{"id":3772,"date":"2023-10-05T18:50:41","date_gmt":"2023-10-05T18:50:41","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3772"},"modified":"2023-10-05T18:55:18","modified_gmt":"2023-10-05T18:55:18","slug":"week-2-ss3-first-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-2-ss3-first-term-financial-accounting-notes\/","title":{"rendered":"Week 2 &#8211; SS3 First Term Financial Accounting  Notes"},"content":{"rendered":"<p>\u00a0<strong>WEEK TWO<br \/>\n<\/strong><strong>FINAL ACCOUNTS OF A PARTNERSHIP BUSINESS<br \/>\n<\/strong>i.\u00a0\u00a0\u00a0\u00a0<strong>Profit &amp; Loss Appropriation Account of a partnership<\/strong><br \/>\n\tii.\u00a0\u00a0\u00a0\u00a0<strong>Balance Sheet of a Partnership<\/strong><br \/>\n\t<strong>PROFIT AND LOSS APPROPRIATION ACCOUNT OF A PARTNERSHIP<br \/>\n<\/strong>This, as the name implies, is the account where either the profit or loss of the partnership business is shared between or among the partners as stipulated in the partnership agreement. The profit and loss appropriation account marks the beginning of the difference between the final accounts of a sole trader and that of a partnership. This is because while the sole trader does not share his profit with any-body, the profit of the partnership must be shared by the partners.<\/p>\n<p>\u00a0<strong>Some Terminologies in profit &amp; Loss Appropriation Account of a partnership<br \/>\n<\/strong><strong>1.<\/strong>\u00a0\u00a0\u00a0\u00a0<strong>Drawings:-<\/strong> Partners can withdraw at regular or irregular intervals, from the sum they are entitled to at the end of the year. The total drawings is credited to the cash book and debited to current accounts.<br \/>\n<strong>2.<\/strong>\u00a0\u00a0\u00a0\u00a0<strong>Interest on drawings:-<\/strong>This is the interest charged on drawings made by the partners. In order to discourage or reduce the amount of cash withdrawn, a fixed sum or % will be charged as interest. The interest on drawing will increase net profit and discourage drawings. It can be calculated on monthly basis.<br \/>\n\u00a0\u00a0\u00a0\u00a0Interest is calculated from the date the amount is withdrawn to the end of the financial year.<br \/>\n<strong>3.<\/strong>\u00a0\u00a0\u00a0\u00a0<strong>Partners&#8217; Salary: &#8211;<\/strong> The agreement made provision for salary to be paid to active partners. It is desirable to compensate the active partner for the day-to-day running of the business.<br \/>\n<strong>4.<\/strong>\u00a0\u00a0\u00a0\u00a0<strong>Interest on Capitals: <\/strong>Partners contribute different amounts as capital. In order to compensate the partners for capital contributed, interest on capital is allowed. <\/p>\n<p>\u00a0<strong>BALANCE SHEET OF A PARTNERSHIP BUSINESS<br \/>\n<\/strong>There is no significant difference between the balance sheet of a sole trader and that of a partnership. The only difference is on the display of capital accounts and current accounts of partners which will be illustrated in the formats below:-<\/p>\n<p>\u00a0<strong>Format 1<br \/>\n<\/strong><strong>Trading, profit and loss of A and B Enterprises for the year ended 31<sup>st<\/sup> December 2006<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0N<br \/>\nOpening stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nAdd Purchases\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0less Returns inwards \u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x<br \/>\nAdd Carriage inwards\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>X<br \/>\n<\/strong>Less Returns Outwards\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x<br \/>\n<strong>Cost of goods available for sale<\/strong>\u00a0\u00a0\u00a0\u00a0x<br \/>\nLess Closing stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n<strong>Cost of goods sold\u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n<strong>Gross profit c\/d<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n<\/strong><strong>Expenses<br \/>\n<\/strong>Wages and salaries\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Gross profit b\/d<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>x<\/strong><br \/>\n\tDepreciation of assets\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Discounts received\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nSundry expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\nBad debts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nInterest on loan\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nDiscount allowed\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nCarriage outwards\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n<strong>Net profit c\/d\u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>x <\/strong><br \/>\n\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>X \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X<br \/>\n<\/strong><strong>Format 2<br \/>\n<\/strong><strong>Profit and Loss Appropriation account A and B<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0N<br \/>\nPartners salary\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Net profit b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nInterest on capital: A\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Interest on drawings:<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0B\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A\u00a0\u00a0\u00a0\u00a0x<br \/>\nShare of profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0B\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0A (\u00bd x)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0B (\u00bd x)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0__<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi1.