Two partners Tom and Jerry have the following details of their accounts for the year ended31 December 2021.Capital accounts:Current accounts:Salaries:Drawings:Profit sharing ratio:Net profit before appropriation £100,000£Tom8,0003,000cr10,00025,0003£Jerry6,0001,000 dr30,00030,0001Required:Prepare the relevant income statement and statement of financial position extracts.

Partnership is a form of Business Entity under which two or more partners agreed to work together…

Answered: Required: Prepare the relevant income…

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Accounting

Required: Prepare the relevant income statement and statement of financial position extracts.

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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Question

Two partners Tom and Jerry have the following details of their accounts for the year ended
31 December 2021.
Capital accounts:
Current accounts:
Salaries:
Drawings:
Profit sharing ratio:
Net profit before appropriation £100,000
£
Tom
8,000
3,000cr
10,000
25,000
3
£
Jerry
6,000
1,000 dr
30,000
30,000
1
Required:
Prepare the relevant income statement and statement of financial position extracts.

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