3 former professional football players have combined their expertise and resources to form a partnership. They have started a food outlet specializing in menus - named after the world’s famous footballers. It is called FoodBallerz Dome with a huge open space for live screening of football matches. The business information taken from the book of accounts for the year ended 31 December 2020: RM Beginning capital: Cane 60,000 Firmano 60,000 Aguarra 40,000 Bavani 80,000 Current account: Cane 40,000 Firmano 60,000 Aguarra 20,000 Bavani 80,000 Partner’s drawings: Cane 20,000 Aguarra 20,000 Annual Salaries: Cane 10,000 Firmano 10,000 Additional information: The net profit for the year ended 31 December 2020 was RM240,000. The interest on capital and interest on drawings was at 5% and 4% per annum respectively. There was RM5,000 salaries payable to Firmano. The partners agreed to share profits and losses based on capital ratio. REQUIRED: Prepare the Profit and Loss Appropriation Account of FoodBallerz Dome Partnership for the year ended 31 December 2020.
QUESTION 1
3 former professional football players have combined their expertise and resources to form a
RM
|
Beginning capital: |
Cane |
60,000 |
|
|
Firmano |
60,000 |
|
|
Aguarra |
40,000 |
|
|
Bavani |
80,000 |
|
|
|
|
|
Current account: |
Cane |
40,000 |
|
|
Firmano |
60,000 |
|
|
Aguarra |
20,000 |
|
|
Bavani |
80,000 |
|
|
|
|
|
Partner’s drawings: |
Cane |
20,000 |
|
|
Aguarra |
20,000 |
|
|
|
|
|
Annual Salaries: |
Cane |
10,000 |
|
|
Firmano |
10,000 |
Additional information:
- The net profit for the year ended 31 December 2020 was RM240,000.
- The interest on capital and interest on drawings was at 5% and 4% per annum respectively.
- There was RM5,000 salaries payable to Firmano.
- The partners agreed to share profits and losses based on capital ratio.
REQUIRED:
- Prepare the
Profit and Loss Appropriation Account of FoodBallerz Dome Partnership for the year ended 31 December 2020.
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