Solution: Moonlight shop fitters

Supplementary statement of Profit/Loss and other comprehensive income for Ally

and Sally for the year ended 20 June 20.3
Provisional net profit 44 318
Plus: Other Income
Commission received 7 500
51 818
Less expenses (12 936)
Credit losses 780
Provision for credit losses adjustment 2 350
Maintenance 1 000
Interest on loan 4 500
Sundry expenses 356
Depreciation (750 + 3 200) 3 950
38 882

Calculation of depreciation:
Vehicles: 33 000 – 1000 = 32 000 x 10% = 3 200
Furniture and fittings: 15 000 x 5% = 750
Appropriation account
June30 Salaries to partners 22 400 June30 Profit and loss 38 882
(9 800 + 12 600)
Bonus to partners 12 188
(5 400 + 6 788)
Current:Ally 2 454
(4 294 x 4/7)
Current : Sally 1 840
(4 294 x 3/7)
38 882 38 882

Current account: Ally

June30 Drawings 5 500 July 1 Balance b/d 3 200
Salaries 9 800
Bonus 5 400
Balance c/d 15 354 Interest on capital -
Appropriation 2 454
20 854 20 854
Balance b/d 15 354
 Current account: Sally
July 1 Balance b/d 395 June Salaries 12 600
30
Drawings 3 176 Bonus 6 788
Balance c/d 17 657 Interest on capital -
Appropriation 1 840
21 228 21 228
Balance b/d 17 657

OR
Current accounts in tabular form:
Ally Sally
Balance b/d 3 200 (395)
Drawings (5 500) (3 176)
Salaries 9 800 12 600
Bonus to partners 5 400 6 788
Appropriation (remaining profits) 2 454 1 840
15 354 17 657