A. Devine and Vicky are partners dealing in cosmetics and other assorted goods. They shareprofit and losses in ratio 3:2. The trial balance below was extracted from the books of thepartners as at 31“ December, 2020.DRCRRent Expenses400,000Bank overdraft100,000Discount50,000100,000Turnover2,100,000Cost of Sales700,000Receivable400,000Patent400,000Stocks (31/12/2019)150,000Loan from Devine at 15% per annum200,000Land900,000Motor vehicle600,000Equipment400,000Provision for depreciation: Turnover583.900486.300Profit before interest and tax20,67017.238Less: Interest Payable1.9841.984Profit before Tax18,68615,254Taxation20265.734Profit after Tax11.6609520INCOME SURPLUS ACCOUNT20172016GHCGHCBalance at 1" Jamuny30,82023,540Add Profit for the year11.6609.52042,48033,060Less: Drvidend24002.240Balance at 31" December40.08030.820You are required to:a. Calculate, for each year, one ratio for each of the followving user groups, which are ofparticular significance to themiShareholdersTrade creditorsManagementb. Make brief comments upon the changes, between the two years, in the ratios calculated in (a)above.c. Explain the usefulness of Fmancial statement information to the following stakeholders:Fmancial AnalystsЕппployeeDebtorsGovernment Agency

A) Income Statement of the partnership firm for the year ended 31st December, 2020 Particulars…

A Devine and Vicky are partners dealing in cosmetics and other assorted goods. They share profit and losses in ratio 3:2. The trial balance below was extracted from the books of the partners as at 31" December, 2020. DR CR Rent Expenses 400,000 Bank overdraft 100,000 Discount 50,000 100,000 Tunover 2,100,000 Cost of Sales 700,000 Receivable 400,000 Patent 400,000 Stocks (31/12/2019) 150,000 Loan from Devine at 15% per annum 200,000 Land 900,000 Motor vehicle 600,000 Equipment 400,000 Provision for depreciation:

A Devine and Vicky are partners dealing in cosmetics and other assorted goods. They share profit and losses in ratio 3:2. The trial balance below was extracted from the books of the partners as at 31" December, 2020. DR CR Rent Expenses 400,000 Bank overdraft 100,000 Discount 50,000 100,000 Tunover 2,100,000 Cost of Sales 700,000 Receivable 400,000 Patent 400,000 Stocks (31/12/2019) 150,000 Loan from Devine at 15% per annum 200,000 Land 900,000 Motor vehicle 600,000 Equipment 400,000 Provision for depreciation:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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