Please assist me with the below 9. Thomas Jefferson and Gerard Eisenhower are partners in a business sharing profit andloss equally. Their trial balance as at August 31, 1996 was as follows$$301, 500SalesOffice salariesOffice expensesProvision for bad debtsBad debtsMortgage interestDiscount allowedCarriage outwardsPurchasesStock at Sept 1, 1995BankCreditorsDebtorsFixturesProv. for depn on fixturesBuildingProv. for depn on buildingMortgageCapital - TomGerryCurrent account - TomGerryDrawings TomGerryReturnsMotor vehicleCarriage inwardsDiscount receivedCommission received25,0009,4003,5008,0003,2402,350245,50070,00024,00022,000150,0007,5003,5008,50010,50023,50050,0005,500671,9902,80055,89022,3506,60050,00080,00060,00060,00012,0008,35012,500671,990The following additional information is also available :1. Stock at August 31, 1996 is $115,0002. Interest on capital is to be paid at 5%3. Interest on drawings is to be charged at 2.5%4. Commission received is prepaid by $2,5005. Provide for depreciation of fixtures 10% straight line, building 5% on the reducing balance, motorvehicleat 10% on cost6. The provision for bad debts is to be revised to 10% of debtors7. Office expenses prepaid by $1,000, while office salaries $2,500 are owing8. Tom is to be paid a salary of $10,000Required: Prepare the set of final accounts for the year.

Answered: lease assist me with the below

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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Please assist me with the below

9. Thomas Jefferson and Gerard Eisenhower are partners in a business sharing profit and
loss equally. Their trial balance as at August 31, 1996 was as follows
$
$
301, 500
Sales
Office salaries
Office expenses
Provision for bad debts
Bad debts
Mortgage interest
Discount allowed
Carriage outwards
Purchases
Stock at Sept 1, 1995
Bank
Creditors
Debtors
Fixtures
Prov. for depn on fixtures
Building
Prov. for depn on building
Mortgage
Capital - Tom
Gerry
Current account - Tom
Gerry
Drawings Tom
Gerry
Returns
Motor vehicle
Carriage inwards
Discount received
Commission received
25,000
9,400
3,500
8,000
3,240
2,350
245,500
70,000
24,000
22,000
150,000
7,500
3,500
8,500
10,500
23,500
50,000
5,500
671,990
2,800
55,890
22,350
6,600
50,000
80,000
60,000
60,000
12,000
8,350
12,500
671,990
The following additional information is also available :
1. Stock at August 31, 1996 is $115,000
2. Interest on capital is to be paid at 5%
3. Interest on drawings is to be charged at 2.5%
4. Commission received is prepaid by $2,500
5. Provide for depreciation of fixtures 10% straight line, building 5% on the reducing balance, motor
vehicle
at 10% on cost
6. The provision for bad debts is to be revised to 10% of debtors
7. Office expenses prepaid by $1,000, while office salaries $2,500 are owing
8. Tom is to be paid a salary of $10,000
Required: Prepare the set of final accounts for the year.

Expert Solution

Step 1

Partnership is the relation between two or more person, it has the following characteristics

They Operate the business and takes decision collectively or any one of them acting for all.
They agree to share the profit and loss in the agreed ratio.
Partners have unlimited liability in Partnership business.

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