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Detailed workings please. ACT Question 2 The following were the...

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Accounting

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ACT Question 2 The following were the balances of the partnership between Grace and Gary as at 2016 December 31. DR (5) CR(S) 60 000 60 000 3000 400 12 000 8 800 300 000 Capital on 2016 January 1: Grace Gary Current Account on 2016 January 1: Grace Gary Drawings during the year: Grace Gary Gross Profit for the year Premises Motor Vehicles Bank Bank Loan Insurance Salaries Advertising Bad Debts Provision for Bad Debts Account Receivables Account Payables Provision for Depreciation on Motor Vehicles Stock on 2016 December 31 320 000 30 000 40 240 160 000 2 800 80 000 59 760 1 400 1400 12.000 39 000 4 000 60 000 627 400 627 400 Additional Information i. Provision for bad debts is to be increased to $1 500 ii. An amount of $290 is owing on insurance ii. Motor Vehicles is to be depreciated at 20% on cost per annum iv. Interest on capital is allowed at 20% per annum V. Interest on drawings is 5 % per annum vi. Profits and losses are to be shared in the ratio 2: 3 between Grace and Gary ACCT/201 A Draft the Profit and Loss and Appropriation Account for the year ended 2016 December 31. (15 marks) B. Write up the Capital and Current Accounts of Grace and Gary. (10 marks) (Total 25 marks)

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