The following is the trial balance for Chipo and Ula's Partnership for the year to 31...

  

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The following is the trial balance for Chipo and Ula's Partnership for the year to 31" December 2022 sharing profits and losses equally. Sales and Sales Returns Premises Buildings Motor Vehicles Depreciation balance b/d; Buildings 10% Long term loan (From Ula) Capital Discounts Allowed Carriage Outwards Inventory at 1 January 2022 Trade receivables and payables Provision for Doubtful debts Motor Vehicles Bank Current accounts balance b/d; Chipo Ula Purchases Insurance Wages Office Expenses Drawings Dr 6,000 225,000 240,000 429,100 9,500 16,900 46,300 364,000 432,000 Cr 671,000 140,000 147,000 150,000 860,000 425,000 3,000 8,000 6,400 498,000 30,000 34,800 26,000 40,000 2,404,000 2,404,000 Additional Information 1) The value of stock using a First-In-First-Out assumption at 31 December was K55,000 2) Partner Chipo hired out one of the partnership's vans to a friend that was taking a trip to the farm that is 300 kilometres way round trip. Rentals fee for the van was agreed at K10 per kilometre. This payment has not yet been received. 3) The capital opening balance is made of K550,000 and K310,000 partners Chipo and Ula's contributions respectively. Interest on capital is 2%. 4) The allowance for doubtful debts is to be increased to K5,000. The trade receivables above include a customer that was owing K14,000 who he has since been declared bankrupt. 5) The drawings figure as per trial balance above are partner Chipo's drawings made on the 30th of June 2022. It is company policy to charge Interest on drawings of 8% on a pro-rata basis. 6) Depreciation is 10% and 20% on Buildings and Motor Vehicles on cost respectively. 7) Chipo and Ula's salaries for the year are K10,000 and K4,000 respectively. 8) The 10% long-term loan was obtained from Ula some 2 years ago. Required: Draw up a set of financial statements for the year ended 31 December 2022 showing clearly the entries in the Current Accounts of partners. 30 Marks 2 The following is the trial balance for Chipo and Ula's Partnership for the year to 31" December 2022 sharing profits and losses equally. Sales and Sales Returns Premises Buildings Motor Vehicles Depreciation balance b/d; Buildings 10% Long term loan (From Ula) Capital Discounts Allowed Carriage Outwards Inventory at 1 January 2022 Trade receivables and payables Provision for Doubtful debts Motor Vehicles Bank Current accounts balance b/d; Chipo Ula Purchases Insurance Wages Office Expenses Drawings Dr 6,000 225,000 240,000 429,100 9,500 16,900 46,300 364,000 432,000 Cr 671,000 140,000 147,000 150,000 860,000 425,000 3,000 8,000 6,400 498,000 30,000 34,800 26,000 40,000 2,404,000 2,404,000 Additional Information 1) The value of stock using a First-In-First-Out assumption at 31 December was K55,000 2) Partner Chipo hired out one of the partnership's vans to a friend that was taking a trip to the farm that is 300 kilometres way round trip. Rentals fee for the van was agreed at K10 per kilometre. This payment has not yet been received. 3) The capital opening balance is made of K550,000 and K310,000 partners Chipo and Ula's contributions respectively. Interest on capital is 2%. 4) The allowance for doubtful debts is to be increased to K5,000. The trade receivables above include a customer that was owing K14,000 who he has since been declared bankrupt. 5) The drawings figure as per trial balance above are partner Chipo's drawings made on the 30th of June 2022. It is company policy to charge Interest on drawings of 8% on a pro-rata basis. 6) Depreciation is 10% and 20% on Buildings and Motor Vehicles on cost respectively. 7) Chipo and Ula's salaries for the year are K10,000 and K4,000 respectively. 8) The 10% long-term loan was obtained from Ula some 2 years ago. Required: Draw up a set of financial statements for the year ended 31 December 2022 showing clearly the entries in the Current Accounts of partners. 30 Marks 2

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