PARTNERSHIP ACCOUNTS ASSIGNMENT

1. State four provisions of the partnership Act 1890.
   b)      X, Y and Z are partners sharing profits and losses in the ratio 4:3:2.    Z receives a partnership salary of shs 12,000 payable to him in  two installments of shs 6,000 each in June and December

The partnership trail balance for the year ended 31^st December 1987 is as follows

    Additional information

1. wages amounting to shs 1,260 was outstanding
2. rates for shs 970 had been paid in advance
3. closing stock on 31^st December 1987 was valued at shs 58,550
4. plant and machinery and fixtures and fittings to be depreciated by 10%

Required

1. Trading, profit and loss and appropriation account
2. Balance sheet as at 31^st December 1987

1. Mukasa, Natukunda and Odipio are partners. At the end of first year they had the following

Shs

Capital:      Mukasa                                                160,000

Natukunda                                          180,000

Odipio                                                  140,000

Gross profit                                                           1,806,200

Rent payable                                                            300,000

Salaries and wages                                      419,000

Furniture and fittings                                                400,000

Rent receivable                                                         254,000

Building                                                                1,500,000

Drawings:    Mukasa                                                170,000

Natukunda                                            80,000

Odipio                                                    40,000

Loan to the firm (Natukunda)                                    200,000

Additional information:

(a)Depreciate buildings and furniture and fittings at 15% and 10% respectively

(b) There was no partnership agreement

Required to:

(i) State any three provision of the 1890 partnership Act

(ii) Prepare profit and loss appropriation account

(iii) Prepare the partners current account