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

Concepts of balanced scorecard and performance measurement, A college curre...

A college currently measures its performance by comparing the actual costs against its budgeted costs for the year.Now that the college is facing increased competition from Various

Effects of increasing fixed cost, Jones Company operates within a monopolis...

Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q

Wages department, Wages Department It is accountable for the preparati...

Wages Department It is accountable for the preparation of the payroll and the payment of wages. The routine will need: a) Analysis of clock cards and verify of overtime aut

Principle of accounting, what is the implication of applying accounting pr...

what is the implication of applying accounting principle wrongly

Compute the payback period for this investment, Eagle Company is considerin...

Eagle Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Comput

Material sampling - analyszing direct materials cost, A. Material Sampling ...

A. Material Sampling -Analyzing Direct Material Costs You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the pro

Please provide a recommendation, Your client has asked you to evaluate an i...

Your client has asked you to evaluate an investment project for her using what you have learned in school regarding the net present value method. The project will run for eight yea

Calculate cost of goods sold under throughput costing, The follow data rela...

The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dir

Equity adjustment account, Partner A (50%) Partner B (50%) sharing profi...

Partner A (50%) Partner B (50%) sharing profits equally New partner introduced $13,000 total cash including $3000 as goodwill which is raised to its full value. Partner C

Changes in product mix, Changes in Product Mix A change in product mix...

Changes in Product Mix A change in product mix in which individual products have different contribution will contain different contribution. Sales ratio will conclude in a cha

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