CSEC Principles of Accounts · January 2017 · Paper 2 · Question 1(b)

During their first year of operation, Chris and Vern earned a net profit of 40,100. Partner salaries were 12,000 each; interest on capital was 10%; interest on drawings was charged at 5%. Chris withdrew $24,000 cash during the year. Residual profit/loss shared in the ratio 2:1 between Chris and Vern.

Prepare the Profit and Loss Appropriation Account for the end of the first year for Chris and Vern.