PAGE 1

1 Wall and Fence are in partnership sharing profits and losses in the ratio 2 : 1 respectively.
The following trial balance was extracted from the books of the partnership on
30 April 2006:

Dr Cr
$ $
Sales 264 300
Purchases 121 200
Rent, rates and insurance 14 600
Wages and salaries 43 700
Motor expenses 22 900
Land and buildings at cost 110 600
Motor vehicles at cost 48 000
Provision for depreciation - motor vehicles 19 200
Stock at 1 May 2005 9 600
Debtors 29 000
Creditors 8 700
Bank 9 400
Capital accounts 1 May 2005
- Wall 80 000
- Fence 40 000
Current accounts 1 May 2005
- Wall 12 600
- Fence 13 300
Drawings - Wall 12 800
- Fence 16 300
438 100 438 100

Additional information:

1 Stock at 30 April 2006 was valued at $10 100.

2 Wages and salaries of $3700 were accrued at 30 April 2006.

3 A provision for doubtful debts of 2 % of debtors at 30 April 2006 is to be created.

4 Motor vehicles are to be depreciated by 40 % per annum using the diminishing

5 Fence is entitled to a partnership salary of $10 600 per annum.

6 Interest on capital is allowed at 5 % per annum.

REQUIRED

(a) Prepare the partnership Trading and Profit and Loss Accounts and Appropriation
Account for the year ended 30 April 2006. [18]

(b) Prepare the partnership Balance Sheet as at 30 April 2006. [17]

[Total: 35]
 PAGE 2

2 Caster and Wheel are in partnership sharing profits in the ratio 3 : 2 respectively. The
following trial balance was extracted from the books on 30 September 2007:

Caster and Wheel

$ $
Purchases 119 600
Sales 227 300
Wages and salaries 34 380
Rent, rates and insurance 17 660
General expenses 21 350
Land and buildings at cost 52 100
Fixtures and fittings at cost 21 500
Provision for depreciation of fixtures and fittings 12 900
Debtors 18 500
Creditors 9 140
Stock at 1 October 2006 10 300
Cash at bank 2 480
Capital accounts 1 October 2006
Caster 33 000
Wheel 22 000
Current accounts 1 October 2006
Caster 14 300
Wheel 12 600
Drawings Caster 17 130
Wheel 16 240
331 240 331 240

Additional information:

1 Stock at 30 September 2007 was valued at $9900.

2 At 30 September 2007:

(i) Wages and salaries, $3530, were accrued.

(ii) Insurance, $1120, was prepaid.

3 An invoice for $1620 for goods bought on credit during September 2007 was received
on 30 September 2007. This has not been recorded.

4 Fixtures and fittings are to be depreciated at 20 % per annum on cost.

5 A provision for doubtful debts of 3 % of debtors at 30 September 2007 is to be created.

REQUIRED

(a) Prepare the trading, profit and loss and appropriation accounts of Caster and Wheel for
the year ended 30 September 2007. [18]

(b) Prepare the balance sheet of Caster and Wheel at 30 September 2007. [17]

[Total: 35]
 PAGE 3

3 Paul and Judi are partners in a retail business. The partnership agreement states that they
share profits and losses in the ratio 3 : 2, after allowing interest on capital at the rate of 4 %
per annum. The following balances were extracted from the books on 30 September 2009.

$
Capital accounts
Paul 30 000
Judi 20 000
Current accounts
Paul 2 300 Cr
Judi 650 Dr
Drawings
Paul 11 000
Judi 10 000
Purchases 139 750
Sales 210 000
Returns inward 4 500
Stock at 1 October 2008 12 650
Staff wages 18 000
General expenses 9 650
Rent receivable 6 000
Advertising expenses 10 000
Rent 17 500
Fixtures and fittings (cost) 24 000
Provision for depreciation of fixtures and fittings 12 600
Creditors 8 900
Debtors 16 000
Provision for doubtful debts 550
Bank 16 650 Dr

Additional information

1 Stock at 30 September 2009 was valued at $15 400.

2 Paul withdrew goods costing $4000 from the partnership business during the year. This
had not been recorded in the books.

3 At 30 September 2009:

Advertising expenses, $2850, were prepaid.

Rent receivable, $2000, was due.

4 Depreciation is charged on fixtures and fittings at 15 % per annum on cost using the
straight line method.

5 Additional fixtures and fittings, $4000, were purchased on 31 January 2009. These are
included in the balance at 30 September 2009. No other changes in fixed assets
occurred during the year. Depreciation is calculated from the date of purchase.

6 The provision for doubtful debts is to be maintained at 5 % of debtors.

REQUIRED

(a) Prepare the trading and profit and loss and appropriation accounts of Paul and Judi for
the year ended 30 September 2009. [19]

(b) Prepare the balance sheet of Paul and Judi at 30 September 2009. [12]

The current accounts details may be included within the balance sheet or in account
format outside the balance sheet.

[Total: 31]
 PAGE 5

4 East and West are in partnership sharing profits in the ratio 2 : 1 respectively. The following
trial balance was extracted from the books on 31 May 2008.

East and West

$ $
Purchases 207 620
Carriage on purchases 2 160
Purchases returns 1 470
Sales 411 320
Sales returns 7 340
Wages and salaries 93 700
Motor expenses 14 600
General expenses 41 640
Land and buildings at cost 72 000
Fixtures and fittings at cost 38 000
Motor vehicles at cost 21 000
Provision for depreciation of fixtures and fittings 14 000
Provision for depreciation of motor vehicles 15 750
Debtors 38 500
Creditors 19 240
Stock at 1 June 2007 15 200
Cash at bank 1 420
Capital accounts 1 June 2007
East 60 000
West 30 000
Current accounts 1 June 2007
East 10 600
West 6 900
Drawings East 9 050
West 7 050
569 280 569 280

Additional information:

1 Stock at 31 May 2008 was valued at $16 100.

2 At 31 May 2008:

(i) Wages and salaries, $7835, were accrued.

(ii) Motor expenses, $800, were prepaid.

3 Repairs, $2000, which have not added value to property, have been recorded in the
land and buildings account in error.

4 Fixtures and fittings are to be depreciated using the straight line method over five
years. The residual value is estimated at $3000.

5 Motor vehicles are depreciated using the diminishing (reducing) balance method at
50 % per annum.
 PAGE 6

6 A provision for doubtful debts of 2 % of debtors at 31 May 2008 is to be created.

7 Interest is allowed on capital at 5 % per annum. West is entitled to a partnership salary

REQUIRED

(a) Prepare the trading, profit and loss and appropriation accounts of East and West
for the year ended 31 May 2008. [21]

(b) Prepare the balance sheet of East and West at 31 May 2008. The partners’
current accounts may be shown in account format or within the balance sheet. [19]

[Total: 40]