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  • Answer To RQ1 - Week 6

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    George, Steve, and Hellen operate a business. For the year ended July 31, 2019 the business had a net profit of KES 230,000. They paid salaries of KES 110,000 to Steve and Hellen. They also paid interest of KES 10,000 to George, Steve, and Hellen based on their capital contributions. The remaining profit of KES 110,000 was then split among the three partners based on their profit sharing ratios of 3/11, 4/11, and 4/11 respectively.

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    Answer to RQ1 - week 6

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    George, Steve, and Hellen operate a business. For the year ended July 31, 2019 the business had a net profit of KES 230,000. They paid salaries of KES 110,000 to Steve and Hellen. They also paid interest of KES 10,000 to George, Steve, and Hellen based on their capital contributions. The remaining profit of KES 110,000 was then split among the three partners based on their profit sharing ratios of 3/11, 4/11, and 4/11 respectively.

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    © All Rights Reserved
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    6 views1 page

    Answer To RQ1 - Week 6

    Uploaded by

    caleb
    George, Steve, and Hellen operate a business. For the year ended July 31, 2019 the business had a net profit of KES 230,000. They paid salaries of KES 110,000 to Steve and Hellen. They also paid interest of KES 10,000 to George, Steve, and Hellen based on their capital contributions. The remaining profit of KES 110,000 was then split among the three partners based on their profit sharing ratios of 3/11, 4/11, and 4/11 respectively.

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    of 1

    Ch.

    14 RQ 1
    George, Steve and Hellen
    Appropriation Account for the year ended 31st July 2019

    Workings KES KES KES


    Net Profit 230,000

    Less: Salaries Steve 70,000


    Hellen 40,000
    110,000
    Interest on capitals George (KES 120,000 X 4%) 4,800
    Steve (KES 80,000 X 4%) 3,200
    Hellen (KES 50,000 X 4%) 2,000
    10,000
    120,000
    Balance of profits 110,000
    Shared George (3/11 X 110,000) 30,000
    Steve (4/11 X 110,000) 40,000
    Hellen (4/11 X 110,000) 40,000
    110,000

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