1.5. Preparation of financial statements
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 637 questions
Carl and Daniel are in partnership. Their partnership agreement provides that: Daniel has a partnership salary of $3000 per annum Interest on capital is 6% per annum Interest on drawings is charged Residual profits / losses are shared 3:2 respectively. The partners have never kept full accounting records but provided the following information: Cash book summary for the year ended 31 December 2010 $ $ Balance b/d 2 178 Trade payables 195 911 Trade receivables 44 049 Wages 63 156 Cash sales 332 467 Purchase of machine 8 800 Rent received 7 000 General expenses 56 676 Drawings – Carl 35 660 Drawings – Daniel 26 480 The assets and liabilities were: 1 January 2010 31 December 2010 $ $ Fixed capital account – Carl 100 000Cr 100 000Cr Fixed capital account – Daniel 70 000Cr 70 000Cr Current account – Carl 3 210Cr ? Current account – Daniel 1 304Cr ? Machinery (Net Book Value) 147 000 145 000 Motor vehicle (Net Book Value) 16 000 8 000 Inventory 14 003 13 471 Trade receivables Trade payables 4 872 5 163 Wages accrued Rent receivable accrued – Rent receivable prepaid – Additional information: 1. During the year, an old machine which had cost $10 000 was traded in for $3200 in part exchange for a new machine costing $12 000. The old machine had been depreciated by $6000 over its lifetime. 2. Interest on drawings for the year amounted to: Carl – $230 Daniel – $100 REQUIRED Prepare the income statement (trading and profit and loss account) and appropriation account for Carl and Daniel for the year ended 31 December 2010. Prepare the partners’ current accounts (in columnar format) for the year ended 31 December 2010.
9706_w11_qp_23
THEORY
2011
Paper 2, Variant 3
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