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P&L Appropriation A/C for Partnerships

  • 08-06-2010 12:32am
    #1
    businessboy
    Closed Accounts Posts: 71 ✭✭


    Hey. Currently doing a distance learning diploma in book keeping and accounts and finding the assignments are really catching me out. I've googled the question and can't seem to figure out what to do. I have a rough idea but the numbers dont seem to work out and the material i've been supplied with doesnt seem to show how to work out the following problem. If anyone could shed some light on the matter it would be great.

    Thanks.

    A and B are in a partnership, sharing profits in a ratio of two-thirds to a third. They have fixed captials of €10,000 and €5,000 respectively. On Jan 1 the balances of the Current A/C's were A: €400cr and B: €100dr. The profits, before any of the undermentioned items, ammounted to €8,500. During the year A withdrew €2,000 and B withdrew €1,800. The partnership agreement provides for interest on fixed capitals at 8% per annum and interest on drawings at 5%. The partners are entitled to salaries of €1,200 and these are not paid.

    Show
    (i) Profit & Loss Appropriation A/C for year ended 31.12.2003
    (ii) Current A/C's of A and B
    (iii) Drawings A/C's of A and B
    (iv) Capital A/C's of A and B


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