30 000 30/6 30/6 Minh, Retained Earnings 30/6 1/7 Balance $20 000 30/6 30/6 30/6 30/6 || Tensbi, Jiao and Minh are in partnership with profits shared in the ratio of their original capital investments. The partnership agreement provides the following: • Interest on capital to be credited at 10% p.a. • Interest on drawings to be charged at 15% p.a. • Minh is to receive a salary in addition to any profit share • Loans by partners to the business are at an interest rate of 6% p.a. The following information relates to the 30 June EOFY account balances before applying any interest payments and before the profit distribution. Capital - Tenshi Capital - Jiao Capital - Minh Retained earnings - Tenshi Retained earnings - Jiao Retained earnings - Minh Gross profit Operating expenses Salary due to Minh Drawings - Tenshi Drawings - Jiao 50,000 50,000 25,000 35,000 30,000 20,000 560,000 110,000 50,000 58,000 38,000 Drawings - Minh 90,000 In addition Tenshi made a short-term loan to the business of $30,000 on January 1 that year. Required: Using T' account ledger format Prepare the Profit and Loss Summary Account il. Prepare the Profit Distribution Account ilI. Prepare the partners Retained Earnings Accounts QUESTION 3 Part A Profit and Loss Summary 30/6 30/6 Profit Distribution 30/6 30/6 30/6 30/6 Teosbl, Retained Earnings 1/7 Balance $35 000 30/6 30/6 Jlao, Retained Earnings 30/6 1/7 Balance $30 000 30/6 30/6 Minh, Retained Earnings 30/6 1/7 Balance $20 000 30/6 30/6 30/6 30/6 || Tensbi, Jiao and Minh are in partnership with profits shared in the ratio of their original capital investments. The partnership agreement provides the following: • Interest on capital to be credited at 10% p.a. • Interest on drawings to be charged at 15% p.a. • Minh is to receive a salary in addition to any profit share • Loans by partners to the business are at an interest rate of 6% p.a. The following information relates to the 30 June EOFY account balances before applying any interest payments and before the profit distribution. Capital - Tenshi Capital - Jiao Capital - Minh Retained earnings - Tenshi Retained earnings - Jiao Retained earnings - Minh Gross profit Operating expenses Salary due to Minh Drawings - Tenshi Drawings - Jiao 50,000 50,000 25,000 35,000 30,000 20,000 560,000 110,000 50,000 58,000 38,000 Drawings - Minh 90,000 In addition Tenshi made a short-term loan to the business of $30,000 on January 1 that year. Required: Using T' account ledger format Prepare the Profit and Loss Summary Account il. Prepare the Profit Distribution Account ilI. Prepare the partners Retained Earnings Accounts QUESTION 3 Part A Profit and Loss Summary 30/6 30/6 Profit Distribution 30/6 30/6 30/6 30/6 Teosbl, Retained Earnings 1/7 Balance $35 000 30/6 30/6 Jlao, Retained Earnings 30/6 1/7 Balance $30 000 30/6 30/6 Minh, Retained Earnings 30/6 1/7 Balance $20 000 30/6 30/6 30/6 30/6 || Tensbi, Jiao and Minh are in partnership with profits shared in the ratio of their original capital investments. The partnership agreement provides the following: • Interest on capital to be credited at 10% p.a. • Interest on drawings to be charged at 15% p.a. • Minh is to receive a salary in addition to any profit share • Loans by partners to the business are at an interest rate of 6% p.a. The following information relates to the 30 June EOFY account balances before applying any interest payments and before the profit distribution. Capital - Tenshi Capital - Jiao Capital - Minh Retained earnings - Tenshi Retained earnings - Jiao Retained earnings - Minh Gross profit Operating expenses Salary due to Minh Drawings - Tenshi Drawings - Jiao 50,000 50,000 25,000 35,000 30,000 20,000 560,000 110,000 50,000 58,000 38,000 Drawings - Minh 90,000 In addition Tenshi made a short-term loan to the business of $30,000 on January 1 that year. Required: Using T' account ledger format Prepare the Profit and Loss Summary Account il. Prepare the Profit Distribution Account ilI. Prepare the partners Retained Earnings Accounts QUESTION 3 Part A Profit and Loss Summary 30/6 30/6 Profit Distribution 30/6 30/6 30/6 30/6 Teosbl, Retained Earnings 1/7 Balance $35 000 30/6 30/6 Jlao, Retained Earnings 30/6 1/7 Balance $30 000 30/6 30/6 Minh, Retained Earnings 30/6 1/7 Balance $20 000 30/6 30/6 30/6 30/6 ||
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Profit and loss summary Date Particular Amount Date Particular Amount 306 Operating Exps 110000 306 ... View the full answer
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
Posted Date:
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