Q3 The following list of balances as at 30 September 2009 has been extracted from the books of Brick and Stone,

trading in partnership, sharing the balance of profits and losses in the proportion 3:2 respectively.
£
Printing, stationery and postage 3,500
Revenue 322 100
Inventory in hand at 1 October 2008 23 000
Purchases 208 200
Rent and rates 10 300
Heat and light 8 700
Staff salaries 36 100
Telephone charges 2 900
Motor vehicle running costs 5 620
Discount allowable 950
Discount receivables 370
Sales returns 2 100
Purchases returns 6 100
Carriage inwards 1 700
Carriage outwards 2 400
Fixtures and fitting at cost 26 000
Motor vehicle at cost 46 000
Provision for depreciation:
Fixtures and fitting 11 200
Motor vehicles 25 000
Provision for doubtful debts 300
Drawings:
Brick 24 000
Stone 11 000
Current account balance at 1 October 2008
Brick 3 600 credit
Stone 2 400 credit
Capital account balance at 1 October 2008
Brick 3 3000
Stone 1 7000
Trade receivables 9 300
Trade payables 8 400
Bank (cash) 7 700

Additional information:
1 £10 000 is to be transferred from Brick’s capital account to a newly opened Brick Loan account on 1 July 2009.
Interest at 10% per annum on the loan is to be credited to Brick.
2 Stone is to be credited with a salary at the rate of £12 000 per annum from 1 April 2009.
3 Inventory in hand at 30 September 2009 has been valued at cost at £32 000.
4 telephone charges accrued at 30 September 2009 amounted to £400 and rent of £600 prepaid at that date.
5 during the year ended 30 September 2009 Stone has taken goods costing £1 000 for his own use.
6 depreciation is to be provided at the following annual rates on the straight line basis:
Fixtures and fitting 10%
Motor vehicles 20%
(a) Prepare the statement of comprehensive income for the year ended 30 September 2009
(b) Prepare the profit and loss appropriation account for the year ended 30 September 2009
(c) Prepare the statement of financial position at 30 September 2009.
Q4Waugh and Jones are in partnership. Their agreement states the following:
i) Interest is to be allowed on their fixed capitals at the rate of 11% per annum.
ii) Waugh is to receive a salary of $8 500 per annum in addition to a bonus of 20% of the trading profit
after partners’ interest has been deducted.
iii) Any remaining profits/losses are to be shared in the proportions Waugh one-third and Jones two-
thirds.
The following information is available for the year ended 31 December 2010:
Fixed Capital Accounts--- Waugh 1 January 2010 13 000 Cr
Jones 1 January 2010 36 000 Cr
Additional fixed Capital brought in by Waugh on
1 July 2010 5 000
Current Accounts ---- Waugh 1January 2010 765 Cr
---- Jones 1 January 2010 820 Dr
Drawings during 2010-- Waugh 20 000
---- Jones 10 000
The Profit for the year ended 31 December 2010 before taking any of the above details and information into
account was $30 165.
Required:
(a) The Profit and Loss Appropriation Account for the year ended 31 December 2010.
(b) The Current Accounts of the partners for 2010.
Q4Waugh and Jones are in partnership. Their agreement states the following:
i) Interest is to be allowed on their fixed capitals at the rate of 11% per annum.
ii) Waugh is to receive a salary of $8 500 per annum in addition to a bonus of 20% of the trading profit
after partners’ interest has been deducted.
iii) Any remaining profits/losses are to be shared in the proportions Waugh one-third and Jones two-
thirds.
The following information is available for the year ended 31 December 2010:
Fixed Capital Accounts--- Waugh 1 January 2010 13 000 Cr
Jones 1 January 2010 36 000 Cr
Additional fixed Capital brought in by Waugh on
1 July 2010 5 000
Current Accounts ---- Waugh 1January 2010 765 Cr
---- Jones 1 January 2010 820 Dr
Drawings during 2010-- Waugh 20 000
---- Jones 10 000
The Profit for the year ended 31 December 2010 before taking any of the above details and information into
account was $30 165.
Required:
(a) The Profit and Loss Appropriation Account for the year ended 31 December 2010.
(b) The Current Accounts of the partners for 2010.
 (vii) Profits and losses would be shared: Georgia two fifths; Harriet two fifths; Ionna one fifth.
10 Georgia and Harriet are in partnership, sharing profits and losses equally. No interest is paid on capital or
charged on drawings. No salaries are paid to the partners.
On 30 April 2009, the capital account balances of the partners were:
Capital accounts:
Georgia £35000
Harriet £15000
On 1 May 2010 Georgia and Harriet agreed to admit Ionna as a partner. It was agreed that:
(i) Ionna would bring £15000 cash into the partnership.
(ii) Goodwill was valued at £50000.
(iii) Goodwill would not be retained in the books of the new partnership.
(iv) No interest would be paid on capital.
(v) Interest would be charged on drawings at the rate of 5% on balances at the end of the year.
(vi) Salaries would be paid to: Harriet £9000 and Ionna £6000.
(vii)Profits and losses would be shared: Georgia two fifths; Harriet two fifths; Ionna one fifth.
£
Gross profit 63 270
Carriage inwards 340CR
Carriage outwards 4 650
Insurance 1 800
Rent 8 500
Rent receivable 1 500
Motor vehicles running expenses 9 180
Motor vehicles (Cost £16 000) 10 000
Office equipment (Cost £11 000) 9 800
Wages and salaries 17 000
Operating expenses 6 750
Loan interest paid 1 000
8% Loan repayable 30.4.2015 20 000
Provision for doubtful debts 3 800
Inventory at 30 April 20105 2 000
Trade receivables 26 000
Trade payables 17 690
Bank 9 500DR
Current accounts at 1 May 2009
Georgia 430CR
Harriet 1 850DR
Drawings
Georgia 1 000
Harriet 10 000
Ionna 3 000
The information is available for the year ended 30 April 2010:
(i) Insurance includes an annual fire insurance renewal of £1 200 paid on January 2010.
(ii) Rent receivables of £500 is outstanding.
(iii) Wages and salaries includes drawings of £5 000 made by Ionna which had been incorrectly posted to the
wages and salaries account.
(iv) Depreciation is charged at the rate of 25% on Motor vehicles using the reducing balance method and 20% on
office equipment using the straight line method.
(v) The provision for doubtful debts is to be maintained at 4% of trade receivables.

