The Accountants' Manual ...: Being the Questions Set At Institute ..., volume 8

Institute of Chartered Accountants in England And Wales

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.. 9.000 ProTision for rent accrued . . 400 I Work in Progress and Stocks... 13,000 Capital— I Fixtures, Fittings, and Trade A £14,000 Utensils 2,000 B 11,000 ICashatBank 2,000 25,000 ^ They agree to admit C, their manager, as from 1st January 1900, provided he bring in £4,000, one-fourth of which is to be credited in equal moieties to the Capital Accounts of A. and B.
The deed provided that Interest at 5 per cent, per annum should be credited on Capital, and that C. should receive a salary of ...£500 per annum, and a third of the profits in excess of i£3,000, after debiting his Salary and Interest on Capital : the profits up to that amount being due to A. and B. equally.
At 31st December 1900 profits, before charging C.*s salary, amounted to £8,900.
The Drawings of the Partners had been as follows : — A. £2,300. B. £1,540. C. £660.
Adjust the Partners' Accounts as between themselves, disregard- ing Interest on drawings.
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