Information Given Below Was Extracted From The Accounting Records Of Salmon Traders 2814054
Information given below was extracted from the accounting records of salmon Traders. A partnership business with Sally and Monty as Partners. The financial year ends on the last day of February each year.
Prepare the following accounts in general ledger of salmon traders:
Current a/c: Monty (balance the account)
Appropriation account (close off the account)
Balance in the ledger on 28 February 2017
Current A/c: Sally(01 march 2016)
20 000 dr
Current A/c :Monty(01 March 2016)
33 000 cr
The following must be taken into account
The net profit according to the profit and loss acc amounted to 500 000 on the 28 Feb 2017
The partnership agreement makes provision for the following:
Interest on capital must be provided at 15% per annum on the balance in the capital accounts. Note: sally increased his capital by R100 000 on the 01 September 2016.Monty decreased his capital by R100 000 on the same date. The capital changes have been recorded.