Question 2
The bookkeeper of the firm Gold and Silver solicitors, extracts the following information from the books of account in respect of the year ended 31 December 200-.
| Due to clients | 440,460 | |
| Profit costs | 160,500 | |
| Interest received | 7,450 | |
| General and administrative expenses | 94,840 | |
| Rent received | 4,000 | |
| Provision for doubtful debts (last year's) | 600 | |
| Partners' capital accounts: | ||
| Gold | 30,000 | |
| Silver | 20,000 | |
| Partners' current accounts: | ||
| Gold | 2,500 DR | |
| Silver | 800 CR | |
| Leasehold property at cost | 34,000 | |
| Library, furniture and equipment at cost | 16,500 | |
| Accumulated depreciation on library, furniture and equipment to 1 January 200- | 3,300 | |
| Due from clients (Debtors) | 21,790 | |
| Work in progress at 1 January 200- | 12,100 | |
| Cash at the bank: client account | 440,460 | |
| Office account | 7,360 | |
| Petty cash balance | 140 | |
| Partners' drawings: | ||
| Gold | 24,960 | |
| Silver | 18,890 | |
| Creditors | 6,430 |
The following information is relevant:
- Profits and losses are shared between Gold and Silver so that Gold receives three-fifths and Silver two-fifths.
- Silver is to receive a partnership salary of £8,000 per year.
- Interest is to be allowed on partners' capital, as follows:
| Gold | £3,000 |
| Silver | £2,000 |
- Work in progress at 31 December 200- is valued at £14,150.
- At 31 December 200- prepaid general expenses amount to £350, whilst there are administration expenses outstanding and not yet accounted for amounting to, £900.
- The provision for doubtful debts is to be increased to £760.
- Depreciation of £1,650 is to be charged against library, furniture and equipment.
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Question 2
From the above information prepare the Balance Sheet as at 31 December 200-. Use this Word document to compile your answer. Have you completed Balance Sheet? |
