Financial reporting - questions and answers. If you have a question about this topic, please click on the "New Question" button. If you wouldn't like to miss any new question in this topic, please subscribe.
Musa, Levi and emem are in partnership owing a business known as fortune hunters and sharing profit and loss in the ratio of 5:3:2 respectively. with a gurantee made by Musa and Levi that in the event that emem's actual share of divisible profit falls below #60,000 the deficiency will be borne by both Musa and Levi. Other provisions of their activities of partnership includes: 1. Interest of 5% to be allowed on capital. 2. Annual salaries of #6,800 and #7,500 to be credited to Musa and Levi respectively. 3. Annual interest of 6% should be charged on drawings. 4. Interest of 10% should be charged on debit opening balance of their current accounts. 5. Interest of 8% should be allowed on loans from partners Partners balance of capital account ( 01/05/96) Musa... 250,000, Levi... 200,000.... Emem.. 300,000. Partners balance of current account (01/05/96) Musa.. 67,200 Levi.. 15,000 Emem ... 48,000 Partners balance of loan account (01/05/96) Musa.... 75,000 Emem.... 100,000 Resources contributed during the year Cash (on 31/08/96) Musa... 30,000 Emem 45,000 Computers (on 30/11/96) Levi 60,000 Reduction in capital during the year Made on 31/12/96 Emem 30,000 Drawings Made on 30/06/96 Musa ... 20,000 Levi 25,000 Made on 31/10/96 Levi 28,000 Made on 31/01/97 Musa 16,000 Emem 18,000 The business yielded a net profit of # 320,000 for it's financial year ended 30/04/97. Requirements Prepare an appropriation account and partner fixed account capital account and current account in a column format for it's financial year ended 30/04/ 97 and statement of financial position extract?