appropriation account and the current account for
Paul and Carl are partners in a business. The
Interest on drawings is to be charged at 15%
Interest on capital is to be charged 10%
Paul is to be paid a salary of $6,500
Profit or loss is to be shared in the same ratio as their capital
The following
|
Debit |
Credit |
|
|
$ |
$ |
|
|
Net profit for the year |
42,000 |
|
|
cash |
8,700 |
|
|
bank |
58,000 |
|
|
creditors |
14,000 |
|
|
debtors |
34,000 |
|
|
fixtures |
100,000 |
|
|
Provision for |
10,000 |
|
|
building |
250,000 |
|
|
Provision for depreciation on building |
50,000 |
|
|
Loan |
220,000 |
|
|
Capital |
||
|
Paul |
200,000 |
|
|
Carl |
50,000 |
|
|
Drawings |
||
|
Paul |
15,000 |
|
|
Carl |
10,000 |
|
|
Current Account |
||
|
Paul |
8,400 |
|
|
Carl |
2,800 |
|
|
Motor vehicle |
160,000 |
|
|
Provision for depreciation on motor vehicle |
20,000 |
|
|
Commission owing |
4,000 |
|
|
Rent expense owing |
6,800 |
|
|
Closing stock |
94,700 |
|
|
679,200 |
679,200 |
Required:
Write up the appropriation account and the current account for the year, and the
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