Chapter 3 Partnership Final Accounts

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QUESTION 1:
The following information relates to ABC partnership for the year ended 31.12.2010:
A B C
Capital at 1.1.2010 ($) 800,000 740,000 300,000
Additional cash capital 70,000 50,000 90,000
introduced ($) ( 1.4.2010) ( 1.8.2010) ( 1.11.2010)
Interest on capital % per anum 5 8 6
Prepared by Mr Suppiah Retenam ACMA(UK), CA(M), MBA (Finance) USQ Aust. Page 31
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Drawings ($) 800 per month 1,000 per quarter 5,000 per half year
Interest on drawings % flat rate 2 2 2
Salary for partners ($) 500 per 3 months 2,000 per quarter 3,000 per half year
Loan given by partners 30,000 ( 1.11.2010) 20,000( 1.4.2010) 10,000 ( 1.11.2010)
Interest on loan % per anum 2 1 6
Current ac balance at 1.1.2010 3,000 2,000 2,200 (DR)
($)
Profit Sharing Ratio 2 1 1
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The partnership net profit for the year ended 31.12.2010 ( before charging interest on loan )
was $ 8.2m. All calculations to nearest $.
Required:
Prepare the following for the year ended 31.12.10:
a. Appropriation account. (15marks)
b. Partners capital account. ( 3 marks)
c. Partners current account. ( 7 marks)
(Total 25 marks)
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QUESTION2:
The following information relates to GAJAH, HARI AND SINGA partnership for the year
ended 31.12.2013:
GAJAH HARI SINGA

Capital at 1.1.2013 ($) 100,000 140,000 50,000
Additional cash capital introduced 20,000 20,000 10,000
($) ( 1.2.2013) ( 1.4.2013) ( 1.9.2013)
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rt on capital % per anum
Interest 6 5 7
Current ac balance at 1.1.2013 ($) 5,000(DR) 4,000 3,600 (DR)
Profit Sharing Ratio (Follow ? ? ?
opening capital ratio)
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was $ 840,000. All calculations to nearest $.
Required:
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GAJAH: 281,271
HARI: 403,337
SINGA: 134,392
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QUESTION 3:
The following information relates to CBS partnership for the year ended 31.12.2016:
Curi Bola Saya
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rt at 1.1.2016 ($)
Capital 120,000 500,000 200,000
introduced ($) ( 1.3.2016) ( 1.9.2016) ( 1.10.2016)
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rt ac balance at 1.1.2016
Current 12,000 12,400 18,200 (DR)
($)
Profit Sharing Ratio 4 3 5
was $280,000. All calculations to nearest $.
Required:
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a. Appropriation account.
b. Partners capital account.
(15marks)
( 3 marks)
(Total 25 marks)
SOP:C:72703, B:54527, S: 90878
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QUESTION 4:
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The following information relates to ABC partnership for the year ended 31.12.2010:
A B C
Capital at 1.1.2010 ($) 1,200,000 1,300,000 1,800,000
introduced ($) ( 1.4.2010) ( 1.8.2010) ( 1.11.2010)
Drawings ($) 1,800 per month 1,200 per quarter 3,000 per half year
Salary for partners ($) 1,500 per 3 months 2,600 per quarter 4,000 per half year
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rt given by partners
Loan 130,000 120,000( 1.4.2010 210,000 ( 1.11.2010)
( 1.11.2010) )
Current ac balance at 1.1.2010 3,0000 2,0000 62,200 (DR)
($)
Profit Sharing Ratio(Equally)
was $10.2m. All calculations to nearest $.
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Required:
(Total 25 marks)
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QUESTION 5:
Mendez and Marshall are in partnership sharing profits and losses equally. The
following is their trial balance as at 30 June 19X9
$ $
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Building (cost $75,000) 50,000
Fixtures at cost 11,000
Provision for depreciation: fixtures 3,300
Trade Receivable 16,243
Trade payable 11,150
Cash at bank 677
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Inventory at 30 june 19X8 41,979
Sales 123,650
Purchases 85,416
Carriage Outwards 1,288
Discount allowed 115
Loan interest King 4,000
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Office expenses 2,416
Salaries and Wages 18,917
Bad debts 503
Allowance for doubtful debts 400
Loan from J King (more than 1 yr) 40,000
Capital : Mendez 35,000
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rt Marshall 29,500
Current account: Mendez 1,306
Marshall 298
Drawings: Mendez 6,400
Marshall 5,650
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Required:
Prepare a trading, profit and loss and appropriation account for the year
ended 30/6/19X9 and a SOFP as at that date
a) Inventory, 30/6/19X9, $56,340
b) Expenses to be accrued: Office expenses $96; Wages $200
c) Depreciation fixtures 10% on reducing balance method; building $1,000
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d) Reduce allowance for doubtful debt to $320
e) Partnership salary: Mendez $800
f) Interest on drawing: Mendez $180 ; Marshall $120
g) Interest on capital account balance at 10%
GP:$52,595 RP: 16,420 TA:$128,870
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QUESTION 6:
Oscar and Felix are in partnership. They share profits in the ratio:
Oscar 60% and Felix 40%. The following trial balance was extracted.
$ $
Office equipment at cost 6,500
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Motor vehicles at cost 9,200
Provision for depreciation at 31/3/19X8
Motor vehicles 3,680

