Prepare the capital accounts, Cost Accounting

Assignment Help:

Shirley and Ken are in partnership, trading in the construction industry. The year end for the partnership business is 30 June.

You are the Assistant Accountant and have been asked by the Accountant to assist him in preparing the financial statements for the year ended 30 June 2011.

You have the following information about the partnership:

The partners are Shirley and Ken.

  • Their capital account balances as at 1 July 2010 were:

                   -    Shirley       £32,000

                   -    Ken           £57,000

  • Partner's current account balances as at 1 July 2010 were:

                     -    Shirley       £1,900 Cr

                     -    Ken              £400 Dr

  • Partner's annual salaries:

                    -    Shirley       £7,500

                    -    Ken           £9,500

  • Partners' interest on capital is charged at 3% per annum on the capital account balances at the start of the year and from when a new partner joins the partnership.
  • Reeny was admitted to the partnership on 1 January 2011 when she introduced £25,500 into the business' bank account.
  • The profit sharing ratio, effective until 31 December 2010 was:

                -  Shirley        45%

                -    Ken           55%

  • The profit sharing ratio, effective from 1 January 2011 was:

               -    Shirley                   40%
               -    Ken                       45%
               -    Reeny                    15%

  • Goodwill was introduce into the partner's capital accounts at a valued of £27,500 and then eliminated on 1 January 2011.

Related Discussions:- Prepare the capital accounts

Marginal costing, MARGINAL COSTING As per the Chartered Institute of Ma...

MARGINAL COSTING As per the Chartered Institute of Management Accountants, London, the phrase 'Marginal cost' means - 'the amount at every given volume of output through which

Overhead variances, Overhead Variances This explains how the variable ...

Overhead Variances This explains how the variable overhead total variance and the fixed overhead total variances calculated. You can recall the overheads refer to production c

Which of the four types of costs would include ceo''s salary, Which of the ...

Which of the four types of costs would include a CEO's salary? A. Unit-Level B. Batch-Level C. Product Sustaining D. Facility Sustaining

Direct materials total variance, Direct Materials Total Variance Direc...

Direct Materials Total Variance Direct materials total variances refer to the difference between the standard direct material cost of the actual production volume and the actu

Cgs, asdfdf afd s

asdfdf afd s

How much should the selling price be per unit, Pritchard Company manufactur...

Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling pri

Role in business, what is the role of cost accounting in business

what is the role of cost accounting in business

Irrelevant cost., what is irrelevant cost and give example

what is irrelevant cost and give example

Compute the estimated value of inventory stolen at kji, The following are t...

The following are three independent situations where the reporting entity for which financial statements are being prepared are underlined. Every company has a December 31, 2012 ye

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd