M To and D Wong are in partnership sharing profits and losses in the ratio...
70.2K
Verified Solution
Link Copied!
Question
Accounting
M To and D Wong are in partnership sharing profits and losses in the ratio 3:1 respectively. The following incomplete list of balances was extracted from the books on 30 September 2020 after aranarinn the Tradina Account The partnership agreement states unat. (1) D Wong is to receive an annual salary of $20,000 (2) The partners are entitled to interest on their fixed capitals at 6% per annum (3) Interest is to be charged at 5% of the balance on each partner's drawings account at the financial year-end The following information is also available relating to the year ended 30 September 2020: (4) The partners decided to create a provision for doubtful debts of 2% of trade receivables (5) Vehicle running expenses include $1,800 to be shared equally between the partners for private use of the business vehicles (6) Prepaid insurance amounted to $800 (7) Accrued lighting and heating expenses amounted to $350 REQUIRED (a) Prepare for the year ended 30 September 2020 the: (i) Statement of Profit and Loss \& Appropriation Account (12 marks) (ii) Partners' current accounts in columnar form (11 marks) (b) State 2 other items a partnership agreement might cover, apart from the ones given in (1), (2) and (3) above. (2 marks)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.