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10 marksPartnership Financial Statements and Current Accounts

CSEC Principles of Accounts · January 2014 · Paper 2 · Question 3(a)

Jack and Genny are in partnership. Balances at 31 December 2013: Capital Accounts Jack 80 000, Genny 70 000; Current Accounts Jack (500), Genny 2 100; Drawings Jack 6 000 (withdrawn 1 April 2013), Genny 4 000 (withdrawn 1 July 2013). Net profit for the year is 39 350. Partnership agreement provides: Profit/loss ratio 3:2 to Jack and Genny; Genny's salary 12 000 p.a.; Interest on capital 5% p.a.; Interest on drawings 10% p.a.

Prepare the Profit and Loss Appropriation Account of Jack and Genny for the year ended 31 December 2013.

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Other parts of this question

  1. 3(b)Prepare the partners' Current Accounts on 31 December 2013.[8 marks]
  2. 3(c)Calculate Jack's net worth at 31 December 2013.[2 marks]

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