Question TwoAli and Ranjeet are partners in the Punjabi Deli. The firm has provided the followingdata as at December 31, 2018DETAILSBankCashLand and BuildingProvision for Depreciation on BuildingMachinery and EquipmentProvision for Depreciation on Machinery & EquipmentCapital AliCapital RanjeetCurrent Account AliCurrent Accounts RanjeetDrawings AliDrawings RanjeetSalesWages and SalariesTelephoneDiscount ReceivedLoan InterestCreditorsReturn InwardsRent ReceivedPurchasesDebtorsProvision for Bad Debts10% LoanCommission ReceivedOpening StockInsuranceOffice ExpensesAdditional details availablea Stock at the end of the year was values at 95,000b. Wages is prepaid by $12,000c. Insurance is owing by $7,000d. Rent Received is owing by 8,000Page 4 of 12Land and buildingMachinery and equipmentDR89,95040.300550.000132,00010,00080,00030,00020,00060,0008,00012,00013,000352,25064,000e. Commission is prepaid by 10,000f The provision for bad debts is to be revised to 10% of debtorsg. Provide for depreciation as followsCR5% Straight Line5% Reducing Balance.45,00013,200300,000100.000640.00012.00060,00024,00034,60027,00025,0001,548,100 1,548,1003.900300.00050,000Details from the partnership agreement included the following:Interest is to be charged on drawing at 10% p.a.Interest is to be paid on capital at 10% p.a.Ali is to be paid a salary of $57210 p.a.The partners will share profit and loss in the same ratio as their capitalRequired:1. Explain the relevance of the Partnership Act and the Partnership Deed2. Prepare the followinga. Statement of Profit and Loss and Appropriation Accountb. The Partners Current Accountc. The Statement of Financial Position.

1. Relevance of Partnership Act and Partnership Deed : Partnership Act : The partnership firm is…

Required: 1. Explain the relevance of the Partnership Act and the Partnership Deed 2. Prepare the following a. Statement of Profit and Loss and Appropriation Account b. The Partners Current Account c. The Statement of Financial Position

Required: 1. Explain the relevance of the Partnership Act and the Partnership Deed 2. Prepare the following a. Statement of Profit and Loss and Appropriation Account b. The Partners Current Account c. The Statement of Financial Position

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1.1P

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