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  • A Level Accounting Work 25-May-20

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    Cephas Panguisa
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    This document provides an accounting example and exercise about a partnership between X and Y. X and Y share profits and losses in a 3:2 ratio after accounting for 5% interest on their capital accounts of $50,000 and $40,000 respectively and salaries of $9,000 and $6,000. In their first year of trading, the partnership incurred a $44,500 loss. Students are required to prepare the partners' capital accounts and a statement of changes in equity.

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    A level Accounting work 25-May-20

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    This document provides an accounting example and exercise about a partnership between X and Y. X and Y share profits and losses in a 3:2 ratio after accounting for 5% interest on their capital accounts of $50,000 and $40,000 respectively and salaries of $9,000 and $6,000. In their first year of trading, the partnership incurred a $44,500 loss. Students are required to prepare the partners' capital accounts and a statement of changes in equity.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    13 views3 pages

    A Level Accounting Work 25-May-20

    Uploaded by

    Cephas Panguisa
    This document provides an accounting example and exercise about a partnership between X and Y. X and Y share profits and losses in a 3:2 ratio after accounting for 5% interest on their capital accounts of $50,000 and $40,000 respectively and salaries of $9,000 and $6,000. In their first year of trading, the partnership incurred a $44,500 loss. Students are required to prepare the partners' capital accounts and a statement of changes in equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Subject: Accounting

    CLASS A-Leve1
    TOPIC Partnership accounting

    DATE Monday, 25 May 2020


    DUE Wednesday, 27 May 2020
    Example 1

    X and Y are in a partnership sharing profits and losses in the ratio 3:2 after charging interest on
    capital accounts at the rate of 5% per annum and salaries of $9 000 and $6 000 per annum
    respectively. The capital balances at the beginning of the year X: $50 000, Y: $40 000. In their first
    year of trading the partnership made a loss amounting to $44 500. The partners do not maintain a
    separate current a/c.

    Required: - Prepare: a) Partners’ Capital Accounts

    b) Statement of changes in equity


    Exercise:

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