Joe and Jane are in partnership trading as JJ's Enterprise. On January 1, 2014, the following information was extracted from the partnership's books:

Details	Joe	Jane
Current account	$500,000 Cr	290,000 Dr
Capital account	$2,500,000 Cr	$1,850,000 Cr

For the financial year to December 31, 2014, the partnership made an operating profit of $2,600,000. The partnership agreement provided that partners were paid salaries amounting to twenty percent (20%) of the balance on their capital account at the start of the financial year. Interest on drawings was to be paid at ten percent (10%) per annum, while partners were to receive interest at five percent (5%) per annum on their capital accounts. Cash drawings for the year were Joe, $400,000 and Jane, $500,000. The partners share profits in the ratio 3:2.

Required:

(a) The partners' Capital Accounts as at December 31, 2014.

(b) The Partners Current Accounts on December 31, 2014.

(c) The Profit and Loss Appropriation for the financial year.

Answer rating: 100% (QA)

e Date parhailors 2014 Dec31 Balance cd partners capital account Dec 31 b pate particular... View the full answer