12 marks
Akila and Darius’s partnership agreement provided for salary, interest on capital, interest on drawings, and profit share.
State two other items which are usually included in a partnership agreement.
Did this page help you?
Financial Statements for Partnerships (Cambridge (CIE) IGCSE Accounting): Exam Questions
Exam code: 0452 & 0985
35 mins18 questions
25 marks
Roger is trader. He provides window cleaning services to customers. Roger is considering turning his business into a partnership with his friend Lucy.
REQUIRED
Advise Roger whether or not he should form a partnership with Lucy. Justify your answer with two advantages and two disadvantages of forming a partnership with Lucy.
Did this page help you?
3a
6 marks
6 marksAkila and Darius are in partnership. The partnership agreement provides for the following:
interest on capital of 3% per annum
interest on drawings of 5%
a salary to Akila of $9500 per annum
residual profits and losses to be shared 60% to Akila and 40% to Darius
The partners provided the following list of balances.
$ | |
Capital accounts at 1 May 2022 | |
Akila | 90 000 |
Darius | 65 000 |
Current accounts at 1 May 2022 | |
Akila | 2 600 debit |
Darius | 4 745 credit |
Drawings for the year ended 30 April 2023 | |
Akila | 19 400 |
Darius | 16 320 |
The profit for the year ended 30 April 2023 was $42 304.
REQUIRED
Prepare the appropriation account on the opposite page for Akila and Darius for the year ended 30 April 2023
Akila and Darius
Appropriation Account for the year ended 30 April 2023
$ | $ | |
3b5 marks
5 marksPrepare Akila’s current account for the year ended 30 April 2023.
Akila
Current account
Date | Details | $ | Date | Details | $ |
3c2 marks
2 marksCalculate the balance on Akila’s current account at 30 April 2023 if he had been due $1000 loan interest from the partnership.
Did this page help you?