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QUESTION4                            PARTNERSHIPS                                                                            (20)

The information given below was extracted from the accountingrecords of Salmon Traders, a partnership business with Sally andMonty as partners. The financial year ends on the last day ofFebruary each year.

REQUIRED

Prepare the following accounts in the General ledger of SalmonTraders:

4.1 Current a/c: Monty (Balance the account.) (7)

4.2 Appropriation account (Close off the account.) (13)

INFORMATION

Balances in the ledger on 28 February 2017
	R
Capital: Sally	400 000
Capital: Monty	200 000
Current a/c: Sally (01 March 2016) (DR)	20 000
Current a/c: Monty (01 March 2016) (CR)	33 000
Drawings: Sally	200 000
Drawings: Monty	180 000

The following must be taken into account:

(a) The net profit according to the Profit and Loss accountamounted to R500 000 on 28 February 2017.

(b) The partnership agreement makes provision for thefollowing:

? Interest on capital must be provided at 15% per annum on thebalances in the capital accounts. Note: Sally increased his capitalby R100 000 on 01 September 2016. Monty decreased his capital byR100 000 on the same date.

? The partners are entitled to the following monthlysalaries:

Sally R12 000

Monty R13 000

Note: The partners’ salaries were increased by10% with effect from 01 December 2016.

? Sally and Monty share the remaining profits or losses in theratio of their capital balances as at the beginning of thefinancial year.