Wilson, Keppel and Betty were in partnership and shared profits and losses equally. Current Accounts are...

 

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Wilson, Keppel and Betty were in partnership and shared profits and losses equally. Current Accounts are not operated. On 30 April 2005 their Capital Accounts showed the following balances: Wilson $40 000 Keppel $30 000 Betty $15 000 Keppel retired from the partnership on 1 May 2005 and at that time goodwill was valued at $24 000. Fixed assets were revalued as follows: Premises increased in value by $10 000; Fixtures increased in value by $4 000; Vehicles decreased in value by $2 000. It was also agreed that neither a Goodwill Account nor a Revaluation Account would be shown in the partnership books. Keppel received cash for his of the partnership, and Wilson and Betty continued to run the partnership still sharing the profits equally. Drawings during the year ended 30 April 2006 were: Wilson $46 000 and Betty $45 000 while net profit for the year was $120 000. a) b) Draw up the partners' Capital Accounts for the year ended 30 April 2006, in columnar form. [11] Imogen joined the partnership on 1 November 2006, bringing in capital of $12 000 and $8 000 as her share of goodwill. No Goodwill Account was opened. Profit was now shared on the following basis: Wilson ³/₁, Betty ³/ and Imogen ¹/7. During the year ended 30 April 2007, partners' drawings were: Wilson $52 000, Betty $48 000 and Imogen $20 000. Profits for the year amounted to $140 000 and accumulated at a regular rate throughout the year. The partnership was sold on 1 May 2007 for $128 000. The partnership was dissolved and all of the partners took the money due to them. Draw the partners' Capital Accounts for the period 1 May 2006 to 1 May 2007, in columnar form. [14] Wilson, Keppel and Betty were in partnership and shared profits and losses equally. Current Accounts are not operated. On 30 April 2005 their Capital Accounts showed the following balances: Wilson $40 000 Keppel $30 000 Betty $15 000 Keppel retired from the partnership on 1 May 2005 and at that time goodwill was valued at $24 000. Fixed assets were revalued as follows: Premises increased in value by $10 000; Fixtures increased in value by $4 000; Vehicles decreased in value by $2 000. It was also agreed that neither a Goodwill Account nor a Revaluation Account would be shown in the partnership books. Keppel received cash for his of the partnership, and Wilson and Betty continued to run the partnership still sharing the profits equally. Drawings during the year ended 30 April 2006 were: Wilson $46 000 and Betty $45 000 while net profit for the year was $120 000. a) b) Draw up the partners' Capital Accounts for the year ended 30 April 2006, in columnar form. [11] Imogen joined the partnership on 1 November 2006, bringing in capital of $12 000 and $8 000 as her share of goodwill. No Goodwill Account was opened. Profit was now shared on the following basis: Wilson ³/₁, Betty ³/ and Imogen ¹/7. During the year ended 30 April 2007, partners' drawings were: Wilson $52 000, Betty $48 000 and Imogen $20 000. Profits for the year amounted to $140 000 and accumulated at a regular rate throughout the year. The partnership was sold on 1 May 2007 for $128 000. The partnership was dissolved and all of the partners took the money due to them. Draw the partners' Capital Accounts for the period 1 May 2006 to 1 May 2007, in columnar form. [14]

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a Partners Capital Accounts Wilson 30 April 2005 Balance bd 40000 add Share of net profit for th... View the full answer