1.5. Preparation of financial statements
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 637 questions
For Examiner's Use Rahul and Shivam are in partnership. The partnership agreement provides that: Rahul contributes two-thirds and Shivam one-third of the capital which is fixed. Profits and losses are to be shared in the ratio of capital contributed. Partners are to be credited with interest on capital at 10 % per annum. Partnership salaries are to be credited to Rahul, $25 000, and Shivam, $30 000. There will be no interest charged on drawings. All transactions are made through the bank. The following is a summary of the partnership bank account for the year ended 31 March 2009. $ $ Bank balance at 1 April 2008 5 000 Cheques received from debtors 805 000 810 000 Cheques paid to creditors 600 000 Electricity 25 000 Rent and rates 34 000 Insurance 14 500 General expenses 14 000 New vehicles 60 000 Drawings Rahul 25 000 Shivam 30 000 802 500 Bank balance at 31 March 2009 7 500 On 1 April 2008 the partnership current account balances were: Rahul $15 500 Cr Shivam $500 Dr The following information is also available: 1 April 2008 31 March 2009 $ $ Stock 45 000 48 000 Trade debtors 52 000 63 000 Prepaid rent and rates 3 000 2 000 Vehicles at net book value 40 000 80 000 Fixtures and fittings at net book value 30 000 28 000 Electricity owing 5 000 6 000 Trade creditors 35 000 41 000 For Examiner's Use REQUIRED Calculate the fixed capital account balance for each partner. For Examiner's Use REQUIRED Prepare the trading, profit and loss and appropriation accounts for the year ended 31 March 2009. For Examiner's Use REQUIRED Prepare Rahul's current account for the year ended 31 March 2009.
9706_w09_qp_21
THEORY
2009
Paper 2, Variant 1
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