you must do the memorandum for the entire test. Compile a complete model answer for the test.

Grade 11 Accounting Test 4.06:

Time: 30 minutes

Marks:

The following balances/totals amongst others appeared in the books of ABStores (with Parner A and Partner B) on 30 June 2018 the end of the financial year.

Required:

1. Complete the following notes to the Balance sheet:

i. Capital

ii. Current accounts

IMFORMATION:

Balances/Total on 30 June 2018: Partner A PartnerB

Capital accounts: (1 July 2017) 320 000 180 000

Current accounts: (1 July 2017) 5 540 (dr) 6 330 (cr)

Drawings 63 800 58 000

Profit and Loss account (net profit) 195 350

Loans 190 000

Additional Information:

1. No entries were made for the following transactions:

Partner B registered his personal van worth R60 000 in the name of the business on 1 Desember 2017 and requested that this be regarded as an additional capital contribution.

A salary cheque of R3 500 for December 20177 issued to Partner B was erroneously posed to the Drawings account of Partner A.

2. The Partnership deed makes provision for the following:

The partners were entitled to the following salaries: Partner A: R4 500 per month; Partner B: R3 500 per month. However, Partner A's salary was increased by R5 400 per year as from 1 April 2018.

3. Interest on Capital must be provided at 7,5% p.a. on capital balances as reflected on 30 June 2018.

4. The balance of the profit/loss must be shared in proportion to the capital balances on 30 June 2018