IGCSE Accounting Paper-1: Specimen Questions with Answers 313 - 314 of 338
Passage
Sara and Zara are in partnership. The partnership agreement states the following-
That
- The interest on capital is paid at the rate of 12% per annum.
The profits and losses are to be shared in the ratio of 7: 3 respectively
Zara is to receive salary of $ 400pm
The following information is available
| On 1 April 2,018 | $ |
Capital Accounts- Sara Zara | 40,000 15,000 |
Current Accounts- Sara Zara | 4,500 Credit 3,000 Debit |
For the year ended 31 March 2,019 Profit for the year Drawings- Sara Zara | 25,000 5,000 3,500 |
On 1 April 2,018 $
Capital Accounts-
Sara 40,000
Zara 15,000
Current Accounts-
Sara 4,500 Credit
Zara 3,000 Debit
For the year ended 31 March 2,019
Profit for the year 25,000
Drawings-
Sara 5,000
Zara 3,500
On 1 January 2,019 Sara introduced additional capital of $ 8,000 into the partnership in the form of cash.
Question 313 (1 of 4 Based on Passage)
Write in Short
Short Answer▾Prepare the P&L Appropriation Account of the firm for the year ended 31 March 2,019 (Marks 5)
Sara and Zara
P&L Appropriation A/c for the year ended 31 March 2,019
| Details | $ | Details | $ |
Explanation
Sara and Zara
P&L Appropriation A/c for the year ended 31 March 2,019
| Details | $ | Details | $ |
Interest on Capital (I) : | Net Profit | 25,000 | |
Sara- $ 5,040 | |||
Zara- $ 1,800 | 6,840 | ||
Zara’s Salary (II) | 4,800 | ||
Share of profit (III) : | |||
Sara- $ 9,352 | |||
Zara- $ 4,008 | 13,360 | ||
25,000 | 25,000 |
Working Notes-
Interest on Capital- | $ |
Sara- | 4,800 240 5,040 |
Zara- | 1,800 |
(I) Interest on Capital- $
Sara- 4,800
240
5,040
Zara- 1,800
(II) Zara’s Salary-
(III) Divisible Profits
Zara’s Share
Sara’s Share
Question 314 (2 of 4 Based on Passage)
Describe in Detail
Essay▾Prepare the following capital accounts and current accounts of Sara and Zara for the year ended 31 March 2,019. Balance the accounts and bring down the balances on 1 April 2,019. (Marks 8)
Sara and Zara
Capital Accounts
| Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
Sara and Zara
Current Accounts
Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
Explanation
Sara and Zara
Capital Accounts
| Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
2,019 March 31 | Balance c/d | 48,000 | 15,000 | 2,018 April 1 | Balance b/d | 40,000 | 15,000 |
2,019 Jan 1 | Cash | 8,000 | |||||
48,000 | 15,000 | 48,000 | 15,000 | ||||
2,019 April 1 | Balance b/d | 48,000 | 15,000 |
Sara and Zara
Current Accounts
Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
2,018 April 1 | Balance b/d | ——- | 3,000 | 2,018 April 1 | Balance b/d | 4,500 | ——– |
2,019 March 31 | Drawings | 5,000 | 3,500 | 2,019 March 31 | Interest on Capital | 5,040 | 1,800 |
Balance c/d | 13,892 | 4,108 | Salary | 4,800 | |||
Share of Profit | 9,352 | 4,008 | |||||
18,892 | 10,608 | 18,892 | 10,608 | ||||
2,019 April 1 | Balance b/d | 13,892 | 4,108 |