Partnership IGCSE

A partnership appropriation account should include the following?

Fred and Garca are in partnership sharing profits and losses in the ratio 3:2 respectively. This year the partnership has made a loss of $90,000. Which entry should be made in Fred's current account?

Which of the following is debited to a partnership appropriation account?

Sara and Tarek are in partnership, sharing profits and losses equally. Tarek is entitled for a salary of $18,000 per year. The partnership made a profit of$72,000. What is the total amount that should be credited to Tarek's current account?

Tina and Unitali are in partnership sharing profits and losses equally. Both partners are entitled to receive salary: Tina $15,000 and Unitali $5,000. This year the partnership made a profit of $10.000. What is Tina's NET share of partnership's profit for the year?

In the books of a partnership, which account should be credited with interest of drawings?

On 1 January 2014, Lionel had a debit balance of his current account of $2,000. During the year, the following were recorded in his current account.

Interest on capital $12,500.

Interest on drawings $840.

Share of residual profit $18,000.

Drawings $25,600.

What was the balance of Lionel's current account on 1 January 2015?

Why does a partnership prepare an appropriation account?

Where will interest on drawings be recorded?

Meena and Khan are in partnership, sharing profits and losses equally. Interest on capital account balances is to be allowed at 5%.

The capital account balances at the start of the year were: Meena $10,000; Khan $20,000.

The profit for the year was $28,000. How much was credited to Meena's current account at the end of the year?