At 31 December 2017, the end of first year operations for Good-Friend Partnership bakery business, the...
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At 31 December 2017, the end of first year operations for Good-Friend Partnership bakery business, the following were the capital account balances for the partners: The net income or net losses for the year ending 31" December 2017 have not yet been closed to the partners' capital accounts. vi. Partner Caleen Barry Ronne The following additional information is given for the year: Net profit for the year 2017 is RM30,350; vii. viii. RM 40,000 30,000 18,000 Each partner is allowed interest to be charged on capitals: Caleen RM2,000 Barry RM1,500 Ronne RM900 Each partner is charged interest on drawings: Caleen RM240 Barry RM180 Ronne RM130 ix. X. xi. Barry and Ronne are given a salary allowance of RM2,000 and RM3,500 respectively: The profit sharing ratio between the partners: Caleen 50%, Barry 30% and Ronne 20%. Drawings made for the year by the partners Caleen, Barry and Ronne are RM9,200, RM7,100 and RM6,900 respectively. xii. Current account balances for each partner: Caleen RM1,860 Barry RM946 Ronne RM717 Required: (a) Prepare a profit and loss appropriation account for the year ended 31st December 2017. (b) Prepare the balance on each partner's current account at 31st December 2017. At 31 December 2017, the end of first year operations for Good-Friend Partnership bakery business, the following were the capital account balances for the partners: The net income or net losses for the year ending 31" December 2017 have not yet been closed to the partners' capital accounts. vi. Partner Caleen Barry Ronne The following additional information is given for the year: Net profit for the year 2017 is RM30,350; vii. viii. RM 40,000 30,000 18,000 Each partner is allowed interest to be charged on capitals: Caleen RM2,000 Barry RM1,500 Ronne RM900 Each partner is charged interest on drawings: Caleen RM240 Barry RM180 Ronne RM130 ix. X. xi. Barry and Ronne are given a salary allowance of RM2,000 and RM3,500 respectively: The profit sharing ratio between the partners: Caleen 50%, Barry 30% and Ronne 20%. Drawings made for the year by the partners Caleen, Barry and Ronne are RM9,200, RM7,100 and RM6,900 respectively. xii. Current account balances for each partner: Caleen RM1,860 Barry RM946 Ronne RM717 Required: (a) Prepare a profit and loss appropriation account for the year ended 31st December 2017. (b) Prepare the balance on each partner's current account at 31st December 2017.
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Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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