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No. 4(a): Workings for preparation of the appropriation account of Benji and Nicka:
Calculation of interest on capital:
Calculation of interest on drawings:
Calculation of share of profit using ratio of 3:2: Remaining profits = (56,200 + 300 + 215) – (16,000 +14,000 + 5,000) = $21,715
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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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AuthorThe 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. Archives
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