University Accounting Assignment Solution: Partnership Accounts

This document presents a comprehensive solution to an accounting assignment, covering various aspects of financial accounting. The assignment includes detailed journal entries for partnership formations, liquidations, and profit appropriations, showcasing the accounting treatment for different scenarios. It also provides solutions for ratio analysis, including calculations for current ratio, liquid ratio, inventory turnover, and debtor turnover. Furthermore, the document includes financial statements such as the balance sheet, income and expenditure accounts, and bar trading statements for different entities, providing a complete overview of the accounting process. The solution demonstrates the application of accounting principles to practical problems, making it a valuable resource for students studying finance and accounting.

Running head: ACCOUNTS
Accounts
Name of the Student:
Name of the University:
Authors Note:

1ACCOUNTS
Table of Contents
Answer to Question 15: Partnership HJK........................................................................................2
Answer to Question 19 Primary Production Joe Lambi..................................................................3
Answer to Question 11: Chapter 7 Primary Producer.....................................................................5
Answer to Question 15 Rob and Roy..............................................................................................6
Answer to Question 9: Partnership Marry and Elle.........................................................................6
Answer to Self-Test exercise 4 ratio................................................................................................7
Answer to Question 15: ratio Chiara Industries..............................................................................8
Answer to Question 7: Ratio Lens Industries..................................................................................8
Answer to Question 13 Bill and Coo...............................................................................................9
Answer to Partnership Q 19 K and L.............................................................................................10
Answer to Question 17 Chapter 6: Leilani Social Club................................................................10
Answer to Question 11: Chapter 6 Sydney Sports Club................................................................12
Answer to Question 25: Chapter 7 Wood Agricultural Company.................................................13
Answer to Question 13: Partnership O and P................................................................................13
Answer to Question 13 Song, Sung and Blue................................................................................16
Answer to Question 3: Partnership Abel, babel and Capel...........................................................18
Answer to Question 7: Partnership P and Q..................................................................................19
Bibliography..................................................................................................................................21

2ACCOUNTS
Answer to Question 15: Partnership HJK
Realization Account
Particulars Amount Particulars Amount
Inventory $18,000.00 Allowance for doubtful debt $500.00
Accounts Receivable $4,000.00 Accounts Payable $3,000.00
Freehold $100,000.00 Mortgage $35,000.00
Plant Machinery $14,000.00
Goodwill $10,000.00 Bank $100,300.00
Partners’ Capital( H: Inventory taken) $6,000.00
Bank $4,800.00 Partners’ Capital (loss) $6,000.00
Total $150,800.00 Total $150,800.00
Bank Account
Particulars Amount Particulars Amount
Opening Balance $1,500.00 Realization
Realization Creditors $2,800.00
Freehold $83,000.00 Expenses $2,000.00
Plant and machinery $13,900.00
Accounts Receivable $3,400.00 Partners’ Capital
H $37,000.00
J $40,000.00
K $20,000.00
Total $101,800.00 Total $101,800.00

3ACCOUNTS
H $37,000.00
J $40,000.00
K $20,000.00
$0.00
Total $101,800.00 Total $101,800.00
Partners capital Account (current)
Particulars H J K Particulars H J
Answer to Question 19 Primary Production Joe Lambi
Joe Lambi
Sheep working Account
Particulars Debit Credit Balance
Number Amount Number Amount Number
Opening Stock 01/07/2018 20000 $120,000.00 20000
Purchase 10000 $122,500.00 30000
Natural Incresae 25000 $150,000.00 55000
Sales- Sheep 26000 $390,000.00 29000
Ration General 200 $1,200.00 28800
Dead and Missing 150 28650
Weighted Average cost
Number Amount
20000 $120,000.00
10000 $122,500.00

4ACCOUNTS
25000 $150,000.00
55000 392500
Cost $7.14
Journal Entry
Particulars Debit Credit
Ration $1,800.00
Sheep Working $1,200.00
Wool Working $600.00
(Being 300 sheep’s killed for ration recorded)
Profit or loss Account $1,800.00
Ration $1,800.00
(Being ration expenses transferred to PL)
Wool Working $600.00
(Being 300 sheeps killed for ration recorded)
Profit or loss Account $1,800.00
Ration $1,800.00
(Being ration expenses transferred to PL)

5ACCOUNTS
Answer to Question 11: Chapter 7 Primary Producer
A
Statement showing cost per head for Inventory Valuation
Particulars Number Amount
Opening Balance 3000 $ 18,000.00
Purchase 4500 $ 38,250.00
Natural Increase 3000 $ 12,000.00
Total 10500 $68,250.00
Average Cost per head $ 6.50
B
Purchase 4500 $ 38,250.00
Natural Increase 3000 $ 12,000.00
Total 10500 $68,250.00
Average Cost per head $ 6.50
B Sheep working Account
Particulars Debit Credit Balan
Number Amount Number Amount Number
C
Journal Entry
Particulars Debit Credit
Ration $325.00
Sheep Working $325.00

6ACCOUNTS
(Being 50 sheep’s killed for ration recorded)
Profit or loss Account $325.00
Ration $325.00
(Being ration expenses transferred to PL)
Answer to Question 15 Rob and Roy
In the Books of Rob and Roy
Journal Entry
Particulars Debit Credit
Business Purchase $50,000.00
Liquidator of Joan $50,000.00
(Being Due entry for business Purchase)
Inventory $36,000.00
Plant $8,000.00
Accounts Receivable $4,000.00
Goodwill $2,000.00
Business Purchase $50,000.00
(Being assets taken over recorded)
Liquidator of Joan $50,000.00
Cash $50,000.00
(Being payment due have been amde0
Answer to Question 9: Partnership Marry and Elle
Journal Entry
Particulars Debit Credit
Land and Building $36,000.00
Revaluation $36,000.00
(Being land and building revalued)
Accumulated Depreciation - Plant $5,000.00
Revaluation $5,000.00
(Being depreciation reduced)

