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Hi everyone, I got this question on a practice exam and just don't get it. I think it is worded poorly, but maybe someone here can help me out.
From the following balance sheet of Portal and Orchid, calculate opening capital and
interest on capitals 12% p.a. payable to Portal and Orchid for the year ended 31st December,
2013 given that during the year 2013 the Portal's drawings were $12,000 and Orchid`s drawings
were $7,000. Profit during the year, 2013 was $50,000.
Liabilities Amount Assets Amount
Portal's Capital 70,000 Sundry Assets 153,000
Orchid's capital 60,000 Drawings (Portal) 12,000
P & L appropriation A/c (2003) 35,000
165,000 165,000
From the following balance sheet of Portal and Orchid, calculate opening capital and
interest on capitals 12% p.a. payable to Portal and Orchid for the year ended 31st December,
2013 given that during the year 2013 the Portal's drawings were $12,000 and Orchid`s drawings
were $7,000. Profit during the year, 2013 was $50,000.
Liabilities Amount Assets Amount
Portal's Capital 70,000 Sundry Assets 153,000
Orchid's capital 60,000 Drawings (Portal) 12,000
P & L appropriation A/c (2003) 35,000
165,000 165,000