Exam (elaborations)
MANCOSA INTRO TO FIN ACC UNIT 4 ACTIVITY
- Institution
- Management College Of Southern Africa (MANCOSA)
this is the activity of unit 4 of introduction to financial accounting
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INTRODUCTION TO FINANCIAL ACCOUNTINGUNIT 4 ACTIVITIES
QUESTION 1
REQUIRED
Prepare the following accounts in the general ledger of Joni Traders as at 28 February 2023. Balance or
close off the accounts.
1.1 Current a/c: John
1.2 Current a/c: Nick
1.3 Appropriation a/c
INFORMATION
The information given below was extracted from the accounting records of Joni Traders, a partnership
business with John and Nick as partners.
Balances from the ledger of Joni Traders as at 28 February 2023
Debit Credit
R R
Capital: John 300 000
Capital: Nick 200 000
Current a/c: John (01 March 2022) 12 000
Current a/c: Nick (01 March 2022) 9 000
Drawings: John 80 000
Drawings: Nick 70 000
The following must be taken into account:
(a) On 28 February 2023 the Profit and Loss a/c reflected a net profit of R616 000.
(b) Partners are to receive interest at 12% p.a. on their capital balances.
(c) Partners are entitled to the following monthly salaries:
John R9 800
Nick R8 400
(d) John is entitled to a special bonus of R49 000.
(e) The remaining profit/loss must be shared between John and Nick in the ratio 3:2 (ratio of their
capital balances) respectively.
(f) The drawings account of each partner must be transferred to their respective current accounts.
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