ACC 211 (FINANCIAL ACCOUNTING 1) - ASSIGNMENT 2

Adetoun, Mary and Emeka are in partnership sharing profits and losses in the ratio 3:2:1 respectively.

The partnership agreement provides:

i.  Payment of interest at 15% per annum on the credit balance of each partner`s capital and 15% on current account ( credit balance) at the beginning of each year.

ii. That interest on drawings be charged at 5%.

iii. For the payment of a salary of N2,500 per annum to Emeka together with a 2% commission on the trading profit after charging current account interest, salary and the commission but before charging interest on capital.

The partner`s balances as at 1st January 2018 were as follows:

Partners	Current Account	Capital Account
	N	N
Adetoun	2,000 Cr	16,000
Mary	200 Dr	12,000
Emeka	400 Dr	4,000

Drawings for the year were:

Partners	Drawings
	N
Adetoun	5,200
Mary	3,700
Emeka	4,800

The trading profit for the year ended 30th December, 2018 was N22,282.

You are required to prepare:

(a) The Profit or Loss Appropriation Account for the year ended 30th December, 2018.

(b) The Current Account for each partner in columnar form

(c) The Capital Account for each partner in columnar form

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Assignment 1:

https://britstutors.blogspot.com/2019/01/acc-211-financial-accounting-1.html 

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