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Anonymous
Jul 30

Appropriation account format ?

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?

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