ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Partnership Financial Statements Example
- This is the second part solution to the question that was posted here
- The first part of the solution to this question can be found here
- It examines the basic structure of Financial Statements of partnerships
- In this part we will examine the structure of the Statement of Financial Position of a partnership
Solution
Save and Moyo
Statement of Financial Position as at 31 December 20×8
| $ | $ | $ | |
| Non Current Assets | Cost | Accumulated Depreciation | Net Book Value |
| Freehold Land | 50 000 | - | 50 000 |
| Fixtures and Fittings | 15 000 | (4 500) | 10 500 |
| 65 000 | 4 500 | 60 500 | |
| Current Assets | |||
| Inventories | 68 000 | ||
| Accounts Receivable | 50 000 | ||
| Bank | 31 600 | ||
| Prepayments | 200 | ||
| 149 800 | |||
| Current Liabilities | |||
| Accounts Payable | 37 200 | ||
| VAT | 8 700 | ||
45 900 | |||
| 103 900 | |||
103 900 |
|||
| Financed By | |||
| Capital Accounts | |||
| Save | 100 000 | ||
| Moyo | 50 000 | ||
| 150 000 | |||
| Current Accounts: | |||
| Save | 9 340 | ||
| Moyo | 5 060 | ||
| 14 400 | |||
103 900 |
NB:
- Current Accounts showing how the balances were obtained can be found here
- As already explained VAT is treated as an accrual
To access more topics go to the Principles of Accounts Notes.
