(h) Constructive criticism of any department or part of same which you think would make it more effective or less expensive if conducted according to your plan.
(i) Anything peculiar to your business which has not been included in any of the previous divisions.
APPENDIX C
MISCELLANEOUS PROBLEMS
FOR SUPPLEMENTARY WORK[84]
Partnership
1. A partnership on equal terms between A and B is dissolved July 1, 1917, the books on that date showing the following:
A’s capital paid in was $16,000, and his drawings were $3,500. B’s capital paid in was $2,000, and his drawings were $1,500. Goods purchased $50,000; sales $40,000; business expenses $1,800. A loss of $1,600 was made on a $5,000 consignment of goods to Liverpool. In the settlement A agrees to pay B an old debt of $3,500. Prepare requisite accounts, and show final balance payable by one partner to the other.
2. A and B are partners carrying on a business in Winnipeg. On January 1, 1918, after adding profits for the past half-year, A’s capital amounted to $150,000, and B’s to $100,000. On that date they take into partnership C, upon the following terms: viz.: he is to bring in capital amounting to $25,000, and each partner is to be credited with interest on his capital at 6% per annum. All profits (after debiting interest) up to $25,000 are to be shared by A and B exclusively in proportion to the amounts of their capital at January 1, 1918. All profits in excess of $25,000 are to be shared equally by the three partners. Accounts are to be prepared and profits and interest credited half-yearly. C is to be credited with a salary of $5,000 per annum. On June 30, 1918, the profits divisible after debiting C’s salary, which he has drawn, but before charging interest on partners’ capital, amounted to $75,000. The partners’ withdrawals which are not chargeable with interest were: A $12,500, B $10,000, and C $3,750. Draw up partners’ separate accounts as they should stand on July 1, 1918.
Assume that instead of a profit, a loss of $75,000 had occurred. How would you have treated it in the accounts in the absence of any direct provision in the partnership agreement relative to losses?
3. A, B, and C were partners in business for several years. A died December 31, 1917. The articles of copartnership provided that on any change in the firm the good-will should be taken into account and its value divided—one-half to A and one-quarter each to B and C. The balance sheet at the date of A’s death was as follows:
| Assets | ||
| Cash | $ 1,500.00 | |
| Merchandise on Hand | 12,000.00 | |
| Sundry Notes and Accounts Receivable | 15,000.00 | $28,500.00 |
| Liabilities | ||
| Sundry Accounts Payable | $ 8,500.00 | |
| A’s Net Investment | 10,000.00 | |
| B’s Net Investment | 5,000.00 | |
| C’s Net Investment | 5,000.00 | $28,500.00 |