The capital accounts of Moli and Golu showed balances of Rs.40,000 andRs. 20,000 as on April 01, 2016. They shared profits in the ratio of 3:2. Theyallowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs. 10,000 to the firm on August 01, 2016.During the year, Moli withdrew Rs. 1,000 per month at the beginning of every month whereas Golu withdrew Rs. 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs.20,950. Calculate intereston drawings show distribution of profits and prepare partner’s capital accounts.

The capital accounts of Moli and Golu showed balances of Rs.40,000 andRs. 20,000 as on April 01, 2016. They shared profits in the ratio of 3:2. Theyallowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs. 10,000 to the firm on August 01, 2016.During the year, Moli withdrew Rs. 1,000 per month at the beginning of every month whereas Golu withdrew Rs. 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs.20,950. Calculate intereston drawings show distribution of profits and prepare partner’s capital accounts.

Name: The capital accounts of Moli and Golu showed balances of Rs.40,000 and
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: The capital accounts of Moli and Golu showed balances of Rs.40,000 andRs. 20,000 as on April 01, 2016. They shared profits in the ratio of 3:2. Theyallowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 14DQ

See similar textbooks

Similar questions

On March 31, 2017 after the close of accounts, the capitals of Mountain, Hilland Rock stood in the books of the firm at Rs. 4,00,000,Rs.3,00,000 andRs. 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to Rs. 1,50,000 and the partner’s drawings had been Mountain: Rs. 20,000, Hill Rs. 15,000 and Rock Rs. 10,000.Calculate interest on capital.
The Donahoo Western Furnishings Company was formed onDecember 31, 2014, with $1,000,000 in equity plus $500,000in long-term debt. On January 1, 2015, all of the firm’s capitalwas held in cash. The following transactions occurred duringJanuary 2015:• January 2: Donahoo purchased $1,000,000 worth of furniturefor resale. It paid $500,000 in cash and financed the balanceusing trade credit that required payment in 60 days.• January 3: Donahoo sold $250,000 worth of furniture that ithad paid $200,000 to acquire. The entire sale was on creditterms of net 90 days.• January 15: Donahoo purchased more furniture for $200,000.This time, it used trade credit for the entire amount of thepurchase, with credit terms of net 60 days.• January 31: Donahoo sold $500,000 worth of furniture,for which it had paid $400,000. The furniture was soldfor 10 percent cash down, with the remainder payablein 90 days. In addition, the firm paid a cash dividend of$100,000 to its stockholders and paid off $250,000 of…
The Donahoo Western Furnishings Company was formed on December 31, 2017, with $1,000,000 in equity plus $500,000 in long-term debt. On January 1, 2018, all the firm's capital was held in cash. The following transactions occurred during January 2018: January 2: Donahoo purchased $1,000,000 worth of furniture for resale. It paid $500,000 in cash and financed the balance using trade credit that required payment in 60 days. January 3: Donahoo sold $250,000 worth of furniture that it had paid $200,000 to acquire. The entire sale was on credit terms of net 90 days. January 15: Donahoo purchased more furniture for $200,000. This time, it used trade credit for the entire amount of the purchase, with credit terms of net 60 days. January 31: Donahoo sold $500,000 worth of furniture, for which it had paid $400,000. The furniture was sold for 10 percent cash down, with the remainder payable in 90 days. In addition, the firm paid a cash dividend of $100,000 to its stockholders and paid off…
The Donahoo Western Furnishings Company was formed on December 31, 2017, with $1,000,000 in equity plus $500,000 in long-term debt. On January 1, 2018, all the firm's capital was held in cash. The following transactions occurred during January 2018: January 2: Donahoo purchased $1,000,000 worth of furniture for resale. It paid $500,000 in cash and financed the balance using trade credit that required payment in 60 days. January 3: Donahoo sold $250,000 worth of furniture that it had paid $200,000 to acquire. The entire sale was on credit terms of net 90 days. January 15: Donahoo purchased more furniture for $200,000. This time, it used trade credit for the entire amount of the purchase, with credit terms of net 60 days. January 31: Donahoo sold $500,000 worth of furniture, for which it had paid $400,000. The furniture was sold for 10 percent cash down, with the remainder payable in 90 days. In addition, the firm paid a cash dividend of $100,000 to its stockholders and paid off…