Office equipment 1,950
Inventory at 31/3/19X8 24,970
Receivables & payable 20,960 16,275
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Cash at bank 615
Cash in hand 140
Sales 90,370
Purchases 71,630
Salaries 8,417
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Current accounts at 31/3/19X8
Oscar 1,379
Felix 1,211
Capital account: Oscar 27,000
Felix 12,000
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Drawing: Oscar 5,500
Felix 4,000
153,865 153,865
Required:
Draw up a set of final accounts for the year ended 31/3/19X9 for the
partnership. The following notes are applicable at 31/3/19X9
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a) Inventory 31/3/19X9 $27,340
b) Office expenses owing $110
c) Provide for depreciation: motor 20% of cost, office equipment 10% of cost
d) Charge interest on capital at 10%
e) Charge interest on drawing: Oscar $180; Felix $210
GP:$21,110 RP: $4,650 TA: $ 56,635
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QUESTION 7:
Men, Whitlam and Gough share profits and losses in the ratios 5:3:2 respectively.
Their trial balance as at 30 September 19X9 was as follows:
Dr Cr
$ $
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rtSales 210,500
Return inwards 6,800
Purchases 137,190
Carriage inwards 1,500
Inventory 30 September 19X8 42,850
Salaries and wages 18,296
Bad debts 1,234
Allowance for doubtful debt 30/9/19X8 800
General expenses 945
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rtRent and rates 2,565
Postage 2,450
Motor expenses 3,940
Motor vans at cost 12,500
Office equipment at cost 8,400
Provision for depreciation at 30/9/19X8
Motor vans 4,200
Office equipment 2,700
Payables 24,356
Receivables 37,178
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rtCash at bank 666
Drawing: Menzies 12,610
Whitlam 8,417
Gough 6,216
Current account: Menzies 1,390
Whitlam 153
Gough 2,074
Capital account: Menzies 30,000
Whitlam 16,000
Gough 12,000
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Draw up set of final accounts (trading, p/l and app, sofp and current ac) for the ended 30
September 19X9. The following
notes are relevant at 30 September 19X9
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rta) Inventory 30 September 19X9 , $ 51,060.
b) Rates in advance $ 120; Inventory of postage stamps $190.
c) Increase allowance for doubtful debt to $870.
d) Salaries: Whitlam $1,200; Gough $700; Not yet recorded.
e) Interest on drawing: Menzies $170; Whitlam $110; Gough $120.
f) Interest on capital at 10 %.
g) Depreciate Motor Vans $2,500, Office Equipment $1,680.
GP:$73,220 RP: $32,440 TA:$ 98,164
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QUESTION 8:
The following is the Trial Balance of the partnership of Hanson
and Stanhope at 30 June Year 8
$ $
Capital- Hanson 100,000
- Stanhope 25,000
Current accounts- Hanson 2,600
- 4,000
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Drawings- Hanson 31,000
- Stanhope 29,000
Inventory at 1 July Year 7 42,150
Sales 257,000
Purchases 124,200
Fixtures and Fittings at cost 60,000
Provision for depreciation of fixtures 24,000
and fittings at 1 July Year 7
Return inwards and outwards 1,820 2,360
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rtRent 10,000
Rates 4,600
Receivables and payables 40,300 15,000
Insurance 2,500
Heating and Lighting 4,040
Discount allowed and received 2,100 3,200
Carriage Inwards 1,900
Wages 36,000
General expenses 18,120
Bank 20,230
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Additional Information
1) Inventory at 30 June Year 8 was valued at cost $50,200
2) Depreciation to be provided on fixtures and fittings at 10% by the
diminishing balance method (RBM)
3) At 30 June Year 8, accrued due - Heating and Lighting $400
Prepaid - Rates $300, Insurance $100
4) In March Year 8, a private holiday taken by Hanson costing $1,500
was paid from the partnership Bank Account and charged to general expenses
5) The partnership agreement provided that:
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rt a) Interest at the rate of 10% per annum is to be allowed on partner's Capital
Account balance
