Q3
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Q3 as PDF for free.
More details
- Words: 461
- Pages: 4
Q3a) Waters and Wilcox Schedule of Profit Distribution at 30 June 2006 $
$ 45,900
Profit available for distribution Add Interest on Drawings
- Waters
200
- Wilcox
800
(2,000x0.1) 1,000
(8,000x0.1) Less Interest on advance (10,000x0.07) Less Salaries - Waters - Wilcox Less Interest on capital
(700) 40,000 60,000
- Waters
3,000
- Wilcox
6,000
(100,000)
(60,000x0.05) (9,000)
(120,000x0.05) (62,800)
3b) General Journal Dr Interest on advance – Wilcox Interest on advance payable – Wilcox Profit and loss Summary Interest on advance – Wilcox Interest on Advance Profit and loss Summary Current – Water (60,000 x 0.05) Current – Wilcox (120,000x 0.05) Transfer of Interest on Capital
Cr 700 700 700 700 9,000 3,000 6,000
Profit and loss Summary Current – Water Current – Wilcox Transfer of Salary Entitlement
100,000
Current – Water (2,000x0.1) Current – Wilcox (8,000x0.1)
200 800
40,000 60,000
Profit and loss Summary Recording Interest being charged on drawings Current – Water (62,800 x 0.4) Current – Wilcox (62,800 x 0.6) Profit and loss Summary (45,900-700-9,000-
1,000 25,120 37,680 62,800
100,000+1,000) Transfer of Profit Share Current – Water Current – Wilcox Salary – Waters Salary – Wilcox Transfer of Salary Withdrawn Current – Water Current – Wilcox Drawings – Waters Drawings – Wilcox Transfer of Drawings
35,000 42,000 35,000 42,000 2,000 8,000 2,000 8,000
3c) Current – Waters $ 2006 7,000 Profit and loss (Interest on
2006 Balance Profit and Loss (Interest on Drawings) Profit and Loss (Profit) Profit and Loss (Salary Withdrawn) Profit and Loss (Drawings)
2006 Profit and Loss (Interest on Drawings) Profit and Loss (Profit) Profit and Loss (Salary Withdrawn) Profit and Loss (Drawings) Balance
Capital) 200 Profit and Loss (Salary) 25,120 35,000 2,000 Balance 69,320
26,320 69,320
Capital) 42,000 Profit and Loss (Salary) 8,000 10,520 99,000
60,000 (26,320)
Capital – Wilcox plus Current – Wilcox
120,000 10,520
99,000
$ 33,680 130,520 164,200
3e) Waters and Wilcox Statement of Change in Equity for the year ended 30 June 2006 Waters Wilcox Total $ Equity at 1 July 2005 Opening balance of capital Contributions Closing balance of capital
$ 60,000 0 60,000
120,000 0 120,000
$ 33,000 6,000 60,000
3d)
Owners Equity Capital – Waters plus Current – Waters
3,000 40,000
Current – Wilcox $ 2006 800 Balance 37,680 Profit and loss (Interest on
Waters and Wilcox Balance Sheet as at 30 June 2006 (extract) $
$
$ 180,000 0 180,000
Opening balance of current account Interest on Partners’ Capital Partners’ Salaries Interest on Drawings Share of Remaining Profit Profit Appropriated
(7,000) 3,000 40,000 (200) (25,120) 10,680
33,000 6,000 60,000 (800) (37,680) 60,520
26,000 9,000 100,000 (1,000) (62,800) 71,200
Less: Salary Withdrawn Drawings
(35,000) (2,000)
(42,000) (8,000)
(77,000) (10,000)
Closing Balance of Current Account Equity at 30 June 2006
(26,320) 33,680
10,520 130,520
(15,800) 164,200
$ 45,900
Profit available for distribution Add Interest on Drawings
- Waters
200
- Wilcox
800
(2,000x0.1) 1,000
(8,000x0.1) Less Interest on advance (10,000x0.07) Less Salaries - Waters - Wilcox Less Interest on capital
(700) 40,000 60,000
- Waters
3,000
- Wilcox
6,000
(100,000)
(60,000x0.05) (9,000)
(120,000x0.05) (62,800)
3b) General Journal Dr Interest on advance – Wilcox Interest on advance payable – Wilcox Profit and loss Summary Interest on advance – Wilcox Interest on Advance Profit and loss Summary Current – Water (60,000 x 0.05) Current – Wilcox (120,000x 0.05) Transfer of Interest on Capital
Cr 700 700 700 700 9,000 3,000 6,000
Profit and loss Summary Current – Water Current – Wilcox Transfer of Salary Entitlement
100,000
Current – Water (2,000x0.1) Current – Wilcox (8,000x0.1)
200 800
40,000 60,000
Profit and loss Summary Recording Interest being charged on drawings Current – Water (62,800 x 0.4) Current – Wilcox (62,800 x 0.6) Profit and loss Summary (45,900-700-9,000-
1,000 25,120 37,680 62,800
100,000+1,000) Transfer of Profit Share Current – Water Current – Wilcox Salary – Waters Salary – Wilcox Transfer of Salary Withdrawn Current – Water Current – Wilcox Drawings – Waters Drawings – Wilcox Transfer of Drawings
35,000 42,000 35,000 42,000 2,000 8,000 2,000 8,000
3c) Current – Waters $ 2006 7,000 Profit and loss (Interest on
2006 Balance Profit and Loss (Interest on Drawings) Profit and Loss (Profit) Profit and Loss (Salary Withdrawn) Profit and Loss (Drawings)
2006 Profit and Loss (Interest on Drawings) Profit and Loss (Profit) Profit and Loss (Salary Withdrawn) Profit and Loss (Drawings) Balance
Capital) 200 Profit and Loss (Salary) 25,120 35,000 2,000 Balance 69,320
26,320 69,320
Capital) 42,000 Profit and Loss (Salary) 8,000 10,520 99,000
60,000 (26,320)
Capital – Wilcox plus Current – Wilcox
120,000 10,520
99,000
$ 33,680 130,520 164,200
3e) Waters and Wilcox Statement of Change in Equity for the year ended 30 June 2006 Waters Wilcox Total $ Equity at 1 July 2005 Opening balance of capital Contributions Closing balance of capital
$ 60,000 0 60,000
120,000 0 120,000
$ 33,000 6,000 60,000
3d)
Owners Equity Capital – Waters plus Current – Waters
3,000 40,000
Current – Wilcox $ 2006 800 Balance 37,680 Profit and loss (Interest on
Waters and Wilcox Balance Sheet as at 30 June 2006 (extract) $
$
$ 180,000 0 180,000
Opening balance of current account Interest on Partners’ Capital Partners’ Salaries Interest on Drawings Share of Remaining Profit Profit Appropriated
(7,000) 3,000 40,000 (200) (25,120) 10,680
33,000 6,000 60,000 (800) (37,680) 60,520
26,000 9,000 100,000 (1,000) (62,800) 71,200
Less: Salary Withdrawn Drawings
(35,000) (2,000)
(42,000) (8,000)
(77,000) (10,000)
Closing Balance of Current Account Equity at 30 June 2006
(26,320) 33,680
10,520 130,520
(15,800) 164,200
