1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
Haroon and Rakesh are in partnership. They provide cleaning services for local businesses. They started their business on 1 January 2023 when the partners introduced the following assets. Haroon Rakesh $ $ Cash at bank 4 000 2 000 Furniture and equipment 14 000 Motor vehicle 16 000 The partners have not maintained full accounting records. However, they provided the following information for the year ended 31 December 2023. Bank statements included the following receipts. $ Cash takings 9 410 Receipts from credit customers 60 230 Amounts received from credit customers were after deducting cash discounts of 5%. At 31 December 2023, credit customers owed $5580. Before banking cash takings, the partners withdrew the following amounts each month for personal use. $ Haroon Rakesh The business does not keep any cash in hand. Calculate the total revenue for the year ended 31 December 2023. Prepare the statement of profit or loss for the year ended 31 December 2023. Haroon and Rakesh Statement of profit or loss for the year ended 31 December 2023 Workings: Prepare an extract from the statement of financial position at 31 December 2023 to show the current assets section only. $ Current assets Workings: Additional information Partnership current accounts are not maintained. Interest on capital has been agreed at: $ Haroon Rakesh Haroon is entitled to an annual salary of $5000. Profits and losses are to be shared in the ratio Haroon three-fifths : Rakesh two-fifths. Calculate the balance on Rakesh’s capital account at 31 December 2023. Additional information The partners have considered maintaining a full accounting system using an accounting software package. Advise the partners whether or not they should maintain a full accounting system using an accounting software package. Justify your answer.
9706_s24_qp_21
THEORY
2024
Paper 2, Variant 1
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Questions Discovered
1775