Wayne and Tammi are partners in The Ivy Arrow . The firm has supplied the following details as at December 31, 2017 DETAILS DR CR Sales 570,000 Wages and Salaries 68,000 Discount Allowed 6,200 Loan Interest 15,000 Creditors 61,315 Return Outwards 8,500 Rent Received 14,000 Purchases 310,200 Debtors 54,350 Provision for Bad Debts 3,200 Telephone Charges 12,000 Bank 79,300 Cash 18,200 Land and Building 220,000 Provision for Depreciation on Building 45,000 Motor Vehicle 290,000 Provision for Depreciation on Motor Vehicle 24,000 Machinery and Equipment 132,000 Provision for Depreciation on Machinery & Equipment 13,200 Capital Wayne 100,000 Capital Tammi 150,000 Current Account Wayne 30,000 Current Accounts Tammi 60,000 Drawings Wayne 20,000 Drawings Tammi 80000 10% Loan 270,000 Building Repairs 39,815 Commission Received 50,000 Opening Stock 34,600 Insurance 21,500 Office Supplies 36,650 1,418,515 1,418,515 Additional information at the end of the year Stock at the end of the year was valued at $64,000 Insurance is owing by $1500 Wages and salaries is owing by $2,000 Telephone charges is owing by $1,000 Commission is prepaid by $3,000 The provision for bad debts is to be adjusted to 10% of the debtors Depreciation is to be charged as follows Land and building 10% Reducing Balance Motor Vehicle 10% Straight Line Equipment 10% Reducing Balance Details of the partnership agreement included the following Interest on drawings is to be calculated at 10% Interest on capital is to be paid at 10% Wayne is to be paid a salary of $20,000 The partners are to share profits in the same ratio as their capital Question: Prepare the following for the year 2020 : The Statement of Profit and Loss and Appropriation Account The Partners Current Account

Wayne and Tammi are partners in The Ivy Arrow . The firm has supplied the following details as at December 31, 2017 DETAILS DR CR Sales 570,000 Wages and Salaries 68,000 Discount Allowed 6,200 Loan Interest 15,000 Creditors 61,315 Return Outwards 8,500 Rent Received 14,000 Purchases 310,200 Debtors 54,350 Provision for Bad Debts 3,200 Telephone Charges 12,000 Bank 79,300 Cash 18,200 Land and Building 220,000 Provision for Depreciation on Building 45,000 Motor Vehicle 290,000 Provision for Depreciation on Motor Vehicle 24,000 Machinery and Equipment 132,000 Provision for Depreciation on Machinery & Equipment 13,200 Capital Wayne 100,000 Capital Tammi 150,000 Current Account Wayne 30,000 Current Accounts Tammi 60,000 Drawings Wayne 20,000 Drawings Tammi 80000 10% Loan 270,000 Building Repairs 39,815 Commission Received 50,000 Opening Stock 34,600 Insurance 21,500 Office Supplies 36,650 1,418,515 1,418,515 Additional information at the end of the year Stock at the end of the year was valued at $64,000 Insurance is owing by $1500 Wages and salaries is owing by $2,000 Telephone charges is owing by $1,000 Commission is prepaid by $3,000 The provision for bad debts is to be adjusted to 10% of the debtors Depreciation is to be charged as follows Land and building 10% Reducing Balance Motor Vehicle 10% Straight Line Equipment 10% Reducing Balance Details of the partnership agreement included the following Interest on drawings is to be calculated at 10% Interest on capital is to be paid at 10% Wayne is to be paid a salary of $20,000 The partners are to share profits in the same ratio as their capital Question: Prepare the following for the year 2020 : The Statement of Profit and Loss and Appropriation Account The Partners Current Account

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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Wayne and Tammi are partners in The Ivy Arrow . The firm has supplied the following details as at December 31, 2017

DETAILS	DR	CR
Sales		570,000
Wages and Salaries	68,000
Discount Allowed	6,200
Loan Interest	15,000
Creditors		61,315
Return Outwards		8,500
Rent Received		14,000
Purchases	310,200
Debtors	54,350
Provision for Bad Debts		3,200
Telephone Charges	12,000
Bank		79,300
Cash	18,200
Land and Building	220,000
Provision for Depreciation on Building		45,000
Motor Vehicle	290,000
Provision for Depreciation on Motor Vehicle		24,000
Machinery and Equipment	132,000
Provision for Depreciation on Machinery & Equipment		13,200
Capital Wayne		100,000
Capital Tammi		150,000
Current Account Wayne		30,000
Current Accounts Tammi	60,000
Drawings Wayne	20,000
Drawings Tammi	80000
10% Loan		270,000
Building Repairs	39,815
Commission Received		50,000
Opening Stock	34,600
Insurance	21,500
Office Supplies	36,650
	1,418,515	1,418,515

Additional information at the end of the year

Stock at the end of the year was valued at $64,000
Insurance is owing by $1500
Wages and salaries is owing by $2,000
Telephone charges is owing by $1,000
Commission is prepaid by $3,000
The provision for bad debts is to be adjusted to 10% of the debtors
Depreciation is to be charged as follows

Land and building	10%	Reducing Balance
Motor Vehicle	10%	Straight Line
Equipment	10%	Reducing Balance

Details of the partnership agreement included the following

Interest on drawings is to be calculated at 10%
Interest on capital is to be paid at 10%
Wayne is to be paid a salary of $20,000
The partners are to share profits in the same ratio as their capital

Question: Prepare the following for the year 2020 :

The Statement of Profit and Loss and Appropriation Account
The Partners Current Account

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