Question

1. Paul and Kevin are in partnership sharing profits and losses equally. The following is their trial balance as at 31" December 2018. Dr Sh. 55,000 16.000 80.900 8,300 21,243 16,150 5,677 46,979 128,650 90,416 6,288 5,115 129,100 Buildings(cost sh.30.000) Fixtures at cost Freehold Land Provision for depreciation on fixtures Debtors Creditors Cash at bank Stock Sales Purchases Carriage outwards Discount allowed Loan Office expenses Salaries Bad debts Provision for bad debts Loan interest Capital accounts: Paul Kevin Current accounts: Paul Kevin Drawings: Paul Kevin TOTAL 7,416 23,917 5,503 5,400 9,000 45,000 39,500 13,106 9,298 12,400 8,650 394,604 394,604 Additional information: Stock as at 31 December was sh.61,341 Office expenses and wages of sh.2,596 and sh.5,717 respectively were prepaid Depreciation is to be charged at fixtures 10% on a reducing balance basis sh. 750 on buildings Provision for bad debts is to be reduced to sh.4,000 iv. V. Not yet entered in the books is salary of sh. 1,000 to Paul vi. Interest on drawings : Paul sh.sh.5.180 and Kevin sh.sh.5,120 vii. Interest on capital account balances is at 10% Required a) Income statement, appropriation account and current accounts. (10mrks) b) Statement of financial position.(10mrks)

Answer 1

Do Particulars In the Books af Paul & Keniu. Trading 2 P/L ALL Aunt Particulares To Opening Stock. 46979 · Pay seller. To Purchant 90416 By Cloring Store To Gross Precht 52596 Ament 128610 61341 18994 52591 189991 To carriage outwardah 6285 B To Discant Allowed. To office Expenes. To Salaues 2394-5H7) - To office Expenser 7416 Rust Prepaid. (2596 4820 To Beddents. $ 503 Less! Old Peroninian (5400) Add: New Preavinian. 4000 4103 To Rutorest an Loan. 9000 To Depreciation 1520 (70 +770) To Net Perafit 8550 52896 Preafit & Loss Particulars Ament To Peuterent on Capital - Paul @ 1or 45000 4560 kenin. @ 1040 39500 B950 I o Paul's Calwey . 1000 $2996 Ament Appropriatian Ali Particulous By Net peregit. my Interest an Drawings n Paul $180 a kevin 3120 10300 To - profit bransfer 1.200 2200 4400 Paul 13850 13.850

DR fa Particulens To Intouton Dorawing. Partners Kevin $120 Cuvent Coppital Partiallaus Paul S180 Paul By Balance bld Biog By Interent ou 4500 3950 9298 Bransing' Cospital To Relanceofd. 15626 10328 By Salary 1 ovo By Praft Prousky 22000 2200 20806 144 20806 18448 Balance Sheet as on - Liabiliter - Amenit , Afeets Amat - Cerpital - Paul 32600 Building 55000 - keuln. 30850 63450 Less! Deperiation (750) 54280 Current Afc - Paul 15626 F#yhun . - - 7700 -keun. 10325 21954. Lu-Depudlh@ 101. 770) 6920 Loan. 129100 freebeald Land S4 S009-0 Beteret an hout. Greditans . 16150 Dektors 21243 A Provonian. 64000 1243 5677 61341 leich at merk Clowing stock Prepaid Expenses . (office & wages) 8313 234654 1234654

DT Particulan. Те блauclin Partners Capital Alu paul Kentu Particulary 290 463 | Рn helanc o.bld Paul Kevin 4 % во 21% to Phok 1 мм 1 226 оо 3bg ЧСВоt a too | Соор 2010

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