ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Appropriation Account Example
- You can find the introduction to Appropriation Accounts here
- Having introduced them we will now look at an example
Example Question Appropriation Account
Gandanga, Waeni and Banda are partners. They share profits and losses in the respctive ratios
\tfrac{3}{8} : \tfrac{3}{8}: \tfrac{1}{4}
For the year ended 31 December 20X8 their capital accounts remained fixed at the following amounts:
| $ | |
| Gandanga | 50 000 |
| Waeni | 40 000 |
| Banda | 30 000 |
| Total Capital | 120 000 |
Additional information
- They have agreed to give each other 5 per cent interest per annum on their capital accounts.
- In addition to the above partnership salaries of $32 000 for Waeni and $14 000 for Banda are to be charged.
- The net profit of the partnership before taking any of the above into account was $84 800.
Required:
- Draw up the appropriation account of the partnership for the year ended 31 December 20X3.
- The solution to this question can be found here
To access more topics go to the Principles of Accounts Notes.
