Question 2 (25 marks) Read the following information and answer questions that follow Theo and Katlego are in partnership sharing profits and losses in the ratio 3 5 2 5 respectively The following is their trial balance as at 30 September 2018 Dr CR Pula Pula Buildings (Cost P210,000) 160,000 Fixures at cost 8,200 Provision for depreciation Fixtures 4,200 Accounts receivable 61,400 Accounts payable 26,590 Cash at bank 6,130 Inventory at 30September 2012 62,740 Sales 363,111 Purchases 210,000 Carriage Outwards 3,410 Discount allowed 620 Loan Intrest L Lame 3,900 Office expenses 4,760 Salaries and wages 57,809 Bad debts 1,632 Provision for doubtful debts 1,400 Loan from L Lame 65,000 Capitals Theo 100,000 Katlego 75,000 Current accounts Theo 4,100 Katlego 1,200 Drawings Theo 31,800 Katlego 28,200 640,601 640,601 Required Prepare a Statement of comprehensive income, the profit and loss appropriation account for the year ended September 2018 and a statement of financial position as at that date a Inventory 30 September 2018 P74, 210 b Expenses to be accrued Office expenses P215 Wages P720 c Depreciate fixtures 15 on reducing balance basis, buildings P5, 000 d Reduce provision for doubtful debts to P1, 250 e Partnership salary P30, 000 to Theo Not yet entered f Interest on drawings Theo P900 Katlego P600 g Interest on capital account balances at 5

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Question: Question 2 (25 marks) Read the following information and answer questions that follow. Theo and Katlego are in partnership sharing profits and losses in the

Question 2 (25 marks) Read the following information and answer questions that follow. Theo and Katlego are in partnership sharing profits and losses in the ratio 3/5: 2/5 respectively. The following is their trial balance as at 30 September 2018.

	Dr	CR
	Pula	Pula
Buildings (Cost P210,000)	160,000
Fixures at cost	8,200
Provision for depreciation Fixtures		4,200
Accounts receivable	61,400
Accounts payable		26,590
Cash at bank	6,130
Inventory at 30September 2012	62,740
Sales		363,111
Purchases	210,000
Carriage Outwards	3,410
Discount allowed	620
Loan Intrest; L Lame	3,900
Office expenses	4,760
Salaries and wages	57,809
Bad debts	1,632
Provision for doubtful debts		1,400
Loan from L Lame		65,000
Capitals: Theo		100,000
Katlego		75,000
Current accounts: Theo		4,100
Katlego		1,200
Drawings: Theo	31,800
Katlego	28,200
	640,601	640,601

Required:

Prepare a Statement of comprehensive income, the profit and loss appropriation account for the year ended September 2018 and a statement of financial position as at that date.

a. Inventory 30 September 2018 P74, 210.

b. Expenses to be accrued: Office expenses P215; Wages P720.

c. Depreciate fixtures @ 15% on reducing balance basis, buildings P5, 000.

d. Reduce provision for doubtful debts to P1, 250.

e. Partnership salary: P30, 000 to Theo. Not yet entered.

f. Interest on drawings: Theo P900; Katlego P600.

g. Interest on capital account balances at 5%.

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