Answer to Question #179773 in Accounting for kris

Question

Get yourselves into group. Each group is going to initiate a Partnership business. Discuss the product line of partnership business your group would like to commence. 

You are required to include below details in your assignment:

a) Describe the main features of the partnership agreement

-Name of the Firm/Partner’s names

-Type of business and business address

-The amount of capital contributed by each partner

-Ratio of profit/loss allocation between partners

-Salary for active partners

-Interest on capital to each partner

-Interest on drawing for each partner

b) Prepare the partnership income statement and profit and loss appropriation account for your business.(must include the journal, ledger and Trial balance)

c) Prepare the partnership Statement of Financial Position for your business.

Answer 1

a)

-Name of the Firm/Partner’s names: Pinky hair & beauty salon

-Type of business and business address: Partnership; 3844-0100, Nairobi.

-The amount of capital contributed by each partner: Partner A -- 5000, Partner B -- 5000

-Ratio of profit/loss allocation between partners: 1:1

-Salary for active partners: Partner A -- 8000, Partner B -- 10000

-Interest on capital to each partner: Partner A -- 2000, Partner B -- 2000

-Interest on drawing for each partner: Partner A -- 1000, Partner B -- 2000

b)

c)