Edexcel IGCSEAccountingGeneral Applications16 Marks
Max and Tom are in a partnership sharing profits and losses in the ratio 2:1 respectively. The following balances were available at 31 December 2022. Capital account: Max $80 000, Tom $40 000 Current account: Max $1 000 (Cr), Tom $500 (Dr) Drawings: Max $10 000, Tom $6 000 Interest on capital is 10% per annum. Salaries: Max $12 000, Tom $8 000 Net profit for the year $60 000
- (a)Prepare the Appropriation Account for the year ended 31 December 2022.[9]
- (b)Prepare Max’s Current Account for the year ended 31 December 2022. Balance the account at 31 December 2022 and bring down the balance at 1 January 2023.[7]
Mark scheme
Marking points from the official mark scheme. The mark or mark type is shown in brackets.
- 25(a) Appropriation Account for the year ended 31 December 2022
- Net profit for the year (1) 60 000 (1)
- Less Interest on capital:
- Max (10% x 80 000) 8 000 (1)
- Tom (10% x 40 000) 4 000 (1)
- Total interest (1) (12 000) (1)
- Less Salaries:
- Max 12 000 (1)
- Tom 8 000 (1)
- Total salaries (1) (20 000) (1)
- Residual profit (1) 28 000 (1)
- Shared as:
- Max (2/3 x 28 000) 18 667 (1)
- Tom (1/3 x 28 000) 9 333 (1)
- 25(b) Max’s Current Account
- Date | Details | $ | Date | Details | $
- --- | --- | --- | --- | --- | ---
- Jan 1 | Balance b/d | 500 (1) | Jan 1 | Balance b/d | 1000 (1)
- Dec 31 | Drawings | 10000 (1) | Dec 31 | Interest on capital | 8000 (1)
- Dec 31 | Balance c/d | 17667 (1) | Dec 31 | Salary | 12000 (1)
- Total | | 28167 | Dec 31 | Share of profit | 18667 (OF) (1)
- Total | | 39667
- Jan 1 | Balance b/d | 17667 (1)
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