Scribd
Upload
52 views2 pages

GIVES Test Online

Uploaded by

Iman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
52 views2 pages

GIVES Test Online

Uploaded by

Iman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

ONLINE ACCOUNTING TEST

SIR MAB

Q1. Akila and Darius are in partnership. The partnership agreement provides for the
following:
1. Interest on capital of 3% per annum
2. Interest on drawings of 5%
3. A salary to Akila of $9,500 per annum
4. Residual profits and losses to be shared 60% to Akila and 40% to Darius
The partners provided the following balances:

$
Capital accounts at 1st May 2022:
Akila 90,000
Darius 65,000
Current accounts at 1st May 2022:
Akila 2,600 debit
Darius 4,745 credit
Drawings for the year ended 30 th April 2023:
Akila 19,400
Darius 16,320

The profit for the year ended 30th April 2023 was $42,304.
REQUIRED:
(a) State two advantages and two disadvantages of forming as a partnership. [4]

(b) Prepare the appropriation account for Akila and Darius for the year ended 30 th April
2023. [6]

(c) (i) Prepare Akila’s current account for the year ended 30th April 2023. [5]

(ii) Calculate the balance on Akila’s current account at 30 th April 2023 if he had been
due $1,000 loan interest from the partnership. [2]

(d) State three features of a partnership agreement other than interest on capital,
interest on drawings and salary. [3]
Q2. Zehra is a sole trader. She prepares her financial statements to the end of March each
year.
At 31st March 2022, Zehra’s ledger account balances included the following:

$
Revenue 79,400
Sales returns 3,970
Purchases 36,500
Rent and rates 9,000
Wages 10,100
General expenses 1,287
Insurance 1,800
Discount received 1,095
Inventory at 1st April 2021 3,000
Fixtures and equipment at cost 80,000
Fixtures and equipment – provision for depreciation 39,040
Trade receivables 6,400
Trade payables 4,995
Provision for doubtful debts 156
Cash drawings 8,580
Capital at 1st April 2021 59,000

The following information is also available:


1. Inventory at 31st March 2022 was $3,120.
2. Zehra took goods for her own use from the business during the year ended 31 st
March 2022. These goods cost $1,300.
3. Depreciation on fixtures and equipment is to be charged at 20% per annum using the
reducing balance method.
4. Accrued wages at 31st March 2022 were $800.
5. Rent includes a payment of $1,500 for the 3 months from 1st March 2022 to 31st May
2022.
6. An irrecoverable trade receivable of $200 is to be written off.
7. The provision for doubtful debts is to be set at 3% of trade receivables.
REQUIRED:
(a) Prepare Zehra’s income statement for the year ended 31st March 2022. [11]

(b) Prepare Zehra’s capital account for the year ended 31st March 2022. Balance the
account and bring down the balance on 1st April 2022. [4]
Additional information
Zehra would like to expand the business. She thinks that additional finance of $20,000 would
be required for the equipment which she would need. Zehra’s bank have offered to lend her
$20,000, to be repaid after four years at interest of 6% per annum.
REQUIRED:
(c) Advise Zehra whether or not to agree to the bank loan. Justify your answer. [5]

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy