Question 1

The following is the trial balance of the partnership of Moore and Wright at 31 March Year 7:



$ $

Capital - Moore 60,000
- Wright 15,000
Current Accounts: Moore 2,300
Wright 1,600 1,600
Fixtures and Fittings at cost 24,000
Provision of depreciation of Fixtures
and Fittings at 1 April Yr 6 6,000
Stock, at 1 April Yr 6 41,600
Sales 187,400
Purchases 1,400
Rent 1,500
Rates 1,700
Debtors and Creditors 2,900 25,200
Insurance 3,600
Heating and lighting 3,900
Carriage Inwards 4,800
Discounts Allowed 6,000
General Expenses 12,000
Drawings - Moore 17,400
Wright 31,400
Bank 33,200
Wages 104,300
293,600 293,600

Additional Information:

1. Stock at 31 March Yr 7 was Yr 7 was valued at cost $46,000.
2. Depreciation of $2,000 is to be written off Fixtures and Fittings.
3. During the year, Wright took goods which cost $200 for his own use but no entry has been made in the books.
4. Wages accrued, at 31 March Yr 7, amounted to $1,100 and Rates of $700 had been prepaid.;
5. The partnership agreement provided that:
a) interest at the rate of 8% per annum is to be allowed on the partners' Capital Acoount balances.
b) Wright is to be credited with the salary of $5,000 per annum.
c) profits and losses are to be shared in the same ratio as capital.

REQUIRED:

1. Prepare the Trading, Profit & Loss And Appropriation Account for the partnership for the year ended 31 March Yr 7. (12 marks)
2. Write up the partners' Current Accounts for the year ended 31 March Yr 7, in columnar form. (7 marks)
3. Prepare the Balance Sheet of the partnership at 31 March Yr 7. (6 marks)
(total 25 marks)