Past Paper Questions
Principles Of Accounts May/June 2007
Response ALL questions from this section.
1 ) (a) List THREE differentiating features of a partnership concern. (3 marks)
(b) Skerritt and Cymbal are in Partnership posting profits and losses inside the ratio with their capital bills. The following balances were left over in their literature after the planning of the Trading and Revenue and Reduction Account upon September 35, 2006.
Skerritt $30 000
Cymbal $40 000
Cymbal $1 five-hundred
Skerritt $12 1000
Cymbal $5 000
Car at cost $43 1000
Buildings for cost $232 000
Borrowers $23 300
Creditors $17 000
Share at Sept. 2010 30, 06\ $18 000
Cash for bank $27 000
Details to be taken into account:
(1) The web profit for the year ended September 35, 2006 is usually $250 500. (2) Each partner earns an annual wage of $60 000.
(3) Interest on capital shall be paid with the rate of 5% each year. (4) Curiosity on sketches is to be recharged at the rate of 10% per annum. Skerritt drew cash on August 31, june 2006 and Cymbal drew funds on Drive 31, 06\. (5) Accrued depreciation on Motor Vehicles to September 30, 2006 is $8 six-hundred.
(i) Prepare the money and Reduction Appropriation Account for Skerritt and Cymbal to get the year finished September 31, 2006. (6 marks)
(ii) Prepare the existing Accounts of Skerritt and Cymbal about September 31, 2006. ( 5 marks)
(iii) Make the Balance Sheet of Skerritt and Cymbal as at September 35, 2006, demonstrating the working capital. (Do not show information on the current accounts in the Balance Sheet. Transfer only the closing balances from the lover's current accounts. ) (6 marks)
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