The following balances were obtained from the books of The Cartwrights as at December 31, 2020: DETAILS Net Income Capital Adam DR Joe Current Account Adam Joe Drawings Adam 60,000 Joe 30,000 Non Current Assets Book Value 1,200,000 Debtors 60,000 Bank Loan Creditors Expense Owing Revenue Prepaid Closing Stock 40,000 CR 135,000 250,000 750,000 - The Current Account 10,000 55,500 400,000 30,000 20,000 25,000 285,500 1,675,500 1,675,500 The Articles of Partnership allowed for the following a. Interest is to be paid on capital at 5% p.a. b. Interest is to be charged on drawings at 2.5% p.a. c. Joe is to be paid a salary of $27,250 d. The partners are to share profit in the same ratio as their capital Required: 1. Prepare the following - The Appropriation Account

The following balances were obtained from the books of The Cartwrights as at December 31, 2020: DETAILS Net Income Capital Adam DR Joe Current Account Adam Joe Drawings Adam 60,000 Joe 30,000 Non Current Assets Book Value 1,200,000 Debtors 60,000 Bank Loan Creditors Expense Owing Revenue Prepaid Closing Stock 40,000 CR 135,000 250,000 750,000 - The Current Account 10,000 55,500 400,000 30,000 20,000 25,000 285,500 1,675,500 1,675,500 The Articles of Partnership allowed for the following a. Interest is to be paid on capital at 5% p.a. b. Interest is to be charged on drawings at 2.5% p.a. c. Joe is to be paid a salary of $27,250 d. The partners are to share profit in the same ratio as their capital Required: 1. Prepare the following - The Appropriation Account

Name: The following balances were obtained from the books of TheCartwrights
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Description: The following balances were obtained from the books of TheCartwrightsas at December 31, 2020:DETAILSNet IncomeCapitalAdamJoeCurrent AccountAdamJoeDrawingsAdamJoeCreditorsExpense OwingRevenue PrepaidClosing StockDR60,00030,000Non Current Assets Book

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 7E

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