b) Salaries are to be credited - Hanson $10,000; Stanhope $15,000
c) Profits and losses are to be shared equally
Required
a) prepare in vertical form, the Trading, Profit and loss and Appropriation account
for the ended 30 June Year 8
b) Write up, in column from, the partners current accounts for the year ended
30 June year 8
c) Prepare, in vertical from, the SOFP at 30 June Year 8
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GP:$139,490 RP:$ 25,730 TA:$143,530
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QUESTION 9
The following is the Trial Balance of the partnership of Moore and
Wright at 31 March Year 7
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Capital- Moore 60,000
- Wright 15,000
Current accounts- Moore 2,300
- Wright 1600
Fixtures and Fittings at cost 24,000
Provision for depreciation of fixtures
and fittings at 1 April Year 6 6,000
Inventory at 1 April Year 6 41600
Sales 187,400
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rtPurchases 104,300
Rent 4800
Rates 3900
Receivables and payables 31,400 25,200
Insurance 1,500
Heating and Lighting 2,900
Carriage Inwards 1,700
Discount allowed 1,400
General expenses 3,600
Drawings- Moore 12,000
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rt - Wright 6,000
Bank 17,400
Wages 33,200
293,600 293,600
1) Inventory at 31 March Year 7 was valued at cost $46,000
2) Depreciation of $2,000 is to be written off fixtures
3) During the year, Wright took goods, which cost $200 for his own use
but no entry has been made in the books
4) Wages accrued, at 31 March Year 7, amounted to $1,100 and rates of $ 700
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5) The partnership agreement provided that:
a) Interest at the rate of 8% per annum is to be allowed on partner's Capital
Account balance
b) Wright is to be credited with a salary of $5,000 per annum
c) Profits and losses are to be shared in the same ratio as capital
Required
a) Prepare in vertical form, the Trading, Profit and Loss and Appropriation account
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b) Write up, in column from, the partners current accounts for the year ended
31 March Year
7
c) Prepare, in vertical from, the SOFP at 31 March Year 7
QUESTION 10
Jane Smith and Rosalind Hughes are in Partnership, sharing profits and losses
in the ratio 3:2 respectively. The following Trial Balance has been extracted from
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rtthe books o the partnership at 30 November Year 4
$ $
Receivables 24,300
Payables 11,800
Premises at cost 58,000
Cash at bank 820
Rates 6,030
Furniture at cost 8,000
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rtAccumulated depreciation on 4,000
Furniture, 1 December Year 4
Capital- Jane Smith 40,000
- Rosalind Hughes 20,000
Current accounts- Jane Smith 10,100
Drawings- Jane Smith 20,000
Inventory at cost 30 November Year 4 2,850
Gross profit for the year to 30 November Year 4 71,200
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162,100 162,100
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1) Debts of $1,300 are to be written off.
2) The allowance for Doubtful Debt is to be adjusted to 5% of receivable
remaining at 30 November Year 4
3) Depreciation is to be provided on furniture at 10% on cost
4) Rosalind Hughes is to be credited with a salary of $12,000 at 30/11/year 4
5) Interest at 5% per annum is to be allowed on partner's fixed Capital
Required
a) The Profit and loss and Appropriation account for the ended.
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rtb) The partners current accounts for the year ended, in columnar format.
c) Prepare, in vertical from, the SOFP as at 30 November Year 4.
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Chapter 3 Partnership Final Accounts

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Chapter 3 Partnership Final Accounts

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GAJAH HARI SINGA

SOP:C:72703, B:54527, S: 90878

GP:$52,595 RP: 16,420 TA:$128,870

Motor vehicles 3,680

GP:$21,110 RP: $4,650 TA: $ 56,635

GP:$73,220 RP: $32,440 TA:$ 98,164

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