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.
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