Accounting – 5.2 Partnerships | e-Consult
5.2 Partnerships (1 questions)
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Answer 1
ABC Ltd
Income Statement
For the year ended 31 December 2023
| Item | Amount (£) |
| Revenue | 80,000 |
| Cost of Goods Sold | 50,000 |
| Gross Profit | 30,000 |
| Operating Expenses | 20,000 |
| Operating Profit | 10,000 |
| Finance Costs | 5,000 |
| Profit Before Tax | 5,000 |
| Tax Expense | 1,250 |
| Profit After Tax | 3,750 |
| Dividends | 800 |
| Retained Earnings | 2,000 |
Question 2
XYZ Company has the following information as at 31 December 2023:
- Capital at the beginning of the year £20,000
- Profit for the year £15,000
- Dividends paid £4,000
- New Investment £10,000
Required: Prepare the Appropriation Account and the Statement of Financial Position for XYZ Company as at 31 December 2023.
Answer 2
XYZ Company
Appropriation Account
For the year ended 31 December 2023
| Item | Amount (£) |
| Profit for the year | 15,000 |
| Total | 15,000 |
| Dividends | 4,000 |
| Total | 4,000 |
XYZ Company
Statement of Financial Position
As at 31 December 2023
| Assets | Amount (£) |
| Non-Current Assets | |
| Capital | 20,000 |
| Current Assets | |
| Equity | |
| Capital | 20,000 |
| Retained Earnings | 15,000 |
| New Investment | 10,000 |
Question 3
Green Grocers had the following information for the year ended 31 March 2024:
- Revenue £65,000
- Cost of Goods Sold £40,000
- Gross Profit £25,000
- Administrative Expenses £12,000
- Finance Costs £3,000
- Profit Before Tax £9,000
- Tax Expense £2,250
- Dividends £1,500
- Retained Earnings £500
Required: Prepare the Income Statement and the Statement of Financial Position for Green Grocers as at 31 March 2024.
Answer 3
Green Grocers
Income Statement
For the year ended 31 March 2024
| Item | Amount (£) |
| Revenue | 65,000 |
| Cost of Goods Sold | 40,000 |
| Gross Profit | 25,000 |
| Administrative Expenses | 12,000 |
| Finance Costs | 3,000 |
| Profit Before Tax | 9,000 |
| Tax Expense | 2,250 |
| Profit After Tax | 6,750 |
| Dividends | 1,500 |
| Retained Earnings | 500 |
Green Grocers
Statement of Financial Position
As at 31 March 2024
| Assets | Amount (£) |
| Non-Current Assets | |
| Current Assets | |
| Equity and Liabilities | |
| Capital | 10,000 |
| Retained Earnings | 6,750 |
| Current Liabilities | |
| Total | 16,750 |
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