41.9 Frame and French are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2016: Dr Cr £ Buildings (cost £210,000) Fixtures at cost 160,000 8,200 Provision for depreciation: Fixtures Accounts receivable Accounts payable Cash at bank Inventory at 30 September 2015 Sales 4,200 61,400 26,590 6,130 62,740 363,111 Purchases 210,000 3,410 620 Carriage outwards Discounts allowed Loan interest: P. Prince Office expenses Salaries and wages 3,900 4,760 57,809 1,632 Bad debts Allowance for doubtful debts Loan from P. Prince 1,400 65,000 100,000 75,000 4,100 1,200 Capitals: Frame French Current accounts: Frame French Drawings: Frame French 31,800 28,200 640,601 640,601 Required: Prepare a statement of profit or loss and profit and loss appropriation account for the year ending 30 September 2016, and a statement of financial position as at that date. (a) Inventory, 30 September 2016, £74,210. (b) Expenses to be accrued: Office Expenses £215; Wages £720. (c) Depreciate fixtures 15 per cent on reducing balance basis, buildings £5,000. (d) Reduce provision for doubtful debts to £1,250. (e) Partnership salary: £30,000 to Frame. Not yet entered. (f) Interest on drawings: Frame £900; French £600. (g) Interest on capital account balances at 5 per cent.
41.9 Frame and French are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2016: Dr Cr £ Buildings (cost £210,000) Fixtures at cost 160,000 8,200 Provision for depreciation: Fixtures Accounts receivable Accounts payable Cash at bank Inventory at 30 September 2015 Sales 4,200 61,400 26,590 6,130 62,740 363,111 Purchases 210,000 3,410 620 Carriage outwards Discounts allowed Loan interest: P. Prince Office expenses Salaries and wages 3,900 4,760 57,809 1,632 Bad debts Allowance for doubtful debts Loan from P. Prince 1,400 65,000 100,000 75,000 4,100 1,200 Capitals: Frame French Current accounts: Frame French Drawings: Frame French 31,800 28,200 640,601 640,601 Required: Prepare a statement of profit or loss and profit and loss appropriation account for the year ending 30 September 2016, and a statement of financial position as at that date. (a) Inventory, 30 September 2016, £74,210. (b) Expenses to be accrued: Office Expenses £215; Wages £720. (c) Depreciate fixtures 15 per cent on reducing balance basis, buildings £5,000. (d) Reduce provision for doubtful debts to £1,250. (e) Partnership salary: £30,000 to Frame. Not yet entered. (f) Interest on drawings: Frame £900; French £600. (g) Interest on capital account balances at 5 per cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer by your answer, do not copy the answer from other site
Transcribed Image Text:41.9 Frame and French are in partnership sharing profits and losses in the ratio 3:2. The following
is their trial balance as at 30 September 2016:
Dr
Cr
Buildings (cost £210,000)
Fixtures at cost
160,000
8,200
Provision for depreciation: Fixtures
Accounts receivable
4,200
61,400
Accounts payable
Cash at bank
26,590
6,130
62,740
Inventory at 30 September 2015
Sales
Purchases
Carriage outwards
Discounts allowed
363,111
210,000
3,410
620
Loan interest: P. Prince
Office expenses
Salaries and wages
3,900
4,760
57,809
1,632
Bad debts
Allowance for doubtful debts
Loan from P. Prince
1,400
65,000
100,000
75,000
4,100
1,200
Capitals: Frame
French
Current accounts: Frame
French
Drawings: Frame
French
31,800
28,200
640,601
640,601
Required:
Prepare a statement of profit or loss and profit and loss appropriation account for the year ending
30 September 2016, and a statement of financial position as at that date.
(a) Inventory, 30 September 2016, £74,210.
(b) Expenses to be accrued: Office Expenses £215; Wages £720.
(c) Depreciate fixtures 15 per cent on reducing balance basis, buildings £5,000.
(d) Reduce provision for doubtful debts to £1,250.
(e) Partnership salary: £30,000 to Frame. Not yet entered.
(f) Interest on drawings: Frame £900; French £600.
(g) Interest on capital account balances at 5 per cent.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education