John and Jane are in partnership sharing profits and losses in the ratio 3:1. Interest is allowed at 5% on their capital balances and interest on drawings is charged as follows; John Tshs.120,000; Jane Tshs.130,000. The partnership agreement provides salaries to partners for the whole year as follows; John Tshs.1,200,000; Jane Tshs. 960,000. The trial balance as at 30th June, 2017 is as shown below; JOHN AND JANE TRIAL BALANCE AS AT 30 JUNE, 2017 Capital account - John Dr Cr 5,200,000 Capital account - Jane 6,400,000 Current account - John 230,000 Current account - Jane 310,000 Drawings - John 72,000 Drawings - Jane 48,000 Stocks 1 July, 2016 2,820,000 Purchases/ sales 12,935,000 22,740,000 Return inwards 120,000 Debtors/creditors 820,000 730,000 Insurance 275,000 Rent 360,000 Bank 5,300,000 Carriage inwards 150,000 Carriage outwards 210,000 Motor van 12,500,000 35,610,000 35,610,000 Additional information: i) Stocks on 30th June, 2017 were Tshs.2,575,000. ii) Accrued insurance amounted to Tshs.120,000 as at 30th June, 2017 iii) Prepaid rent was Tshs.90,000 as on 30th June, 2017. iv) Motor van is to be depreciated at 25% on cost on straight line basis. Required; Prepare for John and Jane partnership the following statements for year ended 30th June, 2017. a) Income statement and appropriation account b) Balance sheet
John and Jane are in
|
JOHN AND JANE TRIAL BALANCE AS AT 30 JUNE, 2017 |
||
|
Capital account - John |
Dr |
Cr |
|
|
5,200,000 |
|
|
Capital account - Jane |
|
6,400,000 |
|
Current account - John |
|
230,000 |
|
Current account - Jane |
|
310,000 |
|
Drawings - John |
72,000 |
|
|
Drawings - Jane |
48,000 |
|
|
Stocks 1 July, 2016 |
2,820,000 |
|
|
Purchases/ sales |
12,935,000 |
22,740,000 |
|
Return inwards |
120,000 |
|
|
Debtors/creditors |
820,000 |
730,000 |
|
Insurance |
275,000 |
|
|
Rent |
360,000 |
|
|
Bank |
5,300,000 |
|
|
Carriage inwards |
150,000 |
|
|
Carriage outwards |
210,000 |
|
|
Motor van |
12,500,000 |
|
|
|
35,610,000 |
35,610,000 |
Additional information:
i) Stocks on 30th June, 2017 were Tshs.2,575,000.
ii) Accrued insurance amounted to Tshs.120,000 as at 30th June, 2017
iii) Prepaid rent was Tshs.90,000 as on 30th June, 2017.
iv) Motor van is to be
Required;
Prepare for John and Jane partnership the following statements for year ended 30th June, 2017.
a) Income statement and appropriation account
b)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
