ANSWER 1: 2 and 20 owners
ANSWER 2: Capital accounts, drawings accounts and current accounts
ANSWER 3: Net Profits/Losses
ANSWER 4: If the partnership agreement does not stipulates a profit/loss sharing ratio the profits/losses are shared according to the partners’ current account opening balances.
ANSWER 5: Salaries to partners
ANSWER 6: Interest on Capital accounts, current accounts and drawings account
ANSWER 7: debited to the partner’s current account (if no drawings account is kept)
ANSWER 8: debit current account of each partner and credit appropriation account
ANSWER 9: A. Apple: R6 288; P. Pie R4 192
ANSWER 10: Capital balances, opening balances of current accounts, transactions of each partner as per the partnership agreement, closing balances of current accounts and drawings accounts.
QUESTION 1
A partnership, who share the profit amongst themselves according to a written, verbal or tacit/silent agreement consist of/may be between…
one or two owners
2 and 20 owners
2 and 50 owners
maximum 10 owners as per the partnership agreement
1 points
QUESTION 2
The recording of equity of a partnership is through the use of…
the partners capital accounts
capital accounts, drawings accounts
Capital accounts, drawings accounts and current accounts
Capital accounts, current accounts and liabilities accounts
1 points
QUESTION 3
The profits and/or losses that should be shared in agreed proportions among the partners, after reflecting all transactions in the current accounts of each partner, according to the partnership agreement is the…
Net Profits/Losses
Gross Profits/losses
Final/remaining profits
Accumulated profits
1 points
QUESTION 4
Which one is not Legal characteristics of a partnership.
Like a proprietorship, the partnership is not a separate legal entity (corporate body) from the owners/partners.
The personal liability of the partners for the partnership’s debts is unlimited- partners share the obligation
The assets of a partnership are the communal property of the partners.
If the partnership agreement does not stipulates a profit/loss sharing ratio the profits/losses are shared according to the partners’ current account opening balances.
1 points
QUESTION 5
Partners’ current accounts is a record of the transactions affecting the partner’s interest in the partnership. Which one of the following accounts are recognised in a current account of a partner, as per the partnership agreement.
Salaries & wages of employees
Rent income/expenses
Salaries of partners
Interest on loans
1 points
QUESTION 6
Partners’ current accounts records amounts payable to the partners/claimable by the partners during or at the end of the financial year. Which one of the following are not recorded in a partner’s current account.
Interest on Capital accounts, current accounts and drawings account
Salaries to partners
Bonusses/management allowances and partner’s share in final profits/losses
Drawings from capital accounts
1 points
QUESTION 7
Cash withdrawn for salaries by a partner during the current financial year will be…
debited to the partner’s capital account
debited to the partner’s current account (if no drawings account is kept)
credited to the partner’s current account (if no drawings account is kept)
debited to the appropriation account
1 points
QUESTION 8
The following entry will be recognised relating to the final profit share between partners according a profit sharing ratio…
debit current account of each partner and credit appropriation account
credit current account of each partner and debit appropriation account
debit capital accounts of each partner and credit current accounts of each partner
credit capital accounts of each partner and debit current accounts of each partner
1 points
QUESTION 9
Partners A. Apple and P.Pie partners’ agreement stipulates the following:
(i) Each partner will receive a monthly salary of R4 000.
(ii) Interest on capital and interest on current accounts should be charge at 12% per year on the opening balances of each partners’ capital account and current account.
(iii) No interest will be charge on drawings
(iv) Partners shares the remaining profits/losses according their capital contributions.
Additional information:
Balance on 1 March 20.19
Capital account: A. Apple R120000; Capital account: P. Pie R80 000
Current account: A. Apple R2 500; Current account: P.Pie R1 500
Balance on 29 February 20.20
Drawings account: A. Apple R6 000 : Drawings Account: P. Pie R5 000
Net profit as per the statement of profit or loss: R130 480
Required:
Each partner’s share of the remaining profits is as follows:
A. Apple: R5000; P. Pie R5000
A. Apple: R6000; P. Pie R4000
A. Apple: R12000; P. Pie R8000
A. Apple: R10 000; P. Pie R10000
A. Apple: R6 288; P. Pie R4 192
1 points
QUESTION 10
Partnerships statement of changes in equity reflects the following…
Closing balances of each partners’ capital accounts, drawings and current accounts
Opening and closing balances of each partners’ capital accounts, drawings and current accounts
Current accounts and appropriation of profit share of each partner
Capital balances, opening balances of current accounts, transactions of each partner as per the partnership agreement, closing balances of current accounts and drawings accounts.
1 points
1 answer