Reference no: EM133272850
Roger and David share profits in equal proportion. On 1 July 2018, the equity accounts stood as follows.
Roger capital $80,000
Roger retained earnings $35,000
David Capital $95,000
David retained earnings $35,000
Roger and David were entitled to 10% interest on capital and David as a manager was entitled to a salary of $30,000 p.a. During the year, David withdrew $15,000 in cash and Roger withdrew $25,000. The profit for the year ended 30June 2019 were $70,000 before providing for interest on capital balances and for David salary.
1) Prepare the profit distribution accounts for the year ended 30 June 2019
2) Prepare Roger' retained earnings account for the year ended 30 June 2019.
3) Prepare David' retained earnings account for the year ended 30 June 2019.