QUESTION 4

PARTNERSHIPS

(20)

The information given below was extracted from the accounting records of Salmon Traders, a partnership business with Sally and Monty as partners. The financial year ends on the last day of February each year.

REQUIRED

Prepare the following accounts in the General ledger of Salmon Traders:

4.1 Current a/c: Monty (Balance the account.)

(7)

4.2 Appropriation account (Close off the account.)

(13)

INFORMATION

Balances in the ledger on 28 February 2017

R

Capital: Sally

400 000

Capital: Monty

200 000

Current a/c: Sally (01 March 2016)

20 000

(DR)

Current a/c: Monty (01 March 2016)

33 000

(CR)

Drawings: Sally

200 000

Drawings: Monty

180 000

The following must be taken into account:

(a)

The net profit according to the Profit and Loss account amounted to R500 000 on 28 February 2017.

(b)

The partnership agreement makes provision for the following:

?

Interest on capital must be provided at 15% per annum on the balances in the capital accounts. Note: Sally increased his capital by R100 000 on 01 September 2016. Monty decreased his capital by R100 000 on the same date. The capital changes have been recorded.

The partners are entitled to the following monthly salaries:

Sally

R12 000

Monty

R13 000

Problem 2. Daily total solar radiation for a certain location in Florida in October has probability density function as below with measurements in hundreds of calories. 3 (x - 1) (3-x) 15x53 f(x) = 32 0 elsewhere Find: a) E(X); b) V(X).11. (3 pts) An investor is considering three strategies for a $1,000 investment. The probable returns are estimated as follows: Strategy 1: A profit of $10,000 with probability 0.15 and a loss of $1,000 with probability 0.85 Strategy 2: A profit of $1,000 with probability 0.50, a profit of $500 with probability 0.30, and a loss of $500 with probability 0.20 Strategy 3: A certain profit of $400 Which strategy has the highest expected profit? Explain why you would or would not advise the investor to adopt this strategy.120 points) The effectiveness of solar-energy heating units depends on the amount of rillation available from the sun. During a typical October, daily total solar radiation in Tampa, Florida, approximately follows the following probability density function (units are hundreds of calories). -(-276-1). 25156 a) What is the probability that the amount of daily radiation is less than 37 b) What is the probability that the amount of daily radiation is more than 4