ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Appropriation Account 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:

$
Gandanga50 000
Waeni40 000
Banda30 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:

  1. Draw up the appropriation account of the partnership for the year ended 31 December 20X3.

To access more topics go to the Principles of Accounts Notes.


Quick NetOne, Econet, And Telecel Airtime Recharge