Question Lecture 14 Cowan, Grey and Mawson are in partnership as accountants. Th

Question

Question Lecture 14 Cowan, Grey and Mawson are in partnership as accountants. Their trial balance for the yea ended 31 December 2011 was as follows: £'000 £'000 52,300 Fees Wages Interest Customers' accounts Bad debts Suppliers' accounts Properties - cost Office equipment - cost 6,180 4,000 9,300 5,260 4,730 38,232 1,200 -depreciation provision 540 Insurance Bank overdraft Administration expenses Drawings: 600 5,500 9.262+30 Cowan Grey Mawson 1,800 2,400 3,900 Property disposals Accruals 8,500 2,520 Partners' fixed capital: Cowan Grey Mawson 1,000 2,000 3,000 Partners' current accounts at 1.1.2011: Cowan Grey Mawson 4,632 4,098 4,844 Prepayments Rent and rates Teephone Printing and stationery 210 10,200 720 400 £93,664

Explanation / Answer

Income Statement

Balance Sheet

$ Fees Earned 53200 Profit on sale of property 2560 Total Revenue 55740 Less: Expenses: Wages 6180 Interest 4000 Bad Debts 5260 Insurance 600 Administrative expense 9262 - 30 9232 Telephone 720 Printing and stationary 400 Depreciation provision [(1200-540+30)*20%] 138 Total Expenses 26530 Profit before appropriations 29210 Less: Interest on capital Cowan 1000*5% 50 Grey 2000*5% 100 Mawson 3000*5% 150 Salary to partners: Cowan 2000 Grey 2000 Net profit after appropriations Cowan 4982 Grey 7473 Mawson 12455

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