The Ying and Wong partnership made a profit of $320 000 for the year ended 30 Ju

Question

The Ying and Wong partnership made a profit of $320 000 for the year ended 30 June 2011 t, allocation of profits and losses is specified as below: Ying and Wong are to receive annual salary allowances of $75 500 and $60 000, respectively Interest on drawings is to be charged at 8% per annum. *Any residual profits are to be allocated to Ying and Wong equally Additional information: Wong withdrew $5 000 from the partnership on 1 April 2011 Retained Earnings accounts are not used. · Required: Close off the Profit and Loss Summary account of the partnership and then prepare all necessary journal entries showing the distribution of profits/losses to each partner for the year ended 30 June 2011. Narrations are not required.

Explanation / Answer

Entries:

Particulars Amount Partnership profit 320000 Add: Interest on wond drawings 100 Amounts available for distribution 320100 Less: Ying salary -75500 Wong salary -60000 Balance 184600 Distribution: Ying share -92300 Wong share -92300 Balance 0

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.