Wednesday, July 17, 2019

ASSIGNMENT FOR FULL TIME AND PART TIME ON ACC 121 -PRINCIPLES OF ACCOUNTING 2

                                            PATRIOT ODUNARO B.J. (08038454008)

INSTRUCTION: TO BE SUBMITTED TO CLASS PRESIDENT ON OR BEFORE THURSDAY 18TH JULY, 2019 BEFORE 5PM PROMPT.


1. (a)  Define partnership and state the contents of partnership deed.
   (b)   In the absence of an agreement by the partners, Section 24 of the Partnership Act 1890 shall apply. State the provisions.


2. Peter and Paul formed a partnership on 1st January, 2018. The partnership agreement contains the following:
i. The partners fixed capital are Peter N24,000  and  Paul  N30,000.
ii. Paul to receive a salary of N1,800 per year.
iii. Interest on capital to be calculated at 5% per annum.
iv. Interest is to be charged on drawing at the rate of 2%.
v.  Peter and Paul to share profit in ratio 3:2 respectively.
During the year to 31st December 2018, drawings were Peter N2,250 , Paul N1,750 and the net profit was N13,500. The partners decided to maintain fixed capital account.
You are required to show:
(a)     The Profit and Loss Appropriation Account for the year ended 31st December 2018.
(b)    The partners Current Account
(c)     Statement of Financial Position ( Extract ) as at 31st December 2018



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