Akada,Fuun and Puloo are partners in a partnership business sharing profits or losses in the...

Akada,Fuun and Puloo are partners in a partnership business sharing profits or losses in the ratio 3:2:1 rrespectively, below is their statement of financial position as at 31st
December 2008.
Statement of financial position
Non-Current Assets: N N Factory building 1,650.000 Plant &Machinery 825.000
Furniture &fittings 198,000
2,673.000 Current Assets:
Inventory
Trade receivables 577,500
330,000
Cash in hand 132,000 1,039,500
Capital &Liabilities: 3,712,500
Capital accounts -Akada 990.000
Fuun 660,000
Puloo 330,000
Current Liabilities:
Trade payables 1,006,500
Bank overdraft 726,000 1,732,500
3,712,500
On January lst 2009,they agreed to admit Esem, Esem is tohave one-sixth share which he purchased entirely from Akada paying N660,000 to Akada as goodwill. Mr Akada retained N495.000 of this amount while the balance was introduced as additional capital into the business, Esem contributed M412,500 cash as his proportion of capital.During the year ended 31st December 2009,the partners made drawings as follows:Akada N495,000,FuunN495,000,Puloo M247.500 EsemN247,500.The partnership profits for the year amounted to A1,980,000,no interest
is charged on drawings.
Required;
a)Make journall entries to record the above

adjustments.
b)Write up the partners

pital accounts.?

In Accounting
1 Answers Available
Asked by Hannah on 25th March, 2024