Partnership Accounts Questions and Answers

Which of the following items is entered in a partnership appropriation account?

On dissolution of a partnership, trade receivables of $27 000 paid their accounts in full after receiving a 5% cash discount. Calculate the amount of cash received from trade receivables.

Freehold property with a book value of $130 000 was sold on dissolution of a partnership at 10% above its book value. Calculate the sale proceeds received for the freehold property.

On dissolution of a partnership, trade payables of $26 000 were settled and a 10% discount was received from them. Calculate the amount of discount received.

A manufacturer completed 3 000 units during the year at a unit cost of $100. Completed goods are transferred to the trading account at a mark up of 20% on cost. Calculate the profit on manufacture for the year.

A business sold 2 950 units for $442 500. Its opening inventory of finished goods at transfer value was $24 000, goods transferred in from the factory during the year were $360 000, and closing inventory of finished goods at transfer value was $30 000. Calculate the gross profit for the year.

A manufacturing partnership held raw material stocks of $60 000 at the beginning of the year and $44 000 at the end of the year. Raw material purchases for the year were $560 000. Calculate the cost of raw materials consumed for the year.

A partnership paid railage of $9,600,000 during the year and a further $2,400,000 was still owing at the year end. One sixth of the railage cost was incurred in delivering goods to customers. Calculate the railage that is treated as carriage inwards and charged in the trading account.

A partner had made a 6% loan of $12,000 to his partnership. On the dissolution he is to receive sufficient 8% debentures in the purchasing company to give him the same annual return as the loan gave him. Calculate, in dollars, the nominal value of 8% debentures he must receive.

A trader's trade receivables were $17 000 at the start of the year and $21 000 at the end. During the year $214 000 was received from trade receivables, bad debts of $2 300 were written off, discounts of $1 700 were allowed and customers returned goods worth $3 800. Calculate the sales invoiced to credit customers for the year.