WAEC - Accounts Principles Of Accounts (2024 - No. 33)
Use the following information to answer this question.
Taiyelolu and Ejire are partners sharing profits or losses equally. Extracts from their books showed:
Taiyelolu Ejire
# #
Capital accounts (1/1/2023) 200,000 100,000
Current accounts (1/1/2023) 40,000 80,000
Drawings within the year 20,000 30,000
Annual salaries 28,000 24,000
Interest on capital is agreed at 10% and the net profit for the year is # 120,000.
Taiyelolu's balance of current account at the end of the year is
Explanation
Taiyelolu current value
| # | # |
|
Drawing 20,000
Bal c/d 87,000 107,000
|
Balance b/d 40,000 Salary 28,000 Int. on capital 20,000 Share of profit 19,000 107,000 Bal b/d 87,000 |
Goodwill value is the difference between the purchase consideration and the net value of all assets of the business.
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