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

Sara and Zara Are in Partnership
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

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

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-

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

Capital Accounts
Date

Details

Sara

$

Zara

$

Date

Details

Sara

$

Zara

$

Sara and Zara

Current Accounts

Current Accounts

Date

Details

Sara

$

Zara

$

Date

Details

Sara

$

Zara

$

Explanation

Sara and Zara

Capital Accounts

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

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

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