End notes

a$.$ Closing Stock is valued at $$130,000$

b$.$ Wages and salaries is prepaid by $$20,000$

c$.$ Commission is owing by $$30,000$

d$.$ The rent received is prepaid by $$20,000$

e$.$ The provision of bad debts is to be adjusted to $5\%$ of debtors

f$.$ Provide for depreciation as follows : Motor vehicle $5\%$ on the Straight Line; and

Fixtures and Fittings $5\%$ on the Reducing Balance method

g$.$ The partnership agreement allowed for the following

i$.$ Interest is to be charged on drawings at $5\%$ p$.$a$.$

ii$.$ Interest is to be paid on capital at $5\%$ p$.$a$.$

iii. Doren is to be paid a salary of $$40,300$ p$.$a$.$

iv$.$ Profit or loss is to be shared in the same ratio as the capital

Required : Prepare the following

a$.$ The Statement of Profit and Loss and Appropriation Account $(30$ marks$)$

b$.$ The Current Account $(11$ marks$)$

c$.$ The Statement of Financial Position $(19$ marks $)$Question One

Ralph and Doren are partners in The Mariposa. The firm has provided the following information as at December $31,2020$

$\backslash$table$[[$DETAILS$,$Dr$,$Cr$],[$Motor Vehicle at cost$,440,000,],[$Proy for denteciation on motor vehicle,,$44,900],[$Utilities$,35,000,],[$Discounts$,8,000,12,000],[$Commission received,,$120,000],[$Sales$.,,785,000],[$Wages and Salaries,$70,000,],[$Carriage Outwards,$3,500,],[$Office expenses,$25,690,],[$Provision for bad debts,,$5,400],[$Building Repairs,$40,000,],[$Loan interest paid,$42,000,],[$Rent received,,$70,000],[$Carriage inwards,$4,500,],[$Purchases$,391,000,],[$Opening Stock,$85,000,],[$Bank$,,146,500],[$Creditors$,,55,200],[$Debtors$,60,000,],[$Eixtures at cost$,350,000,],[$Pro for depreciation on fixtures,,$70,000],[$Bulding at cost$,900,000,],[10\%$ Loan,,$600,000],[$Capital$],[$Ralph$,,400,000],[\backslash$table$[[$Doren$]],,200,000],[$Current Account$],[$Ralph$,30,500,],[$Doren$,,20,000],[$Drawings$],[$Ralnh$,30,000,],[$Doren$,20,000,],[$Retum Outwards,,$7,000],[,2\mathrm{.}535\mathrm{.}100,2\mathrm{.}535\mathrm{.}100]]$