Kyamba, Onyango and Wakil were partners in a manufacturing and retail business sharing profits and losses...

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Kyamba, Onyango and Wakil were partners in a manufacturing and retail business sharing profits and losses in the ratio of 2:2:1 respectively Given below is the statement of financial position of the partnership as at 31st March 2001. Statement of financial position as at 31st March 2001 Assets Non-current assets Fixed assets Current assets Stocks Debtors Capital and liabilities Capital accounts Kyamba Onyango Wakil 294,000 209,000 160,000 140,000 200,000 465,000 503,000 968,000 500,000 Current accounts Kyamba Onyango Wakil Current liabilities Bank overdraft Trade creditors 65,300 49,000 53,000 48,700 252,000 167,300 667,300 300,700 968,000 Additional information: 1. On April 1st, Wakil retired from the partnership and was to start a business as a sole trader while Kyamba and Onyango continued with the partnership. On retirement of Wakil, the manufacturing business was transferred to him while Kyamba and Otieno continued with the retail business. The assets and liabilities transferred to Wakil were as follows: 2. Fixed Assets Stocks Debtors Creditors Net book value Sh 260,000 166,000 172,000 156,000 Transfer Value Sh 306,000 157,000 165,000 156,000 Wakil obtained a loan from a commercial bank and paid into the partnership the net due to him. Fixed assets ac Balance b/d Revaluation acc. Balance b/d Balance b/d 465,000 Wakil 46,000 Balance c/d 511,000 Stock account 294,000 294,000 Revaluation 209,000 Wakil Balance c/d Debtors account 209,000 Revaluation Wakil Balance c/d 306,000 205,000 511,000 9,000 157,000 128,000 294,000 7,000 165,000 37,000 209,000 Wakil Balance c/d Stock Debtors Capital, Kyamba Onyango Wakil Creditors 156,000 96,000 252,000 Revaluation account 9,000 Fixed assets 7,000 12,000 12,000 6,000 46,000 252,000 252,000 46,000 46,000 3. 4. 5. 6. 03. On retirement of Wakil from the partnership, goodwill was valued at Sh. 200,000 but was not to be maintained in the books of partnership of Kyamba and Onyango After retirement of Wakil on 1st April 2001, Kyamba and Onyango agreed on the following terms and details of the new partnership: Kyamba and Onyango to introduce additional capital of Sh 48,000 and Sh 68,000 respectively Each partner was entitled to interest on capital at10% per annum w.e.f 1st April 2001 and the balance of the profits was to be shared equally after allowing for annual salaries of Sh 72,000 to Kyamba and Sh 60,000 to Onyango. The profit of the new partnership before interest on capitals and partners' salaries was Sh 240,000 at the year ended 31st March 2002. The profits made by the new partnership increased stocks by Sh 100,000. Debtors by Sh 90,000 and bank balance by Sh 50,000. 7. Drawings by the partners in the year were Kyamba Sh 85,000 and Onyango Sh 70,000. Required: a. b. C. d. Profit and loss appropriation account for the year ended 31st March 2002 Capital accounts for the year ended 31st March 2002 Current accounts for the year ended 31st March 2002 Statement of financial position of the new partnership as at 31st March 2002 Kyamba, Onyango and Wakil were partners in a manufacturing and retail business sharing profits and losses in the ratio of 2:2:1 respectively Given below is the statement of financial position of the partnership as at 31st March 2001. Statement of financial position as at 31st March 2001 Assets Non-current assets Fixed assets Current assets Stocks Debtors Capital and liabilities Capital accounts Kyamba Onyango Wakil 294,000 209,000 160,000 140,000 200,000 465,000 503,000 968,000 500,000 Current accounts Kyamba Onyango Wakil Current liabilities Bank overdraft Trade creditors 65,300 49,000 53,000 48,700 252,000 167,300 667,300 300,700 968,000 Additional information: 1. On April 1st, Wakil retired from the partnership and was to start a business as a sole trader while Kyamba and Onyango continued with the partnership. On retirement of Wakil, the manufacturing business was transferred to him while Kyamba and Otieno continued with the retail business. The assets and liabilities transferred to Wakil were as follows: 2. Fixed Assets Stocks Debtors Creditors Net book value Sh 260,000 166,000 172,000 156,000 Transfer Value Sh 306,000 157,000 165,000 156,000 Wakil obtained a loan from a commercial bank and paid into the partnership the net due to him. Fixed assets ac Balance b/d Revaluation acc. Balance b/d Balance b/d 465,000 Wakil 46,000 Balance c/d 511,000 Stock account 294,000 294,000 Revaluation 209,000 Wakil Balance c/d Debtors account 209,000 Revaluation Wakil Balance c/d 306,000 205,000 511,000 9,000 157,000 128,000 294,000 7,000 165,000 37,000 209,000 Wakil Balance c/d Stock Debtors Capital, Kyamba Onyango Wakil Creditors 156,000 96,000 252,000 Revaluation account 9,000 Fixed assets 7,000 12,000 12,000 6,000 46,000 252,000 252,000 46,000 46,000 3. 4. 5. 6. 03. On retirement of Wakil from the partnership, goodwill was valued at Sh. 200,000 but was not to be maintained in the books of partnership of Kyamba and Onyango After retirement of Wakil on 1st April 2001, Kyamba and Onyango agreed on the following terms and details of the new partnership: Kyamba and Onyango to introduce additional capital of Sh 48,000 and Sh 68,000 respectively Each partner was entitled to interest on capital at10% per annum w.e.f 1st April 2001 and the balance of the profits was to be shared equally after allowing for annual salaries of Sh 72,000 to Kyamba and Sh 60,000 to Onyango. The profit of the new partnership before interest on capitals and partners' salaries was Sh 240,000 at the year ended 31st March 2002. The profits made by the new partnership increased stocks by Sh 100,000. Debtors by Sh 90,000 and bank balance by Sh 50,000. 7. Drawings by the partners in the year were Kyamba Sh 85,000 and Onyango Sh 70,000. Required: a. b. C. d. Profit and loss appropriation account for the year ended 31st March 2002 Capital accounts for the year ended 31st March 2002 Current accounts for the year ended 31st March 2002 Statement of financial position of the new partnership as at 31st March 2002

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