Candice, Charlotte and Chloe are partners in a firm called the The 3 C: Their capitalcontributions are: Candice RM30,000, Charlotte RM40,000 and Chloe RM20,00Q. Their Current Accounts as at 1 July 2017 stood at: Candice RMl,500 (Cr), Charlotte RM30 (Dr) and Chloe RMl,000 (Dr). Their Partnership Agreement provides that: i. Interest on capital is to be allowed at 5% per annum ii. Yearly salary for Candice is RM2,800. iii. Interest on drawings is to be charged at a rate of 10% per year. iv. Profit and loss are to be divided according to the ratio of capital invested. The net profit of The 3C stood at RM26, 640 on 30 June 2017. Required: a) Prepare the Profit and Loss Appropriation Account for the year ended 30 June 2017.
Question 1
Candice, Charlotte and Chloe are partners in a firm called the The 3 C: Their capitalcontributions are: Candice RM30,000, Charlotte RM40,000 and Chloe RM20,00Q. Their Current Accounts as at 1 July 2017 stood at: Candice RMl,500 (Cr), Charlotte RM30 (Dr) and Chloe RMl,000 (Dr).
Their Partnership Agreement provides that:
i. Interest on capital is to be allowed at 5% per annum
ii. Yearly salary for Candice is RM2,800.
iii. Interest on drawings is to be charged at a rate of 10% per year.
iv.
The net profit of The 3C stood at RM26, 640 on 30 June 2017.
Required:
a) Prepare the Profit and Loss Appropriation Account for the year ended 30 June 2017.
b) Current Account for each partner.
c)
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