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L%20ACCOUNTING%2019 75% Question Payne and Cain were partners in a retail business sharing profits and losses: Payne 2/3 and Cain 1/3. Interest on Capital was at the rate of 10% per annum and interest on drawings was at the rate of 5% per annum. Accounts were made up to 31 March in each year. The following was the partnership Trial balance as at 31st March 2010: Details Dr Cr 92,000 62,000 Capital: Payne Capital: Cain Building 160,000 80,000 25,000 Purchases Motor vehicle 2,200 Bank Current accounts: 30,000 Payne Cain 5,000 Drawings: Payne (commenced 1 April 2009) Cain (commenced 1 April 2009) 13,000 10,000 166,000 Sales 10,000 Inventory 1April 2009 Shop Fittings Accounts Payable 30,000 20,500 6,000 Provision for depreciation: Motor Vehicle Debtors 31,000 7,000 Utilities Provision for depreciation: Shop Fittings Wages 6,600 8,700 Rent 5.600 385,300 385,300

L%20ACCOUNTING%2019 75% Question Payne and Cain were partners in a retail business sharing profits and losses: Payne 2/3 and Cain 1/3. Interest on Capital was at the rate of 10% per annum and interest on drawings was at the rate of 5% per annum. Accounts were made up to 31 March in each year. The following was the partnership Trial balance as at 31st March 2010: Details Dr Cr 92,000 62,000 Capital: Payne Capital: Cain Building 160,000 80,000 25,000 Purchases Motor vehicle 2,200 Bank Current accounts: 30,000 Payne Cain 5,000 Drawings: Payne (commenced 1 April 2009) Cain (commenced 1 April 2009) 13,000 10,000 166,000 Sales 10,000 Inventory 1April 2009 Shop Fittings Accounts Payable 30,000 20,500 6,000 Provision for depreciation: Motor Vehicle Debtors 31,000 7,000 Utilities Provision for depreciation: Shop Fittings Wages 6,600 8,700 Rent 5.600 385,300 385,300

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.3BPR
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CCcjinalexatimeta -com/edit.aspx?action%3Deditnew&resid% D387C20AAA4FE5EB!182&ithint Dfile%2cdocx&action-eds rive v Search (Alt + Q) ferences Review View Help Editing A A B IU E E E E E ... You are provided with the following additional information i. On 31st March 2010, closing inventory was $18,000 ii. Salaries for Payne, and Cain $900, and $600 per month, respectively. iii. Rent prepaid was $1,300. iv. Depreciation is to be provided using the reducing balance method for Motor Vehicle at 10% per annum and for fittings at 20% per annum on cost. REQUIRED: A. Prepare the Partnership Income Statement and Appropriation account for period ending 31st March 2010. B. Prepare the Current ACcount for each partner.
Transcribed Image Text:CCcjinalexatimeta -com/edit.aspx?action%3Deditnew&resid% D387C20AAA4FE5EB!182&ithint Dfile%2cdocx&action-eds rive v Search (Alt + Q) ferences Review View Help Editing A A B IU E E E E E ... You are provided with the following additional information i. On 31st March 2010, closing inventory was $18,000 ii. Salaries for Payne, and Cain $900, and $600 per month, respectively. iii. Rent prepaid was $1,300. iv. Depreciation is to be provided using the reducing balance method for Motor Vehicle at 10% per annum and for fittings at 20% per annum on cost. REQUIRED: A. Prepare the Partnership Income Statement and Appropriation account for period ending 31st March 2010. B. Prepare the Current ACcount for each partner.
L%20ACCOUNTING%201%2 COB.pu 75% Question Payne and Cain were partners in a retail business sharing profits and losses: Payne 2/3 and Cain 1/3. Interest on Capital was at the rate of 10% per annum and interest on drawings was at the rate of 5% per annum. Accounts were made up to 31 March in each year. The following was the partnership Trial balance as at 31st March 2010: Details Dr Cr 92,000 62,000 Capital: Payne Capital: Cain Building 160,000 80,000 25,000 Purchases Motor vehicle 2,200 Bank Current accounts: 30,000 Payne Cain 5,000 Drawings: Payne (commenced 1 April 2009) Cain (commenced 1 April 2009) 13,000 10,000 166,000 Sales Inventory 1April 2009 Shop Fittings Accounts Payable 10,000 30,000 20,500 6,000 Provision for depreciation: Motor Vehicle Debtors 31,000 Utilities 7,000 6.600 Provision for depreciation: Shop Fittings Wages 8,700 Rent 5.600 385,300 385,300
Transcribed Image Text:L%20ACCOUNTING%201%2 COB.pu 75% Question Payne and Cain were partners in a retail business sharing profits and losses: Payne 2/3 and Cain 1/3. Interest on Capital was at the rate of 10% per annum and interest on drawings was at the rate of 5% per annum. Accounts were made up to 31 March in each year. The following was the partnership Trial balance as at 31st March 2010: Details Dr Cr 92,000 62,000 Capital: Payne Capital: Cain Building 160,000 80,000 25,000 Purchases Motor vehicle 2,200 Bank Current accounts: 30,000 Payne Cain 5,000 Drawings: Payne (commenced 1 April 2009) Cain (commenced 1 April 2009) 13,000 10,000 166,000 Sales Inventory 1April 2009 Shop Fittings Accounts Payable 10,000 30,000 20,500 6,000 Provision for depreciation: Motor Vehicle Debtors 31,000 Utilities 7,000 6.600 Provision for depreciation: Shop Fittings Wages 8,700 Rent 5.600 385,300 385,300
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