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Hello,
I am working on my Lv3 computerised mock and I'm stuck on the last task.
"Webfinity and Beyond"
Goodwill & Profit Sharing
Profit sharing since the formation of the partnership had been in the ratio of 1:1. After the admission of Gehan it was agreed that it would become 2:2:1 with Gehan receiving 20% of the profits and a salary of £916 per month (paid out of the profits at the end of the year).
At the year end, a payment of 5% interest per annum is to be made on Capital into the partners’ current accounts. Assume no changes in capital have been made throughout the year apart from apportioning goodwill when Gehan joined.
Task 8:
Process the year end and make the necessary adjustments in accordance with the Profit Sharing agreements.
I cant to work out the correct appropriations...
Could anyone help me with that please...
Thank you very much! ;-)
Sara
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