Michael and George have been in partnership for several years, sharing profits and losses in the ratio 3:4. At 1 January they had the following credit balances on their capital and current accounts: Capital $ Current $ Michael 65,000 11,486 Donald 80,000 9,637 The partnership statement of profit or loss for the year to 31 December shows a net profit of $28,595, and the partners had made drawings of $16,500 each. Required: Calculate the balance of Michael’s current account at 31 December.
Michael and George have been in partnership for several years, sharing profits and losses in the ratio 3:4. At 1 January they had the following credit balances on their capital and current accounts: Capital $ Current $ Michael 65,000 11,486 Donald 80,000 9,637 The partnership statement of profit or loss for the year to 31 December shows a net profit of $28,595, and the partners had made drawings of $16,500 each. Required: Calculate the balance of Michael’s current account at 31 December.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...
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Michael and George have been in partnership for several years, sharing profits and losses in the ratio 3:4. At 1 January they had the following credit balances on their capital and current accounts: Capital $ Current $ Michael 65,000 11,486 Donald 80,000 9,637 The partnership statement of profit or loss for the year to 31 December shows a net profit of $28,595, and the partners had made drawings of $16,500 each.
Required:
Calculate the balance of Michael’s current account at 31 December.
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