Reference no: EM133173101
Question 1 - Monique and Karen operate M & K store as a partnership and share profit and losses in the ratio of 3:2, respectively. The following balances appeared on the books as of December 31, 2019.
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Capital Account Balances
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Monique
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$250,000 CR
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Karen
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$120,000 CR
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Current Account
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Monique
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$ 50,000 DR
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Karen
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$ 30,000 CR
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The following also applies to the partners:
1. The partnership agreement provides that interest on capital and drawings be charged at 10% per annum; the partners should receive salaries: Monique $6,000 and Karen $7,200.
2. The partners' drawings for the year amounted to Monique $9,000 and Karen $10,000.
3. The net profit of the partnership at the end of the year amounted to $240,000.
Required -
1. What the Profit and Loss Appropriation account for the period ended December 31, 2019.
2. What the Partner's Capital Account as of January 1, 2019.
3. What the Current account for the period ended December 31, 2019.
Question 2 - Fun Land Tours operates an employee sports club. The figures below relate to the club as at January 1, 2020: Equipment $40,000; furniture $120,000; bar stock $35,000; subscription outstanding $12,000, cash at bank $14,000
The treasurer provided the following details of receipts and payments that took place during the year:
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$
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Subscription received
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350,000
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Donations
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25,000
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Bar sales
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430,000
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Repairs to equipment
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15,000
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Purchase of bar stock
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132,000
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Purchase of equipment
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140,000
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Barman wages
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90,000
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Electricity
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19,000
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Caretaker's wages
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79,000
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Rent
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110,000
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Water rate
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60,000
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Additional information as of December 31, 2020, is as follows:
1. The rent owing is $10,000.
2. Provide depreciation on equipment at 20% per annum and furniture at 10% per annum.
3. The electricity bill of $1,500 was prepaid.
4. The subscription outstanding was $13,000.
5. Bar stock $45,000.
Required -
1. What the receipts and payment account for the period ending December 31, 2020.
2. What bar trading account for the period ending December 31, 2020.
3. What the Income and Expenditure account for the period ending December 31, 2020.