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi2.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<\/p>\n<p>\u00a0<strong>Format 3<br \/>\n<\/strong><strong>Balance sheet of A and B Enterprises as at 31<sup>st<\/sup> Dec 2006<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi3.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi4.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0N<br \/>\n<strong>Capital accounts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Fixed assets<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Furniture &amp; fitting\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0B\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0Less depreciation\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x<br \/>\n<strong>Current accounts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>Motor van<strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>x<strong><br \/>\n\t\t<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0B\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0<strong>Current assets<\/strong><br \/>\n\t<strong>Current liabilities\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>Stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<strong><br \/>\n\t\t<\/strong>Loan\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Debtor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nCreditors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bank\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nExpenses owing\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0Cash in hand\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n<\/strong><strong>Example<br \/>\n<\/strong>O and D are in partnership sharing profit and loss in the ratio 3:2. The following is the Trial Balance as at 31 December 2005<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0DR\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0CR<br \/>\nCapital\u00a0\u00a0\u00a0\u00a0 O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0100,000<br \/>\n\u00a0\u00a0\u00a0\u00a0 D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  50,000<br \/>\nDrawings: O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   6,000<br \/>\n\u00a0\u00a0\u00a0\u00a0    :  D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   5,000<br \/>\nPurchases\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0         120,000<br \/>\nSales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200,000<br \/>\nSales returns\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   4,000<br \/>\nPurchases returns\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   2,000<br \/>\nStock at 1<sup>st<\/sup> January 2005\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 10,000<br \/>\nCarriage inwards\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   1,200<br \/>\nSalaries and wages\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15,000<br \/>\nBad debts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   1,000<br \/>\nOffice expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   2,400<br \/>\nLoan-Okafor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   14,000<br \/>\nProvision for doubtful debts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0       300<br \/>\nDiscounts allowed\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   1,150<br \/>\nDiscounts received\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     1,100<br \/>\nBuilding at cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 30,000<br \/>\nMachinery at cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0         109,000<br \/>\nCash at bank\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   8,000<br \/>\nMotor van at cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 50,000<br \/>\nElectricity\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0       50<br \/>\nProvision for dep. on motor van\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   10,000<br \/>\nDebtors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20,000<br \/>\nCreditor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   10,000<br \/>\nBills payable\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     9,000<br \/>\nBills receivable\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a017,500<br \/>\nCarriage outwards\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     500<br \/>\nCurrents account: O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    1,500<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi5.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi6.