Solution-Calculate the net income of the partnership

Calculate the net income of the partnership

Assignment Help Accounting Basics

Reference no: EM131597111

Problem - The Papers of Yesteryear

Donna and Xavier's business opened on 1 July 2015. The accounting profit and loss is to be shared equally after adjusting for special partnership items. The following transactions were recorded in the partnership's cashbook in the year ended 30 June 2016.

Receipts	$
Cash sales	220,000
Bank loan	55,000
Loan from Xavier	45,000
Interest on drawings - Donna	500
Interest on drawings - Xavier	750

Payments
Rent of shop and sundry expenses (all deductible)	35,000
Salary of part-time assistant	25,000
Salary of Donna	35,000
Salary of Xavier	60,000
Superannuation contributions for assistant	250
Bank loan repayments - principal	2,800
Bank loan repayments - interest	1,500
Interest on capital - Donna	1,000
Interest on capital - Xavier	1,000
Interest on loan from Xavier	2,500
Drawings - Donna	6,000
Drawings - Xavier	12,000
Purchase of trading stock	60,000

The value of the trading stock on hand as at 30 June 2016 was $28,000.

Required: Showing all workings:

1. Calculate the net income of the partnership for the year ended 30 June 2016.

2. Distribute the net income of the partnership for the year ended 30 June 2016.

Reference no: EM131597111

Questions Cloud

Describe the contents of the meeting : Identify the major concepts/methods utilized in the group. For example, are their books utilized, prayers utilized, principles or guidelines .

Payments commencing in one year and five payments : The appropriate discount rate is 10%. Which is the preferred salary package in present value terms?

Analyze how trends impact the organizational strategy : Analyze how trends impact the organizational strategy of a firm or industry. Consider trends in society, technology, economics and environmentalism.

How project managers can ensure that is development projects : How project managers and/or IT managers can ensure that information system development projects are in alignment with business strategies and goals.

Calculate the net income of the partnership : The value of the trading stock on hand as at 30 June 2016 was $28,000. Calculate the net income of the partnership for the year ended 30 June 2016

Identify a process within your organization : Identify a process within your organization that frequently lends itself to reverse logistics. Do the costs of continuing this process exceed the benefits?

Risk-adjusted cost of capital for a particular division : What procedures can be used to estimate the risk-adjusted cost of capital for a particular division? What approaches are used to measure a division's beta?

Before-tax or an after-tax basis : Should the component costs of a company be figured on a before-tax or an after-tax basis? Why?

Examine the duties and responsibilities of a hr specialist : Examine the duties and responsibilities of a HR specialist. Determine the contributions that someone in this position makes to an organization.

User Account

All Pages

Calculate the net income of the partnership

Reference no: EM131597111

Reference no: EM131597111

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT