Question

From the information given below draw up an appropriation account for the year ended 31 December 2013 and partners current account

i) Net profit for the yare sh 30,350

ii) Interest to be charged on capital W. sh 2000 P sh 1,500 sh900

iii) Interest to be charged on drawing w sh 240 P sh 180 H sh 130

iv) Salaries to partners P sh 2000 H sh 3500

v) Profits are to be shared w 505 P 30% and H 2096

vi) Current accounts balance b/f W sh 1860 P sh 946 and H sh 717

vii) Capital account balances b/f w sh 40,000 P sh 30,000 H sh 18,000

vii) Drawings during the year W sh 9200 P sh 7100 and H sh 6900.

Answer 1

Profit and loss appropriation account for the year ended december 31 2013.
Net profit for the year				30350
Add : interest on drawings
	W		240
	P		180
	H		130	550
				30900
Less : Interest on capital
	W		2000
	P		1500
	H		900	-4400
				26500
Less : Salaries
	P		2000
	H		3500	-5500
balance of profits to be shared				21000
	W	50%	10500
	P	30%	6300
	H	20%	4200	-21000
Current A/c
Particulars	W	P	H	Particulars	W	P	H
TO interest on drawings	240	180	130	by balance b/d	1860	946	717
To Drawings	9200	7100	6900	by interest on capital	2000	1500	900
				By salaries		2000	3500
				by share of profits	10000	6300	4200
To Bal c/d	4920	3466	2287
	14360	10746	9317		14360	10746	9317