O-LevelAccountingAccounting proceduresOct/Nov 2018Paper 2 Q320 Marks
Lodini and Mathy were in partnership sharing profits and losses equally. They provided the following information on 1 August 2017. Capital Lodini $25000 Mathy $15000 On 1 August 2017 Lodini and Mathy agreed to admit Nanda as a partner. On that date Lodini and Mathy valued their goodwill at $30000. The new partnership agreement stated: 1 Goodwill would not be retained in the books of the new partnership. 2 Nanda would pay $10000 as capital into the business bank account on 1 August 2017. 3 Lodini would transfer $8000 of her capital into a 5% loan account to the partnership on 1 August 2017. 4 Profits and losses would be shared Lodini two-fifths, Mathy two-fifths and Nanda one-fifth. 5 Interest would be allowed on partners' capital at 5% per annum. 6 Interest would be charged at 10% on partners' drawings. 7 There would be no salaries paid to the partners. REQUIRED
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