Question

PR 12-3A Financial statements for partnership The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contans1, 20Y3 and balances after adjustments have been recorded on ber OBJ. 2, 5 o-at-law, contains the following accounts rded on December 31, 20Y3: Lambert and Yost Trial Balance December 31, 20Y3 Credit Balances Debit Cash Accounts Receivable Supplies Land Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Tyler Lambert, Capital Tyler Lambert, Drawing Jayla Yost, Capital Jayla Yost, Drawing Professional Fees Salary Expense Depreciation Expense-Building Property Tax Expense Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment Miscellaneous Expense Balances 34,000 47,800 2,000 120,000 57,500 67,200 63,600 21,700 27,900 5,100 35,000 50,000 88,000 395,300 54,500 15,700 12,000 8,500 6,000 5,000 3,600 740.200 740.200 The balance in Yost's capital account includes an additional investment of $10,000 made on April 10, 20Y3. Continued

Answer 1

Lambert & Yost
BALANCE SHEET AS AT 31st December, 2003
LIABILITIES	AMOUNT (in $)		ASSETS		AMOUNT (in $)
PARTNER CAPITAL			FIXED ASSETS
Lambert	177500		Land		120000
Yost	135500		Building	157500
			Less: Accumulated Depreciation	-67200	90300
			Office Equipment	63600
Accounts Payables	27900		Less: Accumulated Depreciation	-21700	41900
Salary Payables	5100		Accounts Receivables		47800
			Supplies		2000
			Cash (34000 +10000 capital introduced)		44000
Total	346000		Total		346000

Lambert & Yost
INCOME & EXPENDITURE FOR THE YEAR ENDING 31st December, 2003
PARTICULARS	AMOUNT(in $)		PARTICULARS	AMOUNT(in $)
Salary Expenses	154500		Professional Fees	395300
Depreciation on Building	15700
Depreciation on Office Equipment	5000
Property Tax	12000
Heating & Lighting	8500
Supplies Expenses	6000
Miscellaneous Expenses	3600
Profit Before Interest & Remuneration	190000
Total	395300		Total	395300
Salary Allowance			Profit Before Interest & Remuneration	190000
Lambert	45000
Yost	54700
Interst on Capital
Lambert (135000 x 10 %)	13500
Yost (88000 x 10%)	8800
Profit Transferred to capital Account
Lambert (68000 x 1/2) = 34000	68000
Yost (68000 x 1/2) = 34000
Total	190000		Total	190000

TYLER LAMBERT CAPITAL A/C
PARTICULARS	AMOUNT (in $)	PARTICULARS	AMOUNT (in $)
Drawings	50000	Opening Balance as on 01.01.2003	135000
		Net Profit transfer from P&L account	34000
		Salary Allowance	45000
Capital Balance as at 31.12.2003	177500	Interst on capital	13500
Total	227500		227500
JAYLA YOST CAPITAL A/C
PARTICULARS	AMOUNT (in $)	PARTICULARS	AMOUNT (in $)
Drawings	60000	Opening Balance as on 01.01.2003	88000
		Net Profit transfer from P&L account	34000
		Cash (Capital Introduced on 10 April,2003)	10000
		Salary Allowance	54700
Capital Balance as at 31.12.2003	135500	Interst on capital	8800
Total	195500		195500