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Prepare profit or loss appropriation for the year ended

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Reference no: EM132591801

The information below relates to "NOT partnership business" for the year ended 31st December, 2019

                          Nyamekye              Oliver                     Twist

                             GH¢'000               GH¢'000            GH¢'000

Capital Introduced   20,000             30,000              40,000

Drawings                10,000              15,000                20,000

i. Nyamekye is entitled to a salaries amounted to GH¢ 9,350,000 per annum, sharing Profit or loss on the basis of capital contributed.

ii. Net profit for the period ended 31st December, 2019 was GH¢ 38,500,000. Interest on drawings and Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly.

iiii. Oliver advanced a loan amounted to GH¢ 300,000,000 to "NOT Partnership Business" on 1st September, 2019 but charged an interest of 12.5% per annum on the loan.

iv. Twist Retired on 31st December, 2019 but granted his net worth in the partnership business as a loan to the business charging Interest of 9% per annum on the loan

Required

Question a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019.

Question b. Partners' Capital Account for the year ended 31/12/2019 in the absence of current account

Reference no: EM132591801

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