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0       D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    3,000<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi7.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi8.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0         400,900\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 400,900<\/p>\n<p>\u00a0<strong>Additional Information<br \/>\n<\/strong>i.\u00a0\u00a0\u00a0\u00a0Stock at close N 15,000<br \/>\nii.\u00a0\u00a0\u00a0\u00a0Salaries and wages accrued N 1,000<br \/>\niii.\u00a0\u00a0\u00a0\u00a0Electricity prepaid N 20<br \/>\niv.\u00a0\u00a0\u00a0\u00a0Interest on capital at 10%<br \/>\nv.\u00a0\u00a0\u00a0\u00a0Interest on drawings at 5%<br \/>\nvi.\u00a0\u00a0\u00a0\u00a0Depreciate motor can 10% on cost<br \/>\nvii.\u00a0\u00a0\u00a0\u00a0Partnership salary: O N 2,000<br \/>\nviii.\u00a0\u00a0\u00a0\u00a0Provision for doubtful debts to be reduced to N 200<br \/>\nviiii.\u00a0\u00a0\u00a0\u00a0O withdrew N 7,000 goods for own use<\/p>\n<p>\u00a0<strong>You are required to:<br \/>\n<\/strong>a.\u00a0\u00a0\u00a0\u00a0Prepare the Trading, Profit and loss account for the year ended 31 Dec, 2006.<br \/>\nb.\u00a0\u00a0\u00a0\u00a0Partners&#8217; capital account<br \/>\nc.\u00a0\u00a0\u00a0\u00a0Balance sheet as at 31<sup>st<\/sup> Dec. 2006<\/p>\n<p>\u00a0<br \/>\n\u00a0<strong>Solution<br \/>\n<\/strong><strong>Trading, Profit and Loss of O and D for the year ended 31st December 2006.<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nOpening stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0              200,000<br \/>\nAdd purchases\u00a0\u00a0\u00a0\u00a0120,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Less Returns inward\u00a0\u00a0\u00a0\u00a0s  \u00a0\u00a0\u00a0\u00a0        4,000<br \/>\nAdd carriage inwards  1,200<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0         121,200<br \/>\nLess Ret outwards \u00a0\u00a0\u00a0\u00a0   2,000<br \/>\n119,200<br \/>\nLess Goods withdrawn 7,000\u00a0\u00a0\u00a0\u00a0<strong>112,200<\/strong><br \/>\n\tCost of Goods available for sale\u00a0\u00a0\u00a0\u00a0 122,200<br \/>\nLess closing stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   15,000<br \/>\nCost of goods sold\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 107,200<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi9.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi10.png\" alt=\"\"\/><strong>Gross profit\u00a0\u00a0\u00a0\u00a0 c\/d<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   88,800<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi11.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>196,000<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>196,000<\/strong><br \/>\n\t<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi12.png\" alt=\"\"\/><strong><br \/>\n\t\t<\/strong><strong>Expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Gross profit bld<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0      88,800<strong><br \/>\n\t\t<\/strong>Salaries and wages (wk 1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   16,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Discount received\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0        1,100<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Decrease in provision for<br \/>\nBad debts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     1,000\u00a0\u00a0\u00a0\u00a0               bad debts (wk 3)\u00a0\u00a0\u00a0\u00a0          100\u00a0\u00a0\u00a0\u00a0<br \/>\nOffice expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     2,400<br \/>\nDiscount allowed\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     1,150<br \/>\nElectricity (wk 4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0          30<br \/>\nCarriage outwards\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0        500<br \/>\nDepreciation-motor can (wk 2)\u00a0\u00a0\u00a0\u00a0     5,000<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi13.png\" alt=\"\"\/><strong>Net profit c\/d\u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>63,920<\/strong><br \/>\n\t<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi14.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi15.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>90,000<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>90,000<\/strong><\/p>\n<p>\u00a0<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi16.png\" alt=\"\"\/><strong>Appropriation account<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Net profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a063,920<br \/>\nPartner salary \u2013 O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Interest on drawings:<\/strong><br \/>\n\t<strong>Interest on capital:\u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0300<br \/>\n\u00a0\u00a0\u00a0\u00a0O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0250\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     550<br \/>\n\u00a0\u00a0\u00a0\u00a0D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  5,000        15,000<br \/>\n<strong>Share of profit:<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0D \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a018,988<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi17.