7ACCOUNTS
Revaluation $5,000.00
Accounts Receivable $5,000.00
(Being Accounts receivable reduced)
Revaluation $36,000.00
Mary Capital $24,000.00
Elle Capital $12,000.00
(Being profit on revaluation transferred)
Bank $26,000.00
Tom Capital $26,000.00
(Being Tom bought cash as capital)
Answer to Self-Test exercise 4 ratio
Calculation of Inventory turnover ratio
Particulars Amount
COGS (A) $1,100,000.00
Opening Inventory $100,000.00
Closing Inventory $120,000.00
Average Inventory (B) $110,000.00
Inventory Turnover ratio (A/B) 10.00
Calculation of Accounts receivable Collection period
Particulars Amount
Credit Sales (A) $3,650,000.00
Average Debtors (B) $ 450,000.00
Debtor Turnover ratio (A/B) 8.11
Average Collection Period (days) 45

8ACCOUNTS
Answer to Question 15: ratio Chiara Industries
Statement Showing calculation of ratio
Particulars Formula Amount
A) Current Assets $400,000.00
Current Liabilities $200,000.00
Current Ratio
(Current Assets/ Current
Liability) 2
B) Liquid Assets $250,000.00
Current Liabilities $150,000.00
Liquid Ratio
((Current Assets-
Inventory)/( Current Liability-
BO)) 1.67
C) COGS (A) $480,000.00
Opening Inventory $170,000.00
Closing Inventory $150,000.00
Average Inventory (B) $160,000.00
Inventory Turnover Ratio (COGS/Average Inventory Ratio) 3.00
D) Credit Sales $875,000.00
Average Receivable $260,000.00
Debtor Turnover ratio (Credit Sales/Average Debtors) 3.37
Average Collection Period (days) (365/Average collection period) 108
Answer to Question 7: Ratio Lens Industries
Statement Showing calculation of ratio
Particulars Formula Amount
A) Gross Profit $800,000.00
Net Sales $1,750,000.00
Gross Profit Ratio (GP/Sales) 46%
B) Net Profit $300,000.00

9ACCOUNTS
Net Sales $1,750,000.00
Net Profit Ratio (NP/Sales) 17%
C) Current Assets $750,000.00
Current Liabilities $450,000.00
Current Ratio
(Current Assets/ Current
Liability) 2
D) Liquid Assets $450,000.00
Current Liabilities $425,000.00
Liquid Ratio
((Current Assets- Inventory)/
(Current Liability-BO)) 1.06
Answer to Question 13 Bill and Coo
In the books of Bill and Coo
Journal Entry
Particulars Debit Credit
Cash at Bank $11,000.00
Inventory $20,000.00
Office Equipment $5,000.00
Provision for Accumulated depreciation $1,000.00
Accounts Payable $15,000.00
Bill Capital $20,000.00
(Being Assets and Liabilities and taken over)
Cash at Bank $1,000.00
Accounts Receivable $17,000.00
Plant and machinery $17,000.00
Goodwill $5,000.00
Provision for Accumulated depreciation $5,000.00
Accounts Payable $10,000.00
Coo Capital $25,000.00
(Being Assets and Liabilities and taken over)

10ACCOUNTS
Answer to Partnership Q 19 K and L
In the Books of K and L
Journal Entry
Particulars Debit Credit
Bank $9,000.00
Inventory $10,000.00
Accounts Payable $4,000.00
Loan $6,000.00
K Capital $9,000.00
(Being Assets and Liability taken over)
Inventory $14,000.00
Premises $36,000.00
van $10,000.00
L Capital $60,000.00
(Being assets and Liabilities taken over)
Bank $11,000.00
K Capital $11,000.00
(Being additional Cash bought in for maintaining ratio 2:1)
Answer to Question 17 Chapter 6: Leilani Social Club
a)
Members Subscription Account
Particulars Amount Particulars Amount
Balance b/d (arrear subscription) $280.00
Balance b/d (received in
advance in previous year) $440.00
Income and Expenditure
Account(b/f)
$30,040.0
0 Cash (subscription received)
$30,000.0
0
Balance c/d (received in advance) $360.00
Balance c/d (arrear
subscription) $240.00
Total
$30,680.0
0 Total
$30,680.0
0

11ACCOUNTS
b)
Receipt and Payment Account
Receipt Amount Payment Amount
Balance b/d (cash at bank) $19,000.00 Barman wages $1,200.00
Subscription received $30,000.00 Bar purchase $5,000.00
Bar Sales $7,800.00 Furniture Purchased $1,400.00
Donation $160.00 Club managers Salary $12,000.00
Insurance $3,200.00
Maintenance of club facilities $1,800.00
Printing and Stationery $450.00
Rent paid $960.00
Sundry Expenses $400.00
Wages $3,400.00
Balance c/d $27,150.00
Total $56,960.00 Total $56,960.00
c)
Bar Trading Statement
Particulars Amount
Bar Sales $7,800.00
Less:
Barman Wages $1,200.00
Bar purchase $5,000.00
Net Profit $1,600.00
d)