Year 10 - Accounts - 1.4.14

Thai Sikh International School

E-Learning Programme – Online Assignment –  01/04/2014

Name:                                                                                     Subject:  Accounting

Year   :  10 A/B                                                                      Week No. :  05                      

1.     A and B are in partnership. Their financial ends on 31 May.

They provide the following information.

                                                                              $

Capital on 1 June 2008                      

                              A                                 200000

                              B                                  100000

Drawings for the year

                              A                                 20000

                              B                                     8000

Net profit for the year                                    50000

The partnership agreement includes the following terms.

1.     Interest on capital is allowed at 5% pa

2.     Interest on drawings is charged at 3% pa

3.     B is entitled to a partnership salary of $12000 pa

4.     Residual profits are shared in proportion to capital invested

Prepare the profit and loss appropriation account for the year ended 31 may 2009.