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi18.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a028,482\u00a0\u00a0\u00a0\u00a047,470<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>64,470<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>64,470<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi19.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi20.png\" alt=\"\"\/><br \/>\n\t\t<strong>Partnership Columnar current account<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0D<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nDrawings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a06,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance b\/f\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03,000<br \/>\nInt on drawings\u00a0\u00a0\u00a0\u00a0   300\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   250\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Share of profit       28.482\u00a0\u00a0\u00a0\u00a0        18,988<br \/>\nGoods withdrawn\u00a0\u00a0\u00a0\u00a0 7,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Interest on capital  10,000\u00a0\u00a0\u00a0\u00a0          5,000<br \/>\nBalance c\/d\u00a0\u00a0\u00a0\u00a0         28,692\u00a0\u00a0\u00a0\u00a0         21,738\u00a0\u00a0\u00a0\u00a0         Salary\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    -____<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi21.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi22.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>41,982\u00a0\u00a0\u00a0\u00a026,988<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>41,982\u00a0\u00a0\u00a0\u00a026,988<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi23.png\" alt=\"\"\/><strong><br \/>\n\t\t<\/strong><strong>Bal b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a028,692\u00a0\u00a0\u00a0\u00a021,738<br \/>\n<\/strong><strong>Balance sheet as at 31<sup>st<\/sup> December 2006<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0NN<br \/>\nCapital: O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0100,000<br \/>\n\u00a0\u00a0\u00a0\u00a0 D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  50,000\u00a0\u00a0\u00a0\u00a0150,000\u00a0\u00a0\u00a0\u00a0Fixed assets\u00a0\u00a0\u00a0\u00a0<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Building\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   30,000      30,000<br \/>\nCurrent account:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Machinery\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 109,100     109,100<br \/>\nO\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  28,682\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Motor van     50,000                    139,100<br \/>\nD\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  21,738\u00a0\u00a0\u00a0\u00a0 50,420\u00a0\u00a0\u00a0\u00a0Less Depr.    15,000                      35,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0      174,100<br \/>\n<strong>Current liabilities<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Current assets<\/strong><br \/>\n\tLoan Okafor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a014,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  15,000<br \/>\nCreditors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bank\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0              8,000<br \/>\nBills payable\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  9,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Debtors\u00a0\u00a0\u00a0\u00a020,000<br \/>\nWages owing\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  1,000\u00a0\u00a0\u00a0\u00a034,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Less provision    200  \u00a0\u00a0\u00a0\u00a019,800<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bills receivable\u00a0\u00a0\u00a0\u00a0          17,500<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi24.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi25.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi26.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Electricity prepaid\u00a0\u00a0\u00a0\u00a0     20          60,320<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>234,420\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0                234,420<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi27.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1850_Week2SS3Fi28.png\" alt=\"\"\/><strong><br \/>\n\t\t<\/strong><strong>Workings<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Salaries and wages<br \/>\n\u00a0\u00a0\u00a0\u00a0Amount paid\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a015,000<br \/>\n        +  Owing\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  1,000<br \/>\n\u00a0\u00a0\u00a0\u00a0Profit and loss\u00a0\u00a0\u00a0\u00a016,000<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Depreciation:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Motor van<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010% x 50,000<br \/>\n\u00a0\u00a0\u00a0\u00a0Profit and loss\u00a0\u00a0\u00a0\u00a05,000<br \/>\n\u00a0\u00a0\u00a0\u00a0Accumulated depreciation = 10,000 + 5,000 = 15,000<br \/>\n3.