Tim, Ray and Hal are partners in a business with the following transactions taking place in...

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Tim, Ray and Hal are partners in a business with the following transactions taking place in 2021: Net profits are $350,00 Interest to be charged on capitals: Tim $6,000; Ray $4,5003; Hal $2,500 Interest to be charged on drawings: Tim S1,000; Ray $500; Hal $400 Salaries to be credited: Tim $ 16,000; Hal $9,000 Profits to be shared: Tim 40%; Ray 25%; Hal 35% Current accounts: balances b/d Tim $20,000; Ray $10,000; Hal S6,000 Capital accounts: balances b/d Tim $70,000; Ray $60,000; Hal $40,000 Drawings: Tim $15,000; Ray $10,000; Hal $8,000 1. 2. 3. 4. 5. 6. 7. 8. 1. Draw up a profit and loss appropriation account for the year ending 31 December 2021.(8 Marks). 2. Draw up a statement of financial position (balance sheet) extract as at 31 December 2021(11 Marks). 3. What advantages do you think there might be to general partners in having a limited partner? (6 Marks) Tim, Ray and Hal are partners in a business with the following transactions taking place in 2021: Net profits are $350,00 Interest to be charged on capitals: Tim $6,000; Ray $4,5003; Hal $2,500 Interest to be charged on drawings: Tim S1,000; Ray $500; Hal $400 Salaries to be credited: Tim $ 16,000; Hal $9,000 Profits to be shared: Tim 40%; Ray 25%; Hal 35% Current accounts: balances b/d Tim $20,000; Ray $10,000; Hal S6,000 Capital accounts: balances b/d Tim $70,000; Ray $60,000; Hal $40,000 Drawings: Tim $15,000; Ray $10,000; Hal $8,000 1. 2. 3. 4. 5. 6. 7. 8. 1. Draw up a profit and loss appropriation account for the year ending 31 December 2021.(8 Marks). 2. Draw up a statement of financial position (balance sheet) extract as at 31 December 2021(11 Marks). 3. What advantages do you think there might be to general partners in having a limited partner? (6 Marks)

Answer rating: 100% (QA)

Profit and Loss Appropriation account For the year ending 31 December 2021 Particular Amount Particular Amount Interest on capital Net income 350000 T... View the full answer