balance
C) Deprcciation is to be provided for as follows: Fixtures 10% on a reducing
basis and Buildings ¢1,000,000.
be adjusted to320,000.
) AL31 December, 2003, provision for bad debts is to ¢800,000 per
c) The partners agrecd to pay partnership salary to Sun at an amount of
annum. This amount has not yet been paid.
) Interests on drawings have been agreed as: Sun ¢180,000 and Moon ¢120,000.
8) The partners also agreed that there should be 10% interest on partners' capital.
Required:
a) Prepare trading, profit and loss and appropriation accounts for the year ended 31
December, 2003, and a balance sheet as at that date. (12 marks)
b) Partners' current account in columnar form up to 31/12/2003. (3 marks)
c) In the absence of a partnership decd by the partners, the provisions of the
Incorporated Private Partnership Act i962 (Act 152) apply. Outline any five of such
provisions. (5 marks)
QUESTION 2
K. Poly Company Limited leased a quarry from Mr. Opoku for the period of
4 years at minimum rent of ¢2,000 per annum for a royalty of ¢10.00 per tonne. K. Poly
Company Limited was granted the right to recoup shortworkings within the first three years
only.
Production during the four years was as follows:
Year Tons
1997 120
1998 180
1999 260
2000 400
You are required to prepare
a) Royalty payable account. (5 marks)
b) Landlord account. (5 marks)
c) Shortworkings recoverable account. (5 marks)
QUESTION 3
Although Anastasia Serebour has run a small business for many years, she has never kept
adequate accounting records. However, a need to obtain a bank loan for the expansion of the
2
C) Deprcciation is to be provided for as follows: Fixtures 10% on a reducing
basis and Buildings ¢1,000,000.
be adjusted to320,000.
) AL31 December, 2003, provision for bad debts is to ¢800,000 per
c) The partners agrecd to pay partnership salary to Sun at an amount of
annum. This amount has not yet been paid.
) Interests on drawings have been agreed as: Sun ¢180,000 and Moon ¢120,000.
8) The partners also agreed that there should be 10% interest on partners' capital.
Required:
a) Prepare trading, profit and loss and appropriation accounts for the year ended 31
December, 2003, and a balance sheet as at that date. (12 marks)
b) Partners' current account in columnar form up to 31/12/2003. (3 marks)
c) In the absence of a partnership decd by the partners, the provisions of the
Incorporated Private Partnership Act i962 (Act 152) apply. Outline any five of such
provisions. (5 marks)
QUESTION 2
K. Poly Company Limited leased a quarry from Mr. Opoku for the period of
4 years at minimum rent of ¢2,000 per annum for a royalty of ¢10.00 per tonne. K. Poly
Company Limited was granted the right to recoup shortworkings within the first three years
only.
Production during the four years was as follows:
Year Tons
1997 120
1998 180
1999 260
2000 400
You are required to prepare
a) Royalty payable account. (5 marks)
b) Landlord account. (5 marks)
c) Shortworkings recoverable account. (5 marks)
QUESTION 3
Although Anastasia Serebour has run a small business for many years, she has never kept
adequate accounting records. However, a need to obtain a bank loan for the expansion of the
2
