Since 1s* January, 2011 A,B and C are equal partners. Their Balance Sheet as on 31-12-2014 is asfollows:LiabilitiesAssets40,000 Cash in handCash at Bank60,000 Sundry DebtorsStock in TradePlant & MachineryLand & BuildingSundry CreditorsAccumulated Balance in15,00025,00040,50024,500Profit & Loss A/cCapital Accounts :40,00040,00020,000|1,00,000|2,00,000A35,00060,000|2,00,000(1)Accumulated balance in Profit and Loss Account as given in the Balance Sheet consists ofthe following: Profit of 2012 3 36,000, Loss of 2013 3 18,000, and Profit of 2014 3 42,000.Analysis of the books of accounts disclosed the following errors :(a) A machinery costing $ 12,000 purchased in 2013 was debited to Repairs Account. 10%depreciation on reducing balance method is provided on plant and machinery.(b) $1,080 being the fixed deposit interest due to the firm used by A for his personal(11)expenses in 2014.(c) Goods costing $ 12,000 gent on sale or return basis have been recorded as credit sale.The firm's gross profit ratio is 20% on sales.Prepare Partners' Capital Accounts and Balance Sheet of the firm as on 31-12-2014 giving effect to theabove adjustments.

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Since 1s* January, 2011 A,B and C are equal partners. Their Balance Sheet as on 31-12-2014 is as follows: Liabilities Assets 40,000 Cash in hand Cash at Bank 60,000 Sundry Debtors Stock in Trade Plant & Machinery Land & Building Sundry Creditors Accumulated Balance in 15,000 25,000 40,500 24,500 35,000 60,000 Profit & Loss A/c Capital Accounts : 40,000 40,000 20,000 1,00,000 |2,00,000 A |2,00,000 (1) Accumulated balance in Profit and Loss Account as given in the Balance Sheet consists of the following: Profit of 2012 3 36,000, Loss of 2013 3 18,000, and Profit of 2014 3 42,000. (11) Analysis of the books of accounts disclosed the following errors : (a) A machinery costing $ 12,000 purchased in 2013 was debited to Repairs Account. 10% depreciation on reducing balance method is provided on plant and machinery. (b) $1,080 being the fixed deposit interest due to the firm used by A for his personal expenses in 2014. (c) Goods costing $ 12,000 gent on sale or return basis have been recorded as credit sale. The firm's gross profit ratio is 20% on sales. Prepare Partners' Capital Accounts and Balance Sheet of the firm as on 31-12-2014 giving effect to the above adjustments.

Since 1s* January, 2011 A,B and C are equal partners. Their Balance Sheet as on 31-12-2014 is as follows: Liabilities Assets 40,000 Cash in hand Cash at Bank 60,000 Sundry Debtors Stock in Trade Plant & Machinery Land & Building Sundry Creditors Accumulated Balance in 15,000 25,000 40,500 24,500 35,000 60,000 Profit & Loss A/c Capital Accounts : 40,000 40,000 20,000 1,00,000 |2,00,000 A |2,00,000 (1) Accumulated balance in Profit and Loss Account as given in the Balance Sheet consists of the following: Profit of 2012 3 36,000, Loss of 2013 3 18,000, and Profit of 2014 3 42,000. (11) Analysis of the books of accounts disclosed the following errors : (a) A machinery costing $ 12,000 purchased in 2013 was debited to Repairs Account. 10% depreciation on reducing balance method is provided on plant and machinery. (b) $1,080 being the fixed deposit interest due to the firm used by A for his personal expenses in 2014. (c) Goods costing $ 12,000 gent on sale or return basis have been recorded as credit sale. The firm's gross profit ratio is 20% on sales. Prepare Partners' Capital Accounts and Balance Sheet of the firm as on 31-12-2014 giving effect to the above adjustments.

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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Prepare the Statement of Changes in Equity for the year ended 28 February 2022. INFORMATION The information given below was extracted from the accounting records of Sunray Traders, a partnership business with Sunny and Raymond as partners. Extract from the ledger of Sunray Traders as at 28 February 2022 CREDIT DEBIT R Capital: Sunny 1 000 000 Capital: Raymond 600 000 Current alc Sumy (01 March 2021) 60 000 Current alc Raymond (01 March 2021) 40 000 Drawings: Sunny 300 000 Drawings Raymond 400 000 The following must be taken into account: (a) The Statement of Comprehensive Income refected a net profit of R900 000 for the year ended 28 February 2022 (b) The partnership agreement provided for interest on capital at 12% p.a on the balances on the capital accounts. Note: Sunny increased his capital contribution by R200 000 on 01 June 2021 whilst Raymond decreased his capital contribution by R200 000 on 01 September 2021. The capital changes have been recorded. (c) The partrers are entided…
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