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Csec Principles of Accounts

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CSEC: May 2018, Question #4

4/27/2019

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No. 4(a): Workings for preparation of the appropriation account of Benji and Nicka:
Calculation of interest on capital:
  1. Benji = $160,000 x 10% = $16,000.
  2. Nicka = $140,000 x 10% = $14,000
  
Calculation of interest on drawings:
  1. Benji = $6,000 x 5% = $300
  2. Nicka = $4,300 x 5% = $215
  
Calculation of share of profit using ratio of 3:2:
Remaining profits = (56,200 + 300 + 215) – (16,000 +14,000 + 5,000) = $21,715
​
  1. Benji = $21,715 x 3/5 = $13,029
  2. Nicka = $21,715 x 2/5 = $8,686
Now that all of the workings has been completed the Appropriation Account.

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CSEC: May 2012 question#4

2/19/2018

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No. 3(a) (i): Preparation of opening entries to record each sole trader’s contribution to the partnership:
Workings
​Calculation of P’s capital:

Capital = Assets – Liabilities
Capital = (14,000+12,600+3,400+10,000+1,800) – (6,000+5,800)
Capital = 41,800 – 11,800 = 30,000.
 
Calculation of G’s capital:
Capital = Assets – Liabilities
Capital = (8,000+700+60,000+1,300) – (34,000)
Capital = 70,000 – 34,000 = 36,000.
Now that the capitals of both sole traders have been calculated, the general journal entries to record their contributions to the partnership can now be written up.

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    The author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor.

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