Ray and Mandy are in partnership sharing profits and losses in the ratio 2:1. The following...
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Ray and Mandy are in partnership sharing profits and losses in the ratio 2:1. The following trial balance has been extracted from the accounting records of the partnership as at 31 May 2003: Bank Accumulated Depreciation on Furniture 1 June 2002 Furniture at cost Sales Purchases Stock as at 1 June 2002 Office expenses Capital A/C Ray 1 June 2002 Capital A/C Mandy 1 June 2002 Current A/C Ray 1 June 2002 Current A/C Mandy 1 June 2002 Drawing for the year - Ray Drawing for the year - Mandy Debit 400 4,000 24,500 2,000 10,000 10,000 9,000 Credit 2,000 60,000 20,000 10,000 5,000 2,000 Office building at cost Provision for doubtful debts Rates Creditors Debtors Additional Notes: (1) (iii) (iv) (vi) 28,000 5,000 12,500 105,400 400 6,000 105,400 Mandy is entitled to a salary of $6,000per annum No interest is payable or chargeable on the capital and current accounts Depreciation is to be provided on the furniture at 10% per annum on cost A bad debt of $500 is to be written off Provision for doubtful debts is to be made at 5% of debtors outstanding as at 31 May 2003 Stock at 31 May 2003 is $1,500 Required: (a) Prepare journal entries at balance day 31 May 2003 (b) Prepare Income Statement for the year ending 31 May 2003 (c) Prepare Profit and Loss appropriation Statement for year ending 31 May 2003 (d) Prepare the current accounts of the partners (e) Prepare Balance Sheet as at 31 May 2003 Ray and Mandy are in partnership sharing profits and losses in the ratio 2:1. The following trial balance has been extracted from the accounting records of the partnership as at 31 May 2003: Bank Accumulated Depreciation on Furniture 1 June 2002 Furniture at cost Sales Purchases Stock as at 1 June 2002 Office expenses Capital A/C Ray 1 June 2002 Capital A/C Mandy 1 June 2002 Current A/C Ray 1 June 2002 Current A/C Mandy 1 June 2002 Drawing for the year - Ray Drawing for the year - Mandy Debit 400 4,000 24,500 2,000 10,000 10,000 9,000 Credit 2,000 60,000 20,000 10,000 5,000 2,000 Office building at cost Provision for doubtful debts Rates Creditors Debtors Additional Notes: (1) (iii) (iv) (vi) 28,000 5,000 12,500 105,400 400 6,000 105,400 Mandy is entitled to a salary of $6,000per annum No interest is payable or chargeable on the capital and current accounts Depreciation is to be provided on the furniture at 10% per annum on cost A bad debt of $500 is to be written off Provision for doubtful debts is to be made at 5% of debtors outstanding as at 31 May 2003 Stock at 31 May 2003 is $1,500 Required: (a) Prepare journal entries at balance day 31 May 2003 (b) Prepare Income Statement for the year ending 31 May 2003 (c) Prepare Profit and Loss appropriation Statement for year ending 31 May 2003 (d) Prepare the current accounts of the partners (e) Prepare Balance Sheet as at 31 May 2003
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Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Posted Date:
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