Andy and Brad have been in partnershin since 01 January 2012. Andy made an initial capital investment of N$ 80 000 on 01 January 2012. He invests a further N$ 20 000 on 01 Apri: 2012. On 01 January 2012 Brad invested $160 000, N$ 10 000 of which he withdrew on 01 October 2012. The partnership agreement stipulates that each partner may draw N$ 1 000 as an advance on expected profits at the end of each month. (NB: such drawings have no influence on the profit for the period distribution- it is simply debited against the partners' current or withdrawal accounts;. The profit earned by the firm for the year ended 31 December 2012 amounts to N$ 60 000.

Andy and Brad have been in partnershin since 01 January 2012. Andy made an initial capital investment of N$ 80 000 on 01 January 2012. He invests a further N$ 20 000 on 01 Apri: 2012. On 01 January 2012 Brad invested $160 000, N$ 10 000 of which he withdrew on 01 October 2012. The partnership agreement stipulates that each partner may draw N$ 1 000 as an advance on expected profits at the end of each month. (NB: such drawings have no influence on the profit for the period distribution- it is simply debited against the partners' current or withdrawal accounts;. The profit earned by the firm for the year ended 31 December 2012 amounts to N$ 60 000.

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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