Jane and Joan are in partnership sharing profits and losses in the ratio 3:2. The following...
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Jane and Joan are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2023: Buildings (cost 210,000) Accumulated depreciation: Buildings at 30.9.2022 Fixtures at cost Accumulated depreciation: Fixtures at 30.9.2022 Trade receivables Trade payables Cash at bank Inventory at 30 September 2022 Sales Purchases Carriage outwards Advertising Loan interest: Pitson Office expenses Salaries and wages Bad debts Allowance for doubtful debts as at 30.9.2022 Loan from Pitson Capitals: Jane Capitals: Joan Current accounts: Jane Current accounts: Joan Drawings: Jane Drawings: Joan Dr 210,000 8,200 61,400 6,130 62,740 210,000 3,410 620 3,900 4,760 57,809 1,632 Cr Additional information (a) Inventory at the end of the year was Kshs 74,210. (b) Expenses to be accrued: Office Expenses Kshs 215; Wages Kshs 720. (c) Depreciate fixtures 15 per cent on reducing balance basis, buildings Kshs 5,000. 50,000 4,200 26,590 363,111 1,400 65,000 100,000 75,000 4,100 1,200 31,800 28,200 690,601 690,601 (d) Reduce allowance for doubtful debts to Kshs 1,250. (e) Partnership salary: Kshs 30,000 to Jane. Not yet entered. (f) Interest on drawings: Jane Kshs 900; Joan Kshs 600. (g) Interest on capital account balances at 5 per cent. Required: Prepare an income statement and profit and loss appropriation account for the year ending 30 September 2023 and a balance sheet as at that date. (10 marks) Jane and Joan are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2023: Buildings (cost 210,000) Accumulated depreciation: Buildings at 30.9.2022 Fixtures at cost Accumulated depreciation: Fixtures at 30.9.2022 Trade receivables Trade payables Cash at bank Inventory at 30 September 2022 Sales Purchases Carriage outwards Advertising Loan interest: Pitson Office expenses Salaries and wages Bad debts Allowance for doubtful debts as at 30.9.2022 Loan from Pitson Capitals: Jane Capitals: Joan Current accounts: Jane Current accounts: Joan Drawings: Jane Drawings: Joan Dr 210,000 8,200 61,400 6,130 62,740 210,000 3,410 620 3,900 4,760 57,809 1,632 Cr Additional information (a) Inventory at the end of the year was Kshs 74,210. (b) Expenses to be accrued: Office Expenses Kshs 215; Wages Kshs 720. (c) Depreciate fixtures 15 per cent on reducing balance basis, buildings Kshs 5,000. 50,000 4,200 26,590 363,111 1,400 65,000 100,000 75,000 4,100 1,200 31,800 28,200 690,601 690,601 (d) Reduce allowance for doubtful debts to Kshs 1,250. (e) Partnership salary: Kshs 30,000 to Jane. Not yet entered. (f) Interest on drawings: Jane Kshs 900; Joan Kshs 600. (g) Interest on capital account balances at 5 per cent. Required: Prepare an income statement and profit and loss appropriation account for the year ending 30 September 2023 and a balance sheet as at that date. (10 marks)
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Answer rating: 100% (QA)
Income Statement Sales 363111 Less Purchases 210000 Gross Profit 153111 Less Expenses Carriage Outwa... View the full answer
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Posted Date:
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