1.5. Preparation of financial statements
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 637 questions
Vicram and Walter are in partnership but have not made any partnership agreement. The net assets of the partnership at the end of a financial period totalled $180 000. The partners maintain capital and current accounts. The opening balances on the current accounts were: The profit of the partnership for the period, before appropriation, was $85 000. Vicram had provided a loan of $20 000 to the business. What is the balance on Vicram’s capital account at the end of the period?
9706_s24_qp_12
MCQ
2024
Paper 1, Variant 2
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For Examiner's Use Lee, Kim and Michael are in partnership. They share profits in the ratio of 3:2:1 respectively. They do not keep proper accounting records but the following information is available for the three years ended 30 September 2008. Balances at 30 September $ $ $ Fixed assets at valuation 750 000 870 000 1 200 000 Stocks 660 000 690 000 825 000 Debtors 390 000 420 000 495 000 Creditors 346 000 404 000 448 000 Bank overdrafts 285 000 255 000 375 000 On 1 October 2005 the balances (all credit) on the partners' accounts were as follows. Lee Kim Michael $ $ $ Capital accounts 240 000 210 000 150 000 Current accounts 190 000 50 000 80 000 In order to finance a new project, each partner introduced additional capital of $60 000 on 1 October 2007. The partners' drawings were as follows. For the year ended 30 September $ $ $ Lee 45 000 70 000 105 000 Kim 42 000 48 000 105 000 Michael 36 000 30 000 8 000 Michael also received a partnership salary which he withdrew in cash. This was not included in the drawings figure shown above. His salary was $45 000 in 2006; $60 000 in 2007 and $65 000 in 2008. For Examiner's Use REQUIRED Calculate the total net profit available to the partners for each of the three years ended 30 September 2006, 2007, 2008. For Examiner's Use Prepare Michael's capital and current accounts for each of the three years ended 30 September 2006, 2007 and 2008. Capital account – Michael Current account - Michael For Examiner's Use Explain, briefly, why partnerships may keep both capital accounts and current accounts.
9706_w08_qp_2
THEORY
2008
Paper 2, Variant 0
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Questions Discovered
637