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

ASSIGNMENT ON HAMPSHIRE PROJECT, tHE FIRST SECTION ASSIGEMTN ANSWER FOR HAM...

tHE FIRST SECTION ASSIGEMTN ANSWER FOR HAMPSHIR COMPANY DECISIONS

Prepare the appropriate entries for december 31, A corporation acquired a t...

A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d

Purchase procedure, what is the procedure of purchase of materials in large...

what is the procedure of purchase of materials in large organisation?

Paramecium, Place a prepared slide of Paratuecium under the microscope and...

Place a prepared slide of Paratuecium under the microscope and focus it under low power (5x x 5x) and observe the following: i) It has a cigar-shaped or slipper-shaped body

Method of bonus payment , from the following particulars calculate the earn...

from the following particulars calculate the earning of worker . rate per hours $0.50 standard time 200 hours time taken 140 hours

Limitations of cost accounting, LIMITATIONS OF COST ACCOUNTING Cost Acc...

LIMITATIONS OF COST ACCOUNTING Cost Accounting similar to additional branches of accountancy is not an precise science although is an art which was developed throughout theorie

Organization of budgetary control, Organization of Budgetary Control B...

Organization of Budgetary Control Budgetary control ideally includes the given steps as: 1. The creation of budget centres. 2. The introduction of sufficient

Non-profit cash flows statement, Are non-profit and governments required to...

Are non-profit and governments required to depreciate assets? Why or why not? Would it make sense for them to use double declining balance? Is there a difference between a non-p

Calculate the manufacturing cost per unit, the following activities relatin...

the following activities relating to indirect production costs: Activity Activity Costs Cost Drivers Machine Setup $180,000 1,500 setup hours Materials Handling $50,000 12,500 poun

Variable overhead variance (vohv), Variable Overhead Variance (VOHV) VO...

Variable Overhead Variance (VOHV) VOHV is defined by ICMA, London, as 'the variation between the standard variable production overhead absorbed in the production achieved, whet

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