Tuli and Duli are in partnership and share profits nnd losses the ratio 3:2 (to

Question

Tuli and Duli are in partnership and share profits nnd losses the ratio 3:2 (to the nearest Namibian doll I deting the final profit, the following must be taken into interest at 5% per annum has to be allowed or, capital The 2. Interest at 6%, per nnnum (to the nearest dollar) must be claimed on drawings: The The entled to a management allowance of NS200 per month, which must be tance at the beginning of the year must be used for cateulatinginterest balonco at the end of the year nust be used for calculating interest. credited to her ccount at the end of each year all wa ter caleu 3. Du The trial balance as at 30 June 2012 and 2013 inludes the folloing balances, amongst others Tull Duli NS 200 000 Cupital accoun: O1 July 2011 Current accn: 1 July 201 Drawings up to 30 June 2012 Drawings up to 30 June 20.3 Profit was 20.1/20.2 20.2/20.3 8o 000 20 000 (cr) 6 000 (dr) 19 200 6 800 29 200 26 800 125 860 79 260 Required: (a) Prepare the statement of changes in equity for the years ended 30 June 2012 an 30 June 2013. (10 marks) (b) Prepare the capital accounts (where capital is fluctuating) of the partners for each of the two yeas. (marks)

Explanation / Answer

Solution (a) Statement of Changes in equity Tull Duli Capital as on 01, July, 2011 200000 80000 Current accounts 20000 -6000 Add: interest on capital 11000 3700 Add management allowance 0 2400 Less: drawing 19200 16800 Less intt on drawing 1152 1008 Add: profit 66552 44368 Capital as on 01, july 2012 277200 106660 Tull Duli Capital as on 01, July, 2011 277200 106660 Current accounts 0 0 Add: interest on capital 22860 5333 Add management allowance 0 2400 Less: drawing 10000 10000 Less intt on drawing 600 600 Add: profit 29920 19947 Capital as on 01, july 2012 319380 123740 Working notes Profit and loss appropriation account Particulars Amount Particulars Amount Year 2012 Management allowance Profit 125860 Duli 2400 Interest on drawings Tull   19200*.06 1152 Interest on capital Duli 16800*.06 1008 Tull (200000+20000)*.05 11000 Duli( 80000-6000).05 3700 Profit to be distributed Tull (110920*3/5) 66552 Duli (110920*2/5) 44368 Total 128020 128020 Year 2013 Management allowance Profit 79260 Duli 2400 Interest on drawings Tull   10000*.06 600 Interest on capital Duli 10000*.06 600 Tull (457200)*.05 22860 Duli( 106660).05 5333 Profit to be distributed Tull (49867*3/5) 29920 Duli (49867*2/5) 19947 Total 80460 80460 Solution (b) Capital Ac count(Tull) Capital Ac count(Duli) Particulars Amount Particulars Amount Particulars Amount Particulars Amount By drawing 19200 By balance Capital balanc e 200000 By drawing 16800 By balance Capital balanc e 80000 By interest on drawing 1152 By balace of current account 20000 By interest on drawing 1008 By balace of current account -6000 By Interest on capital 11000 By management allowance 2400 By balance c/d 277200 By profit 66552 By Interest on capital 3700 Total 297552 Total 297552 By balance c/d 106660 By profit 44368 By drawing 10000 By balance Capital balanc e 277200 Total 124468 Total 124468 By interest on drawing 600 By Interest on capital 22860 By drawing 10000 By balance Capital balanc e 106660 By profit 29920 By interest on drawing 600 By Interest on capital 5333 By balance c/d 319380 By management allowance 2400 Total 329980 Total 329980 By profit 19947 By balance c/d 123740 Total 134340 Total 134340

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