The partnership of Irdina and Irfan commenced on 1 April 2013 and accounts areprepared to 31 December annually. The partnership agreement provided for thefollowing:i.Interest on capital is 10% per annum for each partner.Irdina's capital contributionIrfan's capital contributionRM70,000RM105,000ii.SalaryIrdinaRM2,000 per month.RM2,500 per monthIrfanShare of divisible income/(loss)Irdina2/5Irfan3/5On 30* September 2014, Irdina left the partnership and withdrew her accumulatedcapital and profits up to that date.On 1 October 2014, Iftina joined the partnership and the new partnership providedthe following:i.Interest on capital is 10% per annum for each partner.Irfan's capital contributionIftina's capital contributionRM100,000RM100,000ii.SalaryIrfanRM2,500 per monthIftinaRM2,500 per monthB. ii.Share of divisible income/lossIrfanIftinaThe partnership's Statement of Comprehensive Income for the year ended 31December 2014 was as follows:RM8,418,6007,961,400Income from construction contractLess: Cost of constructionProfit from construction457,200190,700647,900Other incomeLess: General overheads420,300Net profit for the year227,600Included in the general overheads are:Partners' salariesPartners' interest on capitalDepreciation on fixed assetRM57,00018,75030,700Capital allowance for the year of assessment was RM30,500.Required:Calculate the statutory income of each partner from the partnership for the year ofassessment 2014.

iii. Share of divisible income/loss Irfan Iftina The partnership's Statement of Comprehensive Income for the year ended 31 December 2014 was as follows: RM Income from construction contract Less: Cost of construction Profit from construction 8,418,600 7,961,400 457,200 190,700 647,900 Other income Less: General overheads 420,300 Net profit for the year 227,600 Included in the general overheads are: Partners' salaries Partners' interest on capital Depreciation on fixed asset RM 57,000 18,750 30,700

iii. Share of divisible income/loss Irfan Iftina The partnership's Statement of Comprehensive Income for the year ended 31 December 2014 was as follows: RM Income from construction contract Less: Cost of construction Profit from construction 8,418,600 7,961,400 457,200 190,700 647,900 Other income Less: General overheads 420,300 Net profit for the year 227,600 Included in the general overheads are: Partners' salaries Partners' interest on capital Depreciation on fixed asset RM 57,000 18,750 30,700

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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