Partnership Profit And Loss Account And Balance Sheet of Partners - SS2 Accounting Past Questions and Answers - page 1
Question:
Use the following transactions from the partnership of Ayo and Damis’ shop for 2021, to prepare:
-
Trading profit and loss account of the partnership
-
Partner’s capital account
-
Balance sheet of the partners
TRIAL BALANCE AS OF DECEMBER 31, 2021
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Cash |
75,000 |
|
|
Bank |
60,000 |
|
|
Purchases |
250,000 |
|
|
Sales |
400,000 |
|
|
Rent expense |
30,000 |
|
|
Wages expense |
80,000 |
|
|
Insurance expense |
8,000 |
|
|
Interest expense |
5,000 |
|
|
Advertising expense |
12,000 |
|
|
Ayo, capital |
110,000 |
|
|
Damis, capital |
120,000 |
|
|
Total |
750,000 |
400,000 |
Answer:
PARTNERSHIP PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Sales Purchases Rent expense Wages expense Insurance expense Interest expense Advertising expense Total expenses Net profit |
400,000 15,000 |
|
250,000 30,000 80,000 8,000 5,000 12,000 385,000 |
PARTNERS CAPITAL ACCOUNTS AS AT DECEMBER 31, 2021
|
Account Title |
Ayo |
Damis |
|
Capital, Jan 1 Add: Net profit Less: Drawings Capital, Dec 31 Total |
110,000 7,500 15,000 102,500 117,500 |
120,000 7,500 12,500 115,000 127,500 |
BALANCE SHEET AS OF DECEMBER 31, 2021
ASSETS ₦
Cash 75000
Bank 60000
Inventory 150000
Total Assets 285000
LIABILITIES AND PARTNER'S EQUITY
Accounts payable
Total Liabilities
Ayo's capital 102500
Damis' capital 115000
Total liabilities and partner's equity 285000