Year 10 - Accounts - 22.4.14

Thai Sikh International School

E-Learning Programme – Online Assignment –  17/04/2014

Name:                                                                                     Subject:  Accounting

Year   :  10 A/B                                                                      Week No. :  06                      

   1.      Ann and Joe are in Partnership. Their financial year ends on 31 July. Their Partnership agreement states-

1.      Interest on Capital is allowed at 10 % per annum

2.      Interest on Drawings is charged at 4 % on the total drawings for the year.

3.      Ann is to receive a salary of $ 5000 per annum.

4.      The balance of the profit is shared in proportion to the capital invested by each partner.

On 1 August 2005

                                                        Ann                  Joe

                                                          $                       $

Capital Account                             8000                12000

Current Account                             500(cr)            200(cr)

Drawings                                        4000                 3000

The Net profit for the year ended 31 July 2006 was $ 9220.

A)     Prepare the Profit and Loss Appropriation Account of Ann and Joe for the year ended 31 July 2006.

B)     Prepare the current account for the year ended 31 July 2006.

C)     Prepare a relevant extract from the Balance sheet of Ann and Joe as at 31 July 2006.

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