Financial statements for Partnerships

Worked examples (10)

• 1What goodwill is (3 marks)
• 2Why goodwill is adjusted (4 marks)
• 3Raise goodwill in the old ratio (4 marks)
• 4Write off goodwill in the new ratio (4 marks)
• 5Net goodwill adjustment on admission (6 marks)
• 6Net adjustment by formula (5 marks)
• 7Goodwill on retirement (6 marks)
• 8If goodwill is retained (4 marks)
• 9Why goodwill is not normally recorded (4 marks)
• 10Check the adjustment sums to zero (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style

Worked examples (10)

• 1Capital or current account? (4 marks)
• 2Distinguish the two accounts (3 marks)
• 3Share a revaluation gain (4 marks)
• 4Share a revaluation loss (4 marks)
• 5New partner's capital introduced (3 marks)
• 6Capital accounts on admission (7 marks)
• 7Amount owed to a retiring partner (6 marks)
• 8Settle a retiring partner part-cash, part-loan (5 marks)
• 9Which account, which ratio? (4 marks)
• 10Set out columnar capital accounts (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style

Worked examples (10)

• 1Expense or appropriation? (4 marks)
• 2Interest on capital (3 marks)
• 3Interest on drawings (3 marks)
• 4Share the residual profit (4 marks)
• 5Full appropriation account (7 marks)
• 6Post to the current account (5 marks)
• 7When appropriations exceed profit (6 marks)
• 8No partnership agreement (5 marks)
• 9Loan interest vs interest on capital (4 marks)
• 10Why an appropriation account is needed (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Revaluation or realisation? (4 marks)
• 2Prepare a revaluation account (6 marks)
• 3Revaluation loss (4 marks)
• 4Transfer assets on dissolution (4 marks)
• 5Prepare a realisation account (7 marks)
• 6Asset taken over by a partner (4 marks)
• 7Settle liabilities at a discount (4 marks)
• 8Complete the dissolution (6 marks)
• 9Order of payment on dissolution (3 marks)
• 10Garner v Murray (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style

Worked examples (10)

• 1Split the year into periods (3 marks)
• 2Time-apportion the profit (4 marks)
• 3Allocate a specific item (4 marks)
• 4Interest on capital for part of the year (4 marks)
• 5Two appropriation sections (7 marks)
• 6A salary for one period only (5 marks)
• 7Year-end current account (5 marks)
• 8Statement of financial position items (5 marks)
• 9Why split the year (4 marks)
• 10Three-column presentation (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style