The Donahoo Western Furnishings Company was formed on December 31, 2017, with $1,000,000 in equity plus $500,000 in long-term debt. On January 1, 2018, all the firm's capital was held in cash. The following transactions occurred during January 2018: January 2: Donahoo purchased $1,000,000 worth of furniture for resale. It paid $500,000 in cash and financed the balance using trade credit that required payment in 60 days. January 3: Donahoo sold $250,000 worth of furniture that it had paid $200,000 to acquire. The entire sale was on credit terms of net 90 days. January 15: Donahoo purchased more furniture for $200,000. This time, it used trade credit for the entire amount of the purchase, with credit terms of net 60 days. January 31: Donahoo sold $500,000 worth of furniture, for which it had paid $400,000. The furniture was sold for 10 percent cash down, with the remainder payable in 90 days. In addition, the firm paid a cash dividend of $100,000 to its stockholders and paid off…
The following balances were extracted from the ledger of DUMISANI STORES (with partners S. Dumi and Z. Sani) on 28 February 2020, the end of the accounting period. Capital: Dumi R75 000 Capital: Sani 25 000 Current account: Dumi (1 March 2019) 4 500 Cr Current account: Sani (1 March 2019) 3 700 Dr Drawings: Dumi 25 000 Drawings: Sani 23 000 Note: Dumi decreased his capital by R25 000 and Sani increased her capital by R25 000 on 28 February 2020. The profit for the year is R92 000.The partnership agreement stipulates the following;(a) Salary allowance to Dumi, R30 000 p.a.(b) Salary allowance to Sani, R15 000 p.a.(c) Interest on capital @ 12% p.a.(d) Remaining profit and losses to be shared between Dumi and Sani in the of 3 : 2.Required.Prepare the Appropriation Account in the General Ledger.
On June 30, 2015, Gell-O Corp paid USD48 per share for 50,000 shares, representing a 25% ownership interest in Migs Company, plus broker's fees of USD3. On December 20, 2015, Miggs Company declared and paid USD5 dividends per share to shareholders, and reported a net income of USD2,240,000 for 2015 (earned equally all throughout 2015). On December 31, 2015, what was the balance of the investment in Miggs Company?
Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7,500,000 in share capital and borrowed funds of P1,100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to shareholders on January 15, 2016. The liabilities increased to P2,000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets? A. 12,100,000 B. 11,300,000 C. 11,000,000 D. 10,100,000
The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $44,880 and $71,910, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Grecco invested an additional $7,750. During the year, Grecco and Rosenfeld withdrew $30,730 and $38,870, respectively, and net income for the year was $62,000. Revenues were $483,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. Required: a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. Prepare a statement of partnership equity for the current year for the partnership of Grecco and Rosenfeld. Be…
P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2014, had income of $40,000, declared dividends of $15,000, On December 31, 2014, the Balance of investment in S inc amount in P Corporation books On December 31, 2014 if it used equity methods . Select one: a. 150,000 b. 150,500 c. 157,500 d. 147,500
The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $78,000 and $55,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Grecco invested an additional $8,000. During the year, Grecco and Rosenfeld withdrew $41,000 and $33,000, respectively, and net income for the year was $104,000. Revenues were $525,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. Question Content Area a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - -…
On 1 January 2018, financial assets were $40,000 of which shares valued at $10,000 and the remainder are currency and deposits. Short term and long-term liabilities were $4000 and $6000, respectively. Suppose households conducted the following transactions in 2018 Spends $35,000 on consumption Receives $37,000 in wages and salaries Sells $6,500 worth of shares Repays $1,500 short-term and $2,500 long-term loans. In addition, the value of shares increased by 10% and households received $1500 worth of food voucher. Determine the household balance sheet as at 31 Dec 2018 and it revaluation account for 2018.