Practice questions:
On 1 January 1998 the capital and current accounts of the partners in Page & Partners were as follows:
|
|
capital accounts
|
current accounts
|
|
Page
|
50,000
|
4,500
|
|
Jones
|
75,000
|
2,000
|
|
Beattie
|
85,000
|
5,000
|
During the year the following transaction took place:
|
|
Salaries
|
Drawings
|
|
Page
|
15,000
|
55,000
|
|
Jones
|
10,000
|
20,000
|
|
Beattie
|
10,000
|
28,000
|
The net profit for the year was £131,950. Interest on capital is paid at 10% and interest on drawings is charged at 5%. The partners share the profits equally.
Prepare the appropriation account and show the partners current accounts.