Required:
(a) Prepare for the year ended 30 April 2010 the:
(i) Capital accounts of Georgia, Harriet and Ionna
(ii) Statement of comprehensive income of the partnership
(iii) Profit and loss appropriation account of the partnership.
(iv) Current accounts of Georgia, Harriet and Ionna.
(b) Prepare statement of the financial position of the partnership as at 30 April 2010.
10 Georgia and Harriet are in partnership, sharing profits and losses equally. No interest is paid on capital or
charged on drawings. No salaries are paid to the partners.
On 30 April 2009, the capital account balances of the partners were:
Capital accounts:
Georgia £35000
Harriet £15000
On 1 May 2010 Georgia and Harriet agreed to admit Ionna as a partner. It was agreed that:
(i) Ionna would bring £15000 cash into the partnership.
(ii) Goodwill was valued at £50000.
(iii) Goodwill would not be retained in the books of the new partnership.
(iv) No interest would be paid on capital.
(v) Interest would be charged on drawings at the rate of 5% on balances at the end of the year.
(vi) Salaries would be paid to: Harriet £9000 and Ionna £6000.
(vii)Profits and losses would be shared: Georgia two fifths; Harriet two fifths; Ionna one fifth.
£
Gross profit 63 270
Carriage inwards 340CR
Carriage outwards 4 650
Insurance 1 800
Rent 8 500
Rent receivable 1 500
Motor vehicles running expenses 9 180
Motor vehicles (Cost £16 000) 10 000
Office equipment (Cost £11 000) 9 800
Wages and salaries 17 000
Operating expenses 6 750
Loan interest paid 1 000
8% Loan repayable 30.4.2015 20 000
Provision for doubtful debts 3 800
Inventory at 30 April 20105 2 000
Trade receivables 26 000
Trade payables 17 690
Bank 9 500DR
Current accounts at 1 May 2009
Georgia 430CR
Harriet 1 850DR
Drawings
Georgia 1 000
Harriet 10 000
Ionna 3 000
The information is available for the year ended 30 April 2010:
(i) Insurance includes an annual fire insurance renewal of £1 200 paid on January 2010.
(ii) Rent receivables of £500 is outstanding.
(iii) Wages and salaries includes drawings of £5 000 made by Ionna which had been incorrectly posted to the
wages and salaries account.
(iv) Depreciation is charged at the rate of 25% on Motor vehicles using the reducing balance method and 20% on
office equipment using the straight line method.
(v) The provision for doubtful debts is to be maintained at 4% of trade receivables.

Required:
(a) Prepare for the year ended 30 April 2010 the:
(i) Capital accounts of Georgia, Harriet and Ionna
(ii) Statement of comprehensive income of the partnership
(iii) Profit and loss appropriation account of the partnership.
(iv) Current accounts of Georgia, Harriet and Ionna.
(b) Prepare statement of the financial position of the partnership as at 30 April 2010.