Answer To: \ Project• Accounting for Partnership __ s ___________ ___. Background Information: Ray and Cha~es...
Kiran answered on Dec 12 2021
Task 1
(a) Prepare the General journal entries to form the partnership at 1 January 2020
General Journal
Date Account Debit Credit
1/1/20 Cash $10,000
Debtors $20,000
Stock $22,000
Equipment $32,000
Creditors $24,000
Ray's Capital account $60,000
(To record capital introduced by Ray in business)
1/1/20 Investments $15,000
Debtors $25,000
Stock $20,000
Equipment $38,000
Creditors $28,000
Charles Capital account $60,000
Charles Loan account $10,000
(To record capital introduced by Ray in business)
b) Post all entries to the General Ledger and prepare a Trial Balance
GENERAL LEDGER
Account Cash at Bank
Date Account Debit Credit Balance
Debit Credit
1/1/20 Ray's Capital $10,000 $10,000
Account Debtors
Date Account Debit Credit Balance
Debit Credit
1/1/20 Ray's Capital $20,000 $20,000
1/1/20 Charles Capital $25,000 $45,000
Account Stock on hand
Date Account Debit Credit Balance
Debit Credit
1/1/20 Ray's Capital $22,000 $22,000
1/1/20 Charles Capital $20,000 $42,000
Account Equipment
Date Account Debit Credit Balance
Debit Credit
1/1/20 Ray's Capital $32,000 $32,000
1/1/20 Charles Capital $38,000 $70,000
Account Creditors
Date Account Debit Credit Balance
Debit Credit
1/1/20 Ray's Capital $24,000 $24,000
1/1/20 Charles Capital $28,000 $52,000
Account Ray's Capital
Date Account Debit Credit Balance
Debit Credit
1/1/20 Assets & Liabilities $60,000 $60,000
Account Investments
Date Account Debit Credit Balance
Debit Credit
1/1/20 Charles Capital $15,000 $15,000
Account Charles Loan Account
Date Account Debit Credit Balance
Debit Credit
1/1/20 Assets & Liabilities $10,000 $10,000
Account Charles Capital Account
Date Account Debit Credit Balance
Debit Credit
1/1/20 Assets & Liabilities $60,000 $60,000
Ray Charles Music
Trail Balance
As at Jan. 01, 2020
Account Debit Credit
Cash at Bank $10,000
Debtors $45,000
Stock on hand $42,000
Equipment $70,000
Investments $15,000
Creditors $52,000
Ray's Capital $60,000
Charles Capital Account $60,000
Charles Loan Account $10,000
$182,000 $182,000
Task 2
a) Record the above transactions for the period ended 30 June 2020 in the General Journal and post to
the General Ledger.
General Journal
Date Account Debit Credit
1 Cash $20,000
Ray's Capital $10,000
Charles Capital $10,000
(To record cash contributed by partners)
2 Cash $200,000
Sales revenue $200,000
(To record cash sales)
3 Purchases $60,000
Cash $60,000
(To record cash purchases)
4 Marketing Expenses $10,000
Cash $10,000
(To record Cash Marketing expenses)
5 Administrative Expenses $20,000
Cash $20,000
(To record Cash Advertising expenses)
6 Ray's Current $24,000
Charles Current $26,000
Cash $50,000
(To record salaries to partners)
7 Ray's Current $10,000
Charles Current $6,000
...