L%20ACCOUNTING%2019 75% Question Payne and Cain were partners in a retail business sharing profits and losses: Payne 2/3 and Cain 1/3. Interest on Capital was at the rate of 10% per annum and interest on drawings was at the rate of 5% per annum. Accounts were made up to 31 March in each year. The following was the partnership Trial balance as at 31st March 2010: Details Dr Cr 92,000 62,000 Capital: Payne Capital: Cain Building 160,000 80,000 25,000 Purchases Motor vehicle 2,200 Bank Current accounts: 30,000 Payne Cain 5,000 Drawings: Payne (commenced 1 April 2009) Cain (commenced 1 April 2009) 13,000 10,000 166,000 Sales 10,000 Inventory 1April 2009 Shop Fittings Accounts Payable 30,000 20,500 6,000 Provision for depreciation: Motor Vehicle Debtors 31,000 7,000 Utilities Provision for depreciation: Shop Fittings Wages 6,600 8,700 Rent 5.600 385,300 385,300

L%20ACCOUNTING%2019 75% Question Payne and Cain were partners in a retail business sharing profits and losses: Payne 2/3 and Cain 1/3. Interest on Capital was at the rate of 10% per annum and interest on drawings was at the rate of 5% per annum. Accounts were made up to 31 March in each year. The following was the partnership Trial balance as at 31st March 2010: Details Dr Cr 92,000 62,000 Capital: Payne Capital: Cain Building 160,000 80,000 25,000 Purchases Motor vehicle 2,200 Bank Current accounts: 30,000 Payne Cain 5,000 Drawings: Payne (commenced 1 April 2009) Cain (commenced 1 April 2009) 13,000 10,000 166,000 Sales 10,000 Inventory 1April 2009 Shop Fittings Accounts Payable 30,000 20,500 6,000 Provision for depreciation: Motor Vehicle Debtors 31,000 7,000 Utilities Provision for depreciation: Shop Fittings Wages 6,600 8,700 Rent 5.600 385,300 385,300

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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