Question: can someone please help me with this. X, Y and Z are in partnership called Best Start and sharing profits and losses in the ratio

can someone please help me with this.

X, Y and Z are in partnership called Best Start and sharing profits and losses in the ratio 2:2:1 respectively. The following is the trial balance of the partnership as at 31st March 2019:

Debit

Credit

Allowance for Doubtful Debts as at 1/4/2018

1,200

Bank

40,200

Capital Accounts as at 1/4/2018:

X

20,000

Y

20,000

Z

15,000

Current accounts as at 1/4/2018:

X

3,000

Y

3,000

Z

1,000

Accounts Receivable

25,000

Accounts Payable

34,000

Buildings

70,000

Motor Vehicles

40,000

Accumulated

depreciation: Buildings

25,000

Motor Vehicles

20,000

Staff Salaries

6,000

Postage expenses

4,000

Sales

180,000

Marketing Expenses

18,000

Stock as at 1/4//2018 opening stock

25,000

Purchases

100,000

Loan from Y

15,000

Drawings:

X

3,500

Y

3,000

Z

Total

2,500

337,200

337,200

Additional information:

  1. The cost of stock as at 31/3/2019 was $40,000. Its net realizable value at that date was $35,000.
  2. Depreciation on non-current assets was provided on the following basis:
    • Buildings : 3% per annum on cost straight line depreciation
    • Motor vehicles : 10% per annum on reducing balance basis iii) At 31st March 2019 an amount of $1,000 was owing for marketing expenses.
  3. Postage expenses were prepaid by $2,000.
  4. Provision for doubtful debts was to be made at 3% of debtors outstanding as at 31/3/2019.
  5. The partnership agreement covers the following terms:
    • X is to be allowed a salary of $5,000 per annum
    • Z is to be allowed a salary of $8,000 per annum
    • Interest of 5% is allowed on the capital account balances outstanding as at 1/4/2018No interest is allowed on current accounts
    • Interest at 8% is charged on drawings irrespective of when the drawings were made
    • Interest of 7% is allowed on any loan made by the partners

Required:

  1. Profit & Loss Account for the year ended 31/3/2022.

  1. the Profit and Loss Appropriation Account for the year ended 31/3/2022.

  1. the Statement of Financial Position of the partnership as at 31/3/2022.

(You are not required to show any journal entries or T-accounts in your answer, except (a), (b) and (c) above).

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