\u00a0\u00a0\u00a0\u00a0Provision for bad debts\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04.\u00a0\u00a0\u00a0\u00a0Electricity \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a050<br \/>\n\u00a0\u00a0\u00a0\u00a0Old provision\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0300\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     Less  Prepaid\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a020<br \/>\n\u00a0\u00a0\u00a0\u00a0Less New provision\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Profit and loss\u00a0\u00a0\u00a0\u00a030<br \/>\n\u00a0\u00a0\u00a0\u00a0Profit and loss\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0100<br \/>\n5.\u00a0\u00a0\u00a0\u00a0Interest on capital:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a06.\u00a0\u00a0\u00a0\u00a0Share of profit<br \/>\n\u00a0\u00a0\u00a0\u00a0O : 10% x 100,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0O = 3\/5 x 47,470 = 28,482<br \/>\n\u00a0\u00a0\u00a0\u00a0= 10,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0D = 2\/5 x 47,470 = 18,988<br \/>\n\u00a0\u00a0\u00a0\u00a0D : 10% x 50,000<br \/>\n\u00a0\u00a0\u00a0\u00a0= 5,000<br \/>\n7.\u00a0\u00a0\u00a0\u00a0Interest on drawings:<br \/>\n\u00a0\u00a0\u00a0\u00a0O : 5% x 6,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0= 300<br \/>\n\u00a0\u00a0\u00a0\u00a0D : 5% x 5,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0= 250<br \/>\n<strong>EVALUATION<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Explain (a) appropriation account   (b)\u00a0\u00a0\u00a0\u00a0Balance sheet<br \/>\n2.\u00a0\u00a0\u00a0\u00a0What is interest on capital?<\/p>\n<p>\u00a0<strong>READING ASSIGNMENT<br \/>\n<\/strong>Essential Financial Accounting  by O. A. Longe,  Page 249 \u2013 258<\/p>\n<p>\u00a0<strong>WEEKEND ASSIGNMENT<br \/>\n<\/strong>Use the following information to answer questions 1 \u2013 5.  A, B, and C are in partnership sharing profits and losses in the ratio 3:2:1 respectively. Their capital accounts are A: N60,000 B. N40,000 and C: N 30,000. Interest on capital is agreed at 5% p.a. interest on drawings is also agreed at 5% p.a. Their drawings for the year are: A: N 6,000 B: N 4,000 and C: N 3,000. The profit for the year before appropriation is N 30,000 C is entitled to a partnership salary of N2,000 p.a<br \/>\n1.\u00a0\u00a0\u00a0\u00a0What is the total of A and B&#8217;s interest on capital? (a) N4,000 (b) N3,000 (c) N5,000<br \/>\n(d) N10,000<br \/>\n2.\u00a0\u00a0\u00a0\u00a0What is the total of B and C&#8217;s interest on drawing? (a) N350 (b) N250, (c) N450<br \/>\n(d) N400<br \/>\n3.\u00a0\u00a0\u00a0\u00a0Total interest on the partners&#8217; capital for the year is (a) N7,000 (b) N6,000 (c) N6,500 (d)  N5,500<br \/>\n4.\u00a0\u00a0\u00a0\u00a0Total credit entries in the appropriation account is (a) N550 (b) N30,000 (c) N35,500<br \/>\n(d) N30,550<br \/>\n5.\u00a0\u00a0\u00a0\u00a0Which of the following is not debited to the profit and loss appropriation account?<br \/>\n(a) C&#8217;s salary (b) Partner&#8217;s interest on capital (c) Share of profit (d) Share of loss <\/p>\n<p>\u00a0<strong>THEORY<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Write short notes on (a) Interest on capital (b) Interest on drawing<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Give the double entries for the following in the final account of a partnership. (i) Interest on drawings N500 (ii) Partnership salary N3,000 (iii) Interest on capital N5,000 (iv) Share of profit N10,000 <\/p>\n<p>\u00a0<strong>GENERAL EVALUATION<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>List five items that are debited in the sales ledger control account\n<\/div>\n<\/li>\n<li>\n<div>List five items that are credited in the purchases ledger control account\n<\/div>\n<\/li>\n<li>\n<div>List five subsidiary books from which the sales ledger control is compiled\n<\/div>\n<\/li>\n<li>\n<div>State five contents of the Appropriation Account of a partnership\n<\/div>\n<\/li>\n<li>\n<div>List five characteristics of depreciable assets\n<\/div>\n<\/li>\n<\/ol>\n<p><strong><br \/>\n\t\t<\/strong>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0WEEK TWO FINAL ACCOUNTS OF A PARTNERSHIP BUSINESS i.\u00a0\u00a0\u00a0\u00a0Profit &amp; Loss Appropriation Account of a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,293],"tags":[],"class_list":["post-3772","post","type-post","status-publish","format-standard","hentry","category-posts","category-first-term-ss3-financial-accounting"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3772","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=3772"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3772\/revisions"}],"predecessor-version":[{"id":3773,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3772\/revisions\/3773"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}