Partnerships：練習題

What is the primary reason for partners to draw up a formal partnership agreement?

In a partnership, which of the following items is credited to a partner's current account?

The current account of a partner, Alice, shows a debit balance of \(\$1,200\) at the end of the financial year. What does this indicate?

State two items that are typically included in a partnership agreement to help prevent future disagreements between partners regarding the distribution of profits.

X and Y are in a partnership. X receives a salary of \(\$15,000\) per annum. The partnership agreement provides for interest on capital at \(10\%\) per annum. X's capital is \(\$60,000\) and Y's capital is \(\$40,000\). If the profit for the year was \(\$45,000\), calculate the residual profit to be shared between the partners.

Anya and Ben are partners in a business, sharing profits and losses in the ratio of 3:2 respectively. They have an agreement that provides for interest on capital at 5% per annum, salaries to partners Anya \(\$12,000\) and Ben \(\$8,000\) per annum, and interest on drawings at 2% per annum.

For the year ended 31 December 2023, the net profit before any appropriations was \(\$65,000\).

Additional information as at 31 December 2023:

• Capital account balances: Anya \(\$120,000\), Ben \(\$80,000\)
• Drawings during the year: Anya \(\$15,000\), Ben \(\$10,000\)

Required:

(a) Prepare the Appropriation Account for Anya and Ben for the year ended 31 December 2023.

(b) Prepare the Partners' Current Accounts for the year ended 31 December 2023, starting with any opening balances and showing the closing balances.