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3 marksPartnership Formation and Capital Accounts

CSEC Principles of Accounts · May/June 2011 · Paper 2 · Question 2(a)

Chester and Norbert are partners with specific agreement terms regarding interest on capital, interest on drawings, salary, and profit-sharing ratio. Telford is admitted on July 1, 2010.

Prepare the journal entry to record the admission of Telford into the partnership.

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Other parts of this question

  1. 2(b)Prepare an extract of the Partnership Appropriation Account up to the share of remaining profit for the year ended December 31, 2010.[7 marks]
  2. 2(c)Complete the worksheet provided to arrive at the share of remaining income or profit earned by EACH partner.[3 marks]
  3. 2(d)Prepare the Current Accounts of the partners as at December 31, 2010.[7 marks]

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