1. (a) The partnership of Fatimah and Anisa commenced on 1 January 2020 and accounts areprepared to 31 December annually. Their partnership recorded a profit beforeappropriation of RM60,000. The partnership agreement provided for the following:Interest on capital and drawings3% per annum for each partnerFatimah's drawingsRM4,200Anisa's drawingsRM1,400Fatimah's capital contributionRM14,000Anisa's capital contributionRM7,000Salary:FatimahShare on divisible income / (loss):FatimahAnisaRM28,0002/31/3Required:Prepare a profit and loss appropriation account.(b) How does the tax treatment apply to the partnership?

A partnership firm refers to the business entity between the partners for the running of the…

1. (a) The partnership of Fatimah and Anisa commenced on 1 January 2020 and accounts are prepared to 31 December annually. Their partnership recorded a profit before appropriation of RM60,000. The partnership agreement provided for the following: Interest on capital and drawings 3% per annum for each partner Fatimah's drawings RM4,200 RM1,400 RM14,000 RM7,000 Anisa's drawings Fatimah's capital contribution Anisa's capital contribution Salary: Fatimah Share on divisible income / (loss): Fatimah Anisa RM28,000 2/3 1/3 Required: Prepare a profit and loss appropriation account. (b) How does the tax treatment apply to the partnership?

1. (a) The partnership of Fatimah and Anisa commenced on 1 January 2020 and accounts are prepared to 31 December annually. Their partnership recorded a profit before appropriation of RM60,000. The partnership agreement provided for the following: Interest on capital and drawings 3% per annum for each partner Fatimah's drawings RM4,200 RM1,400 RM14,000 RM7,000 Anisa's drawings Fatimah's capital contribution Anisa's capital contribution Salary: Fatimah Share on divisible income / (loss): Fatimah Anisa RM28,000 2/3 1/3 Required: Prepare a profit and loss appropriation account. (b) How does the tax treatment apply